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Sustainability has never been important to shoppers, nor to the fashion industry. This generation cares about the planet; we might have enjoyed February's freakishly warm temperatures, but we know that the reasons behind it are dark. We don't want small animals to be choking on plastics they find in our oceans, nor do we think it's right that Arctic blocks of ice are now mired with sizeable chunks of polystyrene. We think it's inexcusable that 300,000 tonnes of unwanted clothes are binned, not recycled, every year.

The rise of ethical and eco-friendly brands is impossible to ignore, but how do we reconcile a love of fashion and clothes with sustainability? A relatively unknown term is currently being bandied around the industry claiming to be the answer - circular fashion. An off-shoot of the circular economy concept - an economic system aimed at minimising waste and making the most of resources - it challenges fashion's linear production line that ends with clothes being discarded in landfill.

"It is a somewhat broader term that 'sustainable fashion', as circular fashion combines the principles of both sustainability and circularity," says Dr Anna Brismar, who coined the term in 2014, and has worked with luxury resale destination Vestiaire Collective to create a an easy-to-use consumer guide to the subject. "Circular fashion relates to not only fashion per se, but also to sportswear, outdoorwear and everydaywear.

"It can be defined as clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulated responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use."

Circular fashion means that every part of the life span of a garment is cyclical - it starts with design of a piece and how much longevity and timelessness it has, then onto the materials and whether or not they are sustainable, before the making of the item - is its production fair and ethical; are workers and animals rights being upheld? Once the piece has become tired, it should be repaired or redesigned, then - rather than being binned - rented, swapped or sold at second-hand. All this means less will be bought and less will left ruining our planet.

"The future of fashion is circular. It has to be," Stella McCartney, sustainability pioneer, told us. "Right now, the equivalent of one dump truck of textiles gets landfilled or burned every second, and by 2025 the clothing waste accumulated between now and then will weigh as much as today's world population. We can't ignore it.

"We are always working on new and interesting ways to be more circular as a company," she added. "It gives us the exciting opportunity to get creative. Currently, the fashion system is linear, so it needs a radical transformation - we need to work together as an industry with huge levels of commitment and innovation and challenge the status quo. We need to evolve from just reducing our impact to making a positive impact, but this can only happen if we all work together."

McCartney isn't alone in her viewpoint. Bethany Williams, rising design star and recipient of the 2018 Queen Elizabeth II Prize for Design, has been applauded for her rigorous reinvention of the typical production process by turning it into a virtuous cycle. The London-based designer not only uses sustainable materials to create her streetwear collections, but also works with different charities and takes an active role in helping them, rather than just donating money (although a portion of her collections is given away to the various foundations). She gives jobs to those using a respective charity's services so that they form part of the production line, which bolsters self-worth and self-esteem.

"It's about trying to make a cycle of production rather than just a production line. It's a different way of operating," Williams told us in February this year. Her goal is to set up a UK-based social manufacturing unit. "I'd set it up as a training programme and run it as a social enterprise," she says. "I'd have different structures, so my brand and my wholesale business, then consultancy, lecturing and teaching and exhibit as an artist."

Online retailer Yoox agrees that circular fashion is the way forward. "Circularity is one of the many sustainable practices which are possible in fashion and we have recently been exploring it both in our buying," says Yoox and The Outnet president Paolo Mascio. "We've also been exploring the idea within our special projects: the young designers from The Next Green Talents showcase, dedicated to sustainability, each created a unique garment out of prototypes from our private label 8 by Yoox, which was sold on Yooxygen."

Fast fashion has come under the harshest scrutiny since the shift towards more considered, ethically minded shopping. Our hunger for newness, our last-minute desire for a new dress to wear on a Friday night, comes at a price. Garments are being worn much less and discarded quicker than ever before. So, is it possible for high street giants to engage in circular fashion? Yes, says H&M's UK & IE Sustainability Manager, Giorgina Waltier, who said that the brand aim to only use sustainably sourced materials by 2030, and to be climate positive by 2040. It's a bold, well-intentioned goal, but is it realistic?

