The State of Circularity in the UK Fashion Industry

Measuring the State of Circularity in the UK Fashion Industry

Part 2

Executive Summary

26

Introduction

Part 3

Conclusion

Part 1

Resale: preloved profits Selling pre-owned fashion items to new consumers. Includes organisation’s own re-sale platforms or use of other platforms or marketplaces to enable individuals to buy and sell used apparel.

The resale market has consistent popularity across the spectrum of retailers. Initiatives vary significantly in maturity and are heavily dominated by third parties. Again, customer communication and margin pressures are the biggest blockers to further expansion of resale. A consistent and moderately popular circular business model, this study finds ’product authenticity’ as a top issue in luxury and premium resale markets, compared to ‘value retention’ and ‘customer demand’ in the mid-value market. Retailers struggle with a heavy dependency on third parties for set-up and running, along with competition with non-retail organisations (e.g. Vinted, Depop).

The numbers at a glance

Presence within retailer market 30%

78%

Proportion of initiatives in pilot phase

13%

Proportion of retailer customer base accessing initiatives

88%

Proportion of initiatives accessing third party support

B2C resale service through partnership online platform

Most common business model

Revenue and number of customers

Most tracked KPIs

Marketing and PR support, consulting support and support from SMEs

Most frequently accessed support

Credit: Huishan Zhang

Credit: ERDEM

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