New Fashion for Good report assesses future of circular fashion – FashionUnited India

By on May 14, 2019

Global sustainability initiative Fashion for Good, in collaboration with
global professional service provider Accenture Strategy, has launched a new
report today that for the first time explores the financial viability of
circular business models in the fashion industry.

“The Future of Circular Fashion: Assessing the Viability of Circular
Business Models” looks into three different models – rental,
subscription-rental and recommerce, to assess the financial viability of
each when adopted in four different market segments – value, mid-market,
premium and luxury. With established brands and retailers being slow to
adopt circular models, the report presents further incentives for
implementation, helping to identify where circular models are attractive
today and the critical levers to enhance their viability 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 Fashion for Good’s
managing director Katrin Ley in today’s press release.

The fashion industry in its current form is not sustainable; raw
material consumption, pollution and waste contribute to the accelerating
environmental footprint. Thus the urgent need for a transition towards a
more circular system. However, one of the main barriers that brands and
retailers face is a lack of understanding how circular models can be
financially viable. Hence, the report explores how all three of the models
can be financially viable for existing fashion retailers, presenting a
strong case to build circular business models.

“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,” said Harry Morrison, managing director of Accenture
Strategy, in the press release.

“There has never been a better time to commit to the circular economy.
Technological advances, infrastructure improvements, innovative start-ups,
new circular design practices, shifting consumer preferences and increasing
regulatory pressure are creating an environment where established fashion
retailers can pursue circular economy initiatives with confidence”, finds
the report.

It will be presented on the morning before the opening of the Copenhagen
Fashion Summit on 15th May. Both Ley and Morrison will provide insights on
key levers for success for retailers preparing for circular business models
and highlight key findings to signatories from the Global Fashion Agenda.

Photo: from “The Future of Circular Fashion: Assessing the
Viability of Circular Business Models”

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