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How can digital technologies influence Swiss

consumers’ purchasing behavior in the

sustainable fashion industry?

Bachelor Project submitted for the degree of

Bachelor of Science HES in International Business Management

by

Kenza PRESSET

Bachelor Project Mentor: Eric MAEDER, HES lecturer

Geneva, 3rd June 2020

Haute école de gestion de Genève (HEG-GE) International Business Management

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Disclaimer

This report is submitted as part of the final examination requirements of the Haute école de gestion de Genève, for the Bachelor of Science HES-SO in International Business Management. The use of any conclusions or recommendations made in or based upon this report, with no prejudice to their value, engages the responsibility neither of the author, nor the author’s mentor, nor the jury members nor the HEG or any of its employees.

Geneva, 3rd June 2020

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Acknowledgements

Firstly, I would like to thank my mentor Mr. Eric Maeder, HES lecturer, for his continuous help and support throughout the writing of this research paper.

Secondly, I would like to thank my friends and my family for their support throughout my academic journey at HEG and for their help in sharing my online survey with their network.

Finally, I would like to thank each sustainable fashion company that I have interviewed for taking the time to answer my questions and for guiding me with their professional insights.

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Executive Summary

This research paper aims at understanding the effectiveness of digital technologies on Swiss consumers’ buying behavior in the sustainable fashion industry. It focuses on three main digital technologies: social media, mobile applications and e-commerce platforms. The theoretical background investigates sustainable fashion and reveals its complexity, mainly due to the lack of a universal definition leading to important barriers expressed by consumers. The literature review then demonstrates that digital technologies is increasingly used in the fashion industry and represent great opportunities for the sustainable fashion industry.

The methodology used to collect data in this research paper was both quantitative and qualitative. An online survey was sent to 176 Swiss consumers to gather insights on three main areas: purchasing behavior in the fashion industry, perception and knowledge towards sustainable fashion and the effectiveness of digital technologies. Moreover, three in-depth interviews were conducted with Swiss eco-friendly clothing brands in order to gain insights from a professional point of view.

Findings show that even though Swiss consumers tend to understand the meaning of sustainable fashion, there is an important lack of information and accessibility in the Swiss market, representing the main barriers preventing Swiss consumers from purchasing sustainable fashion. In terms of digital technologies, it was found that social media is the most efficient tool to raise a brand’s awareness, especially amongst young consumers. Furthermore, results demonstrate that a mobile application would be more effective to change consumers’ behavior than an e-commerce platform; however, digital technologies alone cannot significantly change consumers’ buying behavior.

Based on the literature review and the findings, recommendations suggest that a mobile application integrated with gamification techniques would be the most efficient digital technology to encourage Swiss consumers towards sustainable consumption. It suggests a potential mobile application regrouping Swiss sustainable apparel brands with several gamification elements responding to current market needs.

This thesis concludes by an overall conclusion of the research and provides insights for the future of this market as well as future research directions.

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Contents

How can digital technologies influence Swiss consumers’ purchasing behavior

in the sustainable fashion industry?...1

Disclaimer ... i

Acknowledgements ...ii

Executive Summary ...iii

Contents...iv

List of Tables ...vi

List of Figures...vii

1. Introduction ...1

1.1 Problem Statement ...2

1.2 Purpose of the study ...3

1.3 Organization of the report ...3

2. Theoretical background ...4

2.1 Sustainable fashion ...4

2.1.1 Sustainability in the fashion industry ...4

2.1.2 Consumer behavior ...5

2.1.3 Consumption drivers ...6

2.1.4 Consumption barriers ...7

3. Literature review ...9

3.1 Digital use in the fashion industry ...9

3.1.1 The rise of digital in the fashion industry ...9

3.1.2 The effectiveness of digital technologies on consumer buying behavior in the sustainable fashion industry ...10

4. Methodology ...13

4.1 Research methodology ...13

4.1.1 Design of the quantitative survey ...13

4.1.2 Design of the qualitative survey ...14

4.1.3 Data collection ...14

4.2 Scope and limitations ...14

5. Results ...15

5.1 Quantitative results ...15

5.2 Qualitative results ...16

5.3 Analysis of the findings...17

5.3.1 Quantitative and qualitative analysis ...17

6. Discussion ...35

6.1 Summary of findings and literature review ...35

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7. Conclusion ... 50

Bibliography ... 52

Appendix 1: Online survey ... 60

Appendix 2: Interview with Avani ... 64

Appendix 3: Interview with Blue in Green ... 69

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List of Tables

Table 1 – Sample characteristics ... 15

Table 2 – Swiss sustainable fashion brands interviewed ... 16

Table 3 – Frequency of purchases per age category ... 18

Table 4 – Understanding of sustainable fashion ... 21

Table 5 – Channels from which consumers have heard about a sustainable fashion brand, per age category ... 30

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List of Figures

Figure 1 – Seven types of sustainable fashion ... 5

Figure 2 – The intention-behavior gap ... 7

Figure 3 – Frequency of fashion purchases ... 17

Figure 4 – 3 most important factors influencing the purchasing decision ... 20

Figure 5 – Consumers’ perceptions towards sustainable fashion ... 22

Figure 6 – Knowledge towards sustainable fashion brands... 24

Figure 7 – Consumers’ perception of sustainability in fashion ... 25

Figure 8 – Consumers considering sustainability when purchasing fashion ... 25

Figure 9 – Sustainable fashion consumption barriers per age category ... 28

Figure 10 – Knowledge towards sustainable fashion online platforms ... 29

Figure 11 – Nikin vs Avani on Instagram... 32

Figure 12 – Factors encouraging sustainable fashion consumption ... 34

Figure 13 – ThredUp and Lablaco fashion footprint scores ... 44

Figure 14 – Good On You rating scheme... 46

Figure 15 – Fair Act’s interactive map ... 47

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1. Introduction

The fast-fashion industry has seen exponential growth in recent years and has become a serious challenge as it generates significant negative externalities. Indeed, according to the UN environment, the fast-fashion industry is considered to be the second most water-polluting industry in the world (UN Environment 2018).

Consumers have radically changed the way clothes are consumed, moving towards an economy of overconsumption. Overconsumption can be defined as the consumption of a product in excessive amounts (Lexico 2020). In fashion, it means that globally we consume 80 billion new garments each year, representing an impressive increase of 400% compared with what we consumed two decades ago (Firth 2015).

While clothing production has approximately doubled in the last 15 years, clothing use has dramatically declined by almost 40% (Ellen MacArthur Foundation 2017). Fashion companies have accelerated production, introducing new clothing lines more frequently, driving consumers to continuously desire new trends. The average number of clothing collections has more than doubled from two per year in 2000 to about five per year in 2011 (McKinsey 2016) representing a considerable increase.

