How Can Small and Medium Brands Compete in the Sustainable Fashion Market?

Oct 10, 2024

3

min reading

Sustainable fashion is no longer a buzzword—it's a movement that’s reshaping the industry for a while now. In recent years, consumers have become more conscious of their environmental impact. This, of couse, made some brands reconsider their production processes, material sourcing, and overall production efforts.

The famous 2023 report by McKinsey & Company, showed that 67% of consumers consider sustainability when making a fashion purchase these days. However, truth is, for large, well-funded brands, embracing sustainability is feasible, after all, they have access to support and tools. But what about small and medium-sized enterprises that are already grappling with limited resources?

For SMEs, the sustainable fashion landscape can feel like both an opportunity and a burden. On one hand, these brands have the potential to attract eco-conscious consumers who value transparency and ethical practices. On the other hand, the costs and complexities of implementing sustainable practices can be overwhelming. How can smaller brands compete in a market increasingly defined by sustainability without compromising their bottom line?

In this article, we’ll explore the challenges emerging brands face in the sustainable market and provide actionable strategies for how they can compete. Keep reading!

The Rise of Sustainable Fashion: Opportunity or Burden?

The fashion industry has made significant strides in sustainability over the last decade. Once considered a niche segment, sustainable fashion has now entered the mainstream, with major retailers incorporating eco-friendly practices into their supply chains. Brands like Patagonia and Stella McCartney are leading the charge, setting industry standards for ethical production, waste reduction, and transparency.

However, for small and medium brands, this progress presents a double-edged sword. On one hand, the demand for sustainable products offers a unique opportunity to capture a growing segment of the market. On the other hand, the costs of sourcing sustainable materials, adopting circular production models, and maintaining transparency can strain the already limited budgets of SMEs.

The State of Fashion 2021 survey by BoF found that 60% of fashion SMEs identified the cost of sustainable materials as a major barrier to implementing eco-friendly practices. With sustainability no longer being optional, smaller brands must find ways to balance their ethical ambitions with the financial realities of running a business.

Should the entire burden of finding a solution fall on them? At World Collective, we don’t think so. That’s why we offer real solutions—but let’s dive into that in a second.

Leveraging Knowledge and Education for Sustainable Success

A common misconception is that small brands lack the knowledge and education to compete in the sustainable fashion market. However, this is no longer the case. While larger companies may have dedicated sustainability teams, many SMEs are actively navigating the landscape with increasing expertise. Entrepreneurs are continuously pursuing knowledge on complex supply chains, certifications, and environmental regulations through studies, events, webinars, and more.

They understand that knowledge is power and are investing in education to gain a solid foundation in sustainable practices. Free and affordable resources, such as our blog and newsletter, as well as platforms like Fashion for Good and the Ellen MacArthur Foundation’s Circular Economy, provide SMEs with invaluable insights on how to implement responsible practices effectively.

Take the example of Veja, a sneaker company that began as a small brand. They made sustainability a core part of their mission by educating themselves on organic cotton, fair trade practices, and the use of recycled materials. This dedication to learning allowed Veja to grow into one of the most recognized ethical brands in the market. Similarly, small brands today must prioritize learning—it’s a cost-effective way to gain a competitive edge.

But while education in sustainability is becoming more accessible and widespread, the real challenge lies elsewhere: access to the tools needed to apply the transformation. These brands may now know what needs to be done, but they often lack the necessary resources to implement change. The scenario has evolved, and with it, the challenges—while knowledge is no longer the primary barrier, access to the right tools is now a critical issue.

Access to Resources: The Game-Changer for Small Brands

Access to sustainable resources is often a major hurdle for SMEs. While larger companies can afford to experiment with expensive sustainable materials and technologies, smaller brands are frequently priced out of the market. A report by FashionUnited highlights that sustainable fabrics can cost up to 30% more than conventional options, making it challenging for SMEs to incorporate them into their collections.

This is where World Collective Marketplace steps in to bridge the gap. Our platform offers brands of all sizes access to reliable, sustainable textiles, streamlining the sourcing process. SMEs can now source directly from mills and suppliers that have passed rigorous technical curation and hold certifications, ensuring both quality and sustainability.

