DEVELOPMENT OF THE HALAL FASHION INDUSTRY THROUGH THE
CONCEPT OF CIRCULAR ECONOMY
Lyly Amber
Arizona State University
Course
Professor Dahlya
May, 2024
Week 1
Introduction
The global halal industry market is not only experiencing growth in the halal food
and beverage sector, but also includes the clothing sector which is a basic need for
humans. Based on the State of Global Islamic Economy Report in 2021, the world's
Muslim community spending is USD 295 billion and is estimated to reach USD 375 billion
by 2025, as well as will be the second highest sector after the halal food and beverage
industry. Indonesia's position in the halal fashion industry is ranked 3rd, while
Indonesia's contribution as a whole sector in export activities occupies the 9th position
in the world as the highest exporting country to the Organization of Islamic Cooperation
or OIC countries.
Consumer demand for halal fashion also comes from non-Muslim communities
who want clean clothes starting from the process. On the supply side, halal fashion
manufacturers can cater to untapped Muslim markets and non-Muslim markets when
manufacturers can meet halal ethics in their manufacturing activities. The increasing
prevalence of halal fashion producer companies that actually come from various world-
renowned brands today (Sumarliah et al., 2021), is a sign that halal fashion provides a
guarantee of an increasingly wide market potential. The pandemic has also changed
consumer behavior patterns so that various brands use more ethical and sustainable
production sourcing initiatives with the implementation of more efficient production
techniques. Inclusivity and sustainability are key focuses in the industry.
Halal fashion reflects clothing that is in accordance with Islamic law regarding
safety, politeness, cleanliness, and comfort [14]. On the other hand, the circular
economy model is inspired by the nature of circular ecosystems that are a sustainable
alternative to the environment, compared to contemporary economic models that tend
to damage the environment. This characteristic is in line with the values and beliefs in
Islam that Muslims are required to protect nature, not be extravagant, sharing, and
cooperation is highly encouraged so that they can be facilitators in the transition to
circularization and environmental convergence [7]. The implementation of "circular"
puts a limit in the supply chain that does not produce waste, but all waste can be
recycled back into consumable products, and anything that cannot be recycled or
absorbed naturally by the ecosystem must be released from the beginning.
It is inevitable that Islamic teachings in regulating their people consciously foster
social attachment in economic activities, which focus on minimizing waste and making
it a religious responsibility to take care of related parties, including protecting the
environment when carrying out economic activities. The standard followed in the circular
economy, which is to consider the Islamic ideology of Maqasid al-Shariah, can guarantee
especially the implementation approach in Muslim countries
The purpose of this research will describe in general how the implementation of
the circular economy paradigm in the development of the halal fashion industry,
especially in various Muslim countries. This is important to do considering that the
Muslim population will dominate the world's largest population in the next few years [3]
so that the need for halal fashion will increase. On the other hand, textile waste is the
2nd highest contributor in the world. The concept of circular economy provides new hope
for every industry, especially the halal fashion industry which involves the concept of
religion and the environment. In addition, the application of the circular economy in the
halal fashion industry is a way to achieve life goals for Muslims, namely Maqasid al-
Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
1. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
2. Production: Business models range from business development to
human, social, and economic development.
3. Waste: Industrial sustainability with waste wealth management
4. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
5. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
1. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
2. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
3. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
4. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
5. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
6. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
7. Production: Business models range from business development to
human, social, and economic development.
8. Waste: Industrial sustainability with waste wealth management
9. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
10. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
6. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
7. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
8. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
9. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
10. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
11. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
12. Production: Business models range from business development to
human, social, and economic development.
13. Waste: Industrial sustainability with waste wealth management
14. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
15. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
11. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
12. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
13. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
14. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
15. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
16. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
17. Production: Business models range from business development to
human, social, and economic development.
18. Waste: Industrial sustainability with waste wealth management
19. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
20. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
16. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
17. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
18. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
19. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
20. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
21. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
22. Production: Business models range from business development to
human, social, and economic development.
