Last updated: 1 Aug 2024 at 09:00

Sustainable Practices in Fashion Retail

Introduction

In the circular economy, retail plays a pivotal role by influencing both product lifecycle and consumer behaviour. Retailers are uniquely positioned to bridge the gap between sustainable production and consumer adoption, making them crucial agents in the transition towards a more sustainable fashion industry. They serve as the final point of interaction between the sustainable products and the consumers, providing opportunities to promote and facilitate environmentally responsible purchasing decisions.

By integrating principles of the circular economy into their business models—such as facilitating product returns for recycling or resale, offering repair services, and encouraging the shift towards durable and repairable products—retailers can significantly extend the lifespan of products and reduce waste. Furthermore, through educational campaigns and transparent marketing, retailers can raise consumer awareness about the environmental impacts of their purchases, fostering a culture of sustainability. By doing so, they not only contribute to environmental preservation but also build a sustainable brand image that can drive consumer loyalty and trust.

Matching Supply and Demand

Aligning production with actual consumer demand is essential for minimising waste and enhancing sustainability within the fashion industry. Developments in artificial intelligence (AI) and advanced data analytics are revolutionising demand forecasting, enabling retailers to detect and respond to market signals from a variety of sources. These technologies analyse consumer behaviour, sales data, market trends, and even social media sentiments to produce more accurate forecasts. By incorporating AI into their forecasting processes, retailers can adjust production dynamically, ensuring they manufacture quantities that more accurately reflect consumer needs and thus avoid overproduction.

Implementing just-in-time production strategies, bolstered by AI-driven insights from real-time data across retail points, can significantly optimize inventory management and reduce excess stock. This approach not only cuts down on waste but also improves operational efficiency, leading to a leaner, more responsive supply chain. For a deeper understanding of how AI and analytics are enhancing demand forecasting and inventory management, the McKinsey report on the state of fashion offers comprehensive strategies and insights.

Service Business Models/Shared Ownership

Service-oriented business models such as clothing rental, leasing, and subscription services are fundamentally transforming the traditional buy-to-own approaches in the fashion industry. These innovative models contribute to a circular economy by extending the lifecycle of garments and significantly reducing waste. They achieve this by maximising the utility of each item through shared ownership, allowing multiple users to enjoy a single garment over its useful life. This not only decreases the number of items that end up in landfills but also reduces the demand for new production, thus conserving resources and reducing pollution.

Companies like Rent the Runway and Le Tote have pioneered these models with considerable success, demonstrating consumer readiness to embrace non-ownership ways of enjoying fashion. Rent the Runway, for instance, offers a diverse array of high-end clothing options for rental, effectively catering to consumers' desires for variety without the need to purchase. Similarly, Le Tote provides subscription services where customers can borrow clothes and accessories for a monthly fee, promoting continual renewal of wardrobe choices without perpetual buying.

Exploring these models can be a strategic move for retailers aiming to innovate within a circular economy framework. It allows them to remain competitive and relevant in a market increasingly driven by sustainability concerns while also building brand loyalty and attracting a demographic that values ethical consumption. The successful implementation of such models not only meets emerging consumer trends but also aligns with global sustainability goals by reducing environmental impacts associated with the traditional fashion lifecycle.

The growth of these models is further supported by advancements in technology and logistics, which streamline the process of renting, returning, and managing inventory, making it as convenient as traditional shopping for the end consumer. As the market for these services expands, they could redefine fashion consumption patterns globally, making sustainable fashion accessible and desirable for a broader audience.

Retail of Second-hand Garments

The market for second-hand garments is rapidly expanding as consumers increasingly prioritise sustainability in their purchasing decisions. Retailers have a significant opportunity to capitalise on this trend by integrating pre-owned clothing sections into their stores or by establishing dedicated platforms for second-hand goods. Such initiatives not only cater to a growing demographic looking for eco-friendly shopping options but also support the principles of a circular fashion economy, where the lifecycle of garments is extended through reuse and recycling.

Online platforms like ThredUp and Loanhood exemplify the potential of the second-hand market. ThredUp, as highlighted in its Annual Resale Report, provides extensive data demonstrating the robust growth and future potential of the resale sector. Loanhood takes a slightly different approach by offering a peer-to-peer rental service, allowing users to lend and borrow clothing within their community. This model not only promotes the reuse of garments but also fosters a sense of community and shared responsibility towards sustainable fashion.

