Circular Economy Strategies in Luxury Fashion: The Case of Chanel

The fashion industry is currently experiencing a period of significant instability and change, driven by social, environmental and regulatory pressures. These forces are prompting companies in the sector to rethink their systems. The objective is to transition from the conventional linear economic model to a circular economy approach, thereby establishing regenerative and sustainable long-term models. Digital transformation is also a major driver of this trend, creating significant new opportunities for fashion and luxury companies. The aim of this thesis is to understand how fashion and luxury brands are operating in this context, particularly from the point of view of circularity. Although the principles and practices of circularity have been known for a long time, companies are now adopting them in a concrete way, step by step, supported by numerous technological innovations. The research therefore aims to analyse the most interesting circularity practices in the fashion industry, particularly in the luxury sector, which is of particular interest due to its unique and exclusive characteristics. In conclusion, following the theoretical framework, a case study of a luxury fashion brand is introduced to analyse which circularity practices and supporting digital solutions the brand is actually implementing. While the introduction of such impactful initiatives is never easy, it is particularly necessary at a historic moment such as this.