Ultimately, our goal is to make sustainable sourcing accessible to everyone—allowing brands to implement eco-friendly practices without breaking the bank.

For example, Girlfriend Collective, known for its activewear made from recycled plastic bottles, started small by partnering with suppliers who offered sustainable materials at affordable prices, enabling their growth. At World Collective, we take this approach a step further by bridging the gap for all brands.

World Collective Marketplace is a transactional hub designed to help brands source responsibly with ease. Now, you can start sourcing conscious, sustainable materials for your next collection through our platform, which offers smart sampling, streamlined logistics, and no minimum purchase requirements.

Transparency and Authentic Storytelling: Building Consumer Trust

In the world of sustainable fashion, transparency is not just a nice-to-have—it’s essential. Consumers demand to know where their clothes come from, how they’re made, and the impact they have on the environment. For small and medium-sized brands, this provides an opportunity to connect with consumers on a deeper level.

By being transparent about their supply chain, materials, and production processes, SMEs can differentiate themselves from larger brands that may be less forthcoming. This transparency builds trust and loyalty among consumers, who are increasingly drawn to brands that share their values.

An example is Everlane, a brand known for its radical transparency, openly shares information about its factories, material costs, and ethical practices. This level of openness has helped the brand build a loyal following of consumers who trust that they are making responsible choices. SMEs can adopt a similar approach, using transparency as a key differentiator in the market.

Leveraging Digital Tools and Platforms for Growth

It's commonly known now that technology has become a powerful enabler for small brands looking to compete in the sustainable fashion market. Digital platforms, like World Collective Marketplace, and other complementary innovative tools, provide companies with the ability to manage their supply chains, monitor sustainability metrics, and engage with consumers in meaningful ways.

For instance, traceability tools allow brands to track the journey of their materials from sourcing to finished product, ensuring that sustainability claims are verifiable. Our marketplace for instance offers small brands access to data-driven insights and real-time analytics, helping them optimize their sourcing processes and make informed decisions.

Investing in digital tools not only streamlines operations but also positions small brands as forward-thinking and innovative. Consumers are more likely to support brands that embrace technology to drive sustainability and transparency.

Collaboration and Community: The Key to Scaling Sustainability

No small brand can tackle sustainability alone. Collaboration is critical to scaling sustainable practices in the fashion industry. By joining forces with other like-minded brands, suppliers, and organizations, SMEs can pool resources, share knowledge, and amplify their impact.

Collaborative initiatives or partnerships provide small brands with a platform to contribute to industry-wide sustainability goals. These collaborations not only enhance a brand’s credibility but also create opportunities for innovation and growth.

The brand Allbirds, known for its eco-friendly sneakers, has thrived by fostering a collaborative relationship with its suppliers and other brands. By working together, they’ve been able to scale their sustainable practices while maintaining competitive pricing.

At World Collective, we cultivate a nurturing environment where brands can connect and collaborate meaningfully. In addition to the marketplace, we offer a variety of complementary services designed to help tackle the daily challenges of building a truly transparent brand. Whether it's through traceability tools, education programs, or supply chain support, we provide the resources needed for brands to not only meet but exceed their sustainability goals, fostering growth and long-term success.

Competing Through Purpose and Innovation

While the sustainable fashion market can seem daunting for small and medium-sized brands, it also offers tremendous opportunities for those willing to innovate and invest in sustainable practices. By leveraging knowledge, accessing the right resources, and collaborating with others in the industry, SMEs can carve out a niche in this competitive landscape.

The key to success lies in embracing the principles of sustainability, transparency, and innovation. By doing so, small brands can not only compete but thrive in the evolving world of sustainable fashion. The future of fashion is green, and there’s plenty of room for SMEs to lead the way.

Join World Collective Marketplace for free and lead the future of sustainable textile sourcing.

Our mission is to bring digital transformation to the fashion industry, making sustainability more innovative and practical.

All rights reserved © World Collective

Made by

Our mission is to bring digital transformation to the fashion industry, making sustainability more innovative and practical.

All rights reserved © World Collective

Made by

Our mission is to bring digital transformation to the fashion industry, making sustainability more innovative and practical.

All rights reserved © World Collective

Made by