Measuring the State of Circularity in the UK Fashion Industry
Part 2
Executive Summary
25
Introduction
Part 3
Conclusion
Part 1
Repair, replenish, revive Fixing or refurbishing damaged or worn-out items to extend their lifespan and prevent them from being discarded.
Barriers to growth
Not a major revenue stream Revenue is the most-tracked KPI of circular business models. Most repair initiatives today create very little revenue, and at best where successful are often lossleading loyalty-drivers. This makes it hard to get the business case to stack up. 1
Logistics and operational complexity
3
Additional business channels (in-store or online) and garment touchpoints to operate a repair service add operational complexity to an organisation, particularly when items are sent elsewhere for repair. Minimising repair turnaround time by optimising the efficiency of these processes is an extra business challenge.
Current customer attitudes There is low customer demand for repair services, particularly in the mid-value market as competitive pricing means it is easier for a customer to replace items than repair them. 2
Availability of skillset The availability of a skilled workforce for repair is diminishing as the demographic shifts. Repair work needs to be carried out to a high quality to retain product value. 4
Credit: ERDEM
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