DEVELOPING AN INNOVATIVE BUSINESS MODEL

OF DENIM IN
UPCYCLING AND THRIFTING
An analysis of improving the sustainability of denim in fast Fashion

A graduate project submitted in partial fulfillment of the requirement for the degree of
master’s in Fashion and Luxury Good’s Management

JAGADISHWAR REDDY REDDYGARI

M.S IN FASHION AND LUXURY GOODS MANAGEMENT

DECEMBER, 2021

jagadeshwar87@gmail.com
 DEDICATION

My humble effort I dedicate:-

To my Mother,
Shobha Reddy REDDYGARI
Who inspired me to be intense, focused and disciplined.
Who taught me how to treat, respect and help the needy long before my teachers
did.
Being a single and independent woman, she dedicated her entire life to provide
me with better food, health and education.
I dedicate this research to her in exchange for her love, pray and trust in me.

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 ACKNOWLEDGEMENT
First of all, I am very grateful to my Mother, Shobha Reddy
REDDYGARI, for Lighting my path in life, giving me the strength and power to
complete this thesis.
My deep gratitude and thanks to my research supervisor Mr Guillanme
OLIVIE-TOUATI, whose guidance and expertise added considerably to my
work. I thank him for his patience, motivation, trust and belief in me, very proud
to be under his supervision during my work on the master thesis. His
consideration, support and valuable advice made this project possible. Apart from
being thesis supervisor, Mr Guillanme OLIVIE-TOUATI is an inspiring
professor his lectors on Fashion and Luxury marketing made me understand the
luxury market better.
I take this opportunity to thank Miss Fabienne VOSGIEN for her
innovative teaching skills and efforts to understand and practice. It was always
fun and exciting to attend her classes. I thank her for inspiring me to be a teacher,
and I promise her one day, I will be a teacher and put all my efforts to match her.
I owe gratitude to Mr Philippe GRUDET and Mr IMMANNEL
Santosh for their valuable lectors on team management. I can proudly say their
lectures made me a better team leader. I thank Mr Jean COUTURIER for
boosting me to be a better intrapreneur. His teachings helped me to develop cost
and budget planning for the current research.
I am indebted to every member of Collage de Paris. Mainly, I would like
to acknowledge Justine BELLU, Fahmi HENDRIAWAN and Sasha
CAMARA for their incredible support over my academic tenor.
I thank my friend Divya KOMRABATHINA, a talented designer and
Illustrator, for her incredible support in completing this project. I thank her for
her sleepless nights to give a visual appearance of my ideas.
Last but not least, I thank my dear friend come, teammates, Samiksh,
Anvesha and Pooja. It’s my pleaser working with them. This tenor of one year
was a memorable journey with them, and I wish to continue it.

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The graduate project of Jagadishwar Reddy REDDYGARI is approved by
Mr Guillaume Olivié TOUATI

X X
Mr. Olivie Touati Date
Research Supervisor

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 ABSTRACT
ENGLISH
In recent years sustainability has become the main objective for all the new
startup ideas. When it comes to the apparel industry, they focus on adapting upcycling.
The concept of resealing and upcycling comes along with sustainability. It also aims to
uplift the Health, Wealth, Economy, and Environmental aspects.
The purpose of this project is to provide an example practice of how to
develop a dedicative denim street fashion brand that works on Discarded clothing by
adding value through upcycling, creativity, and sustainability.
The value showed through applying a three-dimensional surface on
clothing by developing a prototype designed by self. This project develops a
contemporary collection made with upcycled denim. The nine prototypes designed by
self explain the production process and lead to discuss the business plan.
This project discusses the complete circle of the business plan, starting from
the initial idea, prototype development, production, business model and cost structure.
FRANÇAISE
Ces dernières années, la durabilité est devenue l'objectif principal de toutes
les nouvelles idées de startups. En ce qui concerne l'industrie du vêtement, ils se
concentrent sur l'adaptation de l'upcycling. Le concept de rescellage et d'upcycling
s'accompagne de durabilité. Il vise également à élever les aspects de santé, de richesse,
d'économie et d'environnement.
Le but de ce projet est de fournir un exemple de pratique sur la façon de
développer une marque de mode de rue dédiée au denim qui travaille sur les vêtements
abandonnés en ajoutant de la valeur grâce au recyclage, à la créativité et à la durabilité.
La valeur a été démontrée en appliquant une surface tridimensionnelle sur
les vêtements en développant un prototype conçu par lui-même. Ce projet développe
une collection contemporaine faite de denim upcyclé. Les neuf prototypes conçus par
eux-mêmes expliquent le processus de production et conduisent à discuter du business
plan.
Ce projet aborde le cycle complet du plan d'affaires, à partir de l'idée
initiale, du développement du prototype, de la production, du modèle d'affaires et de la
structure des coûts.

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KEYWORD

• Denim
• Sustainability
• Fashion
• Design
• Upcycling
• Resealing
• Street Fashion
• Business
• Startup
• Ethical Fashion
• Circular Fashion
• Circular Economy

DEFINITIONS

Denim. A hardly wearing cotton twill fabric, typically blue and used for jeans
and other clothing (Oxford Languages, 2021).
Sustainability. The ability to be maintained at a specific rate or level (Oxford
Languages, 2021).
Fashion. A popular or the latest style of clothing, Hair, Decoration, or be
(Oxford Languages,
2021).
Design. a plan or drawing produced to show the look and function or workings
of a building, garment, or other objects before it is made (Oxford Languages,
2021).
Upcycling. Reuse (discarded objects or material) in such a way as to create a
product of higher quality or value than the original (Oxford Languages, 2021).
Resealing. Seal something again after use. (Oxford Languages, 2021).

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Street Fashion. Street fashion is considered to have emerged not from studios
but the grassroots Street style.
Business. A person’s regular occupation, profession, or trade. (Oxford
Languages, 2021).
Startup. The action or process of setting something in motion. (Oxford
Languages, 2021).
Ethical Fashion. A movement and process of fostering change to fashion
products and the fashion system towards greater ecological integrity and social
justice. (Oxford Languages, 2021).
Circular Fashion. In 2017 Brismar defined circular fashion as clothes, shoes,
or accessories designed, sourced, produced, and provided to be used and
circulated responsibly and effectively in society. (Wikipedia, 2021).

Circular Economy. A production and consumption model involves sharing,

leasing, reusing, repairing, refurbishing, and recycling existing materials and
products as long as possible. (Wikipedia, 2021).

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Table of Contents
DEDICATION ............................................................................................................................ i
ACKNOWLEDGEMENT .........................................................................................................ii
ABSTRACT.............................................................................................................................. iv
ENGLISH .............................................................................................................................. iv
FRANÇAISE ......................................................................................................................... iv
KEYWORD .............................................................................................................................. iv
DEFINITIONS .......................................................................................................................... iv
LIST OF FIGURES .................................................................................................................. D
LIST OF TABLES .................................................................................................................... D
INTRODUCTION ..................................................................................................................... 1
PART- 1 ..................................................................................................................................... 3
CONTEXT &ENVIRONMENT ............................................................................................... 3
1.1 STATEMENT OF PROBLEM ........................................................................................ 3
1.2 PURPOSE OF STUDY .................................................................................................... 4
1.3 APPAREL AND TEXTILE INDUSTRY ON POLLUTION ...................................... 4
1.4 IMPROVING SUSTAINABILITY ASPECTS IN APPAREL PRODUCTION ............ 6
1.4.1 SECOND-HAND SHOPPING .................................................................................. 7
1.4.2 ON-DEMAND CUSTOM CLOTHING ................................................................... 7
1.5.3 GREEN FASHION.................................................................................................... 8
1.4.4 REPAIR REDESIGN AND UPCYCLE FASHION ................................................. 8
1.4.5 ETHICAL FASHION ................................................................................................ 8
1.5 THE IMPACT OF UPCYCLING IN SUSTAINABLE FASHION ........................... 9
1.5.1 IMPACT ON PRODUCTION................................................................................... 9
1.5.2 IMPACT ON CONSUMERS .................................................................................... 9
1.5.3 IMPACT ON THE ENVIRONMENT ...................................................................... 9
1.6 CREATIVITY IN UPCYCLED DENIM ...................................................................... 10
1.6.1 BEYOND RETRO .................................................................................................. 11
1.6.2 PATAGONIA .......................................................................................................... 11
1.6.3 REFORMATION .................................................................................................... 11
PART – 2 ................................................................................................................................. 12
PRODUCT DEVELOPMENT ................................................................................................ 12

