Sustainable apparel and circular fashion: Understanding Generation Y’s purchasing patterns and merchandising influences

The fashion industry is witnessing a major paradigm shift because of the increasing consciousness about the environment and the changing preferences of the consumers. Sustainable fashion and circular fashion have appeared on the agenda because of their importance in reducing the effects on the environment, in addition to keeping pace with the rising demands of consumers. In order to determine the influences of Generation Y consumers on sustainable fashion and circular fashion, there is a need to study the behavior of consumers in terms of fashion purchase and the measures taken by fashion brands to satisfy the consumers’ demands generation-wise. Since Generation Y consumers are the generation of people growing up with an intensive idea about the environment and technology, they have distinct demands in favor of clothing items produced in ethical environments, in an eco-friendly manner, and with sustainable fashion trends. PLS–SEM methodology, which includes a survey of 500 individuals aged differently, both male and female, and consumers belonging to a different social status and possessing differing levels of education, is used for analyzing major parameters, such as affordability, brand consideration, use of eco-friendly materials, and digital marketing influences in fashion merchandising. Findings suggest that younger generations (consumers aged 29–32 years) are more concerned with affordability (50%), while older generations (37–above 44 years) are more interested in sustainability and ethical fashion (85%). Seventy percent of women participants are more concerned with making ecologically conscious and socially responsible purchasing decisions compared to men, who are more concerned with the functionality and online marketing of the product. Higher education and income are equally strong predictors of environmentally sustainable purchasing decisions with 91% each. Results indicate the need for the fashion industry to incorporate sustainable principles and transparent product labeling and marketing that are more in line with the preferences of Generation Y.