Long linked with fast consumption and waste, the fashion sector is shifting toward sustainability through circular business models—most famously resale and repair. These models seek to increase the lifespan of clothing, thereby reducing the need for new manufacturing and lessening environmental impacts.
To evaluate their actual efficiency in promoting sustainability, however, one must closely examine their displacement rates and overall influence on consumer behaviour.
Understanding Circular Fashion’s Displacement Rates
The displacement rate—which gauges the extent to which second-hand purchases meet the demand for new goods—is a crucial indicator of the environmental benefits of circular fashion.
Recently, the Waste and Resources Action Programme (WRAP) in the United Kingdom introduced a standardised approach to estimating these rates, offering a more accurate evaluation of the impact of circular business models.
According to an initial survey of 7,061 UK consumers, peer-to-peer online resale has a displacement rate of 64.6%, meaning that about three out of five purchases of used clothes replace new ones. With an even higher displacement rate of 82.2%, repair services show that four out of five repaired items prevent the acquisition of new products.
Although slightly lower than earlier projections, these results underscore the potential of resale and repair models to significantly reduce the demand for new apparel production. Validating the environmental claims of circular fashion projects depends critically on the standardisation of displacement rate estimations.
Sector Cooperation And Methodological Developments
Key players in the circular fashion industry have supported the move toward standardised measurements. Participating in WRAP’s study were platforms such as Vestiaire Collective, eBay, and Depop, reflecting a collective effort to measure and improve the sustainability of their operations.
Emphasising the need for industry-aligned methods, Justine Porterie, Director of Sustainability at Depop, said, “Collaboration with our peers is crucial to reinforce the case for new circular fashion businesses.”
Standardised approaches not only help ensure more accurate evaluations but also enable customers and investors to assess the benefits of various platforms. This transparency can encourage healthy competition and motivate companies to continually improve their displacement rates and overall environmental policies.
Scaling Circular Models: Challenges And Opportunities
Although resale and repair models offer significant environmental benefits, scaling these businesses is challenging. Companies must navigate operational complexity, costs, and customer acceptance, among other critical factors. For instance, integrating repair services into regular store operations could require additional expenses and logistical changes. However, companies like Loewe, Coach, and Veja are embracing these challenges by incorporating repair services into their offerings, thereby promoting sustainability and extending product lifespan.
Furthermore, the emergence of environmentally conscious businesses focused on rebranding and reselling used clothing highlights the profitability and environmental advantages of circular models. Companies like ACS and Archive collaborate to repair and sell returned clothing, meeting consumer demand for sustainable choices while also reducing waste.
The Role Of Consumer Behaviour In Circular Fashion’s Success
The effectiveness of resale and repair models is fundamentally tied to consumer behaviour. Although these models aim to reduce new clothing purchases, their success depends on consumers’ willingness to buy used or repaired goods instead of brand-new products.
Shifting consumer attitudes and encouraging the acceptance of circular fashion processes rely on educational campaigns and awareness-raising efforts. Conscious consumerism, driven by initiatives like Primark’s “Swap Shop” and “Second Hand September,” helps explain the growing acceptability of used clothing.
Additionally, improving traceability and transparency in the fashion supply chain is aided by digital technologies such as digital product passports. These tools help consumers make informed decisions about the sustainability of their purchases, thereby fostering the circular economy.
Enhancing The Sustainability Of Circular Practices
The adoption and enhancement of circular business models such as resale and repair are essential as the fashion industry grapples with environmental challenges.
Unlocking the full potential of these models largely depends on standardised criteria, industry cooperation, and consumer engagement. The industry can move toward a more sustainable and circular future by focusing on increasing displacement rates and verifying environmental benefits.
In essence, while resale and repair models offer promising avenues for sustainability in fashion, their practical impact depends on accurate assessment, industry-wide collaboration, and shifts in consumer behaviour.
Ongoing efforts to standardise approaches and support circular practices represent crucial first steps in reducing the environmental impact of the fashion industry.