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 2.1 CONCEPTIONAL FRAMEWORK .............................................................................. 12
2.2 PROBLEM IDENTIFICATION .................................................................................... 13
2.3 PRELIMINARY IDEA .................................................................................................. 13
2.3.1 DENIM REPAIR ..................................................................................................... 14
2.3.2 UPCYCLING .......................................................................................................... 14
2.3.3 CUSTOMISED SERVICES .................................................................................... 16
2.4 DESIGN REFINEMENT ............................................................................................... 16
2.5 PROTOTYPE DEVELOPMENT .................................................................................. 16
LOOK – 1 ......................................................................................................................... 17
LOOK – 2 ......................................................................................................................... 18
LOOK – 3 ......................................................................................................................... 19
LOOK – 4 ......................................................................................................................... 20
LOOK – 5 ......................................................................................................................... 21
Look – 6 ............................................................................................................................ 22
LOOK – 7 ......................................................................................................................... 23
LOOK – 8 ......................................................................................................................... 24
LOOK – 9 ......................................................................................................................... 25
PROTOTYPE COLLECTION ......................................................................................... 26
PART – 3 ................................................................................................................................. 27
BUSINESS DEVELOPMENT ................................................................................................ 27
3.1 BUSINESS SETUP ........................................................................................................ 27
3.1.1 NICHE MARKET ................................................................................................... 27
3.1.2 STOREFRONT ....................................................................................................... 28
3.1.3 ONLINE STORE ..................................................................................................... 29
3.1.4 BRANDING ............................................................................................................ 29
3.2 BUSINESS ANALYSIS ................................................................................................ 30
3.2.1 KEY PARTNERS.................................................................................................... 30
3.2.2 KEY ACTIVITIES .................................................................................................. 31
3.2.3 VALUE PROPOSITION ......................................................................................... 31
3.2.4 CUSTOMER RELATIONSHIP .............................................................................. 32
3.2.5 KEY RESOURCES ................................................................................................. 32
3.2.6 CHANNELS ............................................................................................................ 33
3.2.7 CUSTOMER SEGMENTS ..................................................................................... 34
3.2.8 COST STRUCTURE ............................................................................................... 34
3.2.9 REVENUE STREAMS ........................................................................................... 36

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 3.3 RISK MAPPING ............................................................................................................ 36
3.4 ORGANISATION AND MANAGEMENT .................................................................. 38
3.5 FINANCIAL ANALYSIS ............................................................................................. 39
3.5.1 INITIAL FINANCIAL PLAN................................................................................. 39
3.5.2 FINANCIAL FORCAST ......................................................................................... 40
3.5.3 STORE BUDGET ................................................................................................... 42
CONCLUSION ........................................................................................................................ 44
LIMITATIONS ........................................................................................................................ 45
REFERENCES ........................................................................................................................ 46
APPENDIX .............................................................................................................................. 49
APPENDIX – A ................................................................................................................... 49
APPENDIX – B ................................................................................................................... 50
APPENDIX – C ................................................................................................................... 51

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 LIST OF FIGURES
Figure 1Environmental impact of buying used instead of new ................................................. 2
Figure 2The Environmental Impact Of Textile ......................................................................... 5
Figure 3Global Green House gas Emission ............................................................................... 6
Figure 4 5ways to make the Fashion industry more sustainable by the year 2025 ................... 7
Figure 5 Garment made out of the waste photo by Utopia by Cho on Unsplash .................... 10
Figure 6 The conceptional framework of apparel production by Lamb & Kallal, 1992 ......... 12
Figure 7 Working still denim repair by Denham, Netherlands, 2016. ..................................... 14
Figure 8Difference between original and upcycled Grafix image by Komrabthina Divya 2019
.................................................................................................................................................. 15
Figure 9 Look 1 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ........... 17
Figure 10 Look 2 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ........ 18
Figure 11 Look 3 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 19
Figure 12 Look 4 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 20
Figure 13Look 5 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. .......... 21
Figure 14 Look 6 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 22
Figure 15 Look 7 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 23
Figure 16 Look 8 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 24
Figure 17 Look 9 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021. ......... 25
Figure 18 Denim Darzee timeless, Jagadishwar Reddy and Divya Komrabathina,2021. ....... 26
Figure 19 Amsterdam, Denim Day 2015, Westergasfabrek & Downtown ............................. 28
Figure 20 Example brand logo designed by Jagadishwar Reddy, 2020 .................................. 30
Figure 21 Value Proposition Canvas, Alex Osterwalder, 2005. .............................................. 31
Figure 22 Cost structure for the proposed business model, 2021. ........................................... 34
Figure 23 Marketing cost structure, Jagadishwar Reddy, 2021. .............................................. 35
Figure 24 organisational structure, Jagadishwar Reddy, 2021. ............................................... 38
Figure 25 Givenchy, spring-summer, 2020, Paris, Oct 14, 2019............................................. 49
Figure 26 Dutch Denim Repair, Netherlands, 2018. ............................................................... 50
Figure 27 Dutch Denim Repair, Netherlands, 2018. ............................................................... 50
Figure 28 Jagadishwar Reddy, Zero Waste Garment production, 2016. ................................. 51

LIST OF TABLES
Table 1 Risk mapping, 2021. ................................................................................................... 37
Table 2 Initial financial plan, 2021. ......................................................................................... 40
Table 3 Financial forecast of month and year, 2021. ............................................................... 41
Table 4 Monthly pay of workforce,2021 ................................................................................. 41
Table 5 Infrastructure Required, 2021. .................................................................................... 42
Table 6 Machinery and equipment, 2021. ............................................................................... 42
Table 7 Store Operational Assumption, 2021. ........................................................................ 42
Table 8 Store size, 2021. .......................................................................................................... 43

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 INTRODUCTION
We are in the early stage of the radical transformation of fashion.
Customers are prioritising sustainability and showing interest in personal styling.
In the last 10years, the demand for upcycled fashion has been increasing rapidly,
but all I can say is It is just a beginning.
According to Janes Reinhard (CEO, ThredUP), "Pollutive industries
have the power to transform when technological innovation collides with the
motivations of consumers, businesses, and governments. We've seen it with
electric cars, solar energy, and the next circular fashion".
Resale report 2021 says that they are 9Billion estimated number of
clothing items that are hardly used or sitting idle in consumers' closets, estimate
more than 36B number of clothing thrown away in the U.S. every year but 95%
of which could be recycled or reused.
While consumers bought less apparel overall through the global
pandemic, and Many turned to thrifting. Thrifting became a new pandemic habit
and expected to stick. According to the Thread Up resale report, 33Million
consumers bought second-hand apparel for the first time in 2020, and 75% of
those first-time buyers plan to increase their spending the second time.
According to the Global Fashion Agenda 2020, McKinsey and Company
Said circular business models, including re-commerce, could enable the industry
to cut around 143 million tons of GHG emissions in 2030. To align with the 1.5-
degree pathway (targeted by the pairs climate change agreement) by 2030. We
need to live in a world in which one in five garments are traded through circular
business models.

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 Figure 1Environmental impact of buying used instead of new

In figure1, we can clearly understand the environmental impact of

buying used instead of new. According to the resale report 2021, by practising
upcycling and reselling, we can reduce the use of water from 78.5 gallons of water
to only 1.2 gallons. Energy demand from 38.8 kWh can come down to 4.8kwh,
and carbon emission can come down from 21.1 lbs. of co2 to 3.7 LBS. of co2
every year.

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 PART- 1
CONTEXT &ENVIRONMENT

1.1 STATEMENT OF PROBLEM

In fashion studies, Manny projects have adapted a sustainability model.

