Supporting circularity with timeless designs

Fashion trends are continuously evolving and introducing new designs at a fast pace has its challenges. However, there is an initiative that is starting to rapidly grow and take over the fast fashion movement, and that is the secondhand market.

As consumers become more sustainability-conscious, brands are creating timeless, versatile collections that transcend trends and seasons, aligning with circular fashion principles. These designs are easy to upcycle and repair or sell secondhand, extending their lifespan and usefulness.

These high-quality pieces often retain or increase in value over time, making them desirable in the secondhand and vintage markets. Additionally, they are more likely to be donated or sold rather than discarded in landfills, reducing waste.

Along with consumer demand, there is also an increase in regulations and initiatives. More countries are seeing the value in sustainable solutions across different industry sectors: New York introduced the circular city initiative, the European Union (EU) has started implementing the new circular economy action plan (CEAP) as part of the European Green Deal, and France has the anti-waste law for circular economy (AGEC).

Together with the up-and-coming mandatory EU Digital Product Passport to make product journeys transparent, it is only time before more legislation appears globally.

All this demand creates high-growth potential to offer services, such as in the secondhand market. With many businesses already expanding into this area, new business models are emerging and being adopted. So, what trends are sustaining timelessness while supporting circularity?

The rise of secondhand and other service business models

Many businesses are moving towards services like secondhand and vintage sales, “RWR” (rent-wear-return) or subscription, or remake and repair. With growth potential, it makes sense for apparel, footwear, and accessories brands, as well as retailers, to explore these evolving initiatives:

Secondhand market

Recent market analysis reveals that secondhand and vintage sales are growing fast. In the latest report from ThredUp, it is noted that the global secondhand market will reach $350 billion US, growing three times faster than the overall global apparel market by 2028. Some experts predict that secondhand trading may outperform fast fashion sales in the future, for example, as reported by French resale specialist Vestiaire Collective.

The secondhand market in the apparel industry is characterised by its focus on sustainability and affordability. Consumers search for affordable and unique vintage pieces that are not available in mainstream stores. At present, most of the secondhand shops are thrift or charity stores, consignment shops and online, or app resale platforms. The rise of online resale platforms such as ThredUp, Poshmark, and Sellpy—where retailer H&M is a majority owner—has made it easier for consumers to buy and sell secondhand, transforming the market and making these products more accessible globally.

The secondhand business can play well with the rental and subscription model since rented products are, in effect, “used” when they are returned—hence, a good candidate for secondhand or outlet sales later.

Rent and subscribe (rent-wear-return)

This is another emerging business model and perhaps one of the most innovative models that caters to the evolving needs of modern consumers. Subscriptions are nothing new—other industries have already offered this for some time, like streaming platforms Spotify and Netflix as well as some fashion segments such as suits, gowns, and wedding dresses.

Rentals lend itself to certain segments, for example, children’s soft and hard goods, workwear, and premium and luxury goods. Currently, businesses such as HURR, Harrods, and Rent the Runway—which is a pioneer in this space—provide access to a variety of high-end designer pieces at a fraction of the purchase cost. They enable consumers to refresh their wardrobe regularly without buying new items, offering greater flexibility and convenience to enjoy new styles for a chosen period. An important aspect of this model is that it reduces environmental impact by promoting wider reuse of garments.

There are also initiatives from retailers to turn physical stores into “experience centers” where you can subscribe and rent several items per month. Or as H&M puts it: “Impress more. Consume less ... A collection of sheer greatness, all ready to hire for H&M members. Book your personal H&M rental stylist consultation at our Regent Street store.”

Repair and remake services

If the evolving market trend is moving to longer product lifecycles, it makes sense for businesses to offer a range of services to consumers, such as the repair and remake of used products.

Some brands have offered repair services for many years and others are now adopting this as part of their business programme. Expansion is fuelled by various factors, such as rising consumer awareness of sustainability, a move towards producing less, and a growing preference for extending the life of garments instead of discarding them. To support these efforts, many brands now offer repair services as part of their commitment to reducing waste and embracing circular fashion. Furthermore, independent repair shops and online platforms are becoming increasingly popular, giving consumers more options for repairing and maintaining their clothing.

Another way to extend a product’s lifecycle is to offer a remake service where people can “re-design” garments by altering them to their exact preferences for a better fit or a different look. This type of upcycling aims to give existing items a new look or purpose—in contrast to recycling, which is breaking down materials into their raw forms to create something new.

These value-added services give consumers options to prolong a product’s lifecycle rather than disposing it, aligned to circular fashion. For example, since 2023, Uniqlo has offered a repair and remake service through their Re.Uniqlo Studio concept, a dedicated in-store space helping customers keep the brand’s items in circulation for longer.

These value-added service offerings are certainly an interesting avenue to evaluate.

Strategic synergy: Aligning processes with cutting-edge technology

With three different business models to consider, here is what businesses can do to start and drive these business initiatives forward in the fashion industry:

Data is essential: Establishing a data management strategy and policy is crucial. Being in control of data sources, access, security, and integration ensures your data is accurate and easily accessible. This will help in making informed decisions on new business goals and strategies.

The mandatory adoption of digital product passports requires businesses to capture extensive data on the extended product lifecycle. This data, often captured using unique identifiers like QR codes or RFID, supports the development of a comprehensive data strategy.

Process and collaboration are key: Aligning internal teams and supply chain partners through clear processes enhances efficiency, visibility, collaboration, and customer satisfaction. Once processes are optimised, collaboration can significantly boost productivity and information-gathering.

Technology is necessary: Utilising accessible and up-to-date data along with optimised processes can be effective when powered by industry-specific software that provides a single source of accurate and reliable data. This is vital when supporting not only circularity initiatives but any business initiatives.

In summary

The secondhand market, rent and subscribe model, and value-added services like repair and remake are perfectly matched to promote circular fashion. These initiatives support longer lifetimes of products and reduce waste with sustainable benefits. It allows end consumers to enjoy and appreciate high-quality fashion in a more responsible and versatile way.

The move towards a circular, timeless fashion has already started. New opportunities are now out there and the right technology to support this movement is already available.

This move can be an opportunity for growth. Align your business to be ready to join this transition.

Infor CloudSuite™ Fashion can help manage secondhand inventory, support value-added services like repair and remake unique product configurations, and offer rental capabilities. Discover how Infor’s industry-specific software can help you optimise your fashion business to pivot to circularity:

• Having one single data source is key to collecting and easily accessing data as needed.
• Inventory management systems can control and plan better use of inventory to avoid waste.
• Artificial intelligence (AI) and machine learning (ML) are increasingly important as AI algorithms can help improve business performance and efficiency.
• Blockchain technology and garment serialisation are essential for transparency in the market, enabling product tracking for authenticity verification.