It is not a new concept, but it was forgotten as people began to consume more and indulge in a “throwaway” culture. The long-forgotten practices of renting, secondhand, and repair are slowly making a comeback.
The idea of “an extended clothing lifespan” was not new. However, it has been lost over time due to the increase in consumption and the throwaway culture. Long-forgotten practices such as renting, buying secondhand, and repairing clothing are quietly but steadily making a comeback.
If one were to narrow the story down to the textiles-apparel-fashion industry, it rang truer here than in most other sectors. In the later part of the 20th century, many time-honored customs were abandoned. The old practices of repairing clothes were frowned upon, and the rituals of passing down clothing from generation to generation were ridiculed. Consuming more was seen as the way to implement consumerism. Clothes are thrown out without a second thought. With the rise of fast fashion, this means that clothes need to be disposed of sooner rather than later.
Measures and ideas to counter this have always existed. Still, they would invariably be drowned in the din of the dynamic and raucous debates that have continued over the subjects of sustainability/circularity in recent years. The pandemic, as it has in many other areas of the industry, fuelled the debate, and now counter-ideas have become tangible business initiatives. Recommerce (i.e., Secondhand clothing, rental, and repair are the primary keywords. There are also related keywords such as repurpose, i.e., Alter) and repeat. Many more are available, some of which overlap or complement each other. The underlying idea remains the same, however: a longer-lasting wardrobe.
The industry does not receive the idea well. This means you should expect to see sales drop not only during lockdown but for eternity. You also can’t grow as fast as they did in the days before the pandemic. But the industry cannot ignore reality. It will not go away. Many people believed that circularity meant that everything that was left over at the end of a garment’s life cycle would be recycled and that the circle could grow larger. Can one expect the industry to accept the reality, complexity, and conflict (of interests) that a large section of the population wants their clothing to last a long time, ideally a lifetime, given the realities, competitions, and complexities? Is the fashion business still viable? If the big fish are already in the market and have found some success, will the smaller players be left behind as the struggle for survival gets tougher? It’s not an easy question to answer, but it’s important to know what is happening in the market.
Up for Hire
Clothing rental has been around for centuries, but it is not what we think. For example, film and theatre production companies have always rented clothing for their productions. These were highly specialized businesses that had little to no contact with the average person, except for rare occasions when people would rent clothes for parties or other events.
Clothing rental has become a market segment for consumers, and big brands are entering the sector one by one. The trend is not so subtle that you can’t notice it. Rent the Runway filed paperwork with US regulators in mid-July for an initial publicly traded offering (IPO). The company raised funds at a valuation of $750 million in 2020.
It was announced shortly after the luxury department store Harrods launched a fashion-rental service in partnership with My Wardrobes HQ. This feature will appear on My Wardrobe HQ, as well as a pop-up store in Harrod Knightsbridge. The collection will feature 1,000 statement pieces from designers like Huishan Zhang Rotate Roksanda Zimmermann. Customers can rent the items for 4-14 days or purchase them. A four-day rental can cost between PS23 and PS400.
Selfridges launched a new online rental service only a month ago. Selfridges launched an in-store rental service in early 2020 via a pop-up in a deal that involved a rental platform. This new initiative also uses Hurr Technology, but the products are curated this time by the Selfridges purchasing team from “the best new-season menswear, womenswear and accessory.” The items would be available for rent over four-, eight-, and ten-day periods. Prices for four-day rentals start at PS20.
Renting is the answer for luxury brands and retailers that have been hit hard by the lockdowns.
But, no. The Swedish fast-fashion giant H&M made a splash in April when it launched its first clothing rental service, One/Second/Suit. The program is designed for young men who are looking for work and may not be able to afford a suit or other professional clothing. The program was first launched in the UK and then rolled out to the US the next month. Sara Spannar was very clear on the audience she wanted to reach: “Job interviewing can be an intimidating experience.” We believe that nothing should stop you. We believe that you should not be held back by what you wear. The One/Second/Suit gives you confidence in a ready-to-wear suit. “A signal to the rest of the world, and a reminder for yourself that you have what it takes.” Renting seems to be a good option for people with specific goals.