Designers started focusing on eco-friendly fashion by using natural colours,
Natural fabrics so on. But there is no permanent solution for material waste.
In addition, there are only limited examples of sustainable fashion
practice applying creative techniques that would enhance the product quality.
According to Thredup (resale report 2021), 43% of consumers prefer
resalable garments over disposable ones, 50% of consumers are more opposed to
eco waste, and 60% are more averse to wasting money on buying new products.
Fashion must get circular to reach global climate goals; Fashion currently
runs on the harmful linear model accounting for an estimated 10% of global
greenhouse gas missing. The future of fashion must be circular.
Around 70% of Fashions GHG emissions come from upstream activities,
Such as fabric production. Throw away fashion culture perpetuates the problem
with the average consumer discarding clothes after only 7 to 8 years.

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 Extending the life of clothes diverts textiles from landfills and displaces
GHG used in garments production. Buying a product second-hand or upcycled
reduces the need to produce the new product, Reducing its carbon footprint by
82%.

1.2 PURPOSE OF STUDY

This project aims to provide an example practice of developing a brand

that works on upcycling and resailing.
This project develops a collection of nine outfits, and each outfit is
designed in its style. Each outfit is produced out of old and second-hand fabric.
This project gives a three-sixty-degree overview of developing the retail
fashion brand, from design to complete business analysis.

1.3 APPAREL AND TEXTILE INDUSTRY ON POLLUTION

It takes a lot of water to produce textile, plus land to grow cotton and other
fibres. It is estimated that the global textile and clothing industry used 79 billion
cubic meters of water in 2015, while the needs of the E.U.'s whole economy
amounted to 266 billion cubic meters in 2017.
According to estimates, it takes 2,700 litres of freshwater to produce a
single shirt are required, according to estimates, enough to meet one person's
drinking needs for 2.5(source EPRS 2020) years.

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 Figure 2The Environmental Impact Of Textile

According to the European parliament textile pollution report 2020,

Textile production is estimated to be responsible for about 20% of global clean
water pollution from dyeing and finishing products.
Washing synthetics releases an estimated 0.5 million tons of microfibers
into the ocean a year.
Laundering synthetic clothes account for 35% of primary microplastics
released into the environment. A single laundry load of polyester clothes can
discharge 700,000 microplastic fibres that can end up in the food chain.
The environmental impact of textiles 2020 says that 10% of global
greenhouse gas emissions are by clothing and footwear production. This
percentage is more than pollution coded by all international flights and maritime
shipping combined.

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 Figure 3Global Green House gas Emission

According to the European environmental agency, textile production, In

2017, generated about 654 kg of co2 emission per person.
Since 1996, fast-fashion culture has reduced the life span of clothing,
which results in increased consumption to 40% by 2020. An average European
uses nearly 26 kilos of textiles and discard about 11 kilos of them every year.

1.4 IMPROVING SUSTAINABILITY ASPECTS IN APPAREL

PRODUCTION

The main intention of this research is to give an example practice of

improving fashion sustainability by adapting upcycling and reselling.
They are different ways to improve sustainability, especially when it
comes to apparel production. Here I will discuss five different approaches to
make fashion more sustainable: on-demand & custom clothing, clean & green
Fashion, repair & upcycled Fashion, Ethical Fashion, and second-hand shopping.

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 Figure 4 5ways to make the Fashion industry more sustainable by the year 2025

1.4.1 SECOND-HAND SHOPPING

In a world full of fashion trends, second-hand shopping keeps fashion to
be more sustainable. It is the most trending fashion habit of today's consumers.
In this fast-fashion world, the rapid growth of second-hand fashion is
noticed, making brands and retailers move towards second-hand fashion.

1.4.2 ON-DEMAND CUSTOM CLOTHING

Custom clothing makes apparel production easier, which results in
minimum usage of resources. Custom clothing helps in tackling the size barrier,
avoids bulk production, improves zero waste, minimal inventory, low-cost
maintenance, custom design, and so on.
In the rea of consumerism, consumer choice matters the most. Brands and
retailers are personalising the entire shopping experience to get closer to their
customers.

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1.5.3 GREEN FASHION
In the era of consumerism, distractive fashion is no more acceptable. Style
is one of the most polluting industries globally, from plants to animals. This
industry is hurting all.
Since the last decade, the percentage of consumers who prefer to wear
environment-friendly or eco-fashion has gradually increased. Fashion designers
and retailers are continuously improving the sustainability aspects by developing
green Fashion or eco-friendly Fashion.

1.4.4 REPAIR REDESIGN AND UPCYCLE FASHION

In apparel production, repair, redesign, and upcycling are vital to keeping
fashion more sustainable. This process will reduce the need to produce or
consume new products and build value for the old ones.
In recent years brands have started many initiatives to give old an entirely
new look. Clothes that cannot repair can be recycled or redesigned, and This also
helps save raw materials and natural resources.

1.4.5 ETHICAL FASHION

In the coming year's ethical fashion is going to be the new fashion
regulation. Governments across the globe are taking many initiatives to make the
fashion industry wholly fair and righteous by the transparent supply chain.
Today's fashion shoppers are choosing veganism, eco-friendly over first
fashion. Designers and retailers were trying to find different approaches to make
fashion more eco-friendly.
By the year 2050 percentage of ethical shoppers are estimated to reach
90% (Fiber to fabric 2020).
All the above practices are leading the fashion industry towards
sustainability and Ethical Fashion. Consumers are getting more ingenious
sustainable innovation to boom in the coming years.

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1.5 THE IMPACT OF UPCYCLING IN SUSTAINABLE
FASHION
In 2018, the fashion industry was responsible for 4% of the world's total
waste (MINIWIZ, 2020). Some world-leading fashion houses have been caught
in controversy for contributing significantly to this excessive waste production.
The above statement shows that British luxury giant Burberry burned
$36.5 million worth of unsold stock in 2017. Nike has been caught trashing unsold
shoes. H&M was accused of annually sending 12 tons unsold in flames.
Upcycling promises to transform the economy in different ways that
benefit brands, consumers, and the environment.
1.5.1 IMPACT ON PRODUCTION
Brands and companies can adapt the rebuying concept, which allows
customers to return old or used clothing. Rebuying helps in sails and brand
promotion. By this initiative, barely-worn clothing can be resold and upcycle
lightly used or damaged clothing.
By back initiative can help companies acquire more customers since
having an option to resale will encourage customers to engage more. Upcycling
skips over several stages of the traditional production process and radiuses
production cost.
1.5.2 IMPACT ON CONSUMERS
Today's consumers across the globe are becoming environmentally
conscious, prioritising consuming environment-friendly and sustainable
products.
According to Forbes, 93% of consumers expect the companies behind
their favourite products to support pertinent social and environmental issues.
Adapting upcycled and second-hand shopping habits will allow
consumers to shop with pride, knowing that the product they buy doesn't
contribute to environmental pollution.

1.5.3 IMPACT ON THE ENVIRONMENT

Sustainable production shows an immense impact on the environment.
Upcycling or resailing the existing garment prevents the requirement of
producing the new one.

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 For example, by upcycling damaged or used clothing, we avoid using the
2,700 litres of water that it takes to manufacture the cotton required to produce
just one T-shirt.
By avoiding the several stages in the traditional manufacturing process,
greenhouse gas emissions and chemical waste can be radiused. By keeping
unwanted debris out of landfills, can prevent soil degradation. It limits the impact
of harmful chemicals and also prevents air pollution by tackling waste dumping.

1.6 CREATIVITY IN UPCYCLED DENIM

Consumer trends are changing, but denim is still on. Denim is an

omnipresent fabric that has never gone out of fashion since first becoming
popular during the California gold rush of 1949(Dr. Csanalk, Denimided, October
2016).

Figure 5 Garment made out of the waste photo by Utopia by Cho on Unsplash

Experimenting with something that has always been in trend is

challenging, though creativity has no boundaries in this first fashion world. When
it comes to fashion, it is changing every second. Consumers expect new trends
every weekend, which creates a huge demand for fast fashion.
This demand shows the impact on sustainability. To tackle this barrier,
retailers and brands approach upcycling and recycling.

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 They are some upcycling fashion brands that provide an excellent
opportunity to consumers to be a responsible shopper. Here I am going to discuss
three of them as an example.

