BỘ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC KINH TÈ TP. HÒ CHÍ MINH BÁO CÁO TÔNG KỂT ĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG “NHÀ NGHIÊN CÚT TRẺ UEH” NĂM 2024 SECONDHAND VERSUS UPCYCLED: WHICH IS THE "GREENER CHOICE" IN THE SUSTAINABLE FASHION CONTEXT? Thuộc nhóm chuyên ngành: 1. Kinh tế TP. Hồ Chí Minh, tháng 2/2024 ABSTRACT As the world is facing environmental challenges and climate change, there has been an increasing adoption of the circular economy paradigm.
In the fashion industry, the rise of "circular fashion" is a concept rooted in the broader circular economy movement. This approach aims to minimize waste and pollution throughout the lifecycle of clothing. The purpose of this study was to investigate the influence of consumer's perceived value and risk on purchase intention circular fashion in the context of Vietnam. Specifically, we divided the types of circular fashion into two sub-dimensions: Secondhand and Upcycled clothing.
In particular, our research will compare and identify the difference in consumers' purchase intentions for Secondhand and Upcycled clothing. We also explore the moderating role of Individualism and Greenwashing Concern in this study. We built up a research framework grounded in the Value-Attitude-Behavior theory. Data for this study were sourced from secondary sources and quantitative research findings.
To gather primary data, an online survey questionnaire was distributed via Google Forms to 600 participants. The collected data will undergo analysis using SMARTPLS4. The findings show a positive influence of Emotional value (EV) on product attitude for both product types; Environmental values (EVV) do not influence positive attitudes toward Upcycled clothing. Different from expectations, Aesthetic risk (AR) has a positive effect on Upcycled clothing attitude, no effect of Sanitary risk (SR) was found; for Secondhand clothing, we found a negative effect of Sanitary risk (SR) on Product Attitude.
A moderating effect of Individualism (ID) was found in the paths between the perception value and product attitudes on both products. Also, finding a moderating effect of Greenwashing Concern (GC) on the relationship of Product Attitude and Intention to Purchase Upcycled clothing. These findings have implications for businesses, policymakers, and other stakeholders seeking to promote sustainable consumption practices and foster a circular economy in the fashion industry. Keywords: Circular fashion; Secondhand clothing; Upcycled clothing; Perceived value; Perceived risk; Individualism; Greenwashing Concern, Product attitude; Purchase Intention.
II TABLE OF CONTENTS ABSTRACT.I TABLE OF CONTENTS.II LIST OF TABLES.V LIST OF FIGURES. VI LIST OF ABBREVIATION. VII CHAPTER 1: INTRODUCTION. REASONS CHOOSE THE TOPIC.
THE CONTRIBUTION OF THIS RESEARCH. 7 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT. Value - Attitude - Behaviour Theory (VAB). Motivators and Barriers for Buying Intention of Upcycled Fashion Products in China - Fe Yoo, Hye Jung Jung, and Kyung Wha Oh (2021).
Consumers’ Value and Risk Perceptions of Circular Fashion: Comparison between Secondhand, upcycled, andRecycled Clothing - Inhwa Kim, Hye Jung Jung and Yuri Lee (2021). Perceived Consumption Value, Pro-Environmental Belief, Attitude, eWOM, and Purchase Intention Toward upcycling Fashion Products - Eunju Ko, Chun Eunha, Wei Jiang, Jihye Yu (2018). Bridge the gap: Consumers' purchase intention and behavior regarding sustainable clothing - Theresa Maria Rausch, and Cristopher Siegfried Kopplin (2021). 26 CHAPTER III: RESEARCH METHODOLOGY.
Measurement of Emotional Value (EV). Measurement of Environmental Value (EVV). Measurement of Aesthetic Risk (AR). Measurement of Sanitary Risk (SR).
Measurement of Product Attitude (PA). Measurement of Individualism (ID). Measurement of E-WOM (EW). Measurement of Purchase Intention (PI).
Measurement of Greenwashing Concern (GC). 31 CHAPTER IV: RESEARCH RESULTS. CHARACTERISTICS OF RESPONDENTS. DESCRIPTIVE MEASUREMENT RESULT.
Outer loadings of observed variables. Reliability and Convergent Validity of Constructions. ASSESSMENT OF STRUCTURAL MODEL. Path coefficient and hypothesis testing.
