The rise of the circular economy is both a challenge and an opportunity for brands and fashion retailers, especially in the face of the independent resale market. A recent survey conducted by the Cetelem Observatory across 17 European countries sheds light on key findings in this area. The survey results reveal that a quarter of Europeans are now aware of the circular economy, and an impressive 80% have a positive perception of it. The majority believes that the circular economy is beneficial to the environment and helps preserve natural resources. Furthermore, eight out of 10 Europeans express a desire to practice the circular economy in order to either earn more money or spend less.
The development of the circular economy has transformed the role of consumers. They are no longer just buyers; they are now sellers as well. According to the survey, consumer-sellers make an average of €77 per month, with men being almost twice as likely to engage in second-hand sales compared to women.
In response to consumer demand for sustainable purchasing options, brands and retailers are adapting their business models. They are embracing consumer desire and translating it into actual behaviors and habits, whether it’s by offering second-hand products, rental options, or launching their own resale websites. Some brands are even exploring ways to give their products a second life through refurbishment or redistribution initiatives.
The Cetelem Observatory suggests that the “flow” of products, or the circulation of products to extend their lifespan, is becoming the new challenge for commerce. This presents an opportunity for brick-and-mortar stores to differentiate themselves from e-commerce platforms and provide unique experiences to customers. By embracing the circular economy, retailers and brands can offer a genuine alternative to traditional shopping methods.
Interestingly, the survey reveals that retailers and brands still have an advantage over peer-to-peer resale sites. Consumers prefer buying second-hand goods from retailers and shops just as much as they do from individual sellers on resale platforms. However, when it comes to selling pre-loved items, consumers are more inclined to use resale platforms. This data emphasizes the importance of brands and retailers establishing themselves as trusted players within the circular economy.
While there are challenges that brands and retailers must address, such as the lack of guarantees and the desire for new products, these obstacles can be turned into opportunities. By prioritizing repair rates and durability, brands can build customer loyalty and enhance their reputation as environmentally responsible players. The survey findings show that the majority of Europeans consider repair rate and durability to be crucial factors when choosing a product. Many are even willing to pay more for a product with a high repair or durability rating.
In conclusion, the circular economy offers numerous benefits for brands and retailers. It allows them to showcase their innovation, commitment to the environment, and ability to stand out in the market. Additionally, it presents the potential for profitability. The survey overwhelmingly indicates that the circular economy is seen as an essential approach for the future success of brands and retailers.
Useful links:
– How the Circular Economy is Disrupting the Fashion Industry
– The Circular Economy and the Environmental Contribution of Businesses
