A confession. My original research question was, “What if the fashion industry simply made less clothes?”

(Over)production, reducing speed and seasons could be the answer to almost everything?!, was my thought process. As in: for sustainability in the clothing sector and more broadly: in the pursuit of a circular economy (see text frame below).

Many sustainability issues can be traced back to the huge amounts of clothing that are produced. What is ‘in’ today is out tomorrow. Stores regularly fill their shelves with new trends, which contributes to the throwaway culture in fashion: clothes are quickly replaced and thrown away.

In the post -user phase, some textiles are recycled or exported for reuse, but much still ends up in landfills or is incinerated. This causes significant environmental damage and highlights the need for more sustainable solutions.

Some designers have already taken action. For example, Joline Jolink, a Rotterdam fashion designer who is charting her own sustainable course, introduced a production cap in February 2023 to combat overproduction . What if more companies followed her example or this was enforced, for example by legislation?

But Mirella Soyer, Professor (Lector) Behaviour for Circular Transitions, at the Rotterdam University of Applied Sciences, rightly pointed out to me that this question is somewhat polarising. Moreover, it is a bit too short-sided.

“Reducing the amount of clothing on the market alone is not enough, given the globalized world we live in,” Soyer explains. “After all, a lot of clothing is produced in other countries, which also supports local economies there. Instead of focusing on “less,” a more fundamental question is: “Why are these circular business models so difficult to get off the ground?"

Because according to Soyer, there is no doubt that things need to change in the fashion industry.

Why circular business models struggle to get off the ground

More sustainable fashion: a large group of consumers isn't hooked yet

“Although there are already many good initiatives, such as sustainable tips for your wardrobe from Milieu Centraal, they often focus on the frontrunners, consumers who embrace sustainability,” says Soyer, who promotes circular behaviour in both organizations and consumers in her role and focuses specifically on the clothing industry.

According to her, these include people who buy a sustainable item from Joline Jolink or a deposit-refundable sweater from The New Optimist, mend their clothes and own a small 'capsule' wardrobe.

“But it is the masses that we need to move towards a more sustainable wardrobe,” Soyer argues. And in the fashion industry, that is precisely the challenge.

“For a long time, the image of sustainability was not trendy ('no rhinestones on jeans, no material blends because that makes recycling difficult or chemical dyes') and above all expensive,” Soyer explains.

In addition, convenience plays a role in purchasing behavior. The fact that fast, cheap fashion is more accessible than sustainable alternatives does not work in its favor.

It would also be nice if new standards could be created, Soyer continues. “Now 'trendy, cheap and new' is the standard. I am concerned with the question why 'trendy and old' or 'trendy and repaired' seems less okay.”

In short, cultural shifts are important.

But that's not the only problem.

How policy reforms can accelerate the transition

Does the government encourage circular efforts from companies?

“There is a need for practical measures in the short term to support fashion companies in their efforts to operate circularly,” says Soyer. The sustainability legislation that is coming, such as the Digital Product Passport (DPP) , contributes to transparency for retailers and consumers.

To reward and encourage circular efforts, Soyer is thinking of 'taxing differently':

• In the Netherlands, there are import duties for clothing orders outside the EU for orders over 150 euros. “But when you order cheap stuff from Shein and Temu, you don’t reach that amount that quickly.” Soyer proposes to levy the 12 percent import duties on all clothing orders, so that a more level playing field is created.

• The second piece of advice follows on from that. “Reduce or abolish VAT on second-hand clothing,” to make second-hand clothing cheaper and more attractive.

• France has proposed an additional tax for 'trash brands', Soyer highlights a third idea. "Legally complex, because it can be difficult to determine what exactly falls under fast fashion."

• A fourth suggestion is to extend the Carbon Border Adjustment Mechanism (CBAM) to European borders, Soyer continues. Currently, this scheme applies to sectors such as steel, aluminium, fertilisers, electricity and hydrogen. “We could add fossil-based plastics (which are the basis for popular synthetic materials such as polyester, for example).”

• “Taxing primary, virgin raw materials instead of labor is a change that has been on the wish list for some time.” Or: if the tax on secondary / recycled raw materials can be reduced, the use of recycled materials also becomes more attractive.

• Finally, there is the pricing concept True Pricing. This takes into account the actual costs, the impact on people and the environment. Soyer calls it 'the dream of many sustainable frontrunners'. For clothing, it means that responsibly produced fashion becomes cheaper, while clothing for which the environment has been burdened and/or people have been exploited becomes more expensive. "This concept is still very niche.”

Good to know: this October Belgian organisations Flanders DC and Vito launched a True Cost Tool to calculate the true cost price of fashion collections.

So there is work to be done for our policy makers.

What should fashion companies do? Where do they stand now? What still needs to be done?