In the case of H&M, the company is starting with a focus on recyclable materials and designing with longevity in mind, before considering sustainable production processes when it comes to chemical and water management. The brand was also among the first to offer an in-store consumer recycling scheme, whereby shoppers were offered a £5 voucher in return for handing over clothes to be recycled.

"For the H&M group becoming 100 per cent circular means applying a circular approach to every aspect of our value chain," said Waltier. "We are also looking at our operations ranging from our stores, offices and logistics centres, through to our transportation to ensure that the way we run these operations enables us to reach our 2040 Climate Positive goal. In short, a circular approach across our entire value chain will enable us to maximise resources and minimise waste thus reducing our negative impact on the environment and society."

Of course, sustainable clothing comes at a higher price, given the ethical materials and production processes required. Anyone with a conscience can see the benefits of shopping sustainably, but not everyone can stretch to higher price points.

"There are lots of ways you can be sustainable without having a big budget," says McCartney. "I know everyone says it, but the best way is to start by buying investment pieces over fast fashion. You can also reduce your personal impact by giving your old clothes to charity shops, to car-boot sales, to friends and family or by re-selling them, therefore keeping them out of landfill for as long as possible."

This idea of reselling items isn't new, yet it's growing in popularity. Vestiaire Collective attracts 140,000 new members join every month, proving a change in how we now want to shop. The company by nature is part of the circular fashion process, but it still keen to dial up consumer awareness of what the term means with its newly-launched guide available to look at on the site's home page. The business has also dropped its commission rate to encourage more people to try pre-owned through selling and buying, also resulting in lower prices across the site.

"From a style point of view, it seemed much more personal and fashionable to mix vintage and second-hand pieces with newer items, and from an environmental point of view it provided a responsible solution," says Vestiaire Collective co-founder and creative director Sophie Hersan. "We wanted to break the rules. Ten years ago, the second-hand market was misunderstood, and the fashion industry didn't want to recognise it. Today, the market has matured and could take over the demand for affordable and sustainable fashion."

If our future shopping investments are all made with timelessness and longevity in mind, then the concept of fashion trends, which by their essence are transient, seems problematic. Hersan says not so. "Trends still have a place in the fashion industry and the consumer will always love to be part of it," she says. "In a similar way, second-hand also follows current trends, but also offers a wider selection of styles and original designs that have been reedited."

There are two long-standing arguments that challenge circular fashion - the first is that it's just a jumped-up term for recycling and the second is that a decrease in fast fashion will be detrimental for businesses, the idea that if we shop less, sales will slump and jobs will be lost.

The first myth can be debunked quickly - recycling is just one of the many components of the new system; there are a number of criteria that means that a garment is truly circular. As for the second, Dr Anna Brismar says it's up to the industry to adapt, and it needs to do so fast.

"The fashion industry will be forced to come up with new ways of making business in a world that is naturally limited in time and space and in the availability of arable land, freshwater, minerals and raw oil," she said. "As the circular economy framework suggests, we need to focus on creating valuable services instead of short-term products. Instead of continuing to support a short-term profit-biased and ownership-focused economy, the fashion industry needs to contribute to building a long-term prosperous and sharing-oriented global economy."

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Introducing circular fashion: the shopping concept that could save the planet

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Sustainability has never been important to shoppers, nor to the fashion industry. This generation cares about the planet; we might have enjoyed February's freakishly warm temperatures, but we know that the reasons behind it are dark.

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What is Circular Fashion?
“It can be defined as clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulated responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use.”

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-Sustainability Pioneer

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H&M has named Maisie Williams as its global sustainability ambassador in a bid to change the future of fashion.

Williams will join the brand this year to work towards H&M's goal of using only recycled or other sustainability sourced materials by 2030. The partnership will encourage the reuse, remaking and recycling of unwanted garments with the aim of creating a more circular fashion model.

"I'm excited to finally share the news of my partnership with H&M as global sustainability ambassador and cannot wait for you all to see what we have been working on," Williams said in a statement.

