In recent years, there is increasing awareness about the environmental and social externalities associated with the rapidly growing fast fashion sector [
1]. Clothes are cheaper than ever [
2] and the magnitude of the negative impacts associated with them is well-characterized [
1]. While regulations, such as the EU strategy for sustainable and circular textiles, and the Bangladesh Accord [
3,
4], are beginning to influence “supply” and affect the way clothes are produced, the potential for significantly changing the demand side, with reference to consumer preferences is still poorly developed. A growing consensus is forming about sustainable fashion policies that are designed to modify demand and consumption patterns, such as the European Union's campaign to reduce fast fashion consumption [
5] and the Helsinki Fashion Library, which seek to transform consumer fashion consumption patterns [
6]. Fast fashion sales, however, continue to skyrocket [
2], making the question: ”What is the most efficient way to influence consumers?” more relevant than ever.
This article initially describes the environmental and social hazards of fast fashion, alongside the economic contribution of the fashion industry. It then goes on to consider consumer dynamics in the fashion world and how they can be influenced. In the next section, a series of “nudges” are depicted, each with the potential to induce greater preference for sustainable clothing. The research then contrasts the empirical effectiveness of each “nudge” when implemented in real world conditions. The overall purpose of the research is to provide practical tools, both for policy makers and sustainable fashion producers, to reduce the gap between consumers' generally positive attitude towards sustainability and sustainably manufactured clothing -- and their actual purchasing behaviors. In addition, the study seeks to improve present understanding of behavioral aspects of economic decisions concerning sustainable fashion consumption.
1.1. Economic, Environmental and Social Dimensions of the Fashion Industry
The fashion industry is one of the most polluting, exploitative and profitable industries in the world. In addition to being strongly associated with child labor [
7,
8] and unsafe working conditions [
9,
10] the manufacture, distribution, sale and use of clothing, all produce adverse environmental effects. These phenomena, to a great extent, can be traced to the characteristics of the economic model prevailing in the fashion industry: highly globalized mass production, constant consumption and a linear take-make-disposal model [
11,
12].
Most of the environmental and occupational burdens associated with mass production and disposal occurs among developing countries characterized by low GDP and a surfeit of low-wage workers [
7,
13,
14]. The associated environmental hazards are significant. They include utilization of fossil fuels, along with copious amounts of water and toxic fertilizers [
15]. The release of untreated sewage into water and significant contamination, frequently, are also caused by the dyeing process for clothes. The fashion industry annually produces a total of one billion tons of CO
2, more than all international flights and maritime shipping combined [
16]. Landfilling of huge amounts of textile waste in developing countries, typically, is a result of massive clothing donations from Western countries and their excess consumption of apparel [
17].
Exploitation of workers and occupational risks are additional areas of grave concern: the garment assembly process alone employs 40 million workers worldwide, of which 20% are children under the age of twelve [
18]. Harsh, exploitive conditions include long shifts, lack of vacation, safety deficiencies and occupational risks are very common [
14].
Nonetheless, alongside the environmental damages it engenders, it is important to recognize the economic value of the fashion industry, as a global business of 2.3 trillion dollars [
18]. Both have grown exponentially due to rapid expansion of the fast fashion model. Fast fashion describes swift dissemination of runway trends to consumers, offering inexpensive, mass-produced garments with global appeal, albeit often sacrificing quality.
Globally, 80 billion pieces of new clothing are purchased each year, translating into a substantial driver of global GDP. The industry as a whole employs more than 300 million people worldwide, representing a powerful economic force [
19]. In fact, during the last fifteen years, aggregate clothing production has approximately doubled. Demand is driven by a growing middle-class population and increased per capita sales [
20,
21,
22].
1.2. Consumer Preferences for Sustainable Fashion
Sustainable fashion is an approach to fashion that strives to be socially and environmentally responsible. It relies on an ethical commitment to the environment and putting people first [
23]. Other concepts synonymous with the term sustainable fashion, including green or eco fashion. Ethical and slow fashion are also used in the literature [
24].
Within the broad menu of sustainable fashion it is customary to include, second-hand clothes, independent designers, designers who produce via fair trade, clothes made using organic materials, clothes made from textile scraps and high-quality clothes that are made to last [
25]. In addition, an accepted prerequisite of sustainable fashion consumption is a revealed preference for fewer clothes, under a quality versus quantity approach [
26].
It is important to emphasize alternatives to fast fashion do not necessarily mean that that a luxury expensive garment is a priori more sustainable than a cheaper alternatives or that expensive clothes are always more sustainable. In fact, there's great controversy about what sustainable fashion entails. There are numerous options, some of which actually contradict each other. The only consensus in the field is that reducing consumption constitutes the most sustainable way to moderate the environmental and social pathologies [
25]. With that in mind, to increasing the willingness to pay more (WTPM) for garments is generally considered a key component of a strategy to promote sustainable consumption, and serves as a somewhat rare launching point between the business sector and the environmental movement.
