KEY SYNERGY TOPICS
- CONSUMER EMPOWERMENT
- ENHANCED IDENTIFICATION AND TRACKING
- POST-USE ECOSYSTEM
To thrive in the target state, brands and retailers need to shift to circular and sharing business models (CSBMs), which will allow them to profit from reuse and service provision rather than consumption. Circular business models are fundamental to ensuring that all products created are kept in use and circulated for as long as possible. Currently, models beyond resale are not widespread, but recent initiatives and pilots by leading brands suggest an opportunity to build momentum for change across the sector.
By focusing on increasing garment utilisation alongside offering services, such as styling, maintenance, repair, redesign and rental, fashion businesses can move to circular models that reduce environmental impact and potentially offer more profitable and stable revenue models. To encourage companies to transition to CSBMs and build confidence in their commercial viability, government support through incentives such as grants and tax breaks will be key. By creating the right business conditions, the government can ensure that circular businesses thrive and that private investment flows into the sector, which will further fuel the transition towards CSBMs.