By leveraging these online platforms, retailers can reach a wider audience and facilitate the transition from traditional retail models to more sustainable practices. This approach not only attracts environmentally conscious consumers but also sets a precedent for the industry, encouraging a shift away from fast fashion and towards more sustainable consumption patterns. The success of these platforms indicates a significant shift in consumer behaviour, where value is increasingly seen in sustainability and reuse rather than in newness and ownership.

Educating Consumers on Garment Aftercare

Educating consumers about proper garment care is pivotal in extending the lifespan of clothing and diminishing its environmental impact. Retailers play a crucial role in this educational process by providing detailed care labels, which guide consumers on how to wash, dry, and handle their clothes to minimise wear and tear. Beyond labels, retailers can actively engage with customers by hosting workshops and seminars focused on garment care techniques, such as effective stain removal, mending tears, and sewing buttons. These sessions not only empower consumers with practical skills but also promote a culture of care and longevity over disposability.

Additionally, retailers can leverage their digital platforms to share content about best practices for washing, repairing, and storing garments. This content can include blog posts, videos, and social media campaigns that provide easy-to-follow advice on maintaining the quality of clothes and making environmentally conscious choices, such as using cold water for washing or opting for air drying instead of using a dryer.

Promoting the use of eco-friendly laundry products is another area where retailers can make a significant impact. By recommending or selling detergents that are biodegradable and free from harsh chemicals, retailers help reduce the runoff of pollutants into water systems. The Care Label Project by AEG exemplifies how brands can lead in this area by advocating for lower washing temperatures and the use of sustainable laundry products to minimise environmental damage.

Through these initiatives, retailers not only contribute to the sustainability of the fashion industry but also build stronger customer relationships by aligning with the values of a growing demographic that prioritises environmental responsibility.

Responsible Marketing

Responsible marketing in fashion not only involves promoting products in a way that accurately reflects their environmental benefits and sustainability but also requires a commitment to transparency about the lifecycle impacts of products. This approach helps to avoid greenwashing, where claims might mislead consumers about the true environmental impact of their purchases. By being transparent and honest, retailers can strengthen consumer-brand relationships, fostering trust and loyalty.

Retailers can leverage these relationships to nudge consumers toward more sustainable practices. For example, by openly sharing information about the sourcing of materials, the conditions under which garments are made, and the company's environmental initiatives, brands can educate consumers and influence their purchasing decisions. Such initiatives encourage consumers to choose products that are not only good for them but are also beneficial for the planet.

Moreover, brands can use their platforms to advocate for sustainable fashion by highlighting the environmental and ethical attributes of their products. This might include details on recyclable materials, energy-efficient manufacturing processes, or fair labor practices. The Fashion Transparency Index by Fashion Revolution provides excellent guidelines on how brands can enhance transparency and implement ethical marketing strategies. This index serves as a benchmark for fashion brands to assess themselves against best practices in the industry.

By integrating these practices into their marketing strategies, brands can effectively contribute to a more sustainable fashion industry while building stronger and more meaningful relationships with consumers. This relationship, built on trust and shared values, not only enhances brand loyalty but also empowers consumers to make more informed choices that align with their personal values and the broader goals of environmental sustainability.

Offering Repair Services

Offering repair services is a significant step for retailers aiming to promote sustainability by encouraging consumers to extend the lifespan of their garments instead of discarding them. Retailers can establish in-store or online repair services, providing a convenient way for customers to mend or refurbish damaged clothing. This initiative not only reduces waste but also educates consumers about the value of garment longevity.

Patagonia's Worn Wear programme exemplifies this practice. It not only offers repair services but also provides detailed repair guides to encourage consumers to take care of their own garments. This programme supports the brand’s commitment to durability and sustainability by promoting a culture of repair rather than disposal. The initiative also strengthens customer loyalty, as consumers appreciate the additional value and service provided by the brand.Furthermore, by integrating such services, retailers can foster a deeper connection with their customers, creating a community around sustainable practices. These services can be a unique selling point, differentiating brands in a competitive market. For instance, offering customisation options during repair can personalise the experience, enhancing customer satisfaction and engagement.

Retailers might also consider partnering with local artisans or repair specialists to offer these services, which supports local businesses and economies. This approach not only enhances the retailer's sustainability efforts but also embeds them within the larger community, contributing to a more comprehensive impact on local development and sustainability. Overall, the implementation of repair services by retailers represents a proactive approach to environmental responsibility, encouraging a shift in consumer behaviour towards more sustainable consumption practices.