Moreover, as manufacturers produce an increasing quantity of clothes, the selling price has significantly decreased over the years, ultimately driving consumers to overconsume. In economics, overproduction arises when demand is lower than supply, thus resulting in surplus (Halton 2019). In the fast-fashion industry it is explained by the fact that of the 150 billion garments produced each year, 30% of these clothes are never sold (ShareCloth 2018). This overproduction leads to an extreme waste problem with more than 80% of the total clothes produced being thrown into landfills and only 20% being recycled (WWF Switzerland 2017).

To address these challenges, new companies have emerged in recent years, operating within new business models and offering better sustainable alternatives. Along with that, consumers are increasingly aware of this issue, asking for more transparency and sustainability. However, the level of awareness about this issue remains too low overall, (Saricam et al., 2017; Shen et al., 2013) as fast-fashion continues to experience rapid growth.

Today, there is a need to change consumer behavior, to educate them to take interest in the matter and to raise awareness.

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1.1 Problem Statement

As consumption of textiles is projected to rise further to 102 million tons in 2030, (WWF Switzerland 2017) fashion companies and experts acknowledge that there is a problem; indeed, they admit that it will require significant technology and a combination of solutions to solve the current issues (Gerretsen, Kottasovà 2020).

Even though big players such as Inditex and H&M have focused their efforts towards sustainability, their business models remain far from sustainable.

However, in recent years we have seen the development of new companies innovating through new business models and offering circular solutions. For instance, in Switzerland there are several sustainable fashion brands such as Nikin, Avani and Jungle Folk, offering a wide range of ethical clothing. Nevertheless, it does not seem that consumers are interested or aware of these alternatives, as consumption of fast-fashion continues to rise.

Sustainable fashion remains a niche industry and it is therefore difficult to reach consumers, especially because of the consumption barriers. Indeed, while sustainable fashion is a growing trend, there are still important barriers preventing consumers from purchasing it, such as the lack of information and knowledge, and the lack of visibility (Albouy, Adesida 2018).

Switzerland ranks among the top countries worldwide for recycling with a recycling rate of 49.7% (World Economic Forum 2017a), and was ranked one of the top five countries achieving the UN sustainable goal in 2017 (World Economic Forum 2017b), showing that there are opportunities for improvement in the consumption of textiles.

In an economy that is becoming more digital than ever, Swiss consumers increasingly use digital devices to shop, and new means are available for small companies to reach a broader audience. While many studies have shown a positive correlation between digital technology and consumer purchasing behavior, little research has been done specific to the sustainable fashion industry. Therefore, this thesis aims to close the gap by understanding further how digital technology can help Swiss consumers to purchase sustainable items and how it can influence consumer behavior.

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1.2 Purpose of the study

This research paper is an analysis of the potential influence of digital technologies on the consumption of sustainable fashion in Switzerland. The research focuses on three main digital technologies: mobile applications, social media and e-commerce platforms. Firstly, through this study the author intends to demonstrate the current barriers existing in the sustainable fashion industry in Switzerland. Secondly, the author aims to illustrate the increasing importance of digital technology and its significant potential to influence consumer buying behavior. The purpose of the study is to analyze the consumption patterns of sustainable fashion and digital technologies by gathering quantitative and qualitative data on the Swiss market. Finally, the main goal of this paper is to provide recommendations on how to influence Swiss consumers’ buying behavior in the sustainable fashion market using digital technology by answering the question “How can digital technologies influence Swiss consumers’ purchasing behavior in the sustainable fashion industry?’’

1.3 Organization of the report

The report is organized into three main sections covering the theory, the methodology and the recommendations. The first part focuses on the theoretical aspect of sustainable fashion; it includes the review of existing literature on the subject and will investigate consumer behavior, consumption drivers and barriers. It will also overview previous research on digital use in this industry and its effectiveness on consumers’ purchasing behavior.

The second part will go through the research methodology as well as the scope and limitations of the study. The results from the quantitative survey will be analyzed and supported by the qualitative findings.

The third and final part is composed of a discussion and a summary of the main findings and the literature review. It will provide recommendations on how effective digital technologies can influence Swiss consumers’ purchasing behavior in the eco-friendly clothing market. The thesis will then be closed with a general conclusion to complete the report.

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2. Theoretical background

2.1 Sustainable fashion

2.1.1 Sustainability in the fashion industry

The concept of sustainable fashion is not new but the concern around sustainability in the fashion industry has grown significantly in recent years. It has become an important issue to tackle due to its significant negative externalities. Among these externalities, WWF identified four main environmental impacts arising along the supply chain: energy and gas emission, water usage, pollution and waste (WWF Switzerland 2017).

To further understand the subject, we need a thorough understanding of what sustainable fashion means. Despite the increasing importance of eco-fashion, there is no universal definition (Dissanayake, Perera 2016) as it remains a broad and complex concept (Hur, Cassidy 2019). However, researchers agree that it is a comprehensive concept of both environmental and socio-economic values. Green Strategy highlights these aspects and defines sustainable fashion as « clothing, shoes and accessories that are manufactured, marketed and used in the most sustainable manner possible, taking into account both environmental and socio-economic aspects » (Green strategy 2020). In addition, since there is no global definition, sustainable fashion can be referred to using various terms such as green fashion, eco-fashion, fair fashion, slow fashion or ethical fashion.

Kate Fletcher, an expert in this field, emphasizes that sustainability in the fashion industry is about the entire life-cycle of a textile starting from cultivation through to distribution and final disposal (Fletcher 2013).

Supporting this approach, seven forms of sustainable fashion were identified by Dr. Anna Brismar, taking the perspective of both producers and consumers (Brismar 2016). For the purposes of this paper, we will mainly focus on the production side, representing the right part of the chart.

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Figure 1: Seven types of sustainable fashion

Source: (Brismar 2016)

2.1.2 Consumer behavior

Globally, there has been an increasing awareness about sustainable fashion among the population, especially with young consumers. Indeed, millennials (25-34) and generation Z (18-24) represent the two age group categories supporting the most sustainable fashion worldwide (KPMG 2019). However, the concern over socio-economic and environmental issues is not limited to these age categories, as there has been a global increase in the proportion of consumers preferring eco-friendly clothing brands (ThredUp 2019). According to McKinsey, approximately one third of the global population would switch to another brand or modify their purchasing behavior by including the sustainability factor into their purchase (McKinsey 2019a; Mulligan Nelson 2012). This shift by consumers can be explained by the rise of green consumerism, whereby consumers adopt a more sustainable lifestyle, changing their consumption behavior towards more conscious consumption reflecting their values and beliefs (Young 2018). Consumers’ attitudes towards green products have changed, especially because there is a rising concern over climate change. Globally 60% of consumers stated being worried about climate change while 64% of consumers reported trying to have a positive impact on the environment through their everyday actions (Euromonitor 2019).

