Innovations emerging in the fashion industry present unprecedented investment opportunities. But to bring the necessary solutions to scale, all players -- fashion brands, supply chain partners, investors, and others -- need to step up to accelerate innovation. Sustainability is at the top of the fashion industry’s agenda as leaders recognise the urgent need to move toward responsible practices under growing consumer and regulatory pressures. A step change requires disruptive innovation in the form of new materials, processes, technologies, and business models. Only a fraction of all available capital has been invested in fashion and textile technology, leaving many innovators stuck in a financing gap that hinders their ability to develop and scale their innovations. In fashion, nearly half of the financing opportunity lies at the beginning and the end of the value chain, where raw materials and end-of-use solutions have the highest impact potential.
The fashion industry has historically engaged in a cost-driven race to the bottom, giving little attention to radical new technologies. However, a perfect storm of innovation and opportunity is now forming, and investors as well as companies that can capitalise on sustainability and impact-driven innovation can transform the industry. Disruptive solutions that can offer major leaps forward toward circularity exist today, and the opportunities to invest and scale them within the industry are vast.