Because the topic of sustainability has gained in importance in the fashion industry, it is hardly surprising that interest in the circular economy is also increasing. As the cost of raw materials and materials continues to rise — due to climate change, logistics and the pandemic, among others — the detrimental impact of textile production on the environment is also becoming increasingly evident.
The circular economy breaks away from the linear production process where an item is made, bought and then discarded. The change will avoid waste and pollution. This ensures that the products and the materials used to manufacture them can be used again and again. This system aims to offer fashion brands and retail companies a way to make their business more sustainable.
How a circular economy approach can help reach and retain more customers
Consumers, especially Gen Z and Millennials, are expecting something new when it comes to fashion and sustainability and are not afraid to hold retailers accountable. In a recent BigCommerce-commissioned consumer survey of more than 4,000 online shoppers around the world, the majority of respondents rated sustainability as either very important (32%) or fairly important (52%) when making a purchasing decision.
According to a recent study by retail analytics firm GlobalData, the global fashion resale market is expected to grow 127% by 2026, three times faster than the apparel sector in general. 62% of Gen Z and Millennials surveyed said they would rather buy a second-hand item than purchase a new one. 58% of respondents also indicated that second-hand shopping has helped them in some way during the inflationary period.
Through measures to implement recycling processes, such. B. resale, recycling of old clothes or repairs, online retailers can build a closer relationship with these consumers and strengthen customer loyalty.
For retailers, moving to a circular economy also means a more reliable, stable supply chain. By implementing closed production processes that rely on the use of existing materials to create new products, online retailers can protect themselves from possible future shortages, as witnessed in recent years.
What you can do as a fashion brand to improve the circular economy
There are several steps retailers can take to improve the circular economy, e.g. B. by offering repair services, resale opportunities and recycling initiatives in stores, online or through third party websites.
Building a circular economy within your business is related to customer service and a streamlined returns process. If customers feel it is too much of a hassle, they are unlikely to enroll in a repair, recycling, or resale program.
A smooth returns system depends on effective process management, knowledgeable logistics partners and impeccable customer service. Look for partners that offer integrated systems so customer service can easily track all returned items, assess the impact and contact customers accordingly.
Start building a sustainable online shop now
The circular economy is a system designed to support not only the environment but also businesses and consumers around the world. However, to be truly successful, e-commerce retailers need more sustainable options, clear return policies and impeccable communication systems.
If you are not yet selling online or your current platform cannot support your sustainable ambitions, start a free trial of BigCommerce
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