Circular business trends cutting costs for the fashion industry
Australia is the second highest consumer of textiles in the world, with each of us buying an average of 14.8 kilograms, or 56 items, of new clothing per year. The average Australian also dumps 10 kilograms of clothing into landfill each year (PDF, 5MB).
But the fashion industry must also manage a very costly waste stream before clothes even hit the shelves. Unused pre-consumer textiles – fabric left over from the manufacturing process – weighs in at up to 10 million kilograms in Victoria per year and is worth $500 million.
Circular Sourcing offers a solution. It’s a digital platform for buying and selling Australian surplus textiles and designer ‘deadstock’ fabrics, created with funding from Sustainability Victoria’s Circular Economy Business Innovation Centre on behalf of the Victorian Government. It’s part of Sustainability Victoria’s investment in Victorian businesses to think smarter, innovate and ‘go circular’ – transforming how they use resources by designing out or reducing waste.
Circular Sourcing founder Courtney Holm with excess fabrics to be resold. Image by Lily Clatworthy. The platform increases textile circulation, decreases reliance on new materials, and makes participating in the circular economy easier by connecting businesses with the shared goal of reducing waste. It aims to divert 10 tonnes of textiles from landfill a year, reducing greenhouse gas emissions by 285 tonnes.
Circular models like these help future-proof our economy as we work towards our targets of reducing waste by 15% per capita and reaching net zero emissions by 2045.
This is great news for brands who know that 'business as usual' is going out of style. Consumers expect fashion brands to be more sustainable. And it’s not just good for the planet, but good for the bottom line.
Kerry Pietrobon from Melbourne-based fashion label Harlow has seen the economic benefits of sustainable business first-hand.
'It's very little work on our part. All we have to do is make sure we know how much fabric we’ve got. The rest is done from their end. We can adjust prices, adjust fabrics, and then we send it off.'
She estimates she has made a 400% increase in profit over selling the materials herself. 'I've been pleasantly surprised by the initial response we've received, selling entire rolls of fabric. So, we sent a whole bunch more stuff to Circular Sourcing, because we could really do with cash flow,' she says.
'It's absolutely got a customer. I think that shows the interest consumers have in purchasing remnant fabrics and putting them to good use and making them a valuable resource … with Circular Sourcing we get what the fabric is worth, rather than just getting what we can.'
Independent fashion label Jillian Boustred has tried to sell its own remnant fabrics, but most resellers only take minimum quantities. Waste and excess product has a monetary cost for business, and the fashion design process is inherently wasteful. Circular Sourcing allows small businesses to turn an expense into a new revenue stream.
'It’s definitely made a difference. It’s made our design iteration process less costly because via Circular Sourcing we recoup a lot of those costs,' says Gemma Geyer, a production manager for independent fashion label Jillian Boustred. The label has never landfilled remnant fabrics and has either had to store or donate them if they can’t find a buyer.
'Eventually there would have been a cost to warehouse that excess fabric,' she says. 'Circular Sourcing has helped ensure that the things that we design aren't as wasteful as they have potentially been in the past – and that’s a huge thing for a small business.'
Cargo Crew is a Melbourne-based uniform business that supplies to industries such as hospitality and retail. 'Circular Sourcing is a really good, responsible way for us to move excess fabric we buy for the sampling phase and make it a resource for us,' says its founder, Felicity Rodgers.
'When we invest in test rolls, that costs us money,' says Felicity. 'From a commercial perspective, Circular Sourcing gives us the opportunity to recoup some of that investment cost.'
Cargo Crew understands that sustainability is what their clients want. 'We're hearing more demand for sustainable initiatives and solutions, whether that's in the fabrics that we're producing, the packaging, or end-of-life-recycling,' says Felicity. 'So, using the platform is part of making changes across the board to really help support a future way of working.'
Local outfitter Cargo Crew’s customers tell it sustainability is important to them and their own customers. Gemma at Jillan Boustred agrees. For the brand it’s not just about being a responsible, sustainable business – their customers believe in transparency. 'A brand with values and a moral compass – I think that is important to our customers,' she says.
It taps into something else she’s noticed about the industry in general: business as usual won’t sustain fashion brands into the future. 'People are coming on board for this kind of transparent collaboration. They’re realising that if we work together, we’ll all succeed rather than competing with each other. I have felt that shift,' says Gemma.
'Realistically, anyone producing something new is not a sustainable business.'
'How can we do it better? How can we ensure that product has a circular opportunity? I think it’s about really strong collaboration,' adds Felicity.
'To survive you have to be thinking constantly outside the box. How willing are you to educate yourself, educate your staff, and to think more broadly? That's how you future-proof your business.'
Doing business differently
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