IG-Fashion Chatbot Assistant
3.5 Circular Business Models
Circular business models for fashion are designed with the primary purpose of creating a more sustainable and environmentally friendly approach to the fashion industry. The concept behind circular business models is rooted in the principles of a circular economy, where products, materials, and resources are kept in use for as long as possible, and waste is minimized. In the context of fashion, circular business models aim to move away from the traditional linear model of “take, make, dispose” to a more regenerative and restorative approach. The overarching goal is to create a closed-loop system where fashion items are part of a continuous cycle, from production to use to recycling, minimizing waste and environmental impact. Circular business models for fashion aim to transform the industry into one that is not only economically viable but also socially responsible and ecologically sustainable.
Strategies for circular fashion business models include:
- More use per product
- More use per user
- Beyond physical products
These strategies can all be combined with each other, as well as combining multiple design strategies is ideal in order to ensure a fully optimal and circular business.
More use per user
The “more use per user” circular fashion business model revolves around the idea of extending the lifespan of clothing items and maximizing their utilization by consumers.
Business models pertaining to this ideology:
- Product durability: using the design for longevity strategy, creating a durable product in the first place (through design, material and story) will ensure that it is used to its full, optimal potential. It is also a good strategy to include a care guide attached to the products
- Repair service: Designing garments with modular components that can be easily repaired or replaced, allowing users to fix and update their clothing instead of discarding it; another way is to implement a repair service or a repair kit/guide for the product.
- Upcycling: Reusing old garments is a great strategy to get more use out of a product, essentially giving an old product a new life.
- Customization: Emotional attachment produced by customization has been linked to longer garment lifespans. As a result, companies have begun to let consumers participate in the design of their own merchandise.
- Adaptability to changing needs: Designing clothing items that can adapt to changing body sizes or style preferences, promoting longer-term use and reducing the need for frequent replacements.
More users per product
The “more users per product” circular fashion business model is centered around the concept of maximizing the number of individuals who can benefit from a single clothing item.
Business models pertaining to this ideology:
- Rental & Sharing: Facilitating the sharing of clothing items through rental platforms or collaborative consumption models, allowing multiple users to access and wear the same piece of clothing over time.
- Resale: Users may buy and sell pre-owned clothing on it (although certain brands curate collections and only allow for purchases). These companies are mostly found on internet platforms, however conventional second-hand/vintage shops can also be found in physical locations. Platforms that enable users to sell their clothing to each other are also part of these business models.
- Swapping: A clothing swap business model involves individuals exchanging their pre-owned clothing items with others, typically at organized events or through an online platform. Participants bring gently worn clothes they no longer want and, in return, can choose items brought by other participants. This model promotes sustainability, reduces clothing waste, and provides a cost-effective way for individuals to refresh their wardrobes without buying new items
Beyond physical products
“Beyond physical products” fashion business models refer to approaches that extend beyond the traditional model of selling tangible clothing items. These models often incorporate additional services, experiences, or digital elements to enhance the overall value proposition for consumers.
Business models/services pertaining to this ideology:
- Virtual Clothing and Accessories: With the rise of virtual and augmented reality, some brands are creating digital fashion items that users can wear in virtual spaces or on social media platforms, separate from physical clothing.
- Immersive Fashion Presentations: Brands leverage digital platforms to showcase their collections through immersive virtual fashion shows or experiences, reaching a global audience without the need for physical events.
- Environmental Impact Tracking: Some brands offer services that allow consumers to track the environmental impact of their purchases, providing information on the carbon footprint, water usage, and other sustainability metrics associated with the product.