1.6.1 BEYOND RETRO

Beyond Retro is known for its vintage pieces, and it is one of the premium
retailers in the vintage clothing line. Every other peace gets reclaimed,
repurposed, and redesigned.
This brand works exclusively with 93 million pounds of second-hand
fabrics each year (MINIWIZ Sep 2020).

1.6.2 PATAGONIA
Patagonia is well known for producing apparel from recycled plastic, and
the classic outdoor fashion brand reigns as one of the sources of sustainable
fashion.
Patagonia runs an In-house upcycling program. It recollects the damaged
and used pieces and upcycle them into the new quality product. This program
focus on maximising the life span of apparel without compromising on style and
quality.

1.6.3 REFORMATION
Reformation is a famous brand that upcycles a significant portion of its
products from deadstock. Reformation offers a mid-range price point that is worth
every penny. You can turn old clothes into new Reformation shopping credit and
trust your old clothes will be made into quality new fashion products.

Upcycling fashion brands are a few benchmarks of the growing

movement of end-to-end fashion. Upcycling and reselling industry is rising to the
forefront of fashion, especially in western countries, and consumers are ready to
pay their part in the circular economy.

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 PART – 2
PRODUCT DEVELOPMENT

The purpose of this research is to develop upcycling and resailing,

particularly in the denim segment. This research gives a complete overview of
innovative business analysis, from scrap collection to marketing the finished
product.
This part will discuss the conceptional framework of product
development with examples of prototype designs for men and women.

2.1 CONCEPTIONAL FRAMEWORK

A conceptional framework of Lamb & Kallal, 1992 is used to explain the
different stages involved in the production. This model was also used to analyse
the upcycling denim collection.

Figure 6 The conceptional framework of apparel production by Lamb & Kallal, 1992

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 This part will explain the different stages of upcycled garment production
using the conceptional framework of Lamb & Kallal, 1992. There are six primary
stages in apparel production (Lamb & Kallal, 1992) as follows:-
• Problem Identification
• Preliminary Idea
• Design Refinement
• Prototype Development
• Evaluation
• Implementation

2.2 PROBLEM IDENTIFICATION

In part one, we discuss the environmental impact of apparel production,
particularly in developing countries like India and China. This impact is way
more.
On the other hand, the lack of dedicated recycling retail brands that
promote upcycling and reselling makes the contribution of the apparel industry
to the circular economy low.
There are over 300 million employees along the value chain in the $1.3
trillion clothing industry. While clothing sales have increased from 2000,
doubling their usual production, their usage has dramatically decreased because
of the fast-fashion phenomenon. Shifting to a circular system could help the
industry unravel a $560 billion economic opportunity. This requires renewed
business models and collaboration across the value chain ( Forbes, Dec 2020).
It is a long-lasting material of all fabrics and always deen in trends when
it comes to denim. But the consumer is not willing to use it after 10 to 15 washes
(Resell report 2021). This behaviour of consumers makes them dump their old
pair of denim. The denim market is growing day by day, but the count of
upcycling denim brands is comparatively low.

2.3 PRELIMINARY IDEA

The idea is to develop the retail upcycle and reselling brand concept,
which primarily works on denim repair, upcycling, reselling, and customising
denim apparel, which promotes the idea of reducing, reusing, recycling, and
repeating.

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2.3.1 DENIM REPAIR
As discussed earlier, denim is the most long-lasting material of all the
fabrics. Still, there are minimal options available to the consumers to get their
damaged apparel or accorded repaired. Recently, some industry leaders like Levis
Strauss & co have introduced this concept of denim repair, but it is limited only
to Levis customers.

Figure 7 Working still denim repair by Denham, Netherlands, 2016.

In this business research, I propose a trustworthy brand that works on

customised denim repair services for its clients irrespective of the brand of the
product. This initiative all the customers to reuse their damaged or old pare of
apparels.
Working still denim Repair by Denham, Netherlands, 2016.

2.3.2 UPCYCLING
Waste isn’t waste until you waste it (William James Adams Jr). Upcycled
products will have to go through three stages: scrap collection, design
development, and production.

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 Figure 8Difference between original and upcycled Grafix image by Komrabthina Divya 2019

Image number 7 (Komrabthina Divya, 2019) explained the difference

between the original and upcycled garment. The figure can show the remarkable
difference between the above two jackets by manipulating with different
upcycling techniques.
SCRAPE COLLECTION
Brands that work on upcycling and reselling have to buy back old,
damaged, reusable apparel, which can be used for upcycling, particularly denim
products.
This process can be done as a rebuying campaign; transactions can be
done in different ways, such as offering gift cards, vouchers, coupons, and based
on the garment's weight and quality irrespective of the brand to the clients in
exchange for their old denim and cotton apparels.
DESIGN DEVELOPMENT
Design development is the most crucial stage in upcycling. After the scrap
collection, all the pieces must be screened, finalised, and upcycled.
The design has to be developed only from the collected pieces finalised
in the screening and by adapting different upcycling techniques such as
manipulating patterns, existing plans, etc.

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PRODUCTION
Production for the proposed business model is complicated, and every
product has to have special care. The proposes a business model that opposes the
mass production of apparel and supports zero-waste production hance production
will be limited and exclusive.
2.3.3 CUSTOMISED SERVICES
They are minimal brands that offer customised services to their clients in
the retail fashion industry. Particularly in denim fashion, consumers have no
option to order a specified design.
The proposed business model offers customised designs to the clients,
which work on customising the old pare, developing upcycled plans on the client's
demand, and offering personalised accessories made of upcycled denim.

2.4 DESIGN REFINEMENT

The processes of design start with exploration but end with refinement.
The best designers carefully move from one to the other, ensuring they spend
enough time exploring before locking themselves into a design approach (Jared
spool,2001).
The refinement process uplifts the combination of improvised, selected
and rejected ideas for the more forth development. This process helps in finalising
the design before applying it to the garments.

2.5 PROTOTYPE DEVELOPMENT

As informed in the last part, this research explains the innovative business
model, including an innovative, timeless, street denim collection (Jagadishwar
Reddy REDDYGARI, Komrabathina Divya, 2021) by adapting upcycling, repair,
and zero waste.
This part will witness the denim darzi timeless collection 2021, the
collection of nine outfits (Jagadishwar Reddy REDDYGARI, Komrabathina
Divya, 2021) designed for this research, which can be an example of upcycling
business model.
All the designs of the collection will be explained.

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LOOK – 1

Figure 9 Look 1 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

In figure 9, we can witness the complete look of upcycled denim outfit

with a jacket, denim bottom, upcycled denim belt pouch, denim cap, and a brand
new snickers.
Three-piece denim outfit, to create this look we need one old or partially
used jeans, one old or damaged jeans, one old denim jacket, and an old t-shirt.
In this look denim jacket was manipulated with the patchwork of the
printed T-shirt on the collar and back. Denim bottom resized from regular fit to
skinny fit and standard length to ankle length. The ankle is left unfinished to give
it a trendy ankle-torn look. The leftover fabric of the bottom is used as an elbow
cap tho the jacket and ripped to provide an uneven torn effect.
An upcycled denim belt pouch made by manipulating different swathes
of denim collected from cutting waste, and metal hooks attach a bag with belts.
The complete outfit was styled with a denim cap and sneakers.

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LOOK – 2

Figure 10 Look 2 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Figure 10, we can notice the complete outfit styled with blue
tooth headphones and the latest Balenciaga sneakers. The look from the
figure.
To create this look, we need one old or partially used denim
bottom, one old or damaged denim bottom, fabric paints, one denim
jacket, one old or damaged knotted sweet shirt, and leftover pieces of
denim swatches from production waste.
In look number two, designers manipulated two different pieces
of denim together and highlighted them with vibrant fabric paint. The
denim jacket is upcycled by adding denim patches and an attached
piece of the knitted sweatshirt to make it stand out.
The sable bag developed from the leftover denim swatches and
the complete outfit accessorised with brand new sneakers and a
headset.

