The Transformation of the Fashion Industry: How the Circular Economy is right on trend

The Linear Economy: So Last Season - Fast fashion is often held up as an example of everything that is bad about modern consumption. Although this claim is an oversimplification - believe it or not there are pros to fast fashion - it is true to say that, for the last thirty years at least, many fashion brands, retailers, their business partners and customers have fit perfectly into a linear economic model: over produce, over stock, over sell, over buy, throw away, over and over again.

Who’s to blame?

Everyone with a stake in the fashion industry shoulders some of the blame for this state of affairs. Aggressive marketing has led to excessive consumption as well as the encouragement and growth of a mindset which believes trends are fleeting, clothes disposable, we’re all ‘worth it’ and to feel better, younger, thinner, more popular, desirable or successful we should give in to our desire to buy on impulse, frequently and in bulk.

Yes, fast fashion has meant that clothes and accessories are affordable for everyone; it has democratised the industry, so to speak. At the same time, it offers consumers unparalleled choice. However, this has led to an untenable situation.

The Problem

The short-sighted approach to what we wear has led to millions of tonnes of unwanted and unused clothing and fashion accessories ending up in landfill or incinerators. We’ve been able to fool ourselves for a while into thinking that much of this stuff isn’t being thrown away at all. We’re careful about putting our shoes and bags into the right receptacle at the tip; we bag up discarded items and are reassured that it will be recycled. Won’t it?

Lately, it’s becoming all too apparent - undeniably so - that much of this clothing is shipped abroad and many of the countries tasked with dealing with our waste problem are mostly situated in the developing world. As such, they lack the resources or infrastructures to cope with the sheer volumes being dumped on them and consequently, it ends up not being recycled at all.

Even if we give our clothes to charity shops in the UK, we are unintentionally adding to the problem. Firstly, charities receive far too many garments to sell on in the UK alone. They then face the pressure of disposing of the rest ethically. Many of these items are sent to developing nations where there is a booming second-hand clothes trade, but this market also has negative consequences for these countries: the collapse of locally-made clothes' industry, for example, leading to over-dependence on the west for clothes.

With our taste for fast fashion, we are giving rise to unnecessary environmental issues and societal complications for people who are already just scraping by and what's more, we're also putting the U.K.'s recycling facilities under strain.

The Good News

The good news is that seismic change is happening. For several years now, fashion industry leaders have been attempting to transform the underbelly of the current economic model from that of an ugly duckling into a beautiful swan. The ‘take, make, throw away’ ethos is being shrugged off. Instead, a significant number of key stakeholders are embracing and proliferating a regenerative approach. Not only that, but, at a grass roots level, the 'make do and mend' mentality is enjoying a resurgence like never before.

What’s driving the switch to a Circular Economy?

To say that making the transition to a circular model won’t be easy or quick is an understatement. In reality, it’s a gradual, obstacle-fraught metamorphosis that will take considerable time, effort and patience as well as years of trial and error. But making a start on this process is overdue and there’s growing support for meaningful change in many quarters. A desire to do things differently has arisen from a combination of factors.

Need for sustainability and equitability

Firstly, there’s the increasing awareness (globally) that the current economic model is no sustainable or equitable. Government initiatives have been established to raise awareness about the circular model. More and more of us are realising just how depleted and limited our resources are and how much damage their extraction or harvest is doing to the natural environment.

Mandatory laws and regulations

Secondly, there’s the prevalence of new rules and regulations and the systems put in place to enforce them as well as increasing mandatory information requirements on circularity as governments and legislative bodies around the world hurry to promote and enforce ecologically sound economic practices. By law, companies are being forced to sit up, take note and adopt their ways of doing business accordingly.

Safeguarding against supply chain issues

Next are supply chain issues, particularly those of recent years. Geo-political tensions, global pandemics, market instability: all these have put suppliers and supplies in a precarious position. If businesses want to future-proof themselves against events beyond their control and protect both their investments and their reputations, they need to act fast and modify their way of doing business in order to be self-sufficient and sustaining.

Consumer Demand

Consumer concerns have had a massive impact on the industry. Consumers want change and if they don’t see it, they have no qualms about voting with their feet and taking their wallets with them.

Increasingly, as they become more environmentally aware themselves and at the same time, witness the negative side of the fashion industry, customers are insisting upon active change. Fed up with being greenwashed and fobbed off by skilful marketing techniques, many now have the foresight and knowledge to do their research before making a purchase.

Willing to overlook mistakes or missteps if businesses are open and transparent about the challenges facing them, goodwill and loyalty will only stretch so far before consumers take their purchasing power to companies who can offer ecologically sound solutions, even if it means paying more. 

The Evolving Consumer Mind-Set

Luckily for the fashion industry, consumers themselves recognise the part they need to play and are therefore ‘consuming’ in a new way. Yes, they’re still spending, but the fewer items they do buy are of better quality.

Slow fashion is in fashion. Influenced by Instagram, TikTok and other social media platforms, shoppers are coveting long-lasting capsule wardrobes made up of vintage finds, second-hand bargains and timeless, classic investment pieces that can be passed on to the next generation. They’re seeking out organic, natural, biodegradable options and the narrative they’re using to talk about fashion has evolved rapidly: ‘cast off’ has become ‘preloved’, ‘hand me down’ is now ‘previously owned’, whilst ‘thrifting’ or ‘thrifted’ are buzz words with their own hashtag. It’s no longer aspirational to replace, but instead, it’s all about repairing, passing on, repurposing and handing down.

What does the Circular Economy mean for the Fashion Industry?

Adopting a Closed Loop System

A circular economy would mean the fashion industry adopting a Closed Loop System instead of the common practice at the moment of disposable fast fashion where cheap items of clothing might be worn only once and then thrown away to make way for new trends.

