The fashion industry can profit from moving to circular business models. That’s the clear message from a new report jointly penned by Fashion for Good and Accenture Strategy.
‘The Future of Circular Fashion: Assessing the Viability of Circular Business Models’ looks at three models: rental, subscription-rental and recommerce – and their financial viability in four market segments: ‘value, mid-market, premium and luxury’. What it shows are the pathways stakeholders can take – models they can adopt – to maximise profit now, and in the future.
“We believe this study can drive the implementation of circular models and trigger much needed in-depth discussions around this topic by presenting businesses with actual quantified opportunities related to the adoption of circularity by fashion brands,” said Katrin Ley, Managing Director; Fashion for Good.
Crucially, fashion retailers and brands now have a tool that spells out the huge advantages of going circular, and the authors hope it can further accelerate industry efforts to do so.
“With consumers increasingly buying from brands that have a strong purpose that aligns to their personal values and beliefs, particularly on environmental and social issues, it is imperative that retailers take action to create a more sustainable industry. Circular business models can deliver tremendous value to retailers, enabling them to eliminate waste, drive positive impact across the fashion value chain and improve their competitiveness,” added Harry Morrison, managing director; Accenture Strategy.