Best practices related to circular business models
Best practices: MUD Jeans, Hul Le Kes, Elementum, LENA – The Fashion Library, GANNI Repeat, DRESSINGZ, The Association of Second-hand Clothing Processors , WRAD, Tonlé, ID Eight, Heel, Vinted
| Name: | MUD Jeans |
| Link: | www.mudjeans.nl |
| Industry sector: | Design for reducing and reusing waste, Circular business models, New textile standards in the EU |
| Location: | Amsterdam |
| Description: | Focuses on a small supply chain with 5 main partners and adheres to circular design philosophy involving reuse, sharing, repairing, remanufacturing, and recycling. Each pair of MUD Jeans is recycled into a new MUD Jean – they are the first circular denim producer. This approach helps extend the life of products and minimizes waste, contributing to a more sustainable fashion ecosystem. |
| Impact in numbers: | 48.7 million liters of water saved in 2022avoided 251 thousand kilos of CO2 emissions in 2022saved 18,363 pairs of jeans from landfill in 202272% less water used in a pair of jeans 41% less CO2 used in producing a pair of jeans 92% less waste |
| Environmental benefits: | Reduction of waste in production, use of sustainable materials like GOTS Certified Organic Cotton and GRS Certified Recycled Cotton. |
| Social & economic benefits: | Adherence to SDGs, ensuring fair, safe, and healthy working conditions. |
| Technological & innovative benefits: | Emphasis on circularity, sustainable material use, and ethical production standards. |
| Other remarks: | Adheres to Sustainable Development Goals and maintains a transparent supply chain, indicating compliance with evolving EU textile standards. |
| Name: | Hul le Kes |
| Link: | www.hullekes.com |
| Industry sector: | RFID & Product Passport, Circular Business Models, Design for Reducing and Reusing Waste, Sustainable Textiles |
| Location: | Arnhem |
| Description: | Hul le Kes operates as a fully circular fashion label, focusing on sustainable alternatives within the fashion industry. The brand employs an in-house Manufacturing Studio and Recovery Studio, sells through its flagship store, webshop, and resellers, ensuring a continuous life cycle for its products. Hul le Kes prioritizes the use of existing materials, such as old bed linens, antique tablecloths, and secondhand clothes, sourced from flea markets, recycling companies, or donations. The design process is driven by the materials, resulting in limited series and unique garments. The brand follows natural seasons for its dyeing process, using plant-based materials. It also offers mending and repair services, as well as a clothing passport. |
| Impact in numbers: | 95% of materials are recovered from existing materials |
| Environmental benefits: | Hul le Kes contributes to environmental sustainability by minimizing the use of new resources, actively seeking materials within Western Europe, and employing natural dyeing processes with items like onion peels and avocado seeds. The in-house upcycling process reduces waste and environmental impact, while the brand’s Repair Friday initiative offers a sustainable alternative to traditional shopping events. By offering Dyeing and Mending Services, Hul le Kes provides options for extending the lifecycle of garments |
| Social & economic benefits: | Provides employment opportunities to people with a distance to the labor market. The clothing passport adds a personal touch, allowing wearers to contribute to the narrative of their garments and share stories. |
| Other remarks: | Practices upcycling existing materials, which is a key aspect of material cyclability. By extending the lifecycle of garments through innovative design and manufacturing processes, they contribute significantly to the concept of circular fashion. |
| Name: | Elementum |
| Link: | https://elementum.store/ https://www.instagram.com/elementum.store/?hl=en |
| Industry sector: | Sustainable fibers, Sustainable sourcing, Design for Longevity, Design for reuse and reduce, Circular business model |
| Location: | Portugal and Netherlands |
| Description: | One best practice that Elementum applies is their use of organic and natural fibers. They source materials such as organic cotton, linen, and hemp, which are grown without the use of harmful chemicals or pesticides. These materials have a lower environmental impact and are biodegradable, contributing to a more sustainable fashion industry. In addition to their material choices and ethical production, Elementum promotes slow fashion and designs garments with longevity in mind. They create versatile and classic pieces that can be worn across seasons, encouraging consumers to invest in quality clothing that will last. Elementum also implements a circular approach to fashion. They offer a recycling program where customers can bring back their old Elementum garments, which are then upcycled or recycled into new products. This initiative reduces waste and allows customers to actively participate in closing the fashion loop. Furthermore, Elementum strives to educate consumers about sustainable fashion practices through their online platform and social media channels. They raise awareness about the environmental and social impact of the fashion industry and provide tips for conscious and responsible consumption. |
