Systemic Circular Innovation: Barriers, Windows of Opportunity and An Analysis of Brazil's Apparel Scenario

The textile industry has a significant role in the globalized market. However, this sector is responsible for extensive social and environmental impacts, that comprise unhealthy work conditions, huge pollution footprint, and intensive throw-away practices. Aiming to promote solutions to these problems, this paper traces the barriers and windows of opportunity for a transition to a circular economy, taking as an example the Brazilian textile and apparel industry. We examine the current Brazilian textile scenario using the multi-level perspective through three methodological approaches: desk research, workshops, and interviews. Our results indicate that, although the Brazilian textile industry still operates mainly in a linear way, focusing on competitiveness and short-term opportunities, there are great niche examples that are gaining traction and inspiring larger organizations, promoting innovative and circular ways to create and capture value. The socio-technical transition to a circular economy encompasses the identification and creation of conditions through windows of opportunity such as circular mindset, collaboration among stakeholders, education, investment, market forces, and public policies, which support process and technological changes in the textile and apparel industry. In summary, our research comprises the major challenges faced by the Brazilian textile industry in its current scenario and present enablers to endorse the shift towards a circular economy.