How Do Digital Platforms Support Sustainable Business Models in the Fashion Industry?-A literature-based analysis

With growing environmental and social concerns in the fashion industry, the need for sustainable practices has become increasingly critical. Platforms, particularly digital platforms, are playing an increasingly important role in enabling sustainable fashion by fostering collaboration among networks of fashion stakeholders, enhancing transparency in supply chains, and driving circular economy innovation. For instance, OnTheList, Privé by Zalando, and Veepee focus on managing surplus inventory for fashion brands. Vestiaire Collective and Vinted focus on selling second-hand fashion items. Rent the Runway, HURR Collective, and Le Closet focus on fashion rental services, while platforms such as SourceMap, TrusTrace, and Fairly Made contribute to improving supply chain transparency. Given both the potential and the demonstrated ability of digital platforms to support sustainability in fashion, this paper examines how digital platforms contribute to the sustainability transition in the fashion industry and how they create and capture value through business models, stakeholder engagement, and technology integration. Through a systematic literature review, the study identifies six types of digital platforms driving sustainability in the fashion industry. These platforms promote circular economy models, reduce waste, and improve resource efficiency. The research examines how these platforms create value for stakeholders by generating revenue, fostering brand loyalty, and encouraging sustainable consumer behavior. It also explores the role of technology, highlighting the potential of digital platforms to advance both environmental and social goals in fashion. This paper lays the groundwork for future research and practical applications of sustainable digital business models in the fashion industry.