One of three priority action areas in the UK Textiles Pact (formerly Textiles 2030) Circularity Roadmap, circular business models such as repair, resale, rental and upcycling are designed to keep products in circulation for longer.
They will play a key role in the transition to a circular textiles economy, allowing businesses to generate revenue from service provision and reuse, rather than from the sale of new products.
A case for change
While the production of new textile items continues to increase, the underutilisaton of clothing has been observed for over a decade. In fact, in the UK, WRAP’s consumer research found that just over a quarter of the items (26%) in an average person’s wardrobe have not been worn in the past year.
Meanwhile, the appetite for circular business models has been steadily growing, with three in five UK consumers saying they are likely to use a repair service and 73% of those who have purchased preloved items saying they would do it again. Those who are most receptive to these models tend to be the very ones we need to target - consumers who buy more, spend more, and shop more frequently.
Our findings point to a significant opportunity for businesses to capitalise on the underutilisation of clothing and begin diversifying their offering. They also reveal a promising mainstream market for circular business models, with further research from the Ellen McArthur Foundation suggesting reuse models could grow to occupy 23% of the global fashion market by 2030, valued at USD 700 billion.
By adopting circular business models, brands can not only reduce the number of items they produce while remaining profitable and serving the needs of a growing consumer population, they can also, depending on if the models have been applied correctly, achieve significant reductions in their carbon and water footprints by decoupling business growth from the use of virgin resources.
Projects we are working on with partners
Find out how we are working with businesses to keep clothing in circulation and support their customers to love their clothes for longer.
Primark x WRAP Partnership
WRAP and Primark are partnering on a three-year project to support Primark’s commitment to giving clothes a longer life. The partnership will explore how collaboration and innovative solutions can keep clothing in circulation for longer to help reduce textile waste.
Guidance and resources for businesses
Access free resources to help you inspire your senior leadership team to implement new business models and reimagine the way your business generates revenue.
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Displacement Rates Untangled
WRAP’s standardised methodology for calculating displacement rates for clothing circular business models.
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Circular business models guide
Your step-by-step guide for launching a successful circular business model.
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Circular business model receptivity in the UK
Insights on consumer experience and receptivity to circular business models.
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Retailer clothing take-back guide
Use this guidance to set-up or improve a clothing take-back scheme.
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Changing our clothes report
Research to inform the adoption of new business models in the UK, USA and India.
The brands embracing new business models
Explore case studies from leading businesses who are trialing and integrating innovative business models into their offering.
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IKEA pilots take-back scheme
In this pilot, IKEA customers were able to bring any unwanted textiles to its Cardiff store to be reused, repaired or recycled.
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Rentez-Vous offers designer clothing rental
Rentez-Vous is making luxury fashion more attainable through its peer-to-peer and business-to-consumer fashion rental service.
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Alexandra Wood Bespoke Tailoring fills gap in market
After identifying a gap in the market, Alexandra Wood Bespoke Tailoring expanded its offering to include suit rental and maintenance.
Need help turning ambition into action?
Become a member of the UK Textiles Pact and get peer-to-peer and expert support as you build, implement, and refine your circular business models.