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LOOK – 3

Figure 11 Look 3 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Look number 3; it is designed based on the real horror story about the
demon locked in the room for hundreds of years and trying to come out of it. It is
closed permanently with the sacred threads.
This look is developed from the two old or damaged denim bottoms, one
old or partially used denim jacket, fabric paints, threads, chains, and embroidery
patches.
This look is developed by using fabric painting technics and giving it the
three-dimensional effect, which makes the jacket more realistic and scary, and
Thread and chains added. Two old or damaged denim bottoms are attached and
manipulated back pockets. The left pocket is highlighted by colours which shows
the support to LGBTQ, and the right leg added with the embroidery patch
The outfit is completed by adding creative and hand-painted canvas shoes,
which are upcycled from old canvas shoes (Divya Komrabathinna, 2021).

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LOOK – 4

Figure 12 Look 4 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

“You can't buy happiness, but you can buy a skateboard, and that's pretty
close” (Tony Hawk, 2012). Look four is inspired by street skating, highlighting
with the skateboard the originality of street fashion.
Look four is developed out of a damaged sweatshirt, pare of old and
damaged denim bottom, leftover denim swatches sourced from the production
waste, and styled by an upcycled skateboard.
The sweatshirt was redesigned by covering the damaged spots by
highlighting them, and sleeves have been detached to give it a more authentic
street look. Denim bottom is manipulation on different denim swatches together
by applying patchwork technic. The visible stitch work technique is used to give
it the look of real upcycling.
In figure 12, we can witness the complete look. An upcycled skateboard
is handed as an accessory which is redesigned by adding graffiti, the most well-
known street art.

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LOOK – 5

Figure 13Look 5 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Look number 5 is the complete upcycled three peace denim outfit, styled
by the brand new Nike snickers, upcycled denim backpack specially designed for
this Research (Jagadishwar Reddy, Divya Komrabathina, 2021).
This look has been developed by the damaged denim jacket, damaged or
old denim bottom, leftover denim swatches sourced from production waste, fabric
paints, leather patches, printed old or damaged T-shirts, and embroidery patches.
In figure 13, we can witness the complete makeover of look 5. The denim
jacket is manipulated by highlighting the damaged spot by giving the back
patches. Pockets are attached with leftover denim swatches and applied tribal art
motif with fabric paints.
Denim bottom is redesigned from regular fit to skinny fit and from
standard length to ankle length. Regular jeans are turned into ripped jeans and
attached with embroidery patches. An innovative denim backpack is developed
with the leftover denim swatches and highlighted with contrast stitches, leather
patches, and hooks.

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Look – 6

Figure 14 Look 6 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Look number 6; three peace upcycled denim outfits styled with denim
cap, brand new Nike snickers, upcycled denim sling bag, and jacket layered on
the brassiere.
This look is developed by sourcing two used or damaged denim jackets,
two old or damaged denim bottoms, embroidery patches, a one-meter rope.
A regular denim jacket resigned in to crop top jacket and left unfinished
edges to give it an authentic street look. Pockets detached from the damaged
jacket and applied to the upcycled jacket and highlighted with embroidery
patches.
The upcycled denim sling bag is made from damaged or old denim and
attached with an embroidery patch. The denim shot is developed from the busted
denim bottom and resized. A cotton rope is used as the waistband, and this
implementation shows the significant difference in the look by replacing cotton
rope with a belt.
In figure 14, we can see the illustration of a completely developed attire.
Styled with denim cap, cotton rope, upcycled denim sling bag, and brand new
Nike snickers.

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LOOK – 7

Figure 15 Look 7 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Look number 7 is the three-piece outfit with the denim jacket, printed
vest, redesigned denim bottom with the trendy snickers.
Sourcing denim swatches redesign this look from material and production
waste, old or damaged denim jackets, Rajasthani printed patches sourced from
material waste and leather patches.
The denim jacket is manipulated with printed and traditional Rajasthani
patches and an attached leather belt. The denim bottom is developed by
assembling the leftover denim swatches sourced from production waste and
highlighted with the contrast thread. This contrast thread work makes the design
stand out as an example of upcycled denim fashion.
In figure 15, we can see the complete look with a vest and redesigned
jacket layered on it—upcycled bottom along with a trendy snicker designed by
Divya Komrabathina,2021.

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LOOK – 8

Figure 16 Look 8 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

This look highlights the bare body with an upcycled denim jacket on it.
Look 8 is the two peace denim outfit accessorised with an upcycled denim bag
pack, handwoven leather belt, metal chain, embroidery patches, and trendy
sneakers.
“Fashion is an art, and you are the canvas" (Velvet Paper). In look eight,
art is added to the fashion. The regular denim bottom is turned into the ripped
bottom, added with embroidery patches, a handwoven leather belt, and a metal
chain. The hand-painting on the denim jacket made it look brand new all again
and accessorised with the leather necklace.
An upcycled denim backpack is made from two felt-over denim swatches
sourced from material waste and added fine finishing with leather. In figure 16,
we can view the complete look of a two-piece denim outfit which shows the
honesty and boldness of denim fashion.

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LOOK – 9

Figure 17 Look 9 Denim Darzee, Jagadishwar Reddy and Divya Komrabathina,2021.

Look 9 is the final example of the proposed business model: three peace
denim outfits with an upcycled denim jacket, denim shot, trendy sneakers, and an
upcycled headscarf.
This look is developed from two old or damaged denim jackets, one old
or damaged denim bottom, leftover cotton swatches sourced from material waste,
leftover printed cotton swatch sourced from an old or damaged T-shirt.
Two old or damaged denim jackets are manipulated together with rope
and highlighted with the hand-painted motifs inspired by tribal art. The denim
shot is developed from old or damaged denim bottom and patched with the
printed cotton swatch from behind.
In figure 17, we can witness the complete look styled with the brand new
sneakers and styled with the trendy headscarf developed from the leftover cotton
swatches sourced from the production and material waste.

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PROTOTYPE COLLECTION

Figure 18 Denim Darzee timeless, Jagadishwar Reddy and Divya Komrabathina,2021.

The main intention of developing this collection is to give an example

practice to the proposed business model. Each design in the collection is
independent and unique. All the designs are created from old, damaged, leftover,
and material waste.
All the looks specially developed denim Darzee's timeless collection for
the current research, designed by Jagadishwar Reddy and Illustrated by Divya
Komrabathina.
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 PART – 3
BUSINESS DEVELOPMENT

3.1 BUSINESS SETUP

The first step is to establish that something is possible, then probability
will occur (Elon Musk, 2019). To be visible in this fast fashion market, brands
need to maintain their identity and positioning.
I use this part to explain the business setup of the proposed business
model, which reflects its identity, story, and positioning.

3.1.1 NICHE MARKET

A niche is the market segment, which is defined by its need, preference,
and identity. In reality, every individual has their interest. It is almost impossible
to make a universally loved product. When you try to please everyone, you end
up pleasing no one (Simon Sinek). Niche helps in knowing the customers, the
better you know your customers and their needs, the better your chance to serve
them.
Here I discuss the different strategies to find the customers to the proposed
business model. This digital world made it easy to find potential customers; the
brand has to maintain a customers database by asking questions, taking
feedbacks, collecting basic details like name, email id, phone number, etc.
Keeping updated by tracking fast fashion, web search, and social media
made it easy to be visible in the market just by one click. But converting audions
to potential customers is a challenging task. A niche market can be developed by
marketing strategies like sales promotions, loyalty programs, exchange offers,
regular workshops on social awareness, and sustainability improvement
campaigns.

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3.1.2 STOREFRONT
I propose a brick-and-mortar store setup to the proposed business model,
along with the online store. Location is the most important decision one has to
take before narrowing down to the setup.
Not only commit the location in the specific city or town but also consider
the streets and landmarks of the neighborhood, which brings foot traffic and
builds the brand identity.
Once the location options have narrowed down, it's time to focus on finding
a suitable building. The size and shape of the store have to be taken into
consideration based on the budget for store setup. I propose a standalone store
setup is a perfect option for the proposed business model.
Here I am using the existing store setup of Good Genes store, Netherlands,
to give a visual example of store setup.

Figure 19 Figure 19 Amsterdam, Denim Day 2015, Westergasfabrek

& Downtown

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 Figure number 9 talks about denim display, store setup, Visual
Merchandising.
The above-proposed setup can be a visual example of upcycling and
resailing brand store setup.