The prevailing consumer preference for fast fashion, constitutes a key driver in the growth of the industry. Hence, shifts in consumer behavior – namely, reducing clothing purchases, choosing to purchase sustainable alternatives and prolonging garment lifetimes – are essential to reducing the damages associated with the fashion industry. Expanding the market share of sustainable fashion, is not only a policy objective which benefits the environment. The industrial sector itself also stands to benefit. The global sustainable or “ethical” fashion market-size reached a value of nearly
$6.35 billion in 2019, having increased at a compound annual growth rate (CAGR) of 8.7% since 2015. Contemporary analysts predict that the market is expected to grow from
$6.35 billion to
$8.25 billion within four years at a compound annual growth rate (CAGR) of 6.8% [
27,
28].
Indeed customer demand for sustainable clothing is on the rise. Studies indicate that consumers increasingly prioritize fashion items based on personal values [
29,
30], with younger generations showing particular interest in sustainability issues. Generation Z, in particular, is driving the global demand for sustainable fashion, with six out of ten consumers from Generation Y and Z preferring sustainable products over cheaper alternatives; additionally, 37% are willing to pay more for responsible products [
31]. These trends are particularly pronounced among Generation Z women [
26,
32].
In this context, recent research indicates that women and the younger generations tend to express a higher interest in fashion in general. This is reflected in a tendency to purchase more clothes, more frequently as recreation, or motivated by pleasure, rather than any actual need for additional clothing [
33,
34]. In fact, young women are the main target audience of fashion companies. As a result, paradoxically, they not only tend to purchase more fast fashion, but also purchase more sustainable fashion and express a greater interest in the field [
35].
One possible explanation for this gap can be found in Lades' study [
36] on the use of nudges to promote ethical consumption. Based on neuroscientific findings, Lades suggests that self-image motives can lead to impulsive consumption, contrasting with reflexive thought and self-control. In this context, a strong green self-image may drive higher consumption of sustainable fashion rather than a decrease in consumption per se. Therefore, both aspects of reflexive thought can be leveraged to promote ethical consumption. This raises a dilemma regarding the most effective strategy for reducing fast fashion consumption: promoting sustainable fashion or advocating consumption reduction? The question reflects the broader inquiry into the nature of sustainable fashion, discussed earlier.
Environmental attitudes and individual value priorities are also important variables in purchasing fashion in general and sustainable fashion in particular. A positive correlation exists between the importance of fashion brand sustainability and consumers' decisions to buy sustainable clothing products. Furthermore, it is well established that consumers tend to have a greater preference for brands or products that align more closely with their self-concept [
37,
38]. Nonetheless, the sustainability of a fashion brand and positive attitude towards the sustainability of fashion brands or product is not a guarantee of increased acquisition of sustainable products [
39]. In fact, a gap between actual purchasing behavior and a positive attitude towards sustainability is more common than a positive attitude towards sustainability that translates into actual purchasing behavior.
It is worth noting that actual purchasing behavior of sustainable clothing by customers is still relatively modest, and reducing the gap between positive consumer attitudes towards sustainable fashion and their actual purchasing behavior remains a huge challenge [
40]. Consumers often express their interest in sustainability, but for many reasons continue to look for fast and cheap fashion items [
41,
42,
43]. Frequently, there is a marked dissonance between the pro-environmental attitudes of fashion consumers and actual consumer choices [
44,
45]. A contemporary expression of this gap can be seen in the fact that the ultra-fast fashion company, SHEIN, which is particularly popular among Generation Z, is the most profitable fashion company in the United States today [
46,
47]. This suggests that in order to transform the environmental and social performance of the fashion industry it is not enough to simply create sustainable fashion options. It is also necessary to direct consumer preferences by additional means.
1.3. Theory: Nudges and Consumer Preferences
One effective method to shape consumer preferences in fashion is through "nudging" or "choice architecture." This concept, derived from behavioral economics, political theory, and social psychology, involves subtle interventions that steer individuals towards preferred options without eliminating alternatives or altering economic incentives significantly. Choice architecture focuses on designing environments through soft mechanisms to gently influence decision-making [
48]. Nudges, widely utilized in commercial and public policy realms, are favored for their broad influence, low costs, accessibility, and non-invasiveness.
