Circular fashion represents a $700 billion opportunity for brands and retailers, but some may be on the path of overpromising and underdelivering.
A new report by the British Fashion Council explores the work it will take for repair and resale programs to transform fashion brands’ business models.
“Customer-Centric Growth: A Playbook for Scaling Repair and Resale in Fashion,” by the British Fashion Council’s Institute of Positive Fashion in collaboration with business management consultancy Clarasys, warns that while circularity is gaining momentum, the sector faces major barriers, including low customer awareness, convenience gaps and unclear value propositions.
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Building trust with consumers—be it over quality, cost or transparency—is crucial to for both channels. Successful programs require brands to “systematically identify and eliminate every point of friction in the repair and resale process.”
Though there is no one-size-fits-all solution for repair programs, the report encourages brands to drill down their strategies to align with their customer. Brands and products that consumers have an emotional attachment to have the most success. It is also critical to make the process seamless.
For repair, this includes addressing “conversion killers” such as complicated booking processes, long lead times and even the hassle of packaging a garment for mail. Instead, the report suggests “radical convenience” by offering at-home pickup and delivery services, utilizing regional stores as drop-off locations, intuitive online booking portals and incentivization such as limited-time discounts.
A lack of customer awareness and price are other challenges, particularly the disconnect between the perceived value of the repair and its actual cost.
The report describes resale as a tool for brands to acquire new customers, control their brand narrative, and generate new revenue. An optimized resale program—whether its managed in-house, by a third-party marketplace—requires brands to consider whether their goal is purely transactional or about building long-term loyalty.
However, challenges persist. For resale, low prices for sellers and concerns around authenticity and hygiene for buyers are the main concerns. “The process is often perceived as time-consuming. Sellers are deterred by the risk of rejection after sending an item in, or creating a listing that will never sell,” the report states. Inconsistent grading and slow payouts for sellers can also create a poor experience and erode trust.
Best practices range from transparent pricing backed by data to trust-building expertise, financial incentives, and simple seller experiences for resale. Additionally, resale should be positioned as a natural extension of the brand. “Invest in a seamless e-commerce experience for second-hand that mirrors the primary site, including standard features like search and filtering,” the report states.
The report also highlights the importance of gaining the C-Suite’s support to finance, market and future-proof circular business models. “Focus on one initiative at a time and execute it well. Trying to launch repair, resale and rental all at once is a recipe for failure,” the report states.