| Impact in numbers: | What is the measured impact of this practice? (provide information if possible, if not please delete this row) |
| Environmental benefits: | Sustainable production with lowered waste production and lowered use of resources and energy |
| Social & economic benefits: | Impact on community of sustainable designers, promoting collaboration and sustainable fashion ideologies, ethical working conditions |
| Name: | LENA – The Fashion Library |
| Link: | www.lena-library.com |
| Industry sector: | Circular Business Models |
| Location: | Amsterdam |
| Description: | LENA is not just a store; it’s a concept that reshapes the fashion experience. It introduces a revolutionary approach to fashion consumption, combining the options of purchasing and borrowing from its extensive collection. Embracing the ethos of guilt-free shopping, LENA provides an alternative to the conventional retail model.Membership fee: €10Minimum borrowing period: 14 daysNo late return fines, creating a stress-free borrowing experience |
| Environmental benefits: | Shared fashion reduces the demand for raw materials, promoting sustainability.Promotes conscious shopping, contributing to a reduction in negative environmental footprints.Encourages experimentation with personal style without the commitment of ownership, minimizing unnecessary purchases. |
| Social & economic benefits: | Promotes a circular fashion system to combat overproduction and overconsumption.Women empowerment initiatives through training courses for female employees of partner factories. |
| Technological & innovative benefits: | Utilizes a Pay-as-you-borrow model, offering flexibility and cost-effectiveness.Incorporates tiered discounts to encourage more borrowing, fostering customer loyalty.Implements a Try Before You Buy system, minimizing the chances of impulsive purchases and reducing returns. |
| Other remarks: | Indirectly promotes sustainable garment manufacturing by extending the lifecycle of clothing through its borrowing model, encouraging a shift in the industry towards more sustainable practices. |
| Name: | GANNI Repeat |
| Link: | https://repeat.ganni.com/dk/en/ |
| Industry sector: | Circular business model |
| Location: | Copenhagen, Denmark |
| Description: | GANNI Repeat is the built-in service platform of the brand, that allows users to rent pieces from past collections directly from them, for one, two or three weeks. On this platform, exclusive pieces can also be found, made from reworked items and unused fabrics from previous collections. |
| Impact in numbers: | This practice has a Gold Cradle-to-Cradle certification |
| Environmental benefits: | Customers reconsider how they shop and use their wardrobe by renting garments from GANNI Repeat, which reduces waste. The procedure enables GANNI to stop carbon emissions from reprocessing materials by recreating fabrics into new items. The environmental objectives to combat waste, pollution, climate change, and biodiversity can be greatly helped by these models. |
| Social & economic benefits: | Future Market Insights projects that the market for online garment rentals will develop at an 11% compound annual growth rate (CAGR) from now until 2031, reaching a value of USD 1.8 billion. By using recycled materials and unique design techniques, GANNI has been able to improve tailoring while providing new revenue streams for each product. This has allowed for the creation of high-quality items at the same cost. Every piece of apparel manufactured from reused textiles becomes a one-of-a-kind item for the wearer, appealing to younger generations. Each item comes with a unique tag that purchasers may scan to get details about the garment’s history and design. The user should not worry about the aftercare because cleaning and insurance are included in the total rental fee. |
| Other remarks: | GANNI also produces ready-to-wear collections that retail worldwide |
| Name: | DRESSINGZ – Luxury reseller |
| Link: | https://www.dressingz.com/en/ |
| Industry sector: | Circular business model |
| Location: | Romania |
| Description: | DRESSINGZ offers its community of users the opportunity to sell, through an easy and safe process, the clothes they no longer wear. At the same time, it offers lovers of premium brands the chance to buy pre-owned luxury items, authenticated by experts, at a price up to 80% lower than the retail price. A gratifying experience for users, and at the same time important for the planet. DRESSINGZ wants to make the social mission a modus operandi, proposing in the long term to donate 10% of profits to environmental causes. Although at the beginning of the journey, the projects they develop already have a social footprint – an example is the celebrity pop-up store “RELOVED by You”. The best dressed people in Romania – stars, stylists, influencers or designers have already created user accounts and offer for sale items from their personal wardrobes. All products on the platform are checked by a team of specialists with experience in luxury brands. Also, DRESSINGZ concluded an external partnership, with the Luxury Appraisal & Authentication company from the United States, to verify the authenticity of luxury products uploaded by users. |