Furthermore, many movements have emerged in recent years, such as the “vegan movement’’ making sustainability a trend. As more and more consumers integrate the

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sustainability aspect into their purchasing decisions, it is also becoming a source of competitive advantage for companies (McKinsey 2019b).

Consumers’ interest in sustainable fashion is highly influenced by their perception about eco-fashion. Indeed, as consumers consider it as unattractive and unfashionable, the general level of interest is lower (Rathinamoorthy 2018; Danish Fashion Institute 2012). Researchers have shown that consumers tend to have a negative image of sustainable fashion, believing that it is unstylish and unable to satisfy their needs (Wagner, Curteza, Hong, Chen, Thomassey, Zeng 2019; Moon, Lai, Lam, Chang 2015; Danish Fashion Institute 2012).

Four types of sustainable fashion consumers were identified by Song and Ko (Song, Ko 2017), based on attitudes and perceptions towards sustainable fashion: doubtful egoist, single-minded bystanders, wavering intellects and opinion leaders. First, doubtful egoists represent consumers perceiving sustainable fashion as a positive impact for the environment but considering it as too expensive and unfashionable, providing low benefits. Second, single-minded bystanders think that sustainable fashion offers durable products but provides poor benefits and low effectiveness. Third, while wavering intellects view sustainable fashion as highly effective and relevant, they recognize that the price is too high. Fourth, opinion leaders perceive sustainable fashion as highly relevant, effective and affordable. This consumer category is highly interested in sustainability and believes that it contributes to society.

This study shows that consumers’ perception differs greatly depending on the personal values and attitudes of each individual.

2.1.3 Consumption drivers

The consumption of sustainable fashion is driven by many factors, but in general terms it is the feeling of doing something good that is appealing to consumers.

Among the leading factors influencing consumers to purchase sustainable fashion, the price relative to the value provided is the first aspect encouraging consumers to buy eco-clothing (KPMG 2019). Indeed, consumers are increasingly looking at the perceived value offered by the product. They are more willing to buy sustainable fashion as it offers higher quality and more durable products, therefore saving costs and creating additional value (Diddi, Yan, Bloodhart, Bajtelsmit, McShane 2019).

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cost. Along with that, he identified five motivational patterns encouraging consumers to buy sustainable fashion (Davies 2015).

First, consumers are increasingly looking for clothing reflecting and aligning with their own values and beliefs. Their motivations are closely linked to the self and to attributes such as uniqueness. Second, consumers emphasize the material quality, perceiving natural materials as leading to fewer health problems.

Also, as stated previously, their interest in climate change and the environment is a key driver for changing their consumption behavior. Furthermore, the sense of accomplishment for doing the right thing and contributing to a better world highly motivates consumers. Finally, social justice remains an important factor guiding consumers towards slow fashion as they believe sustainable fashion will result in less exploitation (Davies 2015).

2.1.4 Consumption barriers

Although consumers express a growing interest in eco-friendly clothing, there are several consumption barriers. Researchers have shown that engaging in sustainable consumption, especially in the apparel industry, is complex and challenging (Diddi, Yan, Bloodhart, Bajtelsmit, McShane 2019; Davies 2015), resulting in a difference between the intention of purchase and the action (James, Montgomery 2017). This behavior gap has been largely covered in previous research and is illustrated below, in Figure 2:

Figure 2: The intention-behavior gap

Source: (James, Montgomery 2017)

Consumers’ lack of information and knowledge are the major barriers hindering sustainable fashion consumption (Rathinamoorthy 2018). Indeed, consumers do not have sufficient information about products and therefore do not know what their real contributions are. In fact, research conducted in Finland showed that consumers were seeking more detailed information about how their sustainable fashion purchases impacted the environment (Vehmas, Raudaskoski, Heikkilä, Harlin, Mensonen 2018).

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This is an important aspect in consumers’ purchasing behavior, as 65% of consumers stated that they would be more encouraged to buy eco-clothing if there was clear labelling (KPMG 2019). Also, as stated previously, since there is no universal definition for sustainable fashion, the subject remains unclear. As it could mean different things for different people it reinforces further the ambiguity and the lack of knowledge (Albouy, Adesida 2018).

In addition, the price of sustainable fashion items remains an important barrier as consumers perceive them as expensive (McNeill, Moore 2015) and are not willing to pay a higher price (Rathinamoorthy 2018). In fact, consumers do not understand higher prices and find it difficult to justify them (Mukendi, Davies, Glozer, McDonagh 2020; Ritch, Schröder 2012).

Moreover, the lack of visibility and accessibility contributes significantly to consumption obstacles. Only 29% of consumers consider it easy to purchase sustainable fashion (KPMG 2019). Also, research indicates that it requires significant time to find eco-friendly apparel and that consumers are not willing to invest their time and spend energy to find it (Mukendi, Davies, Glozer, McDonagh 2020; Perry, Chung 2016). Furthermore, as stated above, the perceived lack of style and variety remains an important challenge preventing consumers from buying sustainable fashion. The options are limited in terms of collections, colors and sizes which ultimately reduce consumers’ willingness to buy (Albouy, Adesida 2018).

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3. Literature review

3.1 Digital use in the fashion industry

3.1.1 The rise of digital in the fashion industry

According to the State of Fashion report from McKinsey, the major trends impacting fashion businesses in 2018 were related to digital technologies and mobile usage. Indeed, consumers, especially millennials, increasingly use online channels to shop. Digital technologies have become increasingly important, offering a better way for small companies to interact with consumers and raise awareness (McKinsey 2018). Online platforms have become the entry point of choice for consumers into their shopping journey as they use them as the first point of search. This digital shift is primarily boosted by an increasing demand for convenience, relevance and breadth of assortment. Overall, online platforms are essential to any fashion business and are expected to be one of the most powerful sales channels (McKinsey 2019a).

Moreover, mobile technology is identified as a key trend in the clothing industry, shifting consumers’ purchasing behavior (WWF Switzerland 2017). The use of mobile devices to shop fashion has significantly increased, becoming the dominant device for online fashion shopping. Globally, more than 58% of the e-commerce traffic share comes from smartphones (Nosto 2019). Along with that, consumers increasingly integrate these digital devices into their purchasing decision, using them either before, during or after a purchase (Deloitte 2017). They use them to do research and compare products, spending approximately six hours per week looking for fashion items on their phones (McKinsey 2020). The influence of digital devices is especially important in Switzerland in the fashion industry because it represents the main category for which shoppers use digital devices (Deloitte 2017).

In the sustainable fashion industry, the importance of digital platforms is also growing, as it appears among the top trends shaping the future of this sector. In fact, online keywords research associated with sustainable fashion has increased by 75% year on year, with an average of 25,000 searches every month (Lyst 2019).