H&M is always on the lookout for new trends. In October 2019, Sergels Torg in Stockholm began offering customers the option to rent selected party dresses and skirts through its customer loyalty program. The space featured a few unique items designed using inspiration from that fall’s Conscious Exclusive Collection. Pascal Brun, H&M’s head of sustainability, said that the move was a precursor to things to come. “We have been looking at clothing rentals for quite some time. We are happy to be able to offer fashion lovers the opportunity to rent some stunning items from our Conscious Exclusive collection.”
We are looking forward to evaluating it as we want to change the fashion industry today.
It is well known for spotting trends in advance. In 2019, it was the year when Banana Republic launched its clothing rental service, along with Scotch & Soda, Urban Outfitters, and Scotch & Soda.
In January of this year, H&M Group’s market launched a kidswear rental program “to encourage reuse, re-wear and recycling” in response to the growing importance that millennial parents place on sustainability. The company began renting out products from its children’s range through a partnership between Amsterdam-based online clothing shop Circos and the H&M Group. Customers in Europe could subscribe for as little as EUR19.50 per month. Rentable clothes can be used and kept for as long they fit and then returned when the time comes to update your wardrobe or size up. This year has seen many changes on this front. In April, sustainable fashion brand Mother of Pearl partnered with online fashion service Onloan to create a circularity initiative. The Full Circle aims to break down the traditional “linear retail” model and extend garment life cycles by partnering with Onloan’s rental and used garment services.
The American label Ralph Lauren had not announced The Lauren Look, a subscription platform that offers apparel from Lauren’s sub-brand. The service was launched in North America on March 1st. A virtual closet will be created for each customer who signs up. The cabinet must contain at least ten items for the service to begin. For a seamless service, the company recommends that you maintain 24 items. Then, four things are sent at a given time, depending on the availability of each item, for you to wear as long as you like. The subscriber can either return the four things to the Closet or purchase the favorites at a member-only discount. Rentals, whether they are one-offs or driven by subscriptions, come in many shapes, sizes, and customizations. Here, brands will have to be very experimental.
Brands are choosing to make their rental/subscription service announcements every two weeks in order to get noticed. The digital version of Copenhagen Fashion Week, held in February, saw the release of Stage by Danish fashion label Ganni. This is a rental-only clothing line. The collection is made up of 26 pieces that were reworked from Ganni’s previous season and then reimagined using spray paint, embroidery, and embellishment. The pieces were initially available in the UK and Denmark. They could be rented for one, two, or three weeks, and the prices ranged between PS26 and PS78. More launches like this could be seen in the future during fashion weeks.
Can or will this type of sales work for the industry? It is difficult to tell in the early stages. Brands will have nothing to fear if they do it right. The rental/subscription market will also grow based on the consumer’s willingness to hire clothes. According to Future Market Insights of Dublin, the online rental clothing market will grow between 2021 and 2031. According to the firm, the market is expected to reach $1.8 billion this year. It will grow at a CAGR of 11 percent between now and 2030. The US will lead the way, while the UK should do better than Germany or France. In Asia, China and South Korea will have a higher demand for rental properties than Japan.
In just a few seconds
Fashion is a vanity-ridden industry. Nothing is more vain than to mock secondhand clothing and those who wear it. Once upon a time, it wasn’t so. With globalization, the growing middle class, and fast fashion, people no longer just take pride in their brand-new clothes but also forget to give them a second life.
The tides have turned. According to ThredUp, an online consignment store and thrift shop where people can buy or sell high-quality used clothes, the US market for secondhand clothing is expected to double over the next five-year period and reach $77 billion. The 2021 Resale report reveals new insights into the tailwinds driving resale during pandemic recovery. It also asserts that resale grew during the pandemic and will accelerate its growth in recovery. The secondhand market is now worth $36 billion, and the resale sector is projected to grow 11x faster than retail clothing in the next five years. The report assigns numbers to the lockdown years. It says that 33 million Americans bought secondhand clothing for the first time this year. And 76 percent of these first-time purchasers plan to spend more on derivatives over the next five years.