23. Waste: Industrial sustainability with waste wealth management
24. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
25. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
21. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
22. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
23. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
24. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
25. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
26. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
27. Production: Business models range from business development to
human, social, and economic development.
28. Waste: Industrial sustainability with waste wealth management
29. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
30. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
26. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
27. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
28. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
29. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
30. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
31. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
32. Production: Business models range from business development to
human, social, and economic development.
33. Waste: Industrial sustainability with waste wealth management
34. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
35. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
31. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
32. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
33. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
34. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
35. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
36. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
37. Production: Business models range from business development to
human, social, and economic development.
38. Waste: Industrial sustainability with waste wealth management
39. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
40. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
36. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
37. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
38. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
39. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
40. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
41. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
42. Production: Business models range from business development to
human, social, and economic development.
43. Waste: Industrial sustainability with waste wealth management
44. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
45. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
41. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
42. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
43. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
44. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
45. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
46. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
47. Production: Business models range from business development to
human, social, and economic development.
48. Waste: Industrial sustainability with waste wealth management
49. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
50. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
46. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
47. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
48. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
49. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
50. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
51. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
52. Production: Business models range from business development to
human, social, and economic development.
53. Waste: Industrial sustainability with waste wealth management
54. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
55. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
51. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
52. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
53. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
54. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
55. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
56. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
57. Production: Business models range from business development to
human, social, and economic development.
58. Waste: Industrial sustainability with waste wealth management
59. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
60. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
56. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
57. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
58. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
59. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
60. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
61. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
62. Production: Business models range from business development to
human, social, and economic development.
63. Waste: Industrial sustainability with waste wealth management
64. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
65. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
61. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
62. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
63. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
64. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
65. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
66. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
67. Production: Business models range from business development to
human, social, and economic development.
68. Waste: Industrial sustainability with waste wealth management
69. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
70. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
66. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
67. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
68. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
69. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
70. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
71. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
72. Production: Business models range from business development to
human, social, and economic development.
73. Waste: Industrial sustainability with waste wealth management
74. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
75. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
71. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
72. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
73. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
74. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
75. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
76. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
77. Production: Business models range from business development to
human, social, and economic development.
78. Waste: Industrial sustainability with waste wealth management
79. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
80. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
76. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
77. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
78. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
79. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
80. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
81. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
82. Production: Business models range from business development to
human, social, and economic development.
83. Waste: Industrial sustainability with waste wealth management
84. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
85. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
81. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
82. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
83. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
84. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
85. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
86. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
87. Production: Business models range from business development to
human, social, and economic development.
88. Waste: Industrial sustainability with waste wealth management
89. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
90. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
86. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
87. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
88. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
89. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
90. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
91. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
92. Production: Business models range from business development to
human, social, and economic development.
93. Waste: Industrial sustainability with waste wealth management
94. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
95. Food: Achieving zero hunger with the target of the improvement program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
91. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
92. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
93. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
94. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
95. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
96. Resources: Actions to reduce food waste, resources (water) are a new
model of green innovation.
97. Production: Business models range from business development to
human, social, and economic development.
98. Waste: Industrial sustainability with waste wealth management
99. Training: Formation of professionals specializing in the circular economy
and wisdom bearers
100. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
96. Reduce is the process of cutting materials with a pattern that allows less
fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
97. Reuse, i.e. clothes that can no longer be used as a cover for aurah are
reused for other functions
98. Recycle, which is clothes that can no longer be used, can be recycled or
sent to a processing place
99. Recovery is reprocessing into another form if it is no longer suitable for use
as a fabric.
100. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
101. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
102. Production: Business models range from business development to
human, social, and economic development.
103. Waste: Industrial sustainability with waste wealth management
104. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
105. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
101. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
102. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
103. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
104. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
105. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
106. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
107. Production: Business models range from business development to
human, social, and economic development.
108. Waste: Industrial sustainability with waste wealth management
109. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
110. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
106. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
107. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
108. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
109. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
110. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
111. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
112. Production: Business models range from business development to
human, social, and economic development.