Collection Points for End-of-Life Garments

Collection points for end-of-life garments are crucial in facilitating the recycling and repurposing of used clothing. Retailers and category buyers can play a significant role by establishing these collection points within stores or in partnership with community centres and recycling organisations. This not only provides customers with a convenient way to dispose of unwanted garments responsibly but also supports environmental sustainability efforts. For retailers, this initiative enhances customer engagement and brand loyalty by demonstrating a commitment to sustainable practices. Effective collection systems help ensure that textiles are diverted from landfills and instead are directed towards facilities where they can be processed for reuse or recycling, thus contributing to a reduction in environmental impact.

Enabling a Closed Loop Model

Enabling a closed loop model in the retail sector involves creating systems where post-consumer garments are brought back into the production cycle. Retailers and category buyers are pivotal in implementing such systems by partnering with recycling firms and fashion manufacturers to reintegrate recycled fibres back into new products. This approach requires a well-orchestrated collaboration across the supply chain to ensure that returned garments are collected, sorted, and recycled efficiently. By promoting and facilitating a closed-loop model, retailers can minimise waste and reduce reliance on virgin materials, leading to a more sustainable fashion industry. This system not only lessens the environmental footprint but also aligns with growing consumer demand for sustainable products.

Textiles and Material Harvesting

Textiles and material harvesting involve the process of collecting and repurposing fabric from end-of-life garments. Retailers and category buyers can support this initiative by establishing relationships with specialised recycling operations that can extract usable fibres from old clothing. These fibres can then be processed and reused in the production of new garments, reducing the need for new raw materials and decreasing the overall environmental impact of the production processes. Effective material harvesting requires a keen understanding of material compatibility and recycling technologies, which can significantly influence the quality and feasibility of recycled textiles. For retailers, investing in textile harvesting can lead to innovations in product offerings and contribute to a circular economy, enhancing the brand's sustainability credentials and market competitiveness.

Conclusion

Retail strategies in the fashion industry have significant implications for sustainability. By adopting practices such as aligning supply with demand, embracing service models, integrating second-hand retail, educating on garment care, engaging in responsible marketing, and providing repair services, retailers can play a pivotal role in advancing the circular economy. These strategies not only mitigate environmental impacts but also build consumer trust and drive long-term business sustainability.

Relevant policies

EU Circular Economy Action Plan 1 & 2: The EU Circular Economy Action Plan 1, launched in 2015, set the foundation for transforming the European economy from a linear to a circular model. This initial plan focused on closing the loop of product lifecycles through greater recycling and re-use, benefiting both the environment and the economy. Key measures included actions to address waste management, product design, and fostering markets for secondary raw materials. The plan targeted various sectors, including plastics, food waste, and critical raw materials, aiming to boost competitiveness, create jobs, and generate sustainable growth. Building on the successes of the first, the EU Circular Economy Action Plan 2, introduced in 2020, aims to accelerate the transition with a more comprehensive and ambitious approach. This updated plan emphasises sustainable product design, reduction of waste, and empowerment of consumers. It includes measures to ensure that products placed on the EU market are designed to last longer, are easier to reuse, repair, and recycle, and incorporate as much recycled material as possible. Key sectors such as electronics, textiles, and construction are particularly targeted, with the goal of doubling the EU's circular material use rate by 2030 and significantly reducing the environmental footprint of EU consumption.

EU Strategy for Sustainable and Circular Textiles: The EU Strategy for Sustainable and Circular Textiles is an initiative aimed at transforming the textile industry to become more sustainable, circular, and resource-efficient. This strategy, part of the broader European Green Deal and Circular Economy Action Plan, focuses on reducing the environmental impact of textiles throughout their lifecycle, from production to end-of-life. It addresses key issues such as waste generation, resource consumption, and pollution associated with the textile sector.

Relevant standards

ISO 14001 Environmental Management System: ISO 14001 is an international standard for environmental management systems, providing a framework for organisations to minimise their environmental impact, comply with regulations, and continuously improve their environmental performance.

ISO 26000 Social Responsibility: ISO 26000 provides guidance on social responsibility, including labour practices, human rights, and community engagement. While not specific to the textile industry, it is relevant for fashion brands seeking to address social issues in their supply chains.

ISO 5157 Textiles — Environmental aspects — Vocabulary: ISO 5157:2023 is a comprehensive standard established to ensure the quality, safety, and sustainability of products across various industries. This standard outlines the requirements for environmental management systems, focusing on reducing environmental impacts, enhancing resource efficiency, and promoting sustainable practices. By adhering to EN ISO 5157:2023, organisations can demonstrate their commitment to environmental responsibility and improve their operational performance. The standard provides a framework for identifying and controlling environmental aspects, setting objectives, and implementing policies that align with global sustainability goals. It also includes guidelines for continuous improvement and compliance with relevant legal and regulatory requirements. EN ISO 5157:2023 helps businesses minimise their environmental footprint and contribute to a greener economy.