Driven by consumers, digital technologies such as websites, mobile apps and social media have significantly increased in popularity. This change can be explained by a shift in consumers’ preferences, asking for more convenience and accessibility (Linchpin SEO 2019).

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In order to respond to this demand, many sustainable fashion e-commerce platforms have emerged, making it easier for consumers to purchase eco-clothing by regrouping several brands into one single website. For instance, online marketplaces like AntiBad, Olives & Leos, and Staiy offer a wide range of ethical clothing brands, facilitating consumers’ shopping journey.

3.1.2 The effectiveness of digital technologies on consumer buying

behavior in the sustainable fashion industry

Little research has been done on the impact of digital technologies on consumers’ buying behavior specific to the sustainable fashion industry.

However, we know that social media has significant power to influence consumers’ buying behavior, as it is becoming one of the most powerful tools to engage with consumers. Indeed, it represents important opportunities for sustainable fashion as it could be used as a booster for change (Le Rolland 2018).

On one hand, research has shown that consumers’ attitudes towards sustainable fashion are positively influenced by social media when learning about environmental issues. By gathering information on these platforms, consumers’ intentions to purchase sustainable apparel increases (Zhao, Lee, Copeland 2019). Researchers support this finding by demonstrating that the social media content of sustainable fashion brands increases consumers’ attitude towards this sector positively; therefore, this positive attitude leads to an increase in sustainable apparel purchase intention (de Lenne, Vandenbosch 2017). Also, in regard to social influencers, a study conducted in the UK has shown that while celebrities and influencers can impact consumers’ attitudes towards sustainable fashion, this does not necessarily influence their purchasing decisions (McKeown, Shearer 2019). On the other hand, McKinsey argues that the influence of social media on consumers’ buying behavior in the apparel industry is highly dependent on the engagement rate and that it is usually too low in this sector. Their data suggests that companies in the fashion industry should rethink their digital strategy and emphasize the opportunities emerging from the rise of online platforms (McKinsey 2020). In addition, researchers have found that the influence of social networking sites and subjective norms on consumers’ intentions to purchase sustainable fashion was not greater than knowledge and attitudes. This demonstrates that social media alone does not necessarily lead to an increase in consumers’ intention to purchase eco-friendly apparel (Reiter, Hiller Connell 2015).

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Moreover, researchers have demonstrated the importance of social media on eco-friendly apparel consumption by identifying eight roles of social media for sustainable fashion consumption: publicity, transparency, education, engagement, customer relationship management support, social interactions, trust and empowerment (Strähle, Gräff 2016).

The influence of social media on consumers’ buying behavior in the sustainable fashion industry has not been widely studied, however researchers demonstrate that digital platforms such as Instagram are highly efficient to promote and create awareness (McNeill, Moore 2015; Creangã 2019).

With regard to mobile technology, there are significant opportunities to develop mobile applications to communicate sustainability, as millennials increasingly use mobile devices as m-commerce platforms and are becoming more concerned about sustainability. Previous research indicated that a mobile app for sustainable fashion was a powerful tool to address the sustainability issue in the fast-fashion industry; however, m-commerce would only be effective on sustainable purchasing behavior if the mobile application was designed to facilitate the discovery of eco-friendly apparel (J.Parker, E. Henninger 2018).

In addition, it was found that including sharing features with friends in a sustainable mobile app is vital as it fosters sustainable behavior and encourages knowledge exchange (J.Parker, E. Henninger 2018; Charband, Jafari Navimipour 2016).

Furthermore, it was demonstrated in a previous research paper that digital media strategies such as documentaries were effective in influencing millennials’ sustainable apparel purchase intention. The study shows that after viewing the documentary “The True Cost’’, millennials’ purchasing intention towards sustainable fashion increased (Copeland 2019). This finding demonstrates the importance of knowledge in this industry and its correlation with a change in consumer behavior.

Another study has demonstrated that a QR-code mobile application influenced consumers’ behavior as their perceptions of sustainability changed. Indeed, results show that consumers attach higher importance to sustainability aspects when purchasing fashion with a QR-code mobile app indicating the origin, production, quality, etc. Even though this does not indicate a direct impact on consumers’ buying behavior, it demonstrates that digital technologies have the power to modify consumers’ behavior (Strähle, Girwert 2016).

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Overall, we cannot find a large number of insights about the effectiveness of digital technologies on sustainable fashion as this subject has not been widely covered by researchers. However, we do know that mobile technology and social media can provide new means to track and change consumer behavior in the sustainable fashion industry (Radhakrishnan 2015). Unfortunately, no previous studies were found about the effectiveness of sustainable apparel e-commerce platforms.

As there are only a few existing research papers written about this matter, it reinforces further the relevance of this study and the importance of this research paper to fill the current gaps.

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4. Methodology

4.1 Research methodology

This research is exploratory because it provides a better understanding of an existing problem and contributes to solving this issue by providing recommendations. The primary aim of this study is to analyze and understand Swiss consumers’ behavior towards fashion and sustainable fashion.

Two research methods were used to gather primary data: quantitative and qualitative methods. The quantitative data was collected through an online questionnaire consisting of 20 questions sent to Swiss consumers; the qualitative data was gathered through three interviews conducted with Swiss sustainable fashion brands. The aim of these interviews was to gather more insights on this industry and to collect more information about the Swiss market. Another objective of these interviews was to understand the importance of digital technologies for these companies and to identify what digital techniques they used.

The aim of this research is to acquire more information on the Swiss market in order to provide recommendations on how to influence Swiss consumers’ buying behavior with digital technologies in the sustainable fashion industry.

4.1.1 Design of the quantitative survey

The aim of the survey was to gather information on how Swiss consumers purchase fashion and understand their knowledge about sustainable fashion. The introductory part of the survey focused on demographics questions such as age and gender, in order to be able to analyze the results by comparing different segments.

The first part focused on identifying the way in which Swiss consumers purchase fashion and on understanding consumers’ buying patterns. It included questions looking at the frequency of purchase, factors influencing the purchasing decisions and motivational factors. The second part focused on consumers’ knowledge about sustainable fashion, including their perception, motivational factors and consumption barriers. Finally, throughout the survey, questions about digital influences such as mobile applications, social media and e-commerce platforms were asked.

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4.1.2 Design of the qualitative survey

The aim of the qualitative survey was to gather data from Swiss sustainable fashion brands in order to collect data from a professional point of view. Also, the objective was to understand the effectiveness of digital technologies on sales. The introductory part focused on the company itself such as its mission and structure. The second part aimed at gaining a deeper understanding of the Swiss sustainable fashion consumer, asking questions related to brands’ clientele. Finally, the third part of the in-depth interview focused on gathering insights about digital technologies and their effectiveness on sales.

