To tackle the issue at its core, the United Nations Alliance on Sustainable Fashion was launched in March 2019, aiming to create a unified movement for a more sustainable fashion industry.[3] ‘Sustainable Fashion’ emerged as a response to the wasteful textile industry, adopting sustainability throughout its lifecycle to reduce environmental and biodiversity impacts. Brands are increasingly seeking ways to minimize their negative impact on the planet and society.[12]

In the pursuit of sustainable fashion and circularity, ‘circular business models’ have gained traction in the fashion industry, offering potential for greater revenue while reducing the volume of new clothing and accessories produced. Leading brands are adopting guidelines on garment durability, material health, recyclability, and traceability.[4]

Recognizing that the most effective way to limit the industry’s environmental impact is through absolute consumption reduction, five trends have emerged: digital product passports for transparency and circularity, recycling infrastructure to replace virgin materials, next-generation animal-free and compostable materials, circular business models, and the slow fashion movement, promoting more sustainable sourcing and production.[2]

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Best Practices

Reuse

One of the best practices is exemplified by thredUP, a managed marketplace for women’s and kids’ apparel. Sellers send in pre-loved clothes from any brand for free. These items undergo quality inspection, itemization, price analysis, storage, and listing for resale. Buyers can access high-quality, low-cost clothes from over 35,000 brands.[13]

Technology

Resortects has introduced dissolvable stitches that enhance clothing recycling. These threads, with varying melting points, can be dissolved in a commercial oven, making the disassembly process easier and more effective. This innovative solution allows for the dismantling of up to 500kg of garments simultaneously.[8]

Circular Business Models

Lizee has developed a data-driven Rental Management System (RMS) for managing the entire rental cycle through a single platform. This includes in-store and online rental handling, shipping, returns, refurbishing, and eventual reselling. The system’s flexibility allows clients to choose a circular business model that suits their product and customer base, such as subscription, one-off, or on-demand rental.[7]