113. Waste: Industrial sustainability with waste wealth management
114. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
115. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
111. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
112. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
113. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
114. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
115. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
116. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
117. Production: Business models range from business development to
human, social, and economic development.
118. Waste: Industrial sustainability with waste wealth management
119. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
120. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
116. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
117. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
118. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
119. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
120. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
121. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
122. Production: Business models range from business development to
human, social, and economic development.
123. Waste: Industrial sustainability with waste wealth management
124. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
125. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
121. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
122. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
123. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
124. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
125. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
126. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
127. Production: Business models range from business development to
human, social, and economic development.
128. Waste: Industrial sustainability with waste wealth management
129. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
130. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
126. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
127. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
128. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
129. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
130. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
131. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
132. Production: Business models range from business development to
human, social, and economic development.
133. Waste: Industrial sustainability with waste wealth management
134. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
135. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
131. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
132. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
133. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
134. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
135. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
136. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
137. Production: Business models range from business development to
human, social, and economic development.
138. Waste: Industrial sustainability with waste wealth management
139. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
140. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
136. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
137. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
138. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
139. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
140. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
141. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
142. Production: Business models range from business development to
human, social, and economic development.
143. Waste: Industrial sustainability with waste wealth management
144. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
145. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
141. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
142. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
143. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
144. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
145. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
146. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
147. Production: Business models range from business development to
human, social, and economic development.
148. Waste: Industrial sustainability with waste wealth management
149. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
150. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
146. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
147. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
148. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
149. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
150. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
151. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
152. Production: Business models range from business development to
human, social, and economic development.
153. Waste: Industrial sustainability with waste wealth management
154. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
155. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
151. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
152. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
153. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
154. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
155. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
156. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
157. Production: Business models range from business development to
human, social, and economic development.
158. Waste: Industrial sustainability with waste wealth management
159. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
160. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
156. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
157. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
158. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
159. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
160. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
161. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
162. Production: Business models range from business development to
human, social, and economic development.
163. Waste: Industrial sustainability with waste wealth management
164. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
165. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
161. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
162. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
163. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
164. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
165. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
166. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
167. Production: Business models range from business development to
human, social, and economic development.
168. Waste: Industrial sustainability with waste wealth management
169. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
170. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
166. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
167. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
168. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
169. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
170. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
171. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
172. Production: Business models range from business development to
human, social, and economic development.
173. Waste: Industrial sustainability with waste wealth management
174. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
175. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
171. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
172. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
173. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
174. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
175. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
176. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
177. Production: Business models range from business development to
human, social, and economic development.
178. Waste: Industrial sustainability with waste wealth management
179. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
180. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
176. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
177. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
178. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
179. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
180. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
181. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
182. Production: Business models range from business development to
human, social, and economic development.
183. Waste: Industrial sustainability with waste wealth management
184. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
185. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
181. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
182. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
183. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
184. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
185. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
186. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
187. Production: Business models range from business development to
human, social, and economic development.
188. Waste: Industrial sustainability with waste wealth management
189. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
190. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
186. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
187. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
188. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
189. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
190. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
191. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
192. Production: Business models range from business development to
human, social, and economic development.
193. Waste: Industrial sustainability with waste wealth management
194. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
195. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
191. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
192. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
193. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
194. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
195. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
196. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
197. Production: Business models range from business development to
human, social, and economic development.
198. Waste: Industrial sustainability with waste wealth management
199. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
200. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
196. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
197. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
198. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
199. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
200. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
201. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
202. Production: Business models range from business development to
human, social, and economic development.
203. Waste: Industrial sustainability with waste wealth management
204. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
205. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
201. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
202. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
203. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
204. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
205. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
206. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
207. Production: Business models range from business development to
human, social, and economic development.
208. Waste: Industrial sustainability with waste wealth management
209. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
210. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
206. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
207. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
208. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
209. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
210. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
211. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
212. Production: Business models range from business development to
human, social, and economic development.