4.1.3 Data collection

In terms of quantitative data, the online survey was written in French and then translated into English for the purpose of this report. The link was shared on social media platforms such as Facebook, Instagram and LinkedIn. The survey was also sent personally to contacts through WhatsApp and emails. In addition, the survey was shared in groups and further shared by personal contacts to their own network. The survey can be found in Appendix 1.

In regard to qualitative data, this was gathered through three in-depth interviews with selected founders’ brands. It was conducted by a phone interview and via email and can be found in Appendices 2, 3 and 4.

4.2 Scope and limitations

An important limitation of this research to acknowledge is the fact that it studies consumers at the country level. Indeed, this study focused on the Swiss market only, analyzing Swiss consumers’ behavior. In addition, another limitation to consider in this study is that the survey was written in French, therefore primarily reaching consumers living in the French part of Switzerland. As we know that differences in culture tend to occur between the different linguistic regions of the country, it might not be representative of the entire population.

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5. Results

5.1 Quantitative results

The online survey collected a total of 198 responses from different regions of Switzerland; however, only answers completed until the end of the survey were retained, resulting in a sample size of 176. The subject seemed to be more appealing to women as differences in the share of gender respondents occurs. Indeed, more women completed the survey as they represent 79% of total respondents. In terms of age, the largest proportion of respondents fall into the 21-25 category, representing 36.9% of total respondents, followed by the 26-35 category (27.8%)

Table 1: Sample characteristics

Gender Female 139 Male 36 Other 1 TOTAL 176 Age 15-20 17 21-25 65 26-35 49 36-45 16 46-55 23 More than 55 6

As the survey was written in French, the geographic segmentation of respondents is mainly focused on the French speaking region of the country. However, while more than 50% of respondents reside in Vaud, two French-German bilingual regions were reached: Fribourg, representing 25.6% of total respondents and Bern, representing 5% of total participants. In terms of demographics, in order to be able to further segment the respondents, information about their level of education was gathered. It was found that most respondents possessed at least a Swiss matura (62%), and that 30% of

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respondents held a higher qualification such as a bachelor’s or master’s degree. This segmentation is important for the analysis as it is assumed that the level of awareness about sustainable fashion depends on the level of education.

5.2 Qualitative results

Qualitative data was gathered through three in-depth interviews with Swiss sustainable fashion brands. Two in-depth interviews were conducted by phone and the last one was conducted by mail through a questionnaire form. Each interview followed the same structure and was composed of 13 questions.

Initially, different brands were supposed to be interviewed, however due to current COVID-19 events, a slight change in strategy had to be made. The previously chosen brands were among the most popular in the Swiss market, in order to gain full insights on the sector. However, negative responses were obtained and in some cases, no responses at all. Therefore, the companies interviewed are mostly start-ups or young firms. These brands were chosen based on two criteria: Swiss-based and eco-friendly apparel brand. Table 2 shows the brands selected for the in-depth interviews and the person with whom the interview has been conducted. Transcripts of the in-depth interviews can be found in Appendices 2, 3 and 4.

These qualitative results aim at supporting the quantitative results, from a professional point of view. Therefore, for the analysis of the results, the qualitative findings will be integrated into the quantitative findings.

Table 2: Swiss sustainable fashion brands interviewed

Company Contact

Mrs. Haccius, Founder

Mr. Salerno, Founder

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5.3 Analysis of the findings

5.3.1 Quantitative and qualitative analysis

A. Consumers’ purchasing habits in the fashion industry

In terms of consumption purchasing behavior in the fashion industry, the results show that the majority of Swiss consumers purchase at a frequency of approximately four times per year. Indeed, 43% of the respondents claimed to be buying fashion items once every three months. In addition, several respondents highlighted that they purchased clothes exclusively when they were needed. However, consumers’ buying habits still need to be improved as 28% of respondents continue to purchase fashion on a monthly basis.

Figure 3: Frequency of fashion purchases

Since more women completed the survey, the results were segmented further according to gender. Surprisingly, both men and women tend to purchase fashion at the frequency of once every three months. Indeed, this purchase frequency was the highest share in both genders. However, looking at the second highest share per gender, we can observe significant differences in buying patterns; after the first purchase frequency listed above, men tend to buy fashion hardly ever while women tend to buy on a monthly basis. Furthermore, as it is assumed that fashion consumption patterns differ depending on the generation, the results were segmented further and analyzed according to each age category. Table 3 illustrates results based on each category. The findings show that there is a distinct discrepancy in the purchase frequency of fashion between younger versus older consumers. Young consumers, especially millennials and generation Z, tend to purchase fashion on a more frequent basis than generation X or baby boomers. Moreover, looking at the table we can clearly define two groups: young consumers aged

1% 28% 43% 2% 26% Every week Every month Once every 3 months When needed Rarely

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15 to 25 preferring to purchase fashion every month, and older consumers aged 26 to 55 and more, buying fashion at a lower frequency, only once every three months.

Table 3: Frequency of purchase per age category

In terms of channels and type of stores, in-store purchase remains the most common way for Swiss consumers to buy fashion items. The findings show that 58.5% of respondents prefer to buy in-store rather than online or at a second-hand shop. This finding is interesting because it was expected to be lower especially with the worldwide growth of e-commerce. Indeed, the e-commerce market has grown significantly in recent years and the Swiss market is following this trend. In 2019, total online sales in Switzerland amounted to 9.5 billion with a growth rate of 10% compared to 2018 (Gasser 2019); despite this growth, the results in the survey show that online fashion purchases still represent a lower share than traditional retail as it accounts for 35.2%. Finally, second-hand stores do not seem to be popular among Swiss consumers as they represent a small share of 6.25%.

In relation to fashion brand preferences, many fashion companies were cited among the respondents but the big players in the fast-fashion industry seem to be the most appealing brands in the Swiss market. The top three fashion companies preferred by Swiss consumers are fast-fashion firms: Zalando, H&M and Zara (Inditex). Even though the share of online purchases is lower than traditional retail, the growth of e-commerce

Frequency 15-20 21-25 26-35 36-45 46-55 + 55 Total Every week 5.88% - - - 0.57% Every month 47.06% 38.46% 22.45% 12.50% 8.70% 16.67% 27.84% Once every 3 months 23.53% 38.46% 46.94% 50.00% 56.52% 50.00% 43.18% When needed - 1.54% 4.08% - - - 1.70% Rarely 23.53% 21.54% 26.53% 37.50% 34.78% 33.33% 26.70% Total 100% 100% 100% 100% 100% 100% 100%

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purchase fashion the most frequently. In fact, it is the second largest online shop in Switzerland and has seen significant growth in recent years in the Swiss market. Zalando quickly evolved in this market becoming a dominant player in the fashion industry, even surpassing H&M in terms of turnover (CBRE Switzerland 2018). Consequently, the results in the survey show that 48% of respondents purchase the most frequently from Zalando, followed by H&M at 44.4% and Zara at 14.4%. Finally, we can see that sustainable fashion remains a niche market as it represents a small share of 12.1%.

