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Fashion circularity: Consumers and brands must close the loop together

Paper sewing patterns for different clothes hanging on the rack in sewing factory.

Shockingly, less than 1% of clothing material today is recycled to produce new clothing, according to the Ellen MacArthur Foundation.

This means thousands of tonnes of textile waste ends up in landfills or is incinerated. By reusing or recycling fashion, we can turn that around. Second-hand resale and thrifting sites such as The RealReal and Thredup.com show us how to keep enjoying clothes for longer. Brands themselves have realised that fashion circularity will depend on consumers working with them to close the loop. For instance, Levi’s and H&M have set up ‘trade-in’ and garment collecting programs, to that end.

The vision is that retailers and brands will generate new revenue streams when they collect, upcycle and resell garments. Using digital care labels, powered by atma.io and Digital Product Passports (DPPs) fashion marketing teams have the power to engage consumers in the lifecycle story of individual garments, and drive behavior change towards responsible ownership and circularity. If consumers play their part in extending the life of items of clothing, textile waste can be reduced. For example, when they have fallen out of love with their jeans, that denim can be used for something else – not sent to landfill. The mindset of constant disposal will gradually disappear, as new options to make use of old clothes come to the fore.

Incentives for garment take-back schemes

It’s growing, but will fashion circularity truly become part of everyday life? One school of thought is that both consumers and brands need to benefit when garments are returned and reused. It’s natural for both parties to ask, ‘what’s in it for me?’ If everyone has an incentive, we can close the circularity loop together more quickly and efficiently. The benefits must become clear to both parties. So, what are they? Well, as mentioned earlier, brands can generate ROI from upcycling and re-selling returned items. Consumers can get discount coupons and loyalty points for returning unwanted garments. Joining forces will make the difference. Both are reducing their carbon footprint as a result.

Technology in the form of Digital IDs or Digital Product Passports (DPPs) for garments will facilitate this mutually-beneficial arrangement. Data stored and accessed through the garment ID, will provide raw material and composition information needed to recondition, upcycle and sell on, returned items. Shoppers will use the DPP to find out everything about the item’s history, its care instructions, and how to return it, or recycle.

Digital Product Passports are circular fashion’s driving force

The materials used, the design, the work that went into sourcing fabrics, is all recorded and that data will make take-back and repurposing possible for the retailer. Supply chain visibility will be the key to extending the life of products, and Digital IDs will be the essential tool connecting consumers and brands throughout this co-owing, collaborative and highly-engaging arrangement.

Digital QR code printed fabric label inside waistband of jeans
circ garment recycling collection center

Avery Dennison’s latest ‘Digital Consumer Behavior’ report found that consumers, particularly Gen Z and millennials, now expect retail and technology to gel seamlessly whether online, or in stores. Apparel shoppers are highly-receptive to frictionless touchpoints that will enhance their instore experience. They are open to scanning digital labels on garments, making use of QR codes, and NFC technology, for product insight and interaction post-purchase.

Digital solutions are ready to bring these circular consumption models to life. In fact, Avery Dennison is busy helping leading fashion brands do exactly that, right now. We’ve championed sustainability in our industry for many years. It’s wonderful to see practical initiatives going live across the industry, designed to extend the lifespan of garments, and bring circular consumption into the mainstream. And it’s amazing to see our technology making smarter consumer engagement possible.