Open Access

Marcus AdamORCiD

• The fashion industry is a vast industry that has grown tremendously over the last decades. This growth causes significant environmental impact since the production of clothes involves high input of energy, water, chemicals and generates great volumes of waste. Even though fashion firms have started to address this challenge by adopting environmental standards, it has turned out that the sole use of eco-friendly material and new manufacturing techniques is insufficient. Instead, sustainable business models are increasingly gaining attention to solve the environmental problems. Offers to rent, swap, repair or redesign clothes are among the most prominent and promising examples. For analytical purposes, these concepts can be assigned to the growing research stream of Product-Service Systems (PSS) that shift the focus from the pure sale of a product toward complementary or substitutional service offers. This decouples customer satisfaction from material consumption, prolongs the garments' lifetime and thus diminishes both material input and appertaining waste. Besides environmental sustainability, PSS imply potential economic benefits for organizations. Particularly in highly competitive industries like the fashion industry, PSS allow firms to differentiate, better compete with cost pressure and mitigate the risk of being imitated by rivels since service is more difficult to replicate. However, fashion PSS are still mainly operated in a niche market by small firms and have yet to be anchored in the mainstream fashion industry.