B. Factors influencing the purchasing decision in the fashion industry

Among leading factors influencing Swiss consumers to purchase fashion, the price, the quality and the design/style are the most important criteria considered in the purchasing decision. The survey shows that 82% of Swiss consumers consider the price to be the first factor influencing them when purchasing fashion. Even though purchasing power is relatively high in Switzerland, price remains an important element for the majority of consumers who increasingly shop fashion abroad in order to save potential costs (NetComm 2020). Along with that, quality is the second most important factor representing 71.6% followed by design/style at 60.8%. Overall, sustainability criteria such as the country of origin or a brand’s corporate social responsibility (CSR) image are the factors least taken into consideration, indicating that sustainability in the fashion industry is not a top priority for Swiss consumers.

Although the three most important factors are the same for both genders, women seem to pay more attention to sustainability when purchasing fashion. In fact, women chose material, origin and the brand’s ethical image more frequently than men. It was also found that recommendations from friends and family have an important weight to influence consumers to purchase from one brand over another one, representing a proportion of 38% of total respondents.

Interestingly, it does not seem that Swiss consumers are particularly brand loyal in the fashion industry. Even though it still represents a reasonable score of 17.6%, the brands’ name is not one of the top criteria consumers take into consideration when purchasing clothing.

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. Figure 4: 3 most important factors influencing the purchasing decision

C. Knowledge and perception towards sustainable fashion

Even though sustainable fashion is a growing trend, as written in the literature review, there are still many people who are not aware of this alternative. Questions were asked about knowledge and perception towards sustainable fashion to gain a better understanding of Swiss consumers’ behavior in this industry.

Regarding the definition of sustainable fashion and what it means, Swiss consumers tend to have a general knowledge of what it means since 66.5% claimed to understand the meaning of the term “sustainable fashion’’. However, it seems that it is still confusing for some people as 25% of respondents said they were not sure about the meaning and 8.5% stated they did not know what it was. This finding supports the literature which records the lack of knowledge in this industry; it also clearly demonstrates that the lack of a universal definition for sustainable fashion leads to a lack of clarity, and ambiguity. In terms of educational degree, differences were observed in the level of awareness towards sustainable fashion. Interestingly, while consumers holding a mandatory school diploma are the most aware of the definition, it is also the group being the least aware. In fact, the proportion of consumers replying “no” is the highest in this category. On the other hand, consumers holding a university degree express the lowest share in the category “no’’. Also, we can observe that the level of confusion is the highest for the secondary level category. Table 4 summarizes answers obtained from the question: ‘’Do

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Brand's ethical image

Origin (made in) Material (ecological or not ) Brand Design, style Quality Price

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Table 4: Understanding of sustainable fashion

Educational degree Yes No Not sure Total

Mandatory school 78.57% 14.29% 7.14% 100.00%

Secondary level (Apprenticeship, Matura) 61.47% 10.09% 28.44% 100.00%

University level (Bachelor, Master, ES) 73.58% 3.77% 22.64% 100.00%

Total 66.48% 8.52% 25.00% 100.00%

In terms of perception, Swiss consumers tend to have a quite accurate view of what sustainable fashion means; however we can see that the lack of knowledge can sometimes lead to a negative and a false image of ethical clothing. Figure 5 illustrates consumers’ perceptions towards sustainable fashion based on four attributes.

Firstly, in terms of pricing, Swiss consumers picture sustainable fashion as rather expensive or very expensive. While the majority of respondents (71.02%) think that it is high-priced, 25.57% of consumers think that it is very costly. Their perception is quite accurate because prices are generally higher than fast-fashion. As sustainable fashion brands work within sustainable business models, costs rise, ultimately driving a higher selling price.

Secondly, in terms of design, the majority of Swiss consumers view sustainable fashion items as rather attractive. While in the literature review design/style was directly associated with consumption barriers, consumers in Switzerland tend to think that the design is stylish, but opinions are quite varied; while 20.45% of consumers find eco-clothing fashionable, 25.57% of shoppers remain convinced that sustainable fashion is unstylish and unattractive.

Thirdly, we can see that consumers are aware that sustainable fashion companies operate within different business models as 61.93% of them understand that there are fewer collections available.

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Finally, in regard to the number of sustainable fashion brands available in the market, 69.32% believe that the choice is limited. While it is true that collections are limited, there are many sustainable fashion brands in the Swiss market and internationally.

For instance, looking at Fair Act’s website, they list and reference more than 130 sustainable fashion companies across Switzerland (FAIR’ACT 2018). People tend to think that brands’ choices are limited because they do not have sufficient information in this sector and small companies lack visibility. This finding shows that consumers’ perception towards sustainable fashion is biased due to a lack of knowledge. Among the participants, only 2.84% of people consider that there is a large number of brand choices.

Figure 5: Consumers’ perceptions towards sustainable fashion

Along with that, the survey shows that Swiss consumers have very little knowledge of sustainable fashion brands. Indeed, when asked the question “Do you know one or several sustainable fashion brands?’’ 79% of respondents replied negatively. Once again, this result shows that Swiss consumers do not have sufficient information about this industry and therefore are not aware of alternatives.

Among the 21% of participants knowing one or several brands, Nikin was the most cited one followed by Freitag. Nikin is a Swiss brand that is extremely popular on social media and especially with young consumers. Indeed, most respondents mentioning Nikin were from either generation Z or millennials. On the other hand, Freitag was mostly cited by generation X and baby boomers. Interestingly, some consumers have also cited fast-fashion brands like the eco-conscious line from H&M.

Very expensive Expensive Inexp.

Very attractive Attractive Unattractive

Large Sufficient Limited

Large Sufficient Limited

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Brands

Collections Style Price

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Once again, it demonstrates a lack of knowledge in this industry because while it is true that the eco-conscious collection is made from recyclable materials, it is still produced in Bangladesh, remaining far from sustainable. Mrs. Haccius, Avani’s founder, emphasizes that H&M mainly uses greenwashing. She stated that consumers do not look any further: as soon as they see a little green tag or the word “conscious’’ they do not ask any further questions and believe it is sustainable.

Furthermore, it was found that despite the high number of respondents who did not know any brand previously, more consumers were able to recognize brands from a given list. Figure 6 presents the eco-fashion brands listed. Freitag is well ahead at the top of the list, with 48.3% of consumers who either know the brand or have heard of it. This is not surprising as Freitag is a well-established Swiss sustainable fashion brand, renowned for its bags made from recycled materials and its compostable fashion line. It is interesting to note that following Freitag, the top three most well-known brands are fashion brands integrating trees into their business model. For instance, Nikin plants one tree for each product bought, while Tentree (the Canadian equivalent) plants ten trees for every item sold. Tree planting is a practice that has been increasingly integrated into business models to encourage consumers towards more sustainable consumption. It has become more popular in recent years because consumers feel involved in the process and have the feeling that they are contributing; consumers often receive certificates of the tree planted in their name, providing a highly personalized experience and raising incentives to purchase. As we can see with the survey results, it is also popular among Swiss consumers, who feel rewarded by purchasing a product and planting a tree simultaneously.

