What: Vogue Business reviews the challenges that fashion executives must face when it comes to circularity.

Why it is important: Selfridges aims to achieve 45% of its turnover through circularity within 2030, from 1% today. Is that possible while maintaining the sale level of profits?

Vogue business reviews what is at stake when it comes to circularity and lists a selection of 11 circular ventures and their funding (interestingly, Vestiaire Collective, a leader in the space, is not listed). Be it repair, rental, recycling or reuse, many brands have entered this space in the recent times, and department stores too.

However, this does not hide the fact that there is a debate about it: circularity might very well a convenient excuse to continue business as usual as some consider that the main target for fashion brands should be to stop selling more each season.

In addition, challenges remain: circularity as a whole might not be as environmentally friendly as expected when packaging, emissions and dry cleaning (for rentals) are taken in the equation, and for each of the “R’s” of the equation, specific issues remain:

-    Resale: how to deal with quality and make sure all products can be efficiently sold on a scalable dimension,

-    Rental raises the question of ownership: should rental operators be coordinators of items own by individuals and rented, or should they own the stock?

-    Repair can be costly, time-consuming and a barrier to new sales, as discovered by Bottega Veneta.

In fact, circularity needs to be embedded in the products when they are being designed to make sure the model is relevant. But then, tracking progress is another question, which is why many call regulators to step in, which they have started to do.

Finally, regarding social impact, sustainability experts say the industry is too focused on technological solutions and startups based in the Global North, and is neglecting its social impact, especially in the Global South.

The Fashion exec’s guide to circularity