| Environmental benefits: | Encouraging reuse of items is very beneficial for the environment, as already existing items are valorised to their maximum potential, and not wasted. This also reduces the need to source new materials and produce new products, which saves a lot of emissions. |
| Social & economic benefits: | The people that want to get rid of their old item have a secured way of getting money for their objects, as well as clients who would like to buy luxury goods can do so at a discounted price. Through involving well-known Romanian celebrities, DRESSINGZ is making second-hand reselling popular, and “trendy”. This movement is not only popularized, but brought to mainstream, making it a part of a new society’s sustainable habits. |
| Technological & innovative benefits: | What are the direct and indirect technological and innovative benefits of this practice? (please delete if not applied) |
| Name: | The Association of Second-hand Clothing Processors and Traders, separate collection of textile and footwear waste |
| Link: | www.bia-bg.com |
| Industry sector: | Circular business models |
| Location: | Bulgaria (all over) |
| Description: | The member companies of the association are responsible for the separate collection of textile and footwear waste in 10 municipalities in Bulgaria, where they have deployed and service over 200 specialized containers. This activity is carried out without burdening the budgets of the municipalities or the companies that place textile and footwear goods on the market. |
| Impact in numbers: | In 2019, 1,800 tonnes of textiles were collected in the containerised collection of unwanted textiles of Mania, Techsusele and Texaid. If these clothes had become part of general household waste or disposed of in an inappropriate place, they would have generated 412 tonnes of carbon emissions. the collected 1,800 tonnes of textiles are equivalent to the carbon dioxide emissions that a car would generate from driving 1 288 498 km |
| Environmental benefits: | Less textile waste, reused materials and resources that would go into producing these products |
| Social & economic benefits: | An option for people that would like to discard of their clothing in a sustainable manner, an option to purchase second-hand for clients with lower monetary possibilities or that are eco-conscious |
| Technological & innovative benefits: | A system that allows the widespread collection, sorting and reuse of textiles products |
| Other remarks: | More than 40 companies that collect, sort and sell reusable clothing and textile waste are members of the association. From the point of view of the European hierarchy, the reuse of goods is the best way (after waste prevention) to tackle waste problems. The association is actually carrying out an extremely useful activity because, as it has become clear, about 70% of the textile waste it sorts is suitable for reuse, and this is the most preferred way of recovering it. The representatives of the association are responsible for the import and treatment of more than 32 thousand tonnes of textile waste. This means that in just one year we ensure the reuse of more than 90 million individual textile items. The members of the association export more than 25 thousand tons of used clothing to third countries, mainly Russia, Africa, Asia. Nearly 5,000 people are directly involved in the association’s activities – about 2,000 employees in member companies and about 3 thousand others in related activities. |
| Name: | WRÅD |
| Link: | https://www.wradliving.com/https://www.youtube.com/watch?v=LzzstyVpMp8 |
| Industry sector: | Sustainable fibers, Sustainable fabrics, Innovations in Garment Manufacture, Circular business models |
| Location: | Vicenza – Veneto, Italy |
| Description: | Production of sportswear and other special garments. The garments produced by WRÅD are made with recycled materials in partnership with Veneta Waste. The coloring takes place with a particular technology, gpwdr®, an innovative dyeing technique based on the recycling of enhanced graphite powder, inspired by ancient tradition. GPWDR® technology makes it possible to transform graphite waste into the raw material of an innovative and circular supply chain. The company owns certified dyes, such as Herculaneum Red and Smart Indigo, and doesn’t use any common dying chemicals. |
| Impact in numbers: | By connecting P.E.A.S. to the t-shirt through a QR code or an NFC tag signals ae transmitted to a mobile phone. The app recognizes how long you have had the garment, if you have already used it and how much you have amortized in terms of water, energy and technology consumption. |
| Environmental benefits: | The three pillars that guide WRÅD in their choice of materials are: safety, traceability and durability, to which is added the choice of materials reuse, such as recycled wool, polyester and cotton. In addition to production, WRÅD offers educational, design and consultancy services on sustainability practices. |
| Social & economic benefits: | WRÅD offers educational, design and consultancy services on sustainability practices. |
| Technological & innovative benefits: | WRÅD garments can be traced through a special system, an intelligent system that integrates social and environmental traceability with gamification. This system makes visible all the information on the origin and impact of clothes, pointing out how much the initial environmental cost of a garment is amortized over time. |
