Strategic Storytelling in Sustainable Fashion Branding : A Study of European Fashion SMEs

Abstract

Sustainability has become an increasingly significant topic in the fashion industry due to its environmental and social impacts, as well as the growing expectations brands face to tackle them. Alongside adopting more responsible practices, fashion brands are expected to communicate their sustainability efforts in a credible and meaningful way. This is a particular challenge for European fashion small and medium-sized enterprises (SMEs), who have limited resources and must navigate increasing demands for transparency and differentiation. In this context, storytelling has emerged as a potential strategic communication tool. This thesis aims to examine how European fashion SMEs use storytelling as part of their brand management to communicate sustainability. The main research question is: How do European fashion SMEs use storytelling as part of their brand management to communicate sustainability? This is supported by two sub-questions addressing how storytelling is integrated into brand management practices and how brand managers perceive its role in communicating sustainability and shaping brand identity. First, it draws on brand management theory and the literature on strategic storytelling, which positions storytelling as a purpose-driven mechanism for building brand identity and communicating values. Second, it addresses sustainable branding and authenticity, where tensions between transparency, credibility, and the risk of greenwashing are central. Third, it connects to emerging discussions on the circular economy and SME sustainability communication, where resource constraints shape how organisations construct and share their brand narratives. Together, these perspectives make it possible to consider storytelling as a strategic mechanism through which SMEs can align sustainability values with brand identity while addressing growing consumer scepticism. This study adopts a qualitative research approach based on an interpretive perspective and a multiple-case study design. To collect empirical data, semi-structured interviews were conducted with seven European fashion SMEs representing Belgium, Finland, the Netherlands, Portugal, Greece, and Lithuania. The interview data were analysed using thematic analysis, involving systematic coding and categorisation to identify recurring patterns, meanings, and relationships within the dataset. Data organisation and coding were carried out using MAXQDA software. This approach provided an in-depth understanding of how storytelling is integrated into and perceived within sustainability communication among European fashion SMEs. The findings emphasise the important role of storytelling in communicating sustainability among European fashion SMEs. Storytelling takes various forms, including brand, product, and founder narratives, which are used to communicate practices such as responsible sourcing, production processes, product longevity, and circular economy initiatives. It contributes to simplifying complex sustainability concepts while strengthening transparency, trust, and authenticity. Furthermore, storytelling supports brand differentiation, consumer education, and customer engagement by fostering emotional connections and enabling the clear communication of brand values. However, the findings also reveal several internal and external challenges, including organisational constraints, limited resources, communication difficulties, and consumer scepticism regarding sustainability. These challenges influence the effectiveness of storytelling practices, highlighting tensions between transparency and the strategic positioning of European fashion SMEs. This study contributes to existing literature by positioning storytelling as a multidimensional, context-dependent strategic mechanism within an underexplored empirical setting of European fashion SMEs. It extends theoretical understanding of sustainable branding by showing that authenticity does not require complete transparency; rather, credibility depends on a balanced and strategic approach to communication. This study also enhances understanding of consumer engagement by demonstrating that clarity, simplicity, and interactivity are as important as emotional resonance in sustainability storytelling. From a managerial perspective, the findings suggest that SMEs can use storytelling most effectively by aligning narratives with actual sustainability practices, adapting messages to different audience contexts, and maintaining internal coherence across communication channels. Future research could deepen this understanding by examining consumer perceptions of sustainability storytelling or by comparing storytelling strategies across sectors and company sizes.