3.1.3 ONLINE STORE

Alongside the brick-and-mortar store, the online store will be the most
crucial sailing platform in this digital world. Building the customised web design
templet is often expensive. It is essential to find an affordable, easy-to-use, and
mobile-friendly portal.
It is easy to find retail-specific wed design temples, which simplify e-
commerce store building. Settle on the software that can support online sales and
scale with the business as it grows. As social media has become a major driving
factor for business, the brand has to mention its profiles on all the social media
platforms like Facebook, Twitter, Youtube, Pinterest Etc.

3.1.4 BRANDING
In general, branding is the most crucial aspect of business development.
Brand name and logo play the most vital role in branding.
"Your brand is your promise to customers. It differentiates your offering
from your consumers. Pick a brand name that tells them what they can expect
from your goods and services. Your brand is derived from who you are, what you
want to be, and what people expect you to be" (John Williams).
In this model, our story has several essential parts. We are committed to
being a responsible retailer and making our mark in the circular economy. All our
products are made from old, damaged, and partially used apparel. Our brand is
committed to creating zero waste apparel production in the denim segment for
men and women. We promise to buy second-hand clothing from consumers and
use them in upcycling.
As I explained in the previous paragraph, it can be an example of
storytelling to the proposed business model. To be a promising brand, it's
essential to be committed to its history, value, and heritage. "You can't fake a
great brand, and it has to be at the heart of everything you do" (Michael Garvey,
2018).

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 When it comes to brand name and logo, it should commit to upcycling.
We have to prefer words with deep meaning and connection with denim and
upcycling for this business model. For example, "DENIM DARZEE," which
means denim tailor in Hindi, this name says that we are denim tailors, do
operations with denim, customise, repair, and so on. With the strong tagline like
"TARE, WARE, and REPAIR," in figure 20, the Imaginary brand logo and name
are used to give a visual example that shows the brand name, tagline, logo, and
colour scheme.

Figure 20 Example brand logo designed by Jagadishwar Reddy, 2020

The example logo from figure 20 is designed by Jagadishwar Reddy,

2020, with a colour scheme of purple, red, and white, Using the logo creating
software Canva. These days it's effortless and economical to design a logo using
the logo creating domains like Canva.

3.2 BUSINESS ANALYSIS

This part will discuss all the nine blocks of the business model canvas
(Alex Osterwalder, 2005) to the proposed business model. I will explain each
block theoretically in detail.

3.2.1 KEY PARTNERS

The proposed business model promotes freelance working partners and
permanent or long-term partners. Some of the key partners are denim units for
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sourcing the production waste, ding units for denim wash, freelance designers for
developing prototype designs, artists, etc., local vendors for raw material supply.
3.2.2 KEY ACTIVITIES
In the proposed business model, research and development are essential
activities. New product research, new product development, existing product
update, and quality checking are some of the activities that must be focused on.
The key activities are when it comes to production, selection of products
and designs, selection of production process, production capacity, production
planning, production control, quality control, cost control, and maintenance.
In sales and customer service, staff training, team management, problem-
solving, task management are vital. In marketing, key aspects are marketing
strategies, market research, brand communication, sales support, and promotion
events will be the key activity of the proposed business model.

3.2.3 VALUE PROPOSITION

To explain the value proposition, I am using the value proposition canvas
developed by Alex Osterwalder, 2005. This canvas gives a visual example to
understand the value proposition of the proposed business model.

Figure 21 Value Proposition Canvas, Alex Osterwalder, 2005.

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 In figure 21, we can witness the value proposition canvas of the proposed
business model, which shows the emotional drivers of purchasing, the hidden
needs, the rational drivings of purchasing, and the risk of switching to a new
product. On the other hand, we can notice the benefits of the product, its uses,
and how it feels like to use the product.
The proposed business model creates value by adapting upcycling,
customisation, reselling, sustainability, recycling, value-adding, zero-waste,
ethical fashion, circular economy, etc.

3.2.4 CUSTOMER RELATIONSHIP

“Sale prices, advertising, merchandising, location, products, and services
attracts customers only once. The quality of the personal relationship is what
brings them back” (John Tschohl). Luxury retail has gone the extra mile to serve
the customers and now finding new ways to scale personal customer service. Here
I suggest some different ways to maintain customer relationships to the proposed
business model.
Write a killer newsletter, wall street best journal bestselling author and
digital marketing titan Ann Handley says emails, especially in the form of
newsletters, are the best ways to reach people online. No one wants to hear from
someone they haven't heard in a while who is just asking for money. Likewise,
you don't only want to reach out to your customer when you have something to
sell. Newsletters help to maintain a rapport with the customer and build customer
relationships.
The proposed business model offers customised designs and provides
customised upcycled products. This service helps the brand to know their
customer better and helps to improve customer relationships. Some more aspects
that help improve customer relationships are blowing away customer service
expectations, seeking feedback, being consistent and timely in interaction,
establishing trust, and maintaining regular customer loyalty programs.

3.2.5 KEY RESOURCES

The essential resources of the proposed business model are classified into
three categories: physical resources, human resources, and financial resources.
Physical resources are the tangible resources that a business uses to create
its value proposition. The material resources of the proposed business model are
store equipment, inventory, building, production setup, and office setup.
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 In general, employees are the most critical resources of the company. Not
only do employs play their role in the company development, but they will
represent the whole company when they are interacting with the customers. In the
proposed model, it is vital to invest money in creative minds while hiring the
production team, designing team, and sales team, who will help develop the
business by investing innovative skills and knowledge.
"You must gain control over your money, or the lake of it will forever
control you" (Dave Ramsey). In business, money is the oil of the ship. In startups
and innovative business models, a financial resource is an essential aspect. In the
proposed business model, money help to invest in key resources like branding,
employment expenses, production, maintenance, bills, website management,
marketing, and raw materials.

3.2.6 CHANNELS
This business model opposes the traditional strategy, and the whole model
offers executive, limited, and customised services to the clients. The brand can
provide products and services through brand outlets, online stores, and fashion
exhibitions.
RETAIL STORE
The most traditional sales model, sales directly to the customer without
any middlemen involved. Online shopping has become the norm in consumer
behaviour in this digital world, but it's important to remember that customers still
want to touch and feel the product. The proposed business model offers its
products and services to the customers through a retail store.
Some of the significant advantages of the retail store are direct interaction
with the customer, creating a complete brand experience, customers can touch
and feel the product, and high-profit margins.
ONLINE STORE
The online store is a must and should distribution channel for all the
existing businesses in this digital world. The proposed business model has to
maintain online direct to consumers (DTC). This strategy includes selling through
the website and on all the brand social media platforms like Facebook, Instagram,
and Pinterest.
Some of the significant advantages of maintaining an online store are
high-profit margin, can build customer relationships, complete control on pricing
and promotional strategies, and no wholesale commission.

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MULTY DISTRIBUTION CHANNELS
The startups and innovative business models need to make themselves
available through multi-distribution channels to serve their customers.
The proposed business model can explore different fashion sales channels
alongside regular online sales platforms like Amazon.

3.2.7 CUSTOMER SEGMENTS

The proposed business model focuses on a niche market. The brand is
very particular about each product they produce. This production model can’t
support mass production.
The target audience for the proposed business model is particular; the
brand focuses more on teenagers between 16 to 24 years, people who love street
fashion, denim lovers, fashion activists, and hippy cults.

3.2.8 COST STRUCTURE

PRODUCTION
30%
Marketing
55%

MANAGEMENT
15%

Figure 22 Cost structure for the proposed business model, 2021.

The cost structure of the proposed business model is classified into three
major divisions marketing, production, and management. Figure 22 gives a visual
understanding of the cost structure. In which costing is simplified in percentage.

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 For startups and innovative business models, it is crucial to create brand
positioning in this fast-fashion world. Brands have to invest more than fifty of the
cost of marketing in projecting themselves in the market. Model marketing takes
the central part of the proposed business with 55%, followed by production 30%
and management 15%.

Figure 23 Marketing cost structure, Jagadishwar Reddy, 2021.

