Reconciling Sufficiency and Profitability in Fashion: A Case Study of Sufficiency-Driven SMEs and their Business Models in the French Fashion Industry

Abstract: Current levels and patterns of consumption in affluent societies are highly unsustainable. Research shows that efficiency measures prove insufficient to keep within the planetary boundaries, as they operate within the same consumption paradigm. In response, the sufficiency approach has been put forward, which strives to reduce consumption levels in absolute terms. A growing awareness of the impacts of fast fashion has led to the emergence of businesses that promote sufficiency. While research has explored the strategies they adopt and the challenges they face, understanding of their financial viability and relationship to profit remains scarce. Accordingly, this study aims to improve understanding of how business models for sufficiency (BMfS) operate, how they approach profit and growth, and whether they are financially sustainable. The project was designed as a multi-case study using qualitative methods. Primary data was collected through seven interviews with sufficiency-oriented practitioners in the fashion industry. Secondary data was gathered using a document analysis of the case companies. The findings show that BMfS 1) need to be designed holistically for overall coherence, 2) can be financially viable, 3) deviate from the conventional focus on profit-maximisation and exponential growth, although 4) they cannot fully break away from the system in which they operate and must still meet financial objectives. The results highlight the tensions and contradictions that sufficiency-oriented firms face between their sufficiency values and their financial objectives. Nevertheless, the project concludes that rather than being seen as incompatible, a balancing act between the two factors is needed. Aspiring practitioners may use this study to design their own BMfS, and the insights may be used as a foundation for future research. The findings also open opportunities for broader research on scaling up, transitioning businesses, and cross-sectoral BMfS.