The relentless cycle of trends driven by fast fashion leads to massive amounts of clothing being discarded. Annually, millions of tons of textiles are dumped in landfills, where they may take hundreds of years to break down. Synthetic materials, like polyester—which is made from fossil fuels—pose a significant environmental threat, releasing microplastics into the ecosystem with each wash.
That’s why we’ve looked at the question: how can brands make money without selling more clothes – and come up with a list of 14 fantastic suggestions and alternatives.
In the fashion industry, several alternative business models are gaining traction due to their sustainability and circularity benefits. These models aim to reduce waste, extend product lifecycles, and promote more responsible consumption. Here’s a comprehensive list:
1. Clothing Rental Services
Description: Fashion brands can offer rental services where customers can rent garments for a specific period instead of purchasing them. This model is particularly effective for special occasions, high-end fashion, or rapidly changing trends.
Examples:
- Rent the Runway: A pioneer in clothing rental, offering designer clothes and accessories for rent. They have expanded to include subscription models for everyday wear.
- H&M: Launched a rental service in select markets, allowing customers to rent selected items from their Conscious Exclusive collection.
Sustainability Impact:
- Waste Reduction: Renting reduces the need for new production by allowing multiple customers to use the same item, decreasing waste and resource consumption.
- Extended Product Lifecycle: Garments are used more frequently before being discarded, extending their useful life and reducing the overall environmental impact.
Stats:
- The global online clothing rental market was valued at $1.12 billion in 2020 and is expected to grow at a CAGR of 10.6% from 2021 to 2028 (Grand View Research).
2. Subscription Services
Description: Brands can offer subscription services where customers pay a recurring fee to receive a curated selection of clothing or accessories regularly. These can include wardrobe basics, seasonal collections, or even second-hand clothing.
Examples:
- Stitch Fix: Provides personalized styling services through a subscription model, where customers receive curated boxes of clothing and accessories.
- Le Tote: Offers a subscription-based clothing rental service, where customers receive a rotating wardrobe each month.
Sustainability Impact:
- Reduced Overproduction: Subscription services allow brands to produce in line with demand, reducing overproduction and waste.
- Encourages Sustainable Consumption: Regularly changing items can reduce the desire for fast fashion by satisfying the need for variety without increasing waste.
Stats:
- The subscription e-commerce market is expected to grow to $478 billion by 2025, up from $15 billion in 2019 (Unilever and Royal Mail).
3. Resale and Second-Hand Marketplaces
Description: Brands can establish their own resale platforms for second-hand, refurbished, or vintage items. This model capitalizes on the growing trend of circular fashion and extends the life of clothing.
Examples:
- Patagonia Worn Wear: A platform where customers can buy used Patagonia gear and trade in their old items for store credit.
- Levi’s SecondHand: Allows customers to buy and sell pre-owned Levi’s jeans, promoting circularity within their product lifecycle.
Sustainability Impact:
- Promotes Circularity: By reselling products, brands help keep garments in circulation longer, reducing waste and the need for new production.
- Decreases Environmental Impact: Extending the life of garments through resale reduces the carbon footprint associated with new manufacturing.
Stats:
- The second-hand fashion market is projected to grow to $77 billion by 2025, outpacing the growth of the fast fashion market (ThredUp 2021 Resale Report).
4. Upcycling and Customization Services
Description: Brands can offer upcycling and customization services where they transform old or unsold stock into new, unique products. Customers can also bring in their garments to be customized or refreshed.
Examples:
- Eileen Fisher Renew: Takes back old Eileen Fisher garments to be upcycled into new designs or resold in their Renew shops.
- RÆBURN: Known for upcycling military surplus and other textiles into new, fashion-forward pieces.
Sustainability Impact:
- Reduces Waste: Upcycling unsold stock or old garments reduces the need for disposal and decreases overall textile waste.
- Promotes Sustainable Practices: Encourages consumers to value and keep their clothing longer by offering customization that refreshes and personalizes their wardrobe.
Stats:
- Upcycling could reduce the fashion industry’s annual waste by 92 million tons (Ellen MacArthur Foundation).
5. Repair and Maintenance Services
Description: Fashion brands can offer repair services, where customers can bring in damaged garments for repair. This service can also include maintenance, such as cleaning, restyling, and alterations.
Examples:
- Patagonia’s Worn Wear Repair Tour: Provides on-the-spot repairs for Patagonia products, helping to extend the life of the garments.
- Nudie Jeans Repair Shops: Offers free repairs for life on all Nudie Jeans, promoting the idea of buying quality items that last.
Sustainability Impact:
- Extends Product Life: Repair services extend the life of garments, reducing the need for new products and minimizing waste.