“Many parties, even the high street chains, are exploring circular strategies,” Soyer says when asked.

H&M and Zalando, for example, have set upresale sales channels. “However, it's still challenging to make ends meet financially,” says Soyer. “Second-hand also has competition from the aforementioned ultra-fast fashion brands such as Shein and Temu, which flood the market with cheap products. That is why dirt cheap fashion should also become more expensive,” she points out again the importance of True Pricing.

Another circular effort is upcycling. This is the unique pillar of 'upcycle stars' such as Ronald van der Kemp (RVDK), Duran Lantink and Marine Serre. "With upcycling, scaling up is a challenge," Soyer explains. It is difficult to apply this concept, in which unique items are made from residual materials or old clothing, on a larger scale.

Therefore it is important that clothing companies - who do not yet want or are not able to completely change their business model (as explained earlier in the text frame, ed.) - integrate repair into their business operations, Soyer believes.

In repairs, outdoor companies such as Dutch retailer Bever Sport are leading the way. Although repair services are increasingly offered by companies such as Xandres, E5 mode, Mended and Jafix.com, the circular strategy could theoretically be implemented by anyone. The difficulty lies in financial feasibility. "Currently, the costs for repair work are higher than the revenues."

Another hurdle is that consumers will be less likely to pay for repairs as long as new is just as cheap. To make repairs more attractive, clothing needs to be valued more again. Soyer: “In the Netherlands there recently was an initiative with free clothing. You could argue that these kinds of initiatives, however well-intentioned, actually stand in the way of revaluing clothes. We need a different movement.”

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Good news: attention for Reduce and Remanufacturing is growing

Nevertheless, the expert is hopeful and looks positively to the future.

“Attention for Reduce on the R-ladder is growing,” Soyer explains. “Previously, the focus was mainly on the R of Recycle, at the end of the supply chain.” Now, people think about the environment impact at the start of the production process. And: the higher up the R-ladder, the greater the saving of raw materials.

Remanufacturing is also growing, Soyer continues. “Clothing brand Patagonia sorts collected clothing by colour and makes new garments from it.” This reuse reduces the need to produce new clothing (and coming back to the introduction: the production of new clothing is indeed the most polluting part, so profit!).

Circular thinking and buying are now not only being applied in the public sector, the expert adds, but also in other industries such as the installation sector.

Innovation and collaboration

“Different sectors should collaborate more on circular solutions,” Soyer believes. After all, there is much to learn from others companies. “In construction, for example, a lot of work is already being done with more sustainable biobased materials. Companies are now researching which binding agents to use to allow products to be disassembled at the end of their life cycle." This could also be interesting for the clothing industry.

“When it comes to innovation, you see that other sectors, such as construction, are ahead of the fashion sector,” Soyer emphasizes. Concrete, for instance, can be easily recycled. “That is positive, because concrete is a polluting product that is in high demand with our world population and we are facing an increasing shortage of sand and gravel.”

Making new clothes from old, discarded clothes - so called textile-to-textile recycling - is still rarely done in the fashion industry. Downcycling is the main practice, with discarded garments ending up as low-value applications, such as insulation material for homes, filling for car seats or cleaning cloths.

"Textile collectors and recycling companies, such as Sympany, who want to develop into raw material traders, face many challenges, including technological ones (clothing often consists of different materials or blends, while recycling usually takes place per raw material)," says Soyer. Maintaining quality is also a challenge.

In addition, there are financial struggles. For more on this topic, see Liza van Lonkhuyzen's excellent article in Dutch newspaper NRC, titled 'Nobody wants second-hand textiles from the Netherlands anymore.'."

The story 'Now that thrift stores are hipper than ever, the textile market is having a hard time' from Lonkuyzen for NRC of September 14 is also great read.

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Summary

Fashion companies have started to transition to circular business models, but there is still a long way to go. A change in consumer behaviour, increased government support and technological advancements are among the essential factors to accelerate and realise the transition to circular fashion.

The core question for clothing brands that arises was recently aptly formulated by my fellow journalist Simone Preuss: how can we make money without selling new stuff? Fashion companies need to find new ways to create value. In short, a question that is anything but easy to answer.

Sources:

- Interview Mirella Soyer, Professor (Lecturer) in Behaviour for Circular Transitions, Rotterdam University of Applied Sciences, on 22 August 2024.
- Input from fashion professional Jasmien Wynants, owner of the agency Masjien that specialises in sustainable fashion, in September 2024.
- The report 'ETC CE Report 2024/4 Volumes and destruction of returned and unsold textiles in Europe's circular economy' by Tom Duhoux, Dina Bekkevold Lingås, Lars Fogh Mortensen, from March 2024
- Input from journalist Simone Preuss, in August 2024.
- The FashionUnited archive and specifically previously published background articles (often linked in the article text).