Second-hand clothing. DISCUSSION OF RESULTS. 57 CHAPTER V: CONCLUSION AND RECOMMENDATION. LIMITATIONS AND FUTURE RESEARCH.
80 APPENDIX 1: SURVEY QUESTIONNAIRE. 80 APPENDIX 2: INSPECTING RESULTS. 84 V LIST OF TABLES Table 1.16 Table 2: Target audience. Sample demographic characteristics report.35 Table 4: Statistical value of indicators.
Outer Loadings of Second-hand Clothing. Outer Loadings of upcycled Clothing. Assessment of measurement model (Second-hand clothing). Assessment of measurement model (Upcycled clothing).
Heterotrait-Monotrait Ratio Matrix of Second-hand clothing. Heterotrait-Monotrait Ratio Matrix of upcycled clothing. Collinearity Statistics: variance inflation factor (VIF) result of Second - Hand Clothing. Collinearity Statistics: variance inflation factor (VIF) result of Upcycled Clothes 50 Table 13.
Assessment of structural model of Second-hand clothing. Assessment of structural model of Upcycled clothing.56 VI LIST OF FIGURES Figure 1. Structural model and results of PLS-SEM (Second-handclothing). Structural model and results of PLS-SEM (Upcycled clothing).
55 VII LIST OF ABBREVIATION No. Abbreviations Words 1 EV Emotional Value 2 EVV Environmental Value 3 AR Aesthetic Risk 4 SR Sanitary Risk 5 PA Product Attitude 6 ID Individualism 7 EW Electronic-World-of-Mouth 8 Pl Purchase Intention 9 GC Greenwashing Concern 10 eWOM Electronic-World-of-Mouth 11 VAB Value - Attitude - Behaviour theory 12 TRA Theory of reasoned action 13 SHB Secondhand buying 14 SEM Structural Equation Modeling Partial Least Square-Structural 15 PLS-SEM Equation Modeling 16 CR Composite reliability 17 AVE Average Variance Extracted 18 HTMT Heterotrait-Monotrait Ratio VIII 19 VIF Variance Inflation Factor 20 EFA Exploratory Factor Analysis 21 KOLS Key Opinion Leaders 22 GENZ Generation z 23 SC Secondhand clothing 24 uc upcycled Clothing 1 CHAPTER 1: INTRODUCTION 1. BACKGROUND The fashion industry has a significant impact on the environment and contributes to a global concern, as it is part of our everyday lives and is considered to be one of the most wasteful and polluting industries. 2019; Jia et al.
2020; Ki et al. With approximately 100 billion garments produced annually, 92 million tonnes end up in landfills, as reported by Businesswaste. By the end of the decade, fast fashion waste is predicted to increase to 134 million tonnes annually (Earth. According to statistics from TheRoundup.org updated as of April 2023: plastic materials derived from fossil fuels, like polyester, acrylic, and nylon fabrics, are used to make almost 60% of all clothing; the textile industry is the second-highest industrial sector after packaging, generating 42 million tons of plastic waste annually from textile manufacture; 20% of the world’s wastewater comes from the garment sector; worldwide, each individual uses 11.4 kg of clothing annually on average; Per person, this results in emissions of 442 kg of CO2; this produces the equivalent of 442 kgs of CO2 emissions per capita together, the garment and footwear industries are accountable for 8% of the world's greenhouse gas emissions; every time a synthetic garment is washed, it releases tiny plastic micro fibers into the water; an estimated 500,000 tons of these contaminants end up in the ocean annually; that is the same as more than 50 billion bottles' worth of plastic pollution.
It is not difficult to see why the fashion industry is regarded as one of the primary factors, second only to the oil industry, contributing to environmental pollution. Facing the above challenges, environmental protection is becoming a global issue for humanity. In the fashion industry, sustainable consumption trends towards circular fashion are receiving a lot of response from consumers: Secondhand and Upcycled Clothing. As more consumers grow aware of the damaging impact that fast fashion has on the environment, they are turning to more ethical and sustainable fashion procedures, such as buying secondhand clothing to cut down on overconsumption that reduces natural resources and pollutes the environment, (Koay et al.