Figure 23 gives a simplified explanation. The cost structure of marketing

has been divided into two subcategories digital marketing and offline brand
promotion.
Digital marketing is the pathway to be visible in the fast fashion market.
Digital marketing occupies the central portion with forty per cent out of fifty-five
per cent in the cost structure. The digital marketing cost structure is categorised
into social media(23%), digital advertisements(15%) and print media(2%).
The offline brand promotion was divided into two categories, brand
promotion and sales promotions. In the marketing cost structure, offline brand
promotion is dedicated with fifteen per cent out of fifty-five percentage. Brand
promotion has three subcategories for maintaining stalls(2.5%),
workshops(2.5%), and sponsoring freelance influencers(5%). Sales promotions
have been divided into a visual display(2%), brand promo’s(2.5%), and value-
added services(0.5%).
The proposed cost structure model can be the formulated guidelines for
the startups and innovative business models.

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3.2.9 REVENUE STREAMS
Revenue streams in the proposed business model are explained based on
four questions:-
• How will you charge?
• Who will you charge?
• How will you price?
• What is your price?
The first question of the revenue streams is, who will you charge? I
propose multiple revenue streams for the proposed business model that generates
revenue from a one-time fee for the products and customer services.
The second and most vital aspect of conceding is who you will charge?
“A brand is no longer what we tell the consumer it is; it is what consumers tell
each other it is” (Scott Cook). The proposed business model is the consumer
demand model, making consumers pay for our products and services.
Coming to the third question, how will you price? I will discuss two
pricing strategies fixed pricing and dynamic pricing. In fixed pricing, we can
decide the least value of the product and Customer segment prising for loyal and
premium customers. On the other hand, dynamic pricing is the second pricing
strategy that will be flexible according to the product's time, demand, and
availability.
The last and most deciding question of revenue streams is, what is your
price? The product's price has to be decided considering how many customers are
willing to pay for the product, competitive differentiation, your brand positioning,
brand cost structure, and preserved value.
The prising of the proposed business model can be structured as the total
cost of production, labour cost time taken and profit margin of the company
depending on the brand value.

3.3 RISK MAPPING

Risk is something that can't be escaped when it comes to startups and
innovative business models. Here I will explain three different aspects of risk
mapping to the proposed business model: production, commercial, and
financial.

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 Production, commercial and financial management is some of the
important actions in operations. The proposed business model can face the
following risks:-
RISK MAPPING
PRODUCTION RISK
• Risk of no respect of the
contract
• Chance of wrong promotion by
social media
• Risk of the bad reputation of
the partner
• Risk of wrong or bad booking
system/payment system of the
store
• The threat of the shutdown of
the renting contract of the store
• Risk of delay in Products
delivery
• Risk of delivery of the wrong
quality/volume
• Risk of errors in the digital
marketplace
• Risk of the bad purchase price
/bad negotiation
• Risk of bad staff management
• Risk of an inefficient booking
system
• Risk of bad management of
stock
• Risk of bad quality (H, H)
• Risk of fire
• The threat of Equipment
shutdown
• Risk of mistake in the stitching
process
• Risk of wrong/Bad marketing
• Environmental risk
• Political risk
• Natural disasters
COMMERCIAL RISK FINANCIAL RISK
• Risk of • Risk of higher price of the
Bad/wrong/communication material
with the customer
• Risk of higher costs of salaries
• Risk of Bad management of
Customer relation • Risk of higher costs of the
infrastructure (due to regulation
• Risk of bad rating/reviews from for the safety-Fire exit door,
customers Hygiene, Handicaped people
• Chance of a bad reputation • Risk of high-interest
rates/banking costs
• Dishonest customers
• Damage Insurance
• No customers
• Liability Insurance
• Wrong customers (not
interested in the value • Risk of the wrong margin
proposition)
• Menace of the incorrect price
• Wrong behaviour customers
(aggressive, dirty, not polite, • Risk of insufficient sales
loudy) volume
• Risk of incorrect/bad/inefficient
promotion of the store
• The threat of the shutdown of
the Website/ digital
Marketplace (Hproductser
competitor providing the
similar product
• Same brand in the exact
location providing better quality
Table 1 Risk mapping, 2021.
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3.4 ORGANISATION AND MANAGEMENT
The organisational structure of the proposed business model is
categorised into nine central departments finance department, I.T. department,
H.R. department, sales department, marketing department, production
department, and logistics department. All these departments work under the
managing director of the brand.

Figure 24 organisational structure, Jagadishwar Reddy, 2021.

In the proposed business model, the finance head is responsible for

planning and forecasting, taking financial dissections, and preparing monthly
accounting entries. The commercial manager supervises the costing and
budgeting on the ground level.
The information and technology team plays a crucial role by maintaining
the centralised database, which helps track the staff performance and keep the
customer profile. Throw the centralised database; all the departments have easy
access to get information. In the proposed business model, the I.T team also gives
technical support to the social media manager and online sales team.
Human resources manager has an important character to play; their
responsibility is to find creative, innovative and hardworking employees. On the
other hand, they handle monthly paychecks and legal aspects.
In the proposed business model, the R &D (research and development)
team is responsible for reading, analysing and understanding the market. And also
responsible for developing the prototype from design to product.

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 In general, sales associates is the only person who interacts directly with
the customer. The sales team is segregated into the store sales team and online
sales team in the proposed organisational structure. The sails head will monitor
both the units.
Marketing head responsible for developing new marketing strategies and
implementing them. The marketing department has the responsibility of handling
digital marketing and offline brand promotions. The marketing head monitors the
brand promotion and digital marketing activities.
The production manager is responsible for checking row material supply,
quality control, damage control, finishing and packing. Each department work
under a dedicated supervisor, and the production head from the management
monitors the production chain.
The logistics department coordinates with the store sales team and online
sales team to distribute online orders worldwide.
Figure 24 gives the graphical understanding of the organisational
structure of the proposed business model.

3.5 FINANCIAL ANALYSIS

This part of the research provides the idea of investment and cash flow of
the business. I use this part to discuss the initial financial plan, financial forecast
and cash flow of the proposed business.
3.5.1 INITIAL FINANCIAL PLAN
Building an initial financial plan is the basis of economic analysis; it
gives an initial overview of knowing the cost of the proposed business. This
plan clears the investment percentage of personal investment, shareholders and
bank loans.
The initial financial plan can be explained in two columns stable needs
and stable resources. The left column shows the controlled conditions, and the
right column shows the regular resources.
To give a visual understanding, let me take a sum of 1,00,000 Euros as
an overall investment of the proposed business and caliculate the initial
financial plan.

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 INITIAL FINANCIAL PLAN
STABLE COST PERCENTAGE STABLE COST PERCENTAGE
NEEDS RESORCES

Capital 80,000€ 90% Personal 25,000€ 25%

expendater investment
Working 20,000€ 10% Investements 25,000€ 25%
capital
Bank lone 50,000€ 50%
TOTAL 1,00,000€ 100% TOTAL 1,00,000€ 100%
Table 2 Inetial financial plan, 2021.

3.5.2 FINANCIAL FORCAST

The financial forecast of the proposed business can be explained as a list
or as a table. Table 3 gives the visual understanding of the financial forecast,
including all the expenses of the proposed business for month and year.

EXPENSES MONTHLY YEARLY

COST OF SALES 10,000€ 1,20,000€
Goods 5,000€ 60,000€
Supplies 4,500€ 54,000€
Inventory 500€ 6,000€
EXTERNAL EXPENCES 20,000€ 2,40,000€
Marketing 10,000€ 1,20,000€
Insurance 500€ 6,000€
Utilities 500€ 6,000€
Subsciptions 500€ 6,000€
Outsorcing 1000€ 12,000€
Rent 2,500€ 30,000€
Maintenance 500€ 6,000€
Transportation 500€ 6,000€
Packeging 500€ 6,000€
R&D 3,500€ 42,000€
OTHER EXTERNAL EXPENCES 9,000€ 1,08,000€
Incom Tax 7,500€ 90,000€
Other Taxes 500€ 6,000€
CSR 1000€ 12,000€
PERSONAL EXPENCES 30,000€ 2,40,000€
Pay Rolls 28500€ 3,42,000€

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Other expences 500€ 6,000€
Employ Benefits 500€ 6,000€
Commissions 500€ 6,000€
FINANCIAL EXPENCESS 1000€ 12,000€
Interests on Loans 1,000€ 12,000€
TOTAL 70000€ 8,40,000€

Table 3 Financial forecast of month and year, 2021.

