Introduction
How can brands make money without making new clothes? This pressing question lies at the heart of a new initiative by the Ellen MacArthur Foundation (EMF), unveiled at the Global Fashion Summit in Copenhagen. The Fashion ReModel invites participating brands to scale up circular business models such as rental, resale, repair, and recycling while curbing the production and consumption of new materials. This article explores the strategies for reducing volumes in the fashion industry and assesses its readiness for this crucial transformation.
The Fashion ReModel Initiative
The goal of the Fashion ReModel is to decouple revenue from the production of new garments, advancing towards a circular economy for fashion. Following a consultation with over 80 industry stakeholders, EMF has established a roadmap for the project. In the first year, brands will address climate and nature impact evidence and finance metrics. Participating brands, including Arc’teryx, Reformation, Primark, and Zalando, have committed to increasing the percentage of their revenue from circular business models over the next three years, with progress reported annually to EMF.
The participation of significant players such as the H&M Group signals a shift in the industry. Despite past skepticism about achieving circularity at scale, the industry's backing of EMF’s initiative suggests the tide may finally be turning. This initiative builds on the success of previous projects like 'The Jeans Redesign,' which grew from 16 organizations in 2019 to over 100 by 2023.
Embracing Slow Fashion
Slow Fashion advocates for quality over quantity, encouraging consumers to buy fewer, but better-made items. Brands focusing on slow fashion emphasize timeless designs, durable materials, and ethical production methods, thereby reducing waste and shifting consumer habits away from fast fashion's disposable culture.
Is the industry ready? While many independent and high-end brands have embraced slow fashion, large-scale adoption by fast fashion giants remains limited. Consumer demand is gradually shifting, but significant education and mindset change are still needed.
On-Demand Production
On-Demand Production involves manufacturing items only after an order is placed, eliminating overproduction and reducing inventory waste. Technologies like 3D knitting and digital printing make on-demand production more feasible, allowing for customization and rapid response to trends.
Is the industry ready? Startups and smaller brands are leading the way in on-demand production. However, the scalability of this model for large brands is still being tested. Investments in technology and changes in supply chain logistics are required for broader adoption.
Circular Fashion Models
Circular Fashion promotes designing products with their end-of-life in mind, ensuring they can be easily recycled or repurposed. This includes using recyclable materials, offering take-back programs, and creating products that can be disassembled.
Is the industry ready? Many brands are experimenting with circular models, and some have introduced successful recycling programs. However, achieving a fully circular economy in fashion requires collaboration across the entire supply chain and significant advancements in recycling technology.
Reducing Collection Sizes
Many fashion brands release multiple collections annually, often leading to overproduction. Reducing the number and size of collections can help align production more closely with actual demand.
Is the industry ready? High fashion brands, which traditionally have multiple seasonal collections, are beginning to reduce their output. Yet, for fast fashion brands, which rely on a constant stream of new products, this shift is more challenging due to their business models.
Digital Fashion
Digital Fashion involves creating clothing that exists only in a virtual format, used primarily for social media and gaming. This innovation can significantly reduce physical production volumes and cater to consumers' desire for newness without the environmental impact.
Is the industry ready? Digital fashion is still in its infancy but is gaining traction. Early adopters are mainly within the tech-savvy and fashion-forward communities. Wider acceptance will depend on advancements in virtual reality and changing consumer behaviors.
Challenges and Barriers
The journey towards reducing volumes in the fashion industry is fraught with challenges. According to Fashion Revolution’s 2023 Transparency Index, while 38% of brands are transparent about their efforts in developing circularity initiatives, 88% refuse to disclose production volumes. The biggest barriers include the complexity of collaboration models needed to support new business models and the need for significant financial and technological investments.
Graham Forbes, global plastics campaign lead at Greenpeace USA, highlights the risk of greenwashing, where brands might rely on flimsy sustainability claims instead of making meaningful changes. Ensuring transparency and accountability is crucial for the success of initiatives like the Fashion ReModel.
Conclusion
The fashion industry is taking meaningful steps towards reducing volumes, but the transition is complex and multifaceted. While certain segments of the industry are more prepared and have started implementing these changes, widespread adoption requires a collective effort involving consumers, brands, and policymakers.
Brands must continue to innovate and experiment with new business models and technologies. Consumers need to shift their purchasing habits towards sustainability, and regulations may need to evolve to support these changes. The journey towards reducing volumes in fashion is underway, but the pace and success of this transformation will depend on the industry's commitment to sustainability and adaptability to new paradigms.
The consensus among industry experts is clear: while initiatives like the Fashion ReModel are a positive step, comprehensive and inclusive actions are necessary to achieve a truly sustainable and circular fashion industry.