In fashion choice architecture is frequently used to increase excessive sales: Fashion chains create unique scents for themselves, distributing them at high volumes in stores; sale product stands in clothing stores are usually located at the entrance to the store with shelves placed at the average eye level, of 1.67 meters. This design is intended to encourage consumers to pull out garments [
49,
50]. The lighting, background music, and absence of a clock in the stores, are all nudges designed to create a "party feeling" which is attractive for a certain target public, and can remove customer inhibitions, extending the length of customers’ stay.
Pricing of clothes also constitutes a nudge: seasonal sales at their inception often include a 50% discount mechanism but indirectly: clothing is priced at a discount, but in order to exploit it, consumers are pushed to purchases additional items they don’t need. An example of this pricing method is 1+1 sales, or three items for a lower price than two [
51]. All these are nudges leading consumers to purchase more fashion items than originally intended.
Choice architecture can also be deployed with the purposes of promoting social objectives or creating a positive environmental impact. A series of studies conducted in Asia [
52] and Europe [
53] found a positive effect of nudge on consumers' WTPM for sustainable products. Yan, Henninger, and Jones identified nudging as an effective way to induce actions that reduce microfiber pollution arising from textiles [
54]. Roozen, Raedts and Meijburg showed a significant positive influence of verbal nudges in encouraging consumer preference for sustainable versions of clothes, and WTPM for sustainable apparel [
55]. A German study on "Sustainability Labels for Fashion in Online Retail" revealed that such labels, serving as nudges, boosted consumers' willingness to buy sustainable fashion items and pay higher prices. However, the magnitude of the effect depends on consumers' trust in the environmental claims and the credibility of the fashion brand [
56].
The professional literature divides green nudges into three categories:
- (1)
Green nudges that
provide information about a product's green characteristics, for example information on CO2 emissions from e-commerce deliveries [
57].
- (2)
Green nudges in the area of identity, fostering
comparisons with others. These nudges highlight social norms, by comparing preferences with peers or stimulating competition for social status by encouraging consumers to signal green behavior to their environment; [
58,
59,
60].
- (3)
Green nudges that exploit behavioral effects of
intentionally designed default choices [
59].
Accordingly, people can be motivated toward pro-environmental behavior by three main strategies: First, facilitating green behavior directly by reducing cognitive costs.; Second, the salience of certain features can be increased; and finally, people's sense of 'social identity' can be harnessed, by using normative motivations that favor green consumerism [
48,
61]. All three approaches can encourage sustainable consumption. Nonetheless, given limited resources and bandwidth among sustainable fashion marketers and producers, identifying the most effective green nudge constitutes a particularly salient pursuit. It should be noted that the impact of nudges on sustainable fashion consumption has been studied sparingly, partly due to the limited research focusing on sustainable fashion consumption. The present research attempts to address this scarcity.
This study was designed to examine the effects of choice architecture under field conditions, through a series of quasi experiments, conducted in collaboration with one of the largest shopping centers in Israel, "Dizengoff Center". Dizengoff Center is a mall founded in 1977, in the heart of Tel Aviv. There are over 400 stores in the mall, of which roughly half are fashion stores, visited daily by about 50,000 visitors. In order to answer the question of what the most effective way to nudge customers towards sustainable fashion, four separate field trials were conducted, examining the effect of three types of nudges on consumers' willingness to purchase sustainable fashion, at the expense of fast fashion:
(1) Providing information on the damages caused by the fashion industry; (2) Increasing alternatives, in the form of options for purchasing sustainable fashion products; and (3) Emphasizing the social identity attained through the purchase of sustainable fashion. We hypothesized that all three green nudges would positively influence consumers' willingness to purchase sustainable fashion, albeit in varying manners and degrees, as detailed below:
Hypothesis A:
Nudge 1 would reduce the quantity of fashion products purchased by consumers and increase their willingness to pay more (WTPM) for sustainable options.
Hypothesis B:
Nudge 2 would increase both the proportion of sustainable fashion products purchased and consumers' WTPM.
Hypothesis C:
Nudge 3 would increase the proportion of sustainable fashion products purchased by consumers, but would not affect their WTPM.
Hypothesis D:
Across all experimental conditions, women's WTPM would be higher than men's.
Additionally, we hypothesized that consumers with a high green self-image, based on self-report, would report encountering more sustainable fashion products, and identifying fewer barriers to purchasing sustainable fashion (Hypothesis E). Furthermore, we posited that younger consumers would report more barriers to purchasing sustainable fashion than adults (Hypothesis F).
Finally, we hypothesized that consumers who report a high action-based green self-image would purchase fewer fashion products compared to those who report a non-action-based green self-image (Hypothesis G). Moreover, we hypothesized that the higher the green self-image, the more consumers would agree with statements regarding the climate crisis and sustainable fashion, regardless of their actual purchase behavior (Hypothesis H).