Managing the Paradox: Circular Economy Practices and Sustainability Communication in Fashion

This thesis examines the integration of circular economy principles within the luxury fashion industry, focusing on how firms adopt sustainable practices while preserving brand value. The study applies a qualitative case study approach, analyzing Prada Group and Ermenegildo Zegna Group as representative examples of leading luxury companies. Using the framework of the technical and biological loops, the research explores how these firms implement circular strategies, including material innovation, recycling, and responsible sourcing. The analysis highlights the inherent tension between sustainability objectives and the traditional values of exclusivity, craftsmanship, and heritage that define luxury. The findings suggest that while circular practices challenge established business models, they also create opportunities for innovation and long-term value creation. This study contributes to the literature by providing a comparative perspective on how circular economy principles can be effectively integrated into the luxury sector.