The secondhand market is already worth 3% to 5% of the overall apparel; Gen-Z consumers are the most apt to both buy (31%) and sell (44%) secondhand items, with millennials close behind, PR Newswire, (2022). In fact, according to the report, one of every three apparel items 2 bought in 2022 was secondhand - and two of every live items in Gen Z's wardrobe are secondhand. In Vietnam, GlobalData’s findings reveal that 41 % of respondents prioritize purchasing secondhand goods over new ones, particularly among the Gen z and Millennial demographics, with a notable emphasis on sustainability. Unlike Secondhand, upcycled offers a more interesting solution to fashion products considered outdated by using details, and fabrics.
of the outfit to create a completely new design. According to a recent Vogue article, upcycling is one of the trends of 2023, especially among younger people who have a fresh and more conscious approach towards sustainability and upcycled fashion. As of January 2024, there are 5.6 million posts on Instagram using the hashtag #upcycling and there are 443.000 posts with the hashtag #upcyclingfashion, Missoma, (2024). The trend of upcycled fashion is gradually becoming popular and favored by young people because the products are more creative, aesthetic, and environmentally friendly.
Especially young people in developed countries like America, Europe, and Korea. Statistics show that 21% of American consumers upcycle products. However, in Vietnam, this trend is not popular. Eco-fashion products in general or upcycling, in particular, are still a niche market because of high prices and lack of awareness about the benefits of these products, Speier, 2016.
Besides, according to a 2022 Statista survey, Vietnam leads Southeast Asia with 86% of consumers having purchased sustainable fashion products. Moreover, a Nielsen Vietnam survey indicates that 80% of Vietnamese consumers express a willingness to pay a premium for sustainable products, Bao Thanh Nien (2023). In conclusion, Vietnam is witnessing a significant shift towards circular fashion consumption, driven by increasing consumer environmental awareness. With a growing inclination towards circular fashion practices and increasing engagement in sustainable consumption activities, this market promises to play an important role in shaping the fashion industry's future in Vietnam, towards sustainability and responsibility.
REASONS CHOOSE THE TOPIC Circular fashion mixes aspects of both sustainable fashion and the circular economy. Clothes, shoes, and accessories that are created, sourced, produced, and offered to be used and circulated in society sustainably and efficiently for as long as possible in their most valuable form, and then being safely returned to the biosphere when they are out of human use, are referred to as “Circular fashion”, Anna, B. 3 The circular fashion approach contributes to both environmental regeneration and a prosperous fashion industry by producing eco-friendly goods and services for consumers, Koszewska, M. Despite the growing trend, research on circular fashion remains largely at a foundational level.
In the majority of past research, the features of recycled and reused fashion items have been examined from the perspective of marketing, taking into consideration basic concepts of sustainable fashion like green, eco-friendly, and eco fashion. Previous studies have analyzed the characteristics of reused and recycled fashion products from an aesthetic dimension or have analyzed the overall concepts of sustainable fashion such as eco-friendly fashion, eco-fashion, and green fashion from a marketing perspective, Kim et al. Wei & Jung's study addressed the total perceived utility of sustainable fashion products, including their general product value (i., functional, emotional, social) and green value; they examined the impact of perceived values and the role of psychological factors (e., face-saving) on consumer intention to purchase sustainable fashion products. Consumers* understanding of sustainable apparel is often vague, and their buying decisions between sustainable and non-sustainable apparel often depend on aesthetic, functional, and financial benefits, resulting in low involvement of consumers' sustainable apparel consumption, Rahman et al.
Machado et al., (2019), demonstrated that the second-hand clothes business model reduces the use of resources by reusing waste in the form of used products and prolonged product life spans through ownership shifts. Most past studies have found that perceived value and risk does play an important role in deterring consumers’ intention to purchase circular fashion: Koay et al., (2023) found that financial risk, aesthetic risk, and social risk are significant predictors of purchase intention for secondhand clothing consumers; also, Kim et al., (2021) reported that aesthetic risk and sanitary risk have a negative influence on attitudes towards secondhand doting; Yu et al., 2019 found that three values (i., green, emotional, aesthetic) had a significantly positive effect on both product attitude and purchase intention on Upcycled products. These studies merely explored the direct effects of various types of risks or values on intentions without considering how different types of moderating variables could act together concurrently.