CIRCULAR FASHION ECONOMY 2.0: RETHINKING OWNERSHIP IN LUXURY

In the new age of eco-conscious fashion, more and more consumers are straying away from fast fashion after seeing how it affects our world from an environmental and humanitarian standpoint. Luckily, people are finding new ways to be more courteous. Whether it’s handing clothing down to family members, donating it to your favorite thrift store, or selling it on Depop, these steps have kept a substantial amount of clothing out of our landfills. However, when this commitment to sustainability gets taken a step further, it becomes circular fashion. Mostly significant in luxury and vintage fashion, this rethinking of ownership aligns with the evolving consumer values. Brands and platforms such as Coach’s (Re)Loved program, The RealReal, and Vestiaire Collective are pioneers in promoting circularity in luxury. This is a modern approach, where vintage is almost upheld with the same value, if not more than a brand-new item.

While fast fashion continues to be a huge market for many and still holds its weight economically, circular fashion also has its own economic benefits. The most significant of these is extending the lifecycle of luxury goods, including clothing, leather goods, jewelry, and other accessories. Its success can be attributed to consumers’ constant state of nostalgia in fashion, which will almost always go back to ‘90s style icons. The sheer popularity of Takashi Murakami’s Louis Vuitton initial collaboration in the 2000s could have been what motivated the brand to collab with the artist again. In tandem, this would reduce waste and bring back jobs in reselling, repairing, and refurbishing these products. Companies such as Rue La La, The RealReal, and eBay have created a thriving secondary market. IRL places to find secondhand designer will be consignment shops and thrift stores if you get lucky. Just try to visit stores near affluent areas. These places and platforms drive affordability, allowing more people to access luxury goods. This newfound accessibility could be because the product was initially too expensive, because the consumer prefers something with more character, or simply because the consumer wants something less modern. Vestiaire Collective offers high-end brands at lower prices, because what girl should be denied Prada? Circular fashion disrupts overconsumption, which is a win-win all around. Global market implications include increased competition among luxury brands, which causes them to embrace circularity. Coach is probably the brand that has had the biggest rebrand in the past five years. Once known as a mom-brand, it has found a nostalgic heartstring to pull on Gen-Z. This started with finding vintage Coach purses in thrifts, contributing to brand loyalty. As time passed and they began selling more items for a younger audience, their profitability soared. To keep consumers coming back, their (Re)Loved program appeals to their initial audience while also saving the planet.

The advantages of circular fashion are evident: sustainability within the fashion realm, reduced waste going to landfills, affordability caters to a new market, and accessibility to reach a larger audience. However, it comes with potential drawbacks. When selling luxury secondhand, there’s always a level of uncertainty about whether the product is real or fake. Authenticating takes a lot of time and would sometimes not work out in the consumer's favor when brought to one. Also, this circularity diminishes the idea of exclusivity, which can drive demand for counterfeit products. This brings concerns over the quality of these items in resale markets. Fortunately, sites such as eBay and Vestiaire Collective have authenticators working to combat counterfeits with their verification services to ensure customer satisfaction. Diving into exclusivity, luxury brands pride themselves on their most exclusive items, think Hermes’ Birkin or Kelly, and now Chanel’s Double Flap. Putting a cap on how much consumers can buy of a certain product raises demand, according to basic economics. Because of this, not all brands may be in favor of circular fashion due to a wider range of accessibility, making the item more widely circulated. While this aligns with sustainability goals and modern consumer values, it creates a tension for brands who strive to maintain their ‘elite’ image.

Considering our time on Earth is so short, what does that say about the products we wear? With proper care and caution, clothes and other accessories can outlive their initial owners. A bit morbid, but just some food for thought next time you find anything vintage at the thrift store. This feeds into the idea that we don’t have to mass-produce a cherry baby tee for everyone and their mother to own. Through more conscious shopping choices, there is enough. The concept of multiple ownership shouldn’t be something people shy away from, especially when it comes to luxury. This new frontier aligns with Gen-Z and Millennial values of access over ownership, contributing to both affordability and environmental goals. While Shein and TikTok Shop still have a death grip on so many, these contributions to circular fashion do have a positive impact that has the potential to overpower overconsumption.