ISO 59000 Family of Standards: The ISO 59000 family of standards focuses on establishing a comprehensive framework for implementing and managing circular economy practices and are located within ISO/TC323. These standards provide guidelines on key areas such as terminology, principles, action planning, performance evaluation, and continuous improvement. The primary aim is to harmonise the understanding and application of circular economy concepts, supporting organisations in achieving sustainable development goals. The first three standards were published in 2024 and are ISO 59004 (key terminology, framework and principles), ISO 59010 (guidance on business models and value networks related to circularity), and ISO 59020 (measurement and assessment of circularity).

CEN/TC473-Circular Economy: CEN/TC 473 is the European standardisation committee focused on developing standards for the circular economy. This committee aims to create a coherent framework that supports the transition to a circular economy by setting clear and practical guidelines for industries. The standards developed by CEN/TC 473 address various aspects of circularity, including product design, resource efficiency, waste management, and the use of secondary raw materials. The work of CEN/TC 473 is crucial for ensuring that products and processes across Europe are designed to minimise environmental impact and promote sustainability. By establishing standardised methodologies and criteria, the committee helps businesses align with EU policies on circular economy and environmental protection. These standards facilitate the adoption of best practices and innovative solutions that contribute to a more sustainable and resource-efficient economy.

TRUST – Trader Recycling Universal Standard: The TRUST (Trader Recycling Universal Standard) is a pivotal certification programme designed to bolster the transparency and accountability in the recycling industry, particularly for traders of secondary raw materials. This standard establishes rigorous criteria to ensure that trading operations adhere to best practices in environmental, quality, and traceability processes. By complying with TRUST standards, traders can demonstrate their commitment to responsible recycling practices, thereby fostering trust among consumers, partners, and regulatory bodies. This certification not only enhances a trader's reputation but also encourages a more sustainable and efficient global recycling chain. The implementation of such standards is crucial for maintaining the integrity of the recycling industry and for promoting the reuse of materials in an environmentally responsible manner.

More information

British Retail Confederation - Voluntary Guideline on Second-hand and Preloved Items: The British Retail Consortium (BRC) has developed a set of voluntary guidelines focused on second-hand and preloved items. These guidelines are designed to encourage retailers to engage more with the circular economy by facilitating the resale and reuse of goods. This initiative not only helps reduce waste but also promotes sustainable consumer practices by providing clear standards for managing pre-owned goods. By following these guidelines, retailers can ensure that items are processed, presented, and sold in a way that maintains quality and safety standards, thereby building consumer trust in second-hand markets. The guidelines also aim to standardise practices across the industry, creating a more reliable and accessible market for preloved items, which in turn can help in reducing the environmental impact associated with new item production and disposal. Link here .

WRAP (Waste and Resources Action Programme): WRAP (Waste and Resources Action Programme) offers a variety of standards and guides across different sectors including textiles to support sustainable practices in waste management and recycling. Key resources provided by WRAP include the Sustainable Clothing Guide. This guide helps manufacturers and retailers increase the durability and quality of clothing through best practices in design, production, and selling, aiming to extend the lifecycle of garments and reduce waste.

Global Fashion Agenda: This organisation provides a Circular Fashion System Commitment, which fashion retailers can sign up for to pledge specific actions toward increased circularity. Actions include designing for durability, increasing the volume of used garments collected, and integrating recycled materials into new products. Link here.

The Ellen MacArthur Foundation: The Ellen MacArthur Foundation's Circular Economy Guidelines: The Foundation offers specific guidance for fashion retailers to transition towards circular business models. This includes designing for longevity, encouraging recycling and reuse, and considering the full lifecycle impacts of garments. These guidelines help retailers rethink how goods are designed, used, and reused to create a more sustainable business model.

The Circular Transition Indicators (CTI) framework: The CTI framework is an innovative tool designed to guide businesses in assessing and improving their circularity. This framework, as outlined in the white paper marking the first milestone of the CTI Fashion Initiative, serves as a comprehensive metric system for organisations aiming to transition towards more sustainable, circular business models. The CTI framework helps companies to measure and quantify their circular performance across various operational aspects, including material usage, waste management, and lifecycle extension. By providing clear indicators and benchmarks, the CTI framework supports businesses in the fashion industry to identify areas for improvement, make informed decisions about resource utilisation, and track their progress in achieving circular economy objectives. This initiative is crucial for companies looking to reduce their environmental impact and promote sustainability in an increasingly eco-conscious market.