Design Product-Service Systems by Using a Hybrid Approach: The Fashion Renting Business Model

As is known, sustainability issues represent one of the main challenges companies have to face. Among all, the fashion industry is considered one of the most impactful, both in terms of resource utilization and pollution. Fashion renting is a recent business model for companies to reduce their environmental footprint, following a circular economy approach. The study aims to develop and discuss the proposed hybrid approach to effectively support fashion companies in designing new business models, taking into account both the customer and the company perspective. On the one hand, agent-based modeling (ABM) allow us to represent customers' behaviour and interaction. On the other hand, discrete event simulation (DES) paradigm is used to model fashion renting processes. Because customers' attitude to that service reflects its successful implementation, motivators and barriers have been investigated to be included in the model. The practical implication is defining a model to support fashion companies in designing rental business models before implementing them. From a theoretical point of view, it overcomes the literature gap about the definition of a unique model for fashion renting, including processes, customers and interactions between agents. Follow-up research will include the presentation of simulation results.

Automated summary

As sustainability is a major challenge for companies, the fashion industry, known for its impact on resource utilization and pollution, has adopted fashion renting as a sustainable business model. This study proposes a hybrid approach using agent-based modeling and discrete event simulation to support fashion companies in designing rental business models that consider both the customer and company perspective.