It’s not only the US. According to a recent report by Carousell, Southeast Asia’s largest secondhand marketplace, Hong Kong millennials purchase secondhand in order to support their sustainable lifestyle. According to market studies, millennials are defined as those under the age of 35. This generation uses the platform in order to maintain a sustainable lifestyle. Hong Kong’s millennials are buying secondhand items on the app, 93 percent of them said. They felt it was a more sustainable option.
Even before the outbreak, industry leader Levi’s understood the increasing popularity of vintage, consignment, and thrift shops and took the initiative. Levi’s launched Levi’s SecondHand in October 2020 to help extend the life of their jeans. Customers can purchase secondhand jackets and jeans on Levi.com and also turn in worn jeans in Levi’s store for a gift certificate towards a purchase in the future.
It was a simple deal. The deal was simple. Resellers received between $15 and $250 in store credit, with the quality determining the price. The platform will then relist these garments between $30 and 100 for shoppers to buy. Levi’s offered $5 in credit towards a future purchase for pairs that were too worn to be resold. The jeans would then be recycled by its sustainable partner, based in Sweden. Levi’s also partnered with Trove, which handled the backend operations, including inventory processing and fulfillment. Trove, a commerce technology and logistics startup, has already provided similar services to Eileen Fisher and Patagonia. Levi’s was continuing its sustainability efforts. A few months before, Levi’s had developed a pair of sustainable jeans in partnership with Re-newcell. The jeans were made from 60 percent organic cotton, Circulose (Re: newcell’s breakthrough material), which includes 20 percent recycled denim and 20 cents sustainably sourced viscose.
Levi’s provided numbers as well. Jennifer Sey is the chief marketing officer for the Levi’s brand. According to her, purchasing Levi’s jeans secondhand would help reduce carbon dioxide emissions by around 80 percent, as well as 700 grams of waste, compared to buying a brand new pair. The company had already tested how rentals worked in the field. Levi’s and Ganni collaborated on a denim collection in August. The group was a three-piece women’s capsule that featured garments made from upcycled vintage Levi’s denim. There is a new term in use these days, Resaleas-a-Service (RaaS), with a flurry of activity on this front.
ThredUp Inc. entered into a contract in July to purchase Remix Global AD. This is one of Europe’s largest fashion resale firms. The acquisition is part of the company’s plan for Europe, where the secondhand clothing market is estimated to reach $21 billion by 2020. It is also expected to reach $39 billion within four years. ThredUP already has RaaS agreements with Vera Bradley Farfetch LG and Madewell. ThredUp will announce a public offering later in the month.
Reflaunt had secured $2.7M in pre-Series A financing in February. The funding was led by MadaLuxe Group’s investment arm, a major worldwide distributor of luxury fashion. Reflaunt will be able to hire top talent for its technology and business development teams as it executes the growth strategy and offers a variety of resale models to more leading global brands. Other companies that have raised large amounts of money include the Lithuanian clothing and home goods marketplace Etsy, which acquired Vintedand Depop for $1.62 billion.
People are still buying pre-owned clothes. Luxury resale website The realReal announced to investors that the total value for goods sold on its site reached $239 million in May, up 53% from the same period of 2019. “Our GMV growth rate for the quarter to date reflects our strong momentum coming out of COVID. This is highlighted by the accelerating growth over the past year in comparison with the same period in 2019. Our performance is boosted by encouraging early results at our neighbourhood stores, a growing contribution from the return of in-home consignments, and strong trends in the resale markets. We are building on our recent momentum and remain laser-focused on driving scale and operational efficiency gains to march towards profitability,” Julie Wainwright, The Real Real’s founder and CEO.