"In this role, I will be working closely with experts within H&M to drive sustainability initiatives and shape the path towards an accessible and circular future. The long-term goal is to use 100 per cent recycled or other sustainably sourced materials for textiles across the full H&M Group brands by 2030.

"It's time to take action and create more viable production circuits in fashion to protect our planet for the next generation."

The actor and filmmaker will embark on several initiatives, including an Animal Crossing style game, H&M Loop Island, which encourages players to recycle and learn about circularity.

Williams will be transformed into her very own digital twin Avatar Maisie, which was created by 3D animators and will make appearances throughout the year (as well as the real Williams) to engage with customers to inspire action.
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Maisie Williams just landed a major new role at H&M

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H&M has named Maisie Williams as its global sustainability ambassador in a bid to change the future of fashion. Williams will join the brand this year to work towards H&M's goal of using only recycled or other sustainability sourced materials by 2030.

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-Vestiaire Collective attracts 140,000 new members join every month, proving a change in how we now want to shop

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This article appeared first in The State of Fashion 2021, an in-depth report on the global fashion industry, co-published by BoF and McKinsey & Company. To learn more and download a copy of the report, click here. The Challenges in Scaling Circularity
When it comes to protecting the environment, the fashion industry knows that "less is more," meaning the less impact we have on our planet, the more benefits will accrue for businesses, people and natural life. One promising way for fashion to reduce its environmental impact is by scaling circular business models, through which companies employ a range of strategies to reduce waste and make more efficient use of resources, as well as help their customers to do so, too. In 2021, we see circularity moving from the fashion fringes towards centre stage.

The impetus to act on the environment is emphasised by shifting consumer attitudes. More than three in five consumers in a recent McKinsey survey said environmental impact is an important factor in making purchasing decisions. Regulators and policy-makers are also on board, amid a raft of upcoming initiatives to promote circular practices (such as in the EU) and prohibit the destruction of luxury goods, as can be seen in France. More generally, measures such as the EU's carbon border tax will promote circularity by making the economics of onshore recycling and other circular models more attractive.

An industry-wide circular business model is a lofty ambition - and is a long way from being realised. Despite efforts by some players, as much as 12 percent of fibres are still discarded on the factory floor, 25 percent of garments remain unsold, and less than 1 percent of products are recycled into new garments. Given these metrics, action is an imperative and an inevitability. Indeed, circularity may become the biggest disruptor to the fashion industry over the next decade.

As the industry makes progress with the "Rs" - reducing, recycling, refurbishing, reselling, renting and repairing - few decision-makers are under any illusion about the scale of the challenge. Despite good intentions on the part of some players, garment production volumes are predicted to grow by 2.7 percent annually between now and 2030. The priority, therefore, must be to set circular strategies, tackle scalability challenges and take concerted action to scale solutions.

The way in which value is created in circular systems is radically different to the way it is created in linear systems. In essence, a single garment can create value repeatedly - through sale and resale, repeated rental, or being sold, repaired, returned, refurbished or recycled, and resold again to start the loop over. This value-multiplier effect has prompted several leading retailers to get involved. Selfridges' Project Earth initiative aims to help customers buy "pre-loved" items (in its Resellfridges range) or rent (through partner Hurr Collective) and repair. Peer-to-peer social shopping resale app Depop saw a 300 percent year-over-year increase in items sold during the Covid-19 pandemic, reflecting rising consumer demand for pre-owned purchases.

More than three in five consumers said environmental impact is an important factor in making purchasing decisions.

What Will It Take to Scale Circularity?
With some of the industry's leading names showing interest, there is little doubt that circularity is gaining momentum. However, three key barriers are preventing adoption at scale:

Capturing value requires durability or recyclability. Without durability or recyclability, there is likely to be significant erosion of product value. Refurbished products can command relatively high prices if the refurbishment is carried out reliably, which is not always easy when clothes are stretched or stained and accessories scratched or marked. Similarly, with most garments composed of a mix of materials, recycling is not easy.