A Closed Loop System, on the other hand, is one in which materials are continuously cycled back into the economy reducing (and maybe even eliminating) the need for new resources. The items themselves are produced using environmentally friendly, natural or biodegradable materials.

Revolutionising Production Methods

Revolutionising production methods means not only using sustainable and eco-friendly materials, but also employing systems that minimise waste and environmental impact. Resource efficiency and regeneration are paramount in order for the sheer amount of waste to be reduced (not just materials, but energy and resources used in production). Instead, remanufacturing, refurbishing and recycling are the goals.

In the past - and unfortunately, still today - workers have suffered as a result of the fashion industry’s quest to continuously churn out as many garments as possible. Yes, many of us have enjoyed a variety of affordable clothing and the ability to buy it when and where we want, but for the thousands of people on the production lines, working conditions aren’t always safe and conditions are often exploitative. In a circular economy, this would change.

Prioritising Long lasting and Reusable Design

Garments must have longevity, by being of far better quality and made as a result of superior workmanship. In 2008, it was Kate Fletcher, a fashion and sustainability consultant, who coined the phrase ‘slow fashion’ to talk about the benefits of returning to a time when people carefully considered their purchases, first saving up their money and then buying high-quality pieces.

A return to slow fashion would have implications for the design process: products must be durable, easily repairable and able to be used many times so that the full value of their material can be harnessed. At the end of their very long-life cycle, they should be able to be fully recycled, upcycled or at the very least, be biodegradable.

Consumers need to be convinced of what they’re gaining (rather than losing) by potentially paying significantly more for their clothes. There needs to be a shift in mindset from upfront price of an item to cost per wear. In addition to an emphasis on timeless, classic quality, there must also be the ability and opportunity for consumers to have access to repair or alteration services.

Being Open and Honest with Consumers

As we’ve already acknowledged, the transition to a circular economy will not be straightforward. Even with the best will in the world and suitcases full of good intentions, it’s guaranteed that there will be times when companies get it wrong.

This isn’t the set-back it might initially seem. Studies have shown that consumers are forgiving if companies are honest. Everyone makes mistakes and if there’s honesty, transparency and apologies are sincere, then it need not be a public relations disaster.

A collaborative approach, a sort of ‘we’re all in this together’ perspective - where companies work with their customers, engaging in a two-way conversation about what’s working and what’s not, could also offer a way, not only of moving towards a well-functioning circular model, but also of deepening the bond and relationship between retailer and consumer.

Promising Small Steps

It’s always encouraging to read and hear about circular ideas that are taking root and rapidly becoming success stories. Looking at the examples below, it’s clear to see that change is in the air and that small steps are making a difference.

GANNI: a lesson in circular packaging

One aspect of the fashion industry we haven’t touched upon yet in this article is that of packaging and the amount it requires, particularly in terms of e-commerce (you can read more about packaging and the fashion industry on our blog). This is where Ganni steps into the spotlight.

Determined to use far less plastic in their packaging, in fact, determined to use less packaging in general, especially the single-use variety, Ganni are working closely with the Ellen Macarthur New Plastics Economy / Foundation. Driven by policy change in the EU, GANNI have decided to give their customers the option (where possible) to choose reusable packaging at check out; they also provide them with simple, easy to follow instructions on how to go about returning the packaging once they have the item as well as statistics on CO2 emissions’ savings.

FAT FACE: a lesson in thrifting

Fat Face is upfront about admitting that 73% of clothes produced worldwide go into landfill and that buying an item second hand instead of new can save roughly 4kg of CO2 from being released into the atmosphere. Now, they are looking towards a circular future by considering the options and possibilities for their used clothes and accessories and trying to keep them in use for as long as possible.

Partnering with Thrift and using the tempting by-line “Preloved Reloved”, they offer customers the chance to buy and sell used Fat Face items in order to keep them in circulation and pass them onto others who could give them a “new lease of life”. There are incentives too; not only will the customer get 10% off their next Fat Face purchase, but Thrift will also donate money to a charity of your choice.

ADIDAS: a lesson in ending plastic waste

Adidas has owned up to its part in the plastic pollution problem and as early as 2015, they teamed up with Parley for the Oceans already impressing themselves with the amount of sustainability progress they’ve been able to make. 

Now, the sportswear manufacturer has committed themselves to becoming a fully circular company by launching a programme called the ‘Three Loop Strategy’. The aim is to make all their products with recycled materials, have the ability to remake these products into something else at the end of their lifecycle and moreover, manufacture their products with renewable resources and natural materials in the first place.

Adidas admits they’re on a journey, but they have a plan to help them get there.

Conclusion

The case studies above have three things in common. One, each company realises that the future of fashion lies within the circular economy. Two, they’re being honest with their customers and potential consumers about the fact that making the transition to a circular model is an ongoing process and they don’t yet have all the solutions. Three, they’re actively collaborating, whether it’s with an organisation that can give them support like The Ellen Macarthur Foundation or with their customers themselves.

The stain of the linear model is stubborn, but it will eventually come out in the wash. The Sustainable Fashion Forum puts it best when it states that a circular model will offer “a transformative solution to the fashion industry’s challenges…while fostering responsible growth offering opportunities for innovative business models.”

The fashion industry is transforming. And it's right on trend. If you want to see how RepeatPack's reusable packaging can be part of that change and move your fashion business towards greater sustainability, click here. We have packaging solutions specifically designed for industries, like fashion, with high return rates. Clothes shouldn't be discarded so readily and neither should packaging. Call now for a tailored service that will and take the first step towards a greener, less wasteful future.