The same size problem has always plagued ecommerce websites. Fechfech has already begun to catch on. MySize, an Israeli company that creates smartphone measurement solutions and is a developer of such solutions, announced in June its intention to develop a sizing solution based on AI for secondhand apparel retailers. The platform was designed to help online customers find the correct size for pre-owned clothing. It is also intended to offer merchants a complete end-to-end service to reduce return rates.
The company describes the problem as follows: “Many secondhand clothing retailers sell items from many different brands that use other measurements and size charts. This leaves customers in the dark about a single table they can refer to to find their size. Vintage items often use sizing charts that are outdated in today’s fashion industry. A customer who buys a size 8 20 years ago may receive an item that is sized differently from a current size 8. Wrongly sized clothing costs retailers billions of dollars every year. Up to 40% of online apparel is returned due to poor fit.
MySize, among others, has a role to fill. The segment is expected to grow and create a new sub-ecosystem that will offer ancillary services.
Support for the second market segment. This will eventually include traceability. This is something that’s already on the market. New York startup Eon launched a service that allows brands to upload data about their product onto its Connected Product platform, an IoT-based solution for tracking fashion items through their entire lifecycle. The platform provides each product with a digital certificate that includes information on where, when, and what the item was made of. This segment will be dominated by tech.
Wearing and Repair
One casualty of the world of fast fashion and ready-made clothing is the disappearance of your local tailor. A whole profession has been pushed into huge garment factories or left to salvage the last remnants of clothing of those who can’t afford to buy another set. The lust for money has also played a part.
It isn’t just a fashion problem, but one that affects all sectors. The battery on a mobile phone is no longer usable, and laptops are rendered obsolete after a certain point, even though they remain sturdy. You have to buy things to live.
On this front, we will likely see a lot more traction and action. Much of this has already begun but in other industries. In the near future, laws allowing for the right to repair will be introduced in Great Britain as well as in the European Union. In Britain, the right-to-repair rules are intended to combat “built-in obsoleteness,” where manufacturers intentionally design appliances to fail after a set period to encourage customers to purchase new ones. The manufacturers have two years to comply with the new law that was introduced in July. As of today, the rule only applies to dishwashers, washer-dryers, and washing machines, as well as refrigeration appliances, televisions, and electronic displays. Electric motors, retail fridges, and light sources are included in the list of non-consumer goods. Smartphones and laptops are exempted from the list, but they could be included as campaigns heat up.
According to new EU regulations in force since March 1, manufacturers must ensure that parts are available for up to 10 years. Some will be only provided to repair companies for professional installation. To improve recycling, new devices must come with repair instructions and be designed so that they can be taken apart using standard tools when they are no longer fixable. The new law was passed after the European Parliament voted to strengthen the “right to repair,” especially to reduce electrical waste that has increased due to more manufacturing. In the meantime, US President Joe Biden has signed an executive directive directing that the Federal Trade Commission draft new regulations to limit device manufacturers’ abilities to restrict independent repair of their products. These new rules will affect banking, tech platforms, and labor markets, as well as internet service providers and airlines. They are designed to increase competition in the US economy. The FTC report of 54 pages to Congress concluded that “there are scant facts to support the manufacturers’ justifications” for repair restrictions.
While all these new laws are meant for the US and European countries and are confined to electronic/electrical goods, they are bound to have far-reaching effects in other countries and soon spread to other sectors and industries, too.
Some laws apply to the clothing industry. The French Parliament passed a law in early 2020 to prevent designer clothing and luxury goods companies from destroying returned or unsold products and ensure their reuse, recycling, and redistribution. In France, supermarkets have already been forced to donate unsold food to charity. The new law is set to take effect in 2023. This was a result of a lot of negative press surrounding big brands. Burberry’s 2017-18 annual report revealed that “the cost of finished goods destroyed physically in the year was 37,8 million dollars”, up from 35,6 million dollars for 2017. Around the same time, H&M was accused of burning at least 60 tonnes of unworn clothing.
There’s no way to run away from the repair aspect of “extended clothing lifetime.” It could be influenced by legislation as well as activism.