Enabling circularity involves a complex web of logistics. Resale transactions are currently mostly peer-to-peer, with individuals deciding whether the resale value is worth the time and energy required to wash, photograph, describe, package and send. In "Fashion on Climate," our analysis showed that, to align with the 1.5-degree pathway in 2030, 20 percent of garments need to be traded through circular business models, so greater scale is required. The subscription rental model, for example, requires many users for the economics to make sense - and again, the key challenges are logistical, including laundry and delivery.

Engaging consumers requires overcoming stigmas. While circularity is winning fans among some consumer groups, it is still an abstract idea to most and terms such as recycled, upcycled, repaired and refurbished still have negative connotations. Similarly, consumers are willing to return recent purchases with the incentive of a refund, but struggle when a garment of unknown value sits forgotten at the back of a wardrobe.

The apparel ecosystem is fragmented, with no single player accounting for more than 1 percent of the market. Standardised solutions, therefore, are unlikely to emerge anytime soon. More probably, we will see a variety of strategies led by a diverse cast of actors and predicated on three foundational capabilities:

Embracing Sustainable Design. Circularity starts on the drawing board, and with the textiles and materials that designers use for their creations. One company that has embraced the sustainable design ethic is London-based Dai Wear, which employs recycled and recyclable fabrics to produce performancewear. The company uses biodegradable yarns for seams and air-dried fabrics to reduce washing needs.

"Sustainability is obviously more important than ever, but it is also becoming the baseline requirement for all apparel companies," Dai Wear Chief Executive Joanna Dai said. "We find increased organic engagement and followers slightly outside of our core target niche who align with our values and buy into our brand."

As much as 12 percent of fibres are still discarded on the factory floor, 25 percent of garments remain unsold, and less than 1 percent of products are recycled into new garments.

Designing for zero waste requires material and product innovation. Scotland-based Johnstons of Elgin recently introduced EveryYarn, a material made from used yarns. "Our objective is that every yarn that we make is made into a finished product," says Chief Executive Simon Cotton. "Demand for the range has certainly passed our expectations, but it requires channels where the limited-edition nature of the product is accepted and the availability of colours drives a certain idiosyncratic design. That said, we do get some brilliant designs working this way but it's not suitable for conventional merchandising or stock-supported wholesale models."

Companies should:

Invest in, incubate, pilot and test alternative materials and processes for a circular system;

Radically reduce production waste and support, train and incentivise suppliers to reduce and reuse fibre, chemicals and packaging;

Reskill designers and stimulate circular design innovation;

Create momentum by collaborating and developing tools.

Ramping-Up Reverse Logistics. Through reverse logistics, companies can recover items from disposal or secondary resale and thereby continue to derive value. Brands often partner with intermediaries to operationalise the process. Patagonia works with start-up Trove to buy-back items and sell them at a reduced price. Trove can purchase, process, price and photograph second-hand goods before putting them up for sale on clients' websites. Used-clothing platform ThredUp has partnered with companies including Reformation and Amour Vert to enable customers to send clothes (from any label) in exchange for shopping credits. In the rental space, US-based logistics company CaaStle manages the entire process for companies, from warehousing and cleaning garments to gathering customer feedback.

Some companies are leveraging their own store networks for circularity, although very few also rent, repair or resell in store. UK-based Mulberry has maintained a leather library since it launched in 1971, offering repair and refurbishment for all its products. In 2020, the company launched Mulberry Exchange, a buy-back initiative under which customers can return bags to be repaired and resold alongside the current collection.

Companies should:

Design reverse logistics to optimise value retention, either by partnering with a trusted intermediary or - more likely in the luxury space - taking direct control;

Leverage store networks to create in-store circularity hubs;

Build out non-store collection points and home pick-ups to improve accessibility;

Optimise sorting facilities and recycling technology, either in-house or with partners;

Eliminate single-use packaging.

