Fad or fortune? New disruptive business models and their impact on the industry: Second Hand, Repair and Rental
13:30 - 14:30
According to McKinsey, between 2000-2014, clothing production worldwide doubled, and the number of garments purchased each year by the average consumer increased 60%. Consumers are keeping clothing items half as long as they did 15 years ago. And in the UK alone, 2 million tonnes of clothing and textiles are thrown away each year. In response to this immense waste issue, new business models have started to disrupt the industry. Brands have implemented different forms of second-hand, repair and rental programs in an effort to attract the rising number of eco-consumers.
Firstly, consumers have become more open to buying and selling second-hand clothing than ever before. According to ThreadUp, the resale market is set to reach $51bn by 2022 and will be 1.5 times bigger than the fast fashion market by 2028. In collaboration with resale site Vestiaire, Selfridges recently launched its permanent space dedicated to second-hand clothing. While Stella McCartney works with the resale site to sell their own clothing.
Moreover, as part of Patagonia’s Worn Wear Tour, the company has committed to extending the life of its garments through repair services. Consumers also have the opportunity to buy remanufactured and upcycled items from Eileen Fisher and Converse.
Major rental websites such as Rent the Runway have grown into $1 billion companies by motivating designers to join the website. Brands such as Ganni offer customers the option to rent clothing and accessories for a few weeks, and in late 2019, H&M announced its initiative to become the latest retailer to enter the rental space.
In this interactive session, we will look at the changing retail environment and discuss questions such as:
- How can brands incorporate resale, repair and rental strategies into their own operations?
- What are the emerging trends that will stick and affect production and consumption in the coming years?