213. Waste: Industrial sustainability with waste wealth management
214. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
215. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
211. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
212. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
213. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
214. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
215. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
216. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
217. Production: Business models range from business development to
human, social, and economic development.
218. Waste: Industrial sustainability with waste wealth management
219. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
220. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
216. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
217. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
218. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
219. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
220. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
221. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
222. Production: Business models range from business development to
human, social, and economic development.
223. Waste: Industrial sustainability with waste wealth management
224. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
225. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
221. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
222. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
223. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
224. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
225. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
226. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
227. Production: Business models range from business development to
human, social, and economic development.
228. Waste: Industrial sustainability with waste wealth management
229. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
230. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
226. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
227. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
228. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
229. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
230. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
231. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
232. Production: Business models range from business development to
human, social, and economic development.
233. Waste: Industrial sustainability with waste wealth management
234. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
235. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
231. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
232. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
233. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
234. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
235. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
236. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
237. Production: Business models range from business development to
human, social, and economic development.
238. Waste: Industrial sustainability with waste wealth management
239. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
240. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
236. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
237. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
238. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
239. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
240. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
241. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
242. Production: Business models range from business development to
human, social, and economic development.
243. Waste: Industrial sustainability with waste wealth management
244. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
245. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
241. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
242. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
243. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
244. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
245. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
246. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
247. Production: Business models range from business development to
human, social, and economic development.
248. Waste: Industrial sustainability with waste wealth management
249. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
250. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
246. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
247. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
248. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
249. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
250. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
251. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
252. Production: Business models range from business development to
human, social, and economic development.
253. Waste: Industrial sustainability with waste wealth management
254. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
255. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
251. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
252. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
253. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
254. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
255. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
256. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
257. Production: Business models range from business development to
human, social, and economic development.
258. Waste: Industrial sustainability with waste wealth management
259. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
260. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
256. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
257. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
258. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
259. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
260. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
261. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
262. Production: Business models range from business development to
human, social, and economic development.
263. Waste: Industrial sustainability with waste wealth management
264. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
265. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
261. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
262. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
263. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
264. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
265. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
266. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
267. Production: Business models range from business development to
human, social, and economic development.
268. Waste: Industrial sustainability with waste wealth management
269. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
270. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
266. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
267. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
268. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
269. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
270. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
271. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
272. Production: Business models range from business development to
human, social, and economic development.
273. Waste: Industrial sustainability with waste wealth management
274. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
275. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
271. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
272. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
273. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
274. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
275. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
276. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
277. Production: Business models range from business development to
human, social, and economic development.
278. Waste: Industrial sustainability with waste wealth management
279. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
280. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
276. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
277. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
278. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
279. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
280. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
281. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
282. Production: Business models range from business development to
human, social, and economic development.
283. Waste: Industrial sustainability with waste wealth management
284. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
285. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
281. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
282. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
283. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
284. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
285. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
286. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
287. Production: Business models range from business development to
human, social, and economic development.
288. Waste: Industrial sustainability with waste wealth management
289. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
290. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
286. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
287. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
288. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
289. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
290. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
291. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
292. Production: Business models range from business development to
human, social, and economic development.
293. Waste: Industrial sustainability with waste wealth management
294. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
295. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
291. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
292. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
293. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
294. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
295. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
296. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
297. Production: Business models range from business development to
human, social, and economic development.
298. Waste: Industrial sustainability with waste wealth management
299. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
300. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
296. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
297. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
298. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
299. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
300. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
301. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
302. Production: Business models range from business development to
human, social, and economic development.
303. Waste: Industrial sustainability with waste wealth management
304. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
305. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
301. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
302. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
303. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
304. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
305. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
306. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
307. Production: Business models range from business development to
human, social, and economic development.
308. Waste: Industrial sustainability with waste wealth management
309. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
310. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
306. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
307. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
308. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
309. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
310. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
311. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
312. Production: Business models range from business development to
human, social, and economic development.
313. Waste: Industrial sustainability with waste wealth management
314. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
315. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
311. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
312. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
313. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
314. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
315. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
316. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
317. Production: Business models range from business development to
human, social, and economic development.