While sustainable fashion companies such as Nikin integrated such programs, they go beyond tree planting with continual care and forest management, which is often not the case for other companies. In fact, many companies, including Zalando for example, have started to offer tree planting programs to enable consumers to “offset’’ their carbon footprint, but using it mainly as a marketing tool (Neimark 2018).

Mrs. Haccius said: “Sometimes this kind of project can be misleading; maybe the company plants trees, but the process actually uses too much water or is not optimal. We do not know everything that is behind it.’’ It reinforces further the use of greenwashing in the fashion industry and shows that while these programs might be good for the environment, it is not always the case.

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Figure 6: Knowledge towards sustainable fashion brands

Q: Among these brands, which ones do you know or have you heard of ?

D. Consumers’ purchasing behavior in the sustainable fashion industry

Although there is a lack of awareness in the Swiss market, consumers acknowledge that the sustainability concept is important in the fashion industry. In fact, 93.75% of respondents judged durability to be essential in the apparel industry. Among respondents replying that it was not important, young consumers represented the highest proportion. Indeed, consumers aged 15-20 and 21-25 tend to care less in regard to this issue. Mr. Wilhem, Blue in Green’s founder, confirms this finding: “[…] Environmental concerns are more pronounced in the 30-year-old generation than in the younger generation. Although they are sensitive to the climate issue, in terms of clothing consumption I think that is not the first concern yet.’’ In addition, looking at the demography of the customers’ of Avani, Blue in Green and Diffair, we can deduce that the typical Swiss consumer of sustainable fashion is usually aged from approximately 27 to 55.

In terms of gender, it was found that women tend to take more interest in this matter than men.

Furthermore, the survey shows that even if the majority of respondents claimed

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% None Tem Pimenta Sanikai Avani Jungle Folk Sézane TenTree People Tree Nikin Freitag

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this factor in their purchasing decision. This finding supports the literature written about the intention-behavior gap. While consumers claim sustainability matters in the textile industry, their intentions are not translated into actual actions (James, Montgomery 2017). Figures 7 and 8 illustrate this behavior gap by showing that 44% of consumers do not integrate this factor into their purchasing decision.

However, looking at Figure 8, we can observe a certain progress in consumers’ purchasing habits since 47% of consumers declared incorporating the durability factor occasionally when purchasing fashion. Nonetheless, these results might be biased as consumers often want to look good and do not want to admit that they do not take action. In fact, we can deduce that this number would be lower in reality, since there is only 36.6% of Swiss consumers who have already bought a sustainable fashion product.

Figure 7: Consumers’ perception of sustainability in fashion

Q: Do you consider sustainability important in the fashion industry?

Figure 8: Consumers considering sustainability when purchasing fashion

Q: Do you integrate the sustainability aspect when purchasing fashion?

6% 94% No Yes 9% 44% 47% Yes No Sometimes

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E. Consumption drivers to purchase sustainable fashion

Among respondents who have already purchased an eco-friendly clothing item, the main factor influencing their purchasing decision was the fact that they support an ethical and responsible brand. Indeed, 50% of surveyed consumers claimed supporting a local and sustainable brand through their purchase was the main factor driving them to buy. A further 46.9% of consumers stated that they bought these products for the design/style of the item.

Following that, as mentioned above, consumers also increasingly purchase green products because it provides the feeling of doing the right thing. Doing a good deed is the third motive encouraging consumers to purchase sustainable fashion, representing a figure of 42.2% Along with the results found earlier in Section B, the brand name is not significant for consumers as only 7.8% of them are influenced by this criterion.

Furthermore, when asked the question “what would motivate you to buy sustainable clothing?’’, doing a good deed such as planting a tree comes first with 54% of consumers. As Blue in Green donates 10% from each purchase to an association protecting the oceans, Mr. Wilhem reinforces this statement by explaining that this donation enables consumers to be involved: “[…] Obviously it increases customer satisfaction because they feel included in the process, they feel they can participate, even if it is a in small way, it is a contribution to protect and save oceans.’’ However, in his opinion, it is not that aspect which drives purchases: “Purchasing in the apparel industry is not driven by social or environmental concerns, but rather by an impulsive buy and I think that is the reason why we have sales. […] The act of purchase is more influenced and dictated by styles, tastes and visuals.’’

Also, being able to see in a concrete manner the impact of their purchase on the environment is highly encouraging for consumers to purchase eco-friendly apparel. This finding shows that consumers acknowledge their own responsibility, and the fact that their purchase can have an impact and drive changes. However, Swiss consumers need incentives such as a tree planting program or a program where they feel that they are contributing.

F. Consumption barriers to purchase sustainable fashion

In terms of consumption barriers, it appears that the lack of information is the main barrier preventing Swiss consumers from purchasing eco-friendly apparel. In fact, almost

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Along with a lack of knowledge, the second barrier identified involves the point of purchase: 18.75% of respondents stated that they did not know where to purchase these types of products. This finding illustrates that there is a lack of accessibility and visibility in the Swiss market.

Mr. Salerno reinforces this finding by saying that Swiss consumers do not feel comfortable to order clothing online based on a picture, especially without an easy return policy. Avani’s founder also confirms that the lack of accessibility is the first consumption barrier as sustainable fashion brands are often exclusively online. She emphasizes the importance of retail: “Today, the problem is also the fact that consumers still need to go physically in store, to try clothes and to have the in-store experience. Even though people say that retail is decreasing and will die in a few years, in my opinion it will never die, even if there are more difficult times.’’

In addition, Mrs. Haccius claimed that Swiss consumers generally do not purchase from small, emergent brands, preferring to buy from large and confirmed brands. She reported that consumers in Switzerland need a proof of concept, in the way that if the brand has been validated outside the Swiss market, it is a trusted brand.

Furthermore, results demonstrate that many Swiss consumers are not interested in buying sustainable fashion. Although this sector is becoming more popular, it seems that Swiss consumers are more reluctant towards this industry since 17% of them are not interested to buy. As stated previously, we can observe differences among consumers in terms of gender. Men especially are less interested in sustainable fashion compared to women; also, in terms of demographics, young consumers aged 15-20 and baby boomers are the age categories being the least interested in buying.

Moreover, as we have seen in consumers’ perceptions, the range of collections offered is perceived as quite attractive, representing barriers for only 8.9% of consumers. Figure 9 shows that most consumers considering collections as a barrier are young consumers aged 15 to 35 years old.

