Driving Circular Business Models In Fashion : A Joint Report From Accenture Strategy And Fashion For Good
Fashion for Good, in collaboration with Accenture Strategy, today launch a new report, “The Future of Circular Fashion: Assessing the Viability of Circular Business Models“, that for the first time explores the financial viability of circular business models in the fashion industry.
The study 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 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.” – Katrin Ley, Managing Director; Fashion for Good.
“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.” – Harry Morrison, managing director; Accenture Strategy.
The fashion industry is not sustainable in its current form; raw material consumption, pollution and waste contribute to the accelerating environmental footprint.
Driven by the urgent need for a transition towards a more circular system, Fashion for Good in collaboration with Accenture Strategy, have launched “The Future of Circular Fashion: Assessing the Viability of Circular Business Models” report.
The report aims to help accelerate industry transformation by addressing one of the main barriers: an understanding of the financial viability of circular models for established retailers.
All three of the models explored can be financially viable for existing fashion retailers, presenting a strong case to build circular business models.
Brands and retailers can use the findings to gain a deeper understanding of each model, helping them to build and scale new circular economy services. 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.
Several of Fashion for Good’s corporate partners active in the field of circular fashion, as well as innovators and multi-stakeholder initiatives, contributed their experiences to the research, producing a comprehensive analysis.
“The Future of Circular Fashion: Assessing the Viability of Circular Business Models” report can be found here: fashionforgood.com/circular