- Encourages Sustainable Behavior: Educates consumers on the value of maintaining their clothing, fostering a culture of sustainability.
Stats:
- Extending the life of a garment by just nine months can reduce its carbon, water, and waste footprint by 20-30% (WRAP).
6. Buy-back and Trade-In Programs
Description: Buy-back and trade-in programs allow customers to return their used garments to the brand in exchange for store credit, discounts, or new items. These programs encourage customers to return items they no longer need, which can then be refurbished, resold, or recycled.
How It Works:
- Buy-Back: Customers sell their used clothing back to the brand for a percentage of the original purchase price in store credit.
- Trade-In: Customers exchange old garments for a discount on new purchases, incentivizing them to return used items rather than discard them.
Examples:
- Patagonia Worn Wear: Patagonia buys back used clothing and gear, refurbishes them, and resells them through the Worn Wear program.
- Eileen Fisher Renew: Offers customers store credit for returning used Eileen Fisher garments, which are then resold or upcycled.
Sustainability Impact:
- Reduces Waste: By keeping garments in circulation longer, these programs reduce the volume of clothing that ends up in landfills.
- Encourages Circular Economy: Promotes the reuse and recycling of materials, contributing to a more circular fashion industry.
Stats:
- According to the Ellen MacArthur Foundation, extending the active life of clothing by nine months reduces carbon, water, and waste footprints by 20-30%.
7. Recycling and Material Recovery
Description: Recycling and material recovery involve collecting and processing old garments and textiles to reclaim fibers, fabrics, and other materials that can be used to create new products. This model supports circularity by turning waste into valuable resources.
How It Works:
- Recycling: Old garments are collected, sorted, and broken down into raw materials that can be reused in new products.
- Material Recovery: Extracting specific materials (e.g., cotton, polyester) from old clothing to create new fabrics or products.
Examples:
- H&M’s Garment Collection Program: H&M collects old clothing from any brand, which is then recycled into new textiles or repurposed into other products.
- Adidas x Parley for the Oceans: Adidas recovers plastic waste from oceans and recycles it into materials used for their Parley line of shoes and apparel.
Sustainability Impact:
- Reduces Resource Extraction: Recycling and recovering materials reduce the need for virgin resources, lowering environmental impact.
- Decreases Landfill Waste: Diverts old garments from landfills by finding new uses for the materials.
Stats:
- Recycling one ton of textiles can save up to 20 tons of CO2 emissions (Textile Exchange).
8. Customization and Made-to-Order
Description: Customization and made-to-order models allow customers to personalize their garments or order items tailored specifically to their preferences. This approach reduces waste by ensuring that products are only made when there is a demand.
How It Works:
- Customization: Customers select specific features like color, fabric, fit, and details, creating a personalized item that is unique to them.
- Made-to-Order: Garments are produced only after an order is placed, eliminating the need for excess inventory and reducing the risk of unsold stock.
Examples:
- Nike By You: Nike’s customization service allows customers to design their own shoes, which are then made-to-order.
- Indochino: A made-to-measure suit brand where customers can customize every detail of their suits, which are produced only after the order is confirmed.
Sustainability Impact:
- Minimizes Overproduction: Made-to-order production aligns supply with demand, reducing the environmental impact associated with excess inventory.
- Reduces Returns: Customization ensures that customers receive exactly what they want, which can reduce return rates and associated waste.
Stats:
- The made-to-order model can reduce inventory-related waste by up to 30%, according to a report by McKinsey & Company.
9. Subscription and Swap Services
Description: Subscription and swap services offer customers access to a rotating wardrobe or the ability to swap items instead of purchasing new ones. These models encourage sustainable consumption by reducing the need for constant new purchases.
How It Works:
- Subscription Services: Customers pay a recurring fee to receive a curated selection of clothing that they can wear and return or swap out regularly.
- Swap Services: Customers can exchange their old garments for new-to-them items, often through a point system or direct swaps within a community.
Examples:
- Rent the Runway Unlimited: Offers a subscription service where customers can rent and swap out clothing as often as they like, with the option to purchase items they love.
- Swop Shop (UK): A clothing swap service where members can trade their clothes for points, which can be used to acquire new items.
Sustainability Impact:
- Extends Garment Life: Subscription and swap services keep clothes in circulation longer, reducing the overall demand for new products.
- Promotes Circularity: These models emphasize the reuse and sharing of garments, aligning with circular economy principles.
Stats:
- The global online clothing rental market is expected to reach $1.96 billion by 2023, growing at a CAGR of 9.4% (Allied Market Research).
10. Educational Workshops and Experiences
Description: Brands can host educational workshops and experiences focused on fashion sustainability, DIY repairs, upcycling, and sustainable fashion practices. These can be in-person or virtual events.