Finally, the price is the factor least likely to prevent consumers from purchasing eco-friendly clothing as it only represents 4.46% of consumers. This finding is interesting and quite unexpected because as stated previously, the price is the first factor influencing Swiss consumers in their purchasing decision. According to this survey, it represents a very small proportion of the total barriers, which is in contradiction to the previous literature review. According to Mrs. Haccius, the issue is not related to the price itself but more to the fact that consumers have lost the real value of a garment as well as the

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quality/price ratio: “I think that today there is also an important problem with the quality/price ratio as people have lost the value of a garment and are trying at all costs to make good deals, to pay the cheapest price for the best quality. […] The price today is a barrier, but not because Swiss consumers do not have the purchasing power to buy, but rather because they have to change their mentality, and it takes time.’’

Figure 9: Sustainable fashion consumption barriers per age category

G. Influence of digital technologies

In terms of digital technologies, questions were focused around e-commerce platforms, social media and mobile usage.

Firstly, as shopping is increasingly done online, questions were asked about sustainable fashion e-commerce platforms in order to understand their importance and their potential to influence consumers’ behavior. The findings show that there is little knowledge of these platforms in Switzerland. Indeed, of the five e-commerce platforms cited, 86.9% of the respondents did not know any of these online marketplaces. Even though brand names were cited, we can observe that the awareness was quite low. Also, when consumers who had previously purchased sustainable apparel were asked about how they heard about the brand, e-commerce platforms accounted for the lowest share,

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15-20 21-25 26-35 36-45 46-55 55+

Lack of information Don't like collections Don't know where to find it

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representing 3.57%. This result shows that these platforms are not the most effective channels in terms of raising awareness.

However, these results might be biased because most of these sustainable fashion e-commerce platforms are based in the German part of Switzerland, and most of the respondents reside in the French part. For instance, we can note a slight increase in awareness about online platforms from the French part (Ecolabo, Fairbrands). Mrs. Haccius emphasizes that the majority of these large online platforms are based in the German speaking region and that there are very few players in the French speaking part. Unfortunately, qualitative results could not provide insights regarding the effectiveness of these e-commerce platforms on sales since the brands interviewed started their partnership immediately before the COVID-19 crisis.

Figure 10 shows the five cited brands and the knowledge of consumers about them:

Figure 10: Knowledge about sustainable fashion online platforms

Q: Among these online platforms, which ones do you know ?

Furthermore, when consumers were asked about what would motivate them to change their consumption behavior, an online marketplace regrouping all the Swiss sustainable fashion brands was the option least chosen. Among all the respondents only 26% claimed these platforms would encourage them to purchase eco-friendly clothing. This finding is interesting because we can see that even though online shopping is increasing, Swiss consumers tend to remain reluctant towards these sustainable platforms. It was found that among these 26% of consumers interested, it is particularly consumers aged 36-45 and 45-55 that are the most interested, while younger consumers aged 21-25 are

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Olives & Leos

RRRevolve FairAct Fairbrands Ecolabo

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the least interested. In terms of gender influence, no major differences were observed, even though women tend to be slightly more interested than men. Overall, despite the growth in e-commerce, sustainable fashion platforms are not considered to be the most effective in Switzerland, primarily due to a lack of information.

Secondly, it was found that social media is the first channel through which consumers have heard about a sustainable fashion brand, followed by recommendations from friends and family. The results show that 39% of Swiss consumers have heard about an eco-friendly apparel brand from social media. In terms of gender influence, no differences were observed as both men and women chose social media as the first channel through which they discovered the brand.

On the other hand, in terms of demographics, two age categories cited social media the most often as the main channel of discovery: consumers aged 15-20 and 36-45. this is followed by millennials and finally baby boomers who did not select social media at all. We can clearly see a tendency here, especially because social media is mostly used by the younger generation. Table 5 illustrates this tendency and shows the results obtained from the question “How did you hear about this brand?’’ which was asked after consumers cited one or several sustainable fashion brands.

Table 5: Channels from which consumers have heard about a sustainable

fashion brand, per age category

Channels 15-20 21-25 26-35 36-45 46-55 +55 Total Social media 50.00% 47.37% 32.35% 50.00% 25.00% - 39.29% Recommendation from friends/family 35.71% 39.47% 35.29% 20.00% 41.67% 50.00% 36.61% Advertising, TV, catalogue 7.14% 5.26% 11.76% 10.00% 25.00% 50.00% 11.61% E-commerce platform - 2.63% 2.94% 10.00% 8.33% - 3.57% Other 7.14% 5.26% 17.65% 10.00% - - 8.93% Total 100% 100% 100% 100% 100% 100% 100%

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The fact that social media is the main channel of discovery for Swiss consumers is reflected in complementary data obtained from the survey where it was shown that Nikin is the most popular and well-known sustainable fashion brand in the Swiss market (Part C). Indeed, among the brands cited, this is the one accounting for the most followers on the Instagram social media platform. For instance, looking at Nikin’s Instagram account, the brand has 91,700 followers, while looking at Avani’s account, they reach approximately 2000 followers.

While Instagram is a powerful tool to reach a broader audience and to increase a brand’s visibility, it does not necessarily generate conversions. According to Mrs. Haccius, Avani’s founder, it depends heavily on the engagement rate. She explained that influencers with a high number of followers do not necessarily generate more conversions than the ones with fewer followers, as it depends on the engagement rate. “We did a few partnerships with French influencers, but the results were quite mixed. Indeed, we did four partnerships; out of the four, two worked and two didn’t work. […] It is also very difficult to find accounts with an engagement rate higher than 2.5%. For instance, the French influencer with whom our partnership worked, she had an engagement rate of 5%.’’

This statement supports the literature review which records the importance of the engagement rate on consumers’ purchasing behavior in the sustainable fashion industry. In addition, Mr. Salerno, Diffair’s founder, supports the fact that influencers on social media do not necessarily have a significant impact on sales, but social media is an efficient tool to raise brand’s awareness: “We have had short term partnerships with a couple of influencers, but none currently. The direct impact on sales was minimal, but we noticed it helped with brand awareness and probably contributed to 5% of sales over the long term.’’

On the other hand, looking at Blue in Green, the majority of customers were acquired through social media. The founder, Mr. Wilhem explains: “We have 90% of our customers coming from Facebook as well as Instagram, through advertising on these media. It is mainly on these platforms that we invest to acquire new consumers. These platforms have a very important database that is particularly effective in targeting advertising.’’

Figure

Figure 1: Seven types of sustainable fashion
Table 1: Sample characteristics  Gender  Female   139  Male   36  Other   1  TOTAL  176  Age  15-20   17  21-25   65  26-35  49  36-45   16  46-55  23  More than 55   6
Table 2: Swiss sustainable fashion brands interviewed
Figure 3: Frequency of fashion purchases
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