Table 3 shows the workforce estimation of the proposed cost structure. In

the suggested business, employees are segregated in to store team and backend
team. Table 3 clearly shows the total number of employees and their monthly
pay depending upon their designation. All the numbers are estimated to give an
example understanding based on the general assumption, and it may change
based on the place and political environment.

STORE TEAM
NO. OF MONTHLY
DESIGNATION EMPLOYS PAY TOTAL
Store Manager 1 2500€ 2500€
Salesman 3 2000€ 6000€
Part-time house keeping 1 500€ 500€
TOTAL 5 5000€ 9000€
BACKEND TEAM
NO. OF MONTHLY
DARIGNATIOIN EMPLOYS PAY TOTAL
Designers 2 2500€ 5000€
Tailers 4 2000€ 8000€
Marketing manager 1 2200€ 2200€
HR & Commercial
manager 1 2200€ 2200€
Online and social media
manager 1 2100€ 2100€
TOTAL 9 11000€ 19500€
GRAND TOTAL 14 16000€ 28500€
Table 4 Monthly pay of workforce,2021

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3.5.3 STORE BUDGET
In the proposed business, the store is the primary distribution channel. In
this part, I estimated the cost for fixed tangible assets of the store. Table 5 gives
the budget frame for the required infrastructure, and table 6 shows the budget
for machinery and equipment.

INFRASTRUCTURE REQUIREMENTS
Security advance for renting shop ( 2000 per month three months as
advance) 6000€
Interior decoration ( lighting, hanging racks, mirrors, glass panels, cash
counter, furniture etc 10000€
TOTAL 16000€
Table 5 Infrastructure Required, 2021.

Machinery and Equipment

Single needle lock-stitch machine 4 4*2000=8000€
Over lock stitch machine 1 2000€
Accessories (scissors, cutting board, table, stools,
2000€
carpet, etc.)
Air-conditioner 2 3000€
Stereo system 1 23000€
Computer and printer 1 2500€
Telephone & fax 1 1000€
Furniture 16000€
Table 6 Mashinery and equipment, 2021.

The working hours of the store can be planed 12 hours a day in two
shifts, eight hours each excluding lunch break and serve 365 days a year. Table
7 shows a brief overview of the schedule.

Operational Assumption
Hours operational per day 12 hours
Days operational per year production 365 days
Table 7 Store Operational Assumption, 2021.

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 The size of the store is estimated to be two thousand square feet in
which the main store is of thousand square feet, stitching room six-fifty square
feet, stock room two hundred square feet and two trail rooms fifty square feet
each. Table 8 gives a clear understanding of store size.

STORE SIZE
Main shop 1000 Sq.fts
Trail room 100 Sq.fts
Stock room 200 Sq.fts
Stitching rooms 650 Sq.fts
TOTAL 2000 Sq.fts
Table 8 Store size, 2021.

Note:- All the numbers maintained in the financial analysis are estimated based
on the present political and economic analysis. All the calculations in the
financial plan are in euros. The financial budget may vary depending upon the
time, place, political and economic environment.

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 CONCLUSION

Before I sum up, I would like to zoom out and overview the research
covered so far. The primary approach of this research is to give an innovative
business idea in upcycling and resailing denim apparel. This research includes
three parts and shows the three-sixty view of developing business from planing
to practical application.
The first part focuses on introducing the business idea by explaining the
fashion industry's environmental impact, improving recycling, reusing and
reducing textiles, and improving sustainability aspects in the fashion industry.
Part three focuses on product development by discussing the conceptional
framework, problem identification, exploring research questions and developing
a prototype collection of nine outfits adapting upcycling techniques. Each design
has a unique approach to production, and each design is explained with a detailed
description covering materials used and the production process.
Concluding all three parts, this research proposed the complete circle of
the business plan starting from concept development, prototype development, raw
material collection and analysing all the aspects of developing a new business.
This research gives the understanding to improve upcycling and reselling.
It is a unique approach to be an upcycling brand producing products from old and
damaged products, especially in the denim segment. There is no clear argument
to oppose upcycling and reselling, and this research gives the practical solution
to tackle textile waste.
In the next fifty years, I predict the upcycling and selling market will have
a massive potential to grow. The percentage of ethical and responsible shoppers
increases year by year, showing the precise impact on thrifting, self-styling, and
redesigning. The demand on the circler economy creates a vast market for
upcycling brands.

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 LIMITATIONS

In the proposed research, one of the main drawbacks is cost. In certain

scenarios, the price of the upcycled product is comparatively higner them the
original product.
Upcycling is a time-consuming process due to the energy requirement.
More specifically, upcycling denim outfits require techniques that take time in
the process.
This process has a minimal production capacity; each product has a
specific design and parent. This drawback makes the production limited and time
taking.
Converting waste to an art requires skilled labour who are very limited
and expensive. Furthermore, installing necessary machinery and infrastructure is
costly.
Some products cant be upcycled due to the energy requirement. More
specifically, some materials may take more energy to process in some situations,
thus making the entire endeavour counterproductive and unsustainable.
When weighing the cost and benefit, two guiding questions should be
considered: how much energy and resources are required to transform the
discarded product and how to compare when manufacturing from scratch.
These are some of the limitations of the proposed research.

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 REFERENCES

Hakeem, Fatimah Talal M. Sustainability in Fashion: Denim Couture. Diss.

California State University, Northridge, 2019.
Han, S., D. Tyler, and Phoebe Apeagyei. "Upcycling as a design strategy for
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waste." Denim. Woodhead Publishing, 2015. 527-540.
Stafford, Kayla, and Mallory Christian. "New Sustainability Methods for
Denim." Proceedings of Student Research and Creative Inquiry Day 5 (2021).
Bhatt, Dipti, Jillian Silverman, and Marsha A. Dickson. "Consumer interest in
upcycling techniques and purchasing upcycled clothing as an approach to
reducing textile waste." International Journal of Fashion Design, Technology
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Lee, Yeonji, and Sohee Um. "A study on the characteristics and design
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(2018): 51-60.
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Koch, Kirsten. "Clothing upcycling, textile waste and the ethics of the global
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Singh, Jagdeep, et al. "Challenges and opportunities for scaling up upcycling
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UK." Resources, Conservation and Recycling 150 (2019): 104439.
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2021 RESALE REPORT. (2020). Retrieved from THREADUP:
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economy-and-the-textile-industry/?sh=1173022f57a9
Durocher, Y. (2020, Dec 1). Circular Economy And The Textile Industry.
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DUTCH DENIM REPAIR. (n.d.). Retrieved from DUTCH DENIM REPAIR:
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Fiber2fashion. (2019, Dec). 5 Ways to Make Fashion Industry More Sustainable
In The Year 2020. Retrieved from Fider2Fashion:
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Manucom, R. (2019, Oct 14). Upcycled Denim Becomes A Hit At The Givenchy
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summer-2020/18378
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MINIWIZ. (2020, Oct 7). Why the Upcycling Fashion Industry Will Play an
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 APPENDIX

APPENDIX – A
“The upcycled denim fashion became a hit at the Givenchy spring-
summer 2020 show in Paris.” (Metro Style, Rendz Manncom, Oct 14, 2019).

Figure 25 Givenchy, spring-summer, 2020, Paris, Oct 14, 2019.

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APPENDIX – B
Dutch Denim Repair is one of the examples of the proposed business. It
is the denim repair brand which offering services since 2018. By 2020, Dutch
Denim Repair launched a unique thrift store that offers modern and vintage
denim outfits. This project is called “TARE WARE AND REPETE.”

Figure 26 Dutch Denim Repair, Netherlands, 2018.

Figure 27 Dutch Denim Repair, Netherlands, 2018.

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APPENDIX – C
Since the beginning of my design career, I have been very passionate
about styling and upcycling, particularly denim. Zero waste garment production
was my first school project on upcycling back in 2016. At that time, I had no
idea that this madness would grow to make me do in-depth business research on
denim upcycling. Figure 28 shows the output of zero waste garment production
(Jagadishwar Reddy, 2016).

Figure 28 Jagadishwar Reddy, Zero Waste Garment production, 2016.

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