Examples:
- LVMH’s Nona Source: Offers workshops that educate designers and students on how to use deadstock fabrics creatively.
- Fashion Revolution: Organizes events and workshops that educate participants about sustainable fashion practices and the impact of fast fashion.
Sustainability Impact:
- Raises Awareness: Workshops and experiences help spread knowledge about sustainable practices, empowering consumers and industry professionals to make more conscious choices.
- Fosters Community Engagement: Engages the community in sustainability efforts, creating a network of like-minded individuals and potential brand advocates.
Stats:
- 73% of consumers say they would change their consumption habits to reduce their environmental impact (Nielsen).
11. Digital Fashion and Virtual Goods
Description: Brands can create and sell digital fashion items or virtual goods for use in virtual worlds, gaming, or social media. These items are purely digital and do not have a physical counterpart, reducing material consumption.
Examples:
- The Fabricant: A digital fashion house that creates virtual-only clothing for use in the digital world.
- Gucci: Has ventured into digital fashion by selling virtual sneakers and other digital accessories on platforms like Roblox and VRChat.
Sustainability Impact:
- Eliminates Physical Waste: Digital fashion requires no physical materials, reducing waste and environmental impact associated with production and transportation.
- Innovates Consumption: Offers consumers a new way to express themselves through fashion without contributing to physical overconsumption.
Stats:
- The digital fashion market is expected to grow significantly, with some estimates valuing it at $50 billion by 2030 (Digi-Capital).
12. Content Creation and Monetization
Description: Fashion brands can create and monetize content related to fashion, lifestyle, and sustainability. This can include blogs, podcasts, video content, and branded media, with revenue generated through sponsorships, advertising, or subscription models.
Examples:
- Goop: Gwyneth Paltrow’s brand that began as a content-driven platform before expanding into product lines. It generates revenue through sponsored content, affiliate marketing, and product sales.
- Vogue Business: While primarily a content platform, Vogue Business generates revenue through subscriptions, sponsored content, and advertising.
Sustainability Impact:
- Educates Consumers: Content focused on sustainability can inform and influence consumer behavior, encouraging more responsible purchasing decisions.
- Reduces Physical Consumption: By shifting focus to digital content, brands can reduce the emphasis on physical products and promote experiences and knowledge instead.
Stats:
- The global digital content creation market was valued at $11.12 billion in 2019 and is expected to reach $38.2 billion by 2030 (Grand View Research).
13. Corporate Partnerships and Collaborations
Description: Fashion brands can form partnerships with other companies, NGOs, or government entities to work on sustainability initiatives, research, or special projects. Revenue can come from joint ventures, sponsorships, or funding for collaborative projects.
Examples:
- Nike and the Circular Economy Leadership Coalition: Nike collaborates with other businesses and organizations to advance circular economy principles in fashion.
- Adidas x Parley for the Oceans: Adidas collaborates with Parley to create products made from upcycled marine plastic waste.
Sustainability Impact:
- Accelerates Innovation: Partnerships can accelerate the development of sustainable technologies and practices, benefiting the wider industry.
- Shared Resources: Collaborations allow for the sharing of resources and expertise, leading to more efficient and sustainable outcomes.
Stats:
- Companies with strong sustainability partnerships can see up to a 25% increase in brand trust and loyalty (Edelman Trust Barometer).
14. Sustainability Consulting and Certifications
Description: Fashion brands with a strong sustainability track record can offer consulting services to other companies looking to improve their environmental impact. They can also develop certification programs or partner with existing ones to provide third-party verification of sustainable practices.
Examples:
- Stella McCartney: Offers consultancy services to other brands on how to implement sustainable practices within their operations.
- Eileen Fisher: Provides workshops and consulting on circular design and sustainable fashion practices.
Sustainability Impact:
- Promotes Industry-Wide Change: By helping other companies adopt sustainable practices, consulting services can lead to broader industry improvements.
- Encourages Best Practices: Certifications and consulting help standardize best practices across the industry, leading to more consistent and measurable sustainability efforts.
Stats:
- Sustainability consulting is expected to grow as companies increasingly seek to improve their environmental impact, with the global market for ESG (Environmental, Social, and Governance) consulting projected to reach $8.1 billion by 2025 (Market Research Future).
By adopting these business models, fashion brands can generate revenue while reducing their environmental impact and supporting circularity. These models not only provide alternative income streams but also align with the growing consumer demand for sustainable and ethical fashion practices. Brands that innovate beyond traditional product sales can build stronger, more resilient businesses that contribute positively to both the environment and society.
All these additional models are integrated inside of Portia as suggestions, to support businesses in running sustainable practices, reducing overproduction, creating quality durable products, and empowering the end consumer to make conscious shopping choices.