There are a few initiatives and measures to repair cars, but they are few and far between. They are effective and contribute to brands’ sustainability.
Nudie Jeans is a great example. “We don’t name our shops Repair Shops for nothing,” says the brand. Repairing jeans is just as important to us as selling them. Nudie Jeans Repair Shops will accept your jeans after they have been washed. You’ll have a brand-new version of an old favorite. Your mark adds value and makes your items worth looking after. Nudie Jeans Repair shops are designed to serve as hubs where our jeans can be repaired, resold secondhand, or donated to the Nudie Jeans Recycling Programme. Mobile Repair Stations are also available to tour the world and provide repairs. You can get a Repair Kit for free if there aren’t any Repair Shops nearby or if the Mobile Repair Station is not scheduled to visit. Nudie Jeans repaired 63,281 jeans in 2019, which is equivalent to 50,000 kg worth of clothing. This is a 15 percent increase over 2018. “If each person who had their jeans repaired with us decided to purchase a pair of new jeans, the production of these jeans would require 443,000 tons of water, which is enough to fill 177 Olympic-sized swimming pools.”
The Restory, a luxury aftercare company powered by Farfetch, partnered with the fashion platform Farfetch to launch Farfetch Fix in February. The Restory provides the services and is part of Positively Farfetch, a strategy that aims to make the company the “platform for goodness in luxury fashion.”
The idea is not new, but it hasn’t taken off yet. Many big brands and retailers offer these services. H&M’s flagship store in Paris reopened in June 2018 and was the first ever to provide the “Take Care” service permanently. The pilot program had been launched in Hamburg just two months prior. Customers can repair clothes in-store, purchase garment care products, and receive advice on how to take care of their items better. H&M’s Take Care section offers hacks and tips on how to fix, remake and refresh clothes. Levi’s Tailor Shop also offers many options, from embroidering jackets and using laser technology to adding patterns and colors. The only problem was that few people were interested. Or, didn’t know. Researchers in America found that there was a large gap between the “common” clothing repair skills of baby boomers and millennials. Pamela Norum is a professor at the MU College of Human Environmental Sciences in the Department of Textile and Apparel Management. She found that there’s a need to increase education in what was once considered common knowledge about clothing maintenance.
Norum stated: “Traditionally, these skills are learned at home or in secondary schools. The opportunity for young Americans to learn these skills has decreased due to the rise of women in the workforce and the reduction in funding for FACS programs. FACS programs may wish to link sewing/mending with sustainable consumption to appeal to younger generations and provide the skills that they need. Renting and selling seconds can bring in revenue for brands and retailers, but repairs are a whole different game. This is a service that follows up on garments and should be provided as an extra, not as part of a paid-for administration. It is not just a trickle. Once the big players start, it will become a flood.
Circular motion
We are now back where we began. Discussions and policies about a circular fashion economy or circular economics have focused more on bringing end-consumer products back into circulation than advocating extending product lifespans. It has led to many industry leaders believing that it is fine to go circular as long as everything gets returned and the circle grows.
This would undermine the principle that underpins Sustainable Development Goal #12: Sustainable Consumption and Production. Sustainability must be understood and viewed as a consumer issue and not as a collection of rigidly coded capabilities and measures for getting the raw materials back. The life expectancy of clothing was also a factor.
Levi’s is now asking its customers to buy less. But not in so many words. The spring Levi’s campaign encourages people to “Buy better, wear longer,” – raising awareness about the environmental impact of clothing production and consumption. Jen Sey said that Levi’s denim was meant to last generations and not just a season. We are using this campaign as a way to encourage customers to be more deliberate about their clothing choices. For example, they can buy secondhand or use our Tailor Shops in-store to extend the life cycle of their garments.
Similar statements have been made in the past. However, a campaign from a major brand that is based on a season has spread the message to a wider audience. There is nothing that indicates rentals, secondhands, and repairs are now mainstream. It would be a mistake to look for something wrongly. John Milton said, “The morning shows man/As childhood shows him.”