Supporting Customer Adoption. For younger consumers born into the sharing economy, adopting circularity is a natural step. However, older consumers may require education and encouragement. Some consumers believe there is a hygiene issue with second-hand clothes, and others struggle to translate their sustainable values into actions for a wide range of reasons.

Circularity is likely to be one of the key business trends of the next decade. However, it is not the kind of revolution that can be led by a few leaders, while others wait and see.

Driving the Future of Circularity
Some brands are responding by marketing circular items alongside conventional ranges, for example Patagonia. Zalando and Selfridges, meanwhile, are scaling a range of circular offerings in their core businesses, helping to normalise circularity in the minds of shoppers.

As circularity grows, digital enablement will be critical. As the traditional linear fashion value chain transitions into a circular system, consumers will be incentivised to engage beyond an initial purchase in order to engage in circular business models, which in turn will support data collection that can shape a brand's business going forward.
The authors of this article focus on Sustainability in Apparel, Fashion and Luxury, including McKinsey's research partnership with the Global Fashion Agenda on 'Redesigning Growth'.
Companies should:

Offer rental options such as subscription services and the option to buy rented products at a discount;

Borrow online marketplace techniques to filter, sort and group assortments, or leverage retailer-curated collections;

Enable peer-to-peer business, including resale and rental, and sweeten the deal with logistics and digital solutions;

Create timeless collections, reflecting the declining prominence of seasonality;

Offer tips for care and repair;

Enable returns and recycling;

Develop data strategies to inform business decisions.

Circularity is likely to be one of the key business trends of the next decade. However, it is not the kind of revolution that can be led by a few leaders, while others wait and see. Rather, a collective effort is required, in which fashion companies, customers and all participants in the value chain collaborate.

To date, players that feature sustainability in the centre of their branding have been at the forefront of circular practices, as well as some established luxury brands owing more so, perhaps, to the resale value of their stock rather than their eco aspirations. However, looking forward, we expect mass-market brands to scale their efforts. In addition, aggregators are well-placed to launch resale and repair programmes, combined with an enhanced in-store experience. Marketplaces can build on their size and logistical capabilities. As consumers become more engaged with sustainability issues, circularity will be the key that unlocks the door to a more sustainable future.

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A More Circular Fashion Industry Will Require a Collective Effort

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This article appeared first in The State of Fashion 2021 , an in-depth report on the global fashion industry, co-published by BoF and McKinsey & Company. To learn more and download a copy of the report, click here .

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The seven forms of sustainable fashion, as seen in Vestiaire Collective’s online guide and conceived by Dr Anna Brismar

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Maisie Williams H&M Global Sustainability Ambassador-“It’s time to take action and create more viable production circuits in fashion to protect our planet for the next generation.”

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-H&M Global Sustainability Ambassador.
-Working with H&M to reach their goal of using only recycled or sustainable sourced materials for textiles by 2030.
-Introduction to a Animal Crossing Game, H&M Loop Game which encourages people to recycle and use sustainable methods.
-Digital avatar using 3D animations allowing customers to inspire the future of fashion.

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-Buy from circular brands
-Use the rental model
-Reselling sites such as Depop

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Entrance IDEA

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Second hand/ Hiring clothing are all forms of circular fashion. This idea of having clothing pieces that hang off a carousel that rotates conveys this meaning.

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The overall aesthetic is clearly captured. Each brand partner will have a small proposed section within the store. This will deliver the brands range within the “pop up” shop.

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Our Accessories department will be situated on our second floor. In terms of layout the overall look and feel is very clean with  large open space to help make the overall density of the product offer feel less compact.

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With Menswear sitting within our third floor footage visually the colour scheme will be a mixture of warm and cold tones. In terms of merchandising, the majority of men need reassurance when buying any items of clothing so using clothing rails to display the stores product offer will be the best option.

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The idea of the fourth floor is having a photoshoot area which customers can hire a garment for a couple of hours and shoot some pictures using our instore photoshoot facilities. Here is an example of one of the rooms, which will consist of different backdrops and interactive features for consumers to use to stage that perfect picture!

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