| Name: | Tonlé – Zero waste production |
| Link: | https://tonle.com/ |
| Industry sector: | Circular business model |
| Location: | Worldwide |
| Description: | Today, Tonlé is a collaborative online platform that allows the brand to show off both their own ethically manufactured items and the goods of other designer-makers that care about fairness and climate justice. The amazing craftsmen and designers that created the clothing, accessories, and home goods in this area, including many of our team’s original members, come from all over the world. In contrast to competing or monopolizing, our goal is for a future where businesses, manufacturers, designers, and financiers collaborate for the benefit of all.They are committed to helping new creatives, particularly those that fall outside the conventional scope of fashion weeks in the global north, by offering them tools and assistance. |
| Environmental benefits: | sustainable production with lowered waste, use of sustainable materials, |
| Social & economic benefits: | ethical working conditions, traceability and transparency, education in community |
| Technological & innovative benefits: | A platform for worldwide circular and sustainable fashion collaboration, connection between designers and users through a digital space |
| Name: | ID EIGHT |
| Link: | https://www.id-eight.com/sostenibilita/https://www.youtube.com/watch?v=qFXCyjo-6ZY |
| Industry sector: | Circular business models |
| Location: | ID EIGHT is based in Florence, while production takes place in the Marche footwear district of Macerata, in a small family-run business. |
| Description: | The company produces sustainable and ethical sneakers with a refined design, entirely made in Italy with low environmental impact materials, coming from food industry waste. Each shoe component is made of materials with low environmental impact, from upper, sole, laces, lining and label, up to box and packaging bag |
| Impact in numbers: | Products are carefully selected to guarantee the minimum environmental impact and the appellation of 100% Cruelty Free. |
| Environmental benefits: | The creative reuse of waste materials contributes to environmental sustainability and circular economy. |
| Social & economic benefits: | As well as shoes, the entire production chain is completely controlled, from materials to transport, entrusted to companies that do not exploit workers, which respect trade union rights and have ISO-14001 environmental certification. All materials are certified. No materials of animal origin are used. |
| Name: | Heel |
| Link: | https://www.heelshop.gr/en/art-low-waste/ |
| Industry sector: | Design for reducing & reusing waste, Circular Business Models |
| Location: | Athens, Greece |
| Description: | Creation of a special collection exclusively produced by pieces and clothes that are left out of the production process, whether they come from canceled samples or pieces of fabric – items that would otherwise be considered waste. |
| Environmental benefits: | Reusing clothes (samples etc. that go out of the production press), reintroducing material in production. |
| Social & economic benefits: | Equal opportunities employer, providing a fair remuneration system and a healthy and safe work environment, supporting local NGOs |
| Name: | Vinted |
| Link: | https://company.vinted.com/sustainability |
| Industry sector: | Circular Business Models |
| Location: | Lithuania, Worldwide |
| Description: | Vinted is a leading online marketplace for second-hand fashion, facilitating the extension of clothing life and supporting a global community to circulate items longer, thereby lessening the negative environmental impact of the fashion industry. |
| Impact in numbers: | 453 kilotonnes of CO₂e saved in 2021A reduction of carbon emissions is achieved by 1.8 kgCO₂e per second-hand item compared to buying new.Encouraging buyers to use pick-up points over home delivery resulted in a 62% reduction in emissions for deliveries20% of surveyed members prefer second-hand over new, indicating a shift in consumer behavior towards sustainabilitya community of 75 million members worldwide |
| Environmental benefits: | The recommerce model on the platform plays a crucial role in reducing the fashion industry’s carbon footprint by extending the lifecycle of garments. |
| Social & economic benefits: | Vinted offers affordable clothing options, supporting a sharing economy model. It encourages responsible consumerism and provides a cost-effective way for people to update their wardrobes. This approach not only benefits individual consumers but also fosters a more sustainable economic model. |
| Technological & innovative benefits: | Vinted leverages technology to connect buyers and sellers across the globe. The platform encourages sustainable fashion practices and provides an easy-to-use, accessible way for people to engage in the second-hand market. Leveraging Vaayu’s carbon-tracking technology, Vinted conducted an extensive analysis to measure the carbon emissions avoided through its marketplace. This innovation provides transparent insights into the positive environmental impact of second-hand shopping. |
