Supply Chain
Deep Dive
The concept of circular fashion draws from the broader circular economy framework developed by the Ellen MacArthur Foundation, applied specifically to the apparel and textile industry. It gained urgency as the fashion industry’s environmental impact became quantified: the industry produces an estimated 92 million tons of textile waste annually and accounts for 2–8% of global carbon emissions.
Circular fashion operates through several interconnected business models. Resale (The RealReal, Vestiaire Collective, Depop) extends product life through secondary markets. Rental (Rent the Runway, By Rotation) shifts ownership from purchase to access. Repair and refurbishment programs (Patagonia’s Worn Wear, Hermès’s repair ateliers) maintain product utility. Recycling and upcycling transform end-of-life garments into new materials or products.
The market for circular fashion is substantial and growing. The global secondhand apparel market reached $197 billion in 2023 and is projected to surpass $350 billion by 2028. Luxury resale specifically grew 65% faster than the primary luxury market between 2020 and 2024.
For brands, circularity is both a sustainability imperative and a business opportunity. Brands that offer take-back programs, resale platforms, or repair services create additional customer touchpoints, capture secondary market value, and build loyalty among environmentally conscious consumers — particularly Gen Z, where 62% prefer to buy from sustainable brands.
OSF Perspective
Circular fashion has moved from activism to commerce, but true circularity at scale remains elusive. Less than 1% of clothing is currently recycled into new garments (fiber-to-fiber). The real opportunity for fashion brands lies not in end-of-life recycling, but in designing for longevity and capturing value through branded resale. Luxury brands are best positioned here — their products already retain value, and certified pre-owned programs (like Rolex CPO) prove the model works.
Related Terms
Notable Brands
Patagonia, Stella McCartney, The RealReal, Vestiaire Collective, Eileen Fisher (Renew)