TMD 433 Case Study 1 PDF

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TMD 433 Case Study 1...

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SUSTAINABILITY MATRIX FOR TEXTILE-BASED PRODUCTS’ LIFECYCLE

Patagonia Case Study

Major Stages of Textile-Based Products’ Lifecycle Sustainable Strategies

Avoid and Reduce

Design and Product Development

Manufacturing and All Input Resources

Distribution, Transportation, and Retail

Consumption and Disposal

-Patagonia strictly uses organic cotton in their cotton products. This is in search to avoid synthetic fertilizers, soil additives, defoliants, etc. that are hazardous and harmful to the environment.

-Patagonia has steered away from the use of burning fossil fuels for electricity & heat in their infrastructure buildings & headquarters, and has installed solar panels, installed LED lights, and integrated efficient HVAC systems to avoid environmentally intrusive practices.

-Employee transportation: “Drive-Less” Program: Patagonia has integrated a system in which it provides a monetary incentive for employees to use public transit, a bike, skateboard, etc. to work instead of driving themselves in. Employees can earn up to $500/year using this system, which is both a benefit for the employee as well as the environment.

Rather than having consumers dispose of used/old merchandise, Patagonia also uses its company subset, “Worn Wear” to diminish the production of newly produced merchandise.

-Patagonia practices strict & responsible wool sourcing. Patagonia’s sourcing partners need to fulfill their PWS (Patagonia Wool Standard). Some of these requirements include Animal Welfare, & Responsible Land Management. These factors in keen Wool sourcing can lead to the avoidance of sourcing wool from places that use unsustainable practices.

Reuse

-Patagonia utilizes reclaimed cotton from a company called the TAL Group (a large garment manufacturer), which sweeps their floors and collects cotton and material scraps from its factories, which is then blended with virgin organic cotton to produce reclaimed

-Within Patagonia’s “Worn Wear” company subset, consumers are encouraged to trade in their old Patagonia merchandise for a store discount. The used items are then repaired to ensure good quality and are then resold.

clothing for Patagonia.

Recycle & Recover

-Patagonia’s Clean Color Collection: utilization of plantbased dyes, sourced from 96% renewable resources.

-Patagonia recycles: -wool - nylon -polyester For the reduction of energy, water, and chemicals it takes to produce these fabrics. - Patagonia makes efforts to use “Recycled Down” which is a mix of 600fill-power goose and duck down reclaimed from cushions, bedding and other used items that can’t be resold. It is hypoallergenic and offers the identical performance benefits to virgin down. Their demand for highquality Recycled Down has already led to an increase in supply.

Patagonia is an influential brand that transforms its core competencies from a vision into a reality. Patagonia performs a variety of activities that adhere to “implementing solutions to the environmental crisis”(Patagonia Mission Statement). Patagonia has strategically positioned itself in the market as one of the most environmentally conscious brands. With that being said, Patagonia has sustainable strategies ranging from utilizing recycled fibers used in their finished products, to integrating efficient HVAC systems & solar panels in their infrastructural properties, to providing monetary incentives to its employees if they choose to utilize public transportation, or ride their bike to work, as well as providing a used clothing outlet to its consumers. The company focuses on the most desirable aspect of the 3 R’s (Reduce, Reuse, & Recycle): Reduce. The company performs a variety of strategies that lead to the ultimate goal of AVOIDANCE. For example, by creating their subset “Worn Wear”, they have developed a way to avoid the production of newly produced apparel, which has a huge toll on the environment. Another area in which Patagonia focuses most on in the sustainability forefront is in their design & product development. Patagonia utilizes numerous recycled fibers, renewable resources, reclaimed resources, & organic fibers in their production of its products that adhere to a variety of sustainable inventory. Their ability to focus directly on design has created a sustainable competitive advantage for them, because they provide products that are strategically produced & environmentally friendly. On the flip side, Patagonia lacks sustainability focus in the Consumption & Disposal strategy. Although the “Worn Wear” subset is substantial and has its benefits in diminishing disposal, the company

still has yet to expand in the area of consumption & disposal apart from this one activity. Patagonia should seek to introduce more practices like this into other aspects of their supply chain, such as in the Distribution segment. When all is said and done, hopes are high for Patagonia, as they are expected to keep expanding, while harmonizing business & the environment. Not only does being environmentally cautious benefit the world we live in, but also Patagonia as a company. Patagonia is following the social trends of consumers wanting more “green” products- trying to be more sustainable through the merchandise we consume. Patagonia has created this competitive advantage for themselves by increasing the price/value trade-off, which ultimately leads to greater economic income. They differentiate themselves from other companies by positioning themselves as environmental & social activists, which intrigues customers to spend their money on products with greater cause. Patagonia also practices Fair Trade, which is another incentive for consumers to purchase items from them. In conclusion, Patagonia is a successful business model that drives its success from the focus on environmental concern.

References “Environmental Impact.” History of Patagonia - A Company Created by Yvon Chouinard, Patagonia Action Works, www.patagonia.com/environmental-impact.html. Patagonia, 2016. “Patagonia Wool Standard (PWS).”

www.patagonia.com/static/on/demandware.static/-/Library-SitesPatagoniaShared/default/dwbad96c65/slots/RMA/PAT_2016_Wool_Standard_r8.pdf. “Patagonia and Fair Trade USA Announce Responsible Manufacturing Partnership.” Fair Trade Certified, 2013, www.fairtradecertified.org/press-room/press-release/patagonia-and-fair-trade-usa-announceresponsible-manufacturing....