318. Waste: Industrial sustainability with waste wealth management
319. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
320. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
316. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
317. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
318. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
319. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
320. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
321. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
322. Production: Business models range from business development to
human, social, and economic development.
323. Waste: Industrial sustainability with waste wealth management
324. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
325. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
321. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
322. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
323. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
324. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
325. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
326. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
327. Production: Business models range from business development to
human, social, and economic development.
328. Waste: Industrial sustainability with waste wealth management
329. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
330. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
326. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
327. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
328. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
329. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
330. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
331. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
332. Production: Business models range from business development to
human, social, and economic development.
333. Waste: Industrial sustainability with waste wealth management
334. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
335. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
331. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
332. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
333. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
334. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
335. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
336. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
337. Production: Business models range from business development to
human, social, and economic development.
338. Waste: Industrial sustainability with waste wealth management
339. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
340. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
336. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
337. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
338. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
339. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
340. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
341. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
342. Production: Business models range from business development to
human, social, and economic development.
343. Waste: Industrial sustainability with waste wealth management
344. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
345. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
341. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
342. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
343. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
344. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
345. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
346. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
347. Production: Business models range from business development to
human, social, and economic development.
348. Waste: Industrial sustainability with waste wealth management
349. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
350. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
346. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
347. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
348. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
349. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
350. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
351. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
352. Production: Business models range from business development to
human, social, and economic development.
353. Waste: Industrial sustainability with waste wealth management
354. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
355. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
351. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
352. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
353. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
354. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
355. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
356. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
357. Production: Business models range from business development to
human, social, and economic development.
358. Waste: Industrial sustainability with waste wealth management
359. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
360. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
356. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
357. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
358. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
359. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
360. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
361. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
362. Production: Business models range from business development to
human, social, and economic development.
363. Waste: Industrial sustainability with waste wealth management
364. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
365. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
361. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
362. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
363. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
364. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
365. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
366. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
367. Production: Business models range from business development to
human, social, and economic development.
368. Waste: Industrial sustainability with waste wealth management
369. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
370. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
366. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
367. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
368. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
369. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
370. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
371. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
372. Production: Business models range from business development to
human, social, and economic development.
373. Waste: Industrial sustainability with waste wealth management
374. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
375. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
371. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
372. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
373. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
374. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
375. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
Method
This study uses a literature review method with secondary data types. Data
sources are obtained from various literature, namely articles, reports, and scientific
journals sourced from Google Scholar and Scopus. The following is the flow in obtaining
literature in this study: Figure 1 shows the flow in compiling literature, namely a literature
study conducted by applying halal fashion keywords in Publish or Perish, with a period of
time until 2022. The results of the articles that were successfully obtained were 220
articles. Furthermore, an analysis of various data sources found based on their relevance
to the theme of circular economy, halal fashion industry, and Maqasid Al-Shariah was
carried out, so that 14 (fourteen) studies were obtained that supported this research.
Discussion
This section will discuss the relationship between the halal fashion industry, the
circular economy, and Maqasid Al-Shariah which can be described in the following frame
of mind: Figure 2 shows Maqasid Al-Shariah as the motivation for the production and
consumption activities of a Muslim based on Islamic metaphysics in consciously
meeting needs [5], including behaving in the halal fashion industry. This Islamic belief
system is superior because it basically leads to a circular concept when compared to
modern ideology. This provides motivation for Muslims to organize society in accordance
with Islamic principles, which is also compatible with the idea of a circular economy [6].
Opportunities and Challenges of the Halal Fashion Industry in Indonesia
The halal industry describes an industry that must comply with laws and
regulations in accordance with sharia. The application of halal business and trade
broadcasts a new paradigm that maximum profit is not the main goal, but is still in line
with the goal in Islam, namely Maqasid Al-Shariah. As part of the halal industry, the halal
fashion industry should also show the religious practices of all its stakeholders.
