Global Value Chains and Circular Economy Transition: Italian and Chinese Fashion System.

The thesis provides a comprehensive analysis of the intersection between the circular economy and global value chains within the Italian and Chinese fashion industries. The first chapter begins with the CE theoretical underpinning through definitions, principles, and how the 3R model - Reduce, Reuse, Recycle - has evolved. It also introduces the concepts of recycling and upcycling, positioning them as key elements of sustainability, and the circular business models, emphasizing their alignment with ESG criteria, while also addressing the challenges and opportunities that arise from their implementation in the fashion sector. The following chapter focuses on Global Value Chains, analyzing their relationship with circular economy endeavors, providing a theoretical framework that defines GVCs, outlines their structure, and explores how they intersect with environmental sustainability efforts in the fashion sector. Special attention is paid to the ecological performance of fashion GVCs, including how eco-innovations, material substitutions, and efficient waste handling can improve sustainability. Processes of value recovery, such as the reintegration of waste materials into the production cycle, are also critically examined to illustrate the potential of GVCs to foster circularity. The third chapter delves into the Italian fashion system to evaluate the application of CE principles in a top global fashion market. This therefore gives an overview of the fashion industry and its value chain, exploring how government policies and regulations have played a key role in promoting the implementation of circular economy practices. The relevant role of ESG is underlined in examining how Italian fashion firms implement sustainability into their operations across both luxury and mass-market fashion sectors. So, it identifies the key concerns of waste management, recycling programs, and fashion retail in Italy and demonstrates how these elements support the development of a more environmentally conscious fashion industry. The fourth chapter extends the study to the fashion industry in China, considering the current trend of incorporating CE principles into company operations in response to the demands for sustainability from both local and global positions. The ESG frameworks analyzed in the Chinese market will focus on how these influence innovation and sustainability in the fast-changing fashion industry. In addition, it emphasizes critical challenges like regulatory hurdles, customer behavior, and infrastructure bottlenecks, among other issues that will act as a catalyst for better application of circular approaches in the value chains of China. Finally, this thesis concludes with a comparative analysis of the Italian and Chinese fashion systems, outlining challenges and opportunities created by circular economy principles integration into global value chains, and making some strategic recommendations based on the findings to enhance the sustainability and circularity of the global fashion industry.