In contrast to traditional supply chains that minimize expenses and maximize
income [16], the halal fashion industry aims to maintain halal integrity in halal fashion
products to eliminate doubts for Muslim consumers in using them [14]. This causes
supply chain activities in the halal fashion industry to become important. This supply
chain consists of a series of activities ranging from raw materials to ready-to-use goods.
Halal fashion has a different supply chain from conventional clothing based on 6 (six)
distinguishing attributes, including targets, focus, drivers, stakeholders, cross-pollution,
and segregation.
The supply chain in the clothing industry is very complex and fragmented because
there is no same flow of stages in the process of making clothes, for example, a garment
can be made in one country and woven and dyed in another country, until it turns into
clothes in factories that are far from marketing. Therefore, from the supply side, the
problem that must be solved is not only the importance of guaranteeing the final product,
but also guaranteeing the semi-finished product. The apparel industry also has factors
such as high volatility, short life cycles, low prediction, and high impulse purchases [9].
Supply chain activities are very vulnerable to transparency, security, and accuracy risks,
so it requires a system that can avoid various risks that may occur, one of which is the
application of blockchain technology.
The halal halal fashion supply chain also has challenges that can be differentiated
into 3 (three) aspects, namely (1) lack of halal certification that is recognized globally as
a disparity in criteria that indicate product processing regulations in Muslim
communities; (2) the absence of internationally agreed halal criteria related to the
integrity of halal products; (3) Technological advances cause distortions between halal
raw materials and non-halal raw materials so that additional expert resources and time
are needed to make decisions based on Islamic law regarding these raw materials.
Consumers' knowledge of the halal supply chain consisting of halal resourcing,
halal producing & design, halal handling, storage, packaging and logistics & halal
retailing, has proven to be a strong impetus for their decision to buy halal fashion
products. This implies that consumers really want the separation between halal fashion
products when they are at the packaging to logistics stage, and then the information is
conveyed to consumers in the form of logos and halal certification [14]. However, not
enough logos, halal certification has not significantly affected the purchasing needs of
consumers because of the lack of understanding and information about clothing
products that include halal labels [17]. Therefore, a traceability system technology is
needed to maintain the integrity of the halal fashion supply chain so that it can bridge
information between producers and consumers.
The role of blockchain technology in supply chain sustainability practices such as
the circular economy can improve company performance. Blockchain technology has a
significant impact on the circular economy through 3 (three) aspects, namely green
design, green manufacturing, and recycling and remanufacturing [8]. Research [13]
shows that halal fashion manufacturers who adopt a halal-oriented holistic approach
will be more responsive, so that after getting a boost from the institution, they can further
encourage the use of Blockchain Halal Fashion Tracaebaility (BHFT) by assessing the
nature of the technology contained in the BHFT system first. Halal fashion manufacturers
who are optimistic will choose to take part in the BHFT system.
The Concept of Circular Economy in the Framework of Maqasid al-Shariah
The destruction of the ecosystem that has occurred to date has had a real impact
on human welfare. This encourages further damage prevention measures by redesigning
the economy as a sustainable alternative that needs to be done immediately [7]. Circular
economy is an economic concept in a closed circle which means that the use of
resources, raw materials, and finished products, can be reused for as long as possible
and produce as little waste as possible [15]. This shows that the circular economy can
encourage higher green growth compared to other conventional businesses.
The success of the circular economy is inseparable from the use of technology as
evidenced by ecological modernization theory (EMT). As explained in the study [1] that
there is a separation of environmental damage from economic development through
technological interaction in industry 4.0, namely the merger of all production processes
and commercial processes including the entire supply chain from procurement
techniques, manufacturing, and quality supervision of sales, marketing, to relationships,
which uses digitalization, machine learning, and big data.
The main features of the circular economy supported through Islamic norms,
values, and teachings include the following: (1) Preserving nature and the environment
in obtaining raw materials; (2) Not to emotionally manipulate consumers in purchasing
products; (3) Avoiding any kind of waste; (4) Market for all kinds of 2nd hand or second-
hand products; (5) Prioritizing local resources including human labor and raw materials,
if the capacity is not adequate, it will be developed to produce goods locally, in order to
avoid dependence on suppliers from distant places.
Maqasid al-Shariah consists of 5 (five) main elements, namely the protection of
life, faith, intelligence, heredity, and wealth or in other words includes ethical aspects,
based on the impact of investment and asset management which leads to a new
paradigm related to the economic system, and the managerial system of public policy,
as well as resource management.
The results of the study [2] show that the relationship between the concept of
circular economy and Maqasid al-Shariah can be seen in the following aspects:
376. Resources: Actions to reduce food waste, resources (water) are a
new model of green innovation.
377. Production: Business models range from business development to
human, social, and economic development.
378. Waste: Industrial sustainability with waste wealth management
379. Training: Formation of professionals specializing in the circular
economy and wisdom bearers
380. Food: Achieving zero hunger with the target of the improvement
program
Business models based on Maqasid al-Shariah can mitigate environmental risks
by increasing efficiency and productivity, green innovation, and innovative business
models to reduce waste by minimizing the use of value.
Integration between the Circular Economy and the Halal Fashion Industry
The characteristics of the circular economy reflect the sustainability relationship
between the resource element and religion. This system can be applied in all industrial
sectors, including the halal fashion industry, which has been developing commercially
with a linear economic approach. The rearrangement of the halal fashion industry which
has a value chain in every process requires the involvement of the circular economy
concept framework. The implementation of the circular economy uses a 360-degree
approach at each phase of production, including planning, design, operation, and
evaluation [8]. Therefore, the concept of circular economy can be applied in supply
chains to improve resource efficiency as well as environmental performance at every
level of supply chain management (Heyes et al, 2018).
In the halal fashion industry, the concept of circular economy applies the 5R
principles, which are as follows [11]:
376. Reduce is the process of cutting materials with a pattern that allows
less fabric to be wasted so that the use of raw materials can be more
economical but still get the same results
377. Reuse, i.e. clothes that can no longer be used as a cover for aurah
are reused for other functions
378. Recycle, which is clothes that can no longer be used, can be
recycled or sent to a processing place
379. Recovery is reprocessing into another form if it is no longer suitable
for use as a fabric.
380. Repair is repairing clothes that are still suitable for use.
The apparel industry in general has adopted a sustainability approach in recent
years. As the 2nd largest contributor of waste in Indonesia, the textile industry needs
attention from all parties, especially producers and consumers as actors affected by this
activity. The sustainability fashion introduced is oriented towards the use of resources
and an environmentally friendly upstream to downstream process. This concept is
especially in line with the manners of dressing in Islam in the postulate of the Qur'an. Al
A'raf verse 32:
It means: "O son of Adam, indeed We have sent down to you clothes to cover your
awrah and beautiful clothes for jewelry".
As an industry based on Islamic religious law, halal fashion has the consequence
that not only clothes that cover the aurah according to sharia, but also beautiful clothes,
namely clothes that start from the initial stage to the final stage to the hands of
consumers, involve activities that do not oppress other living beings and the
environment, on the contrary, create a value chain throughout the process in a
sustainable manner.
Conclusion
The halal fashion industry in Indonesia is in the early stages so it can still be
developed, especially on the supply side. Business actors in this sector have the main
responsibility inherent in the halal fashion terminology, namely maintaining halal
integrity throughout the stages of making goods so that they are maintained until they are
accepted by consumers. A strategy is needed so that the holistic approach that is the
main orientation in this industry can be implemented, one of which is through technology
because the convergence between industrial processes and digitalization is the main
strategy for a smooth transition from a linear economy to a circular economy.
The relationship between the concept of halal fashion and the circular economy
can realize the goals of both by carrying out circular economy practices in the business
approach of the halal fashion industry, starting from the selection or method of obtaining
raw materials, the process of managing materials, the technology used, to the way of
marketing for consumers. The circular economy has various dimensions that are also in
line with the goal of Islam, namely Maqasid al-Shariah.
