We’ve explored the mindset. Now let’s dive into the models.
Because circularity isn’t a single action — it’s a system-level approach. And in fashion, that system is being radically reimagined by a growing wave of innovators, small and large, who are daring to break away from the outdated linear model of “take, make, waste.”
At its core, circular fashion aims to keep materials and products in use for as long as possible, through design, reuse, repair, remanufacturing, and recycling. But it’s not about doing everything at once. It’s about choosing the right model that aligns with your values, resources, and customers — and doing it well.
1. Rental and Leasing
Market Value: Expected to reach $7.5B by 2026 (Allied Market Research)
In this model, clothing is not sold outright, but temporarily “rented” to customers for a fee. It’s popular for occasionwear, maternity wear, and trend-led fashion — areas where garments are worn only a few times before being discarded.
Pros:
- Extends product lifespan
- Reduces overconsumption and overproduction
- Creates recurring revenue
Challenges:
- High logistics and cleaning costs
- Harder to scale for small brands
- Not suitable for all garment types (e.g. basics or underwear)
Things to Consider:
Start local. Consider community-based rental hubs or limited capsule rentals before investing in tech-heavy platforms. Focus on quality, durability, and timeless design to make garments rental-worthy.
Example:
Rotaro (UK) provides stylish, climate-positive rentals with biodegradable packaging and carbon-neutral delivery. They focus on emerging designers, helping both planet and creativity thrive.
2. Resale and Recommerce
Growth Rate: Resale is growing 3x faster than the overall fashion market (ThredUp 2024)
This model gives pre-owned garments a second (or third) life. You can host resale yourself (peer-to-peer or brand-owned), or partner with platforms like Depop, Vinted, or Vestiaire Collective.
Pros:
- Reduces textile waste
- Builds community and customer loyalty
- Allows access to your brand at a lower price point
Challenges:
- Inventory management (especially if brand-owned)
- Need to maintain brand perception and quality standards
- Risk of undercutting your new product sales
Things to Consider:
You can start small with take-back initiatives or a resale “edit” on your site. Offering a discount on future purchases in exchange for old items can boost participation.
Example:
Eileen Fisher Renew repairs and resells gently worn pieces under the same brand name, preserving quality and circular values while generating over $3M in annual revenue.
3. Repair, Alteration, and Care Services
The average consumer throws away 11kg of textiles a year (Ellen MacArthur Foundation)
Repair is circularity at its most intimate — extending the life of a single piece through love and care. But it’s often overlooked.
Pros:
- Builds deep brand loyalty
- Encourages slower, more mindful consumption
- Low-cost to start (can even be offered as an in-person pop-up or digital tutorial)
Challenges:
- Not traditionally “scalable”
- Perceived as old-fashioned unless rebranded creatively
- May require skilled labour or specialist partners
Things to Consider:
Care instructions, repair kits, and how-to content can all be low-cost, high-impact offerings. Think about how your garment construction supports ease of repair (e.g. replaceable buttons, accessible seams, double stitching).
Example:
Nudie Jeans offers free repairs for life at repair shops globally and has repaired over 60,000 jeans annually. They also upcycle or resell items beyond repair.
4. Made-to-Order / On-Demand
Problem it Solves: Up to 30% of all clothing made globally is never sold (McKinsey, 2020)
Instead of creating stock in advance, made-to-order brands wait for customer purchases before producing — reducing waste and unsold inventory.
Pros:
- Eliminates overproduction
- Encourages slower fashion and intentional design
- Builds excitement and exclusivity
Challenges:
- Longer customer wait times
- May be hard to combine with traditional wholesale
- Requires tight production planning
Things to Consider:
Set clear expectations. Be transparent about lead times and use storytelling to turn the wait into part of the experience. Partner with small-scale or local makers to reduce production time.
Example:
MaisonCléo creates handmade, made-to-order pieces using deadstock fabrics, resulting in minimal waste and high demand (often selling out within hours).
5. Product-as-a-Service (PaaS)
Instead of selling garments, this model offers services like style subscriptions, wardrobe rotations, or care and maintenance — keeping ownership and responsibility with the brand.
Pros:
- Encourages long-term relationships
- Recurring revenue model
- High potential for data-driven insights
Challenges:
- Requires a mindset shift (from ownership to access)
- Operationally complex
- Higher upfront investment
Things to Consider:
Is there a lifestyle component you can build into your service — e.g. travel wardrobes, work-from-anywhere kits, fashion for life transitions (motherhood, career changes)?
Example:
Unown (Germany) offers fashion-as-a-service subscriptions and item-based rentals, focusing on convenience, digital user experience, and sustainable logistics.
6. Upcycling and Creative Reuse
Globally, we discard 92 million tonnes of textiles annually — most of it still perfectly usable (UNEP)
Upcycling is the creative reuse of existing garments or textiles to create new pieces. It’s ideal for limited editions, storytelling, and collaboration with artisans or communities.
Pros:
- Low material cost
- Unique, high-value pieces
- Reduces textile waste
Challenges:
- Labour-intensive
- Difficult to scale or replicate
- Inconsistent material availability
Things to Consider:
Make scarcity your superpower. Use upcycling to tell powerful brand stories and connect with local waste streams or craft techniques. Think slow fashion meets one-of-a-kind art.
Example:
Bethany Williams upcycles deadstock and waste materials, often in collaboration with social projects — winning the Queen Elizabeth II Award for British Design in 2019.
Designing Your Own Circular System
No circular model is perfect — and most brands today use a hybrid approach. A resale program here. A repair add-on there. A made-to-order capsule. The beauty of being a small or emerging brand is your ability to experiment without bureaucracy.
But remember: success depends not just on what you offer — but how well you communicate the value behind it.
People won’t always pay more for sustainability — but they will pay for quality, uniqueness, trust, and experience.
Reflection: Evaluate Your Circular Model Potential
- Which circular model(s) align most naturally with your brand’s strengths and vision?
- What untapped resources (e.g. returns, repairs, fabric waste, local networks) could become assets in a circular model?
- How will you educate your customers to participate in your circular journey?
- Are you designing for multiple life cycles — not just one purchase?
- What barriers (internal or external) might block your circular efforts — and how can you test workarounds?
Circular Fashion Model Comparison Chart
| Model | Best For | Pros | Challenges | Brand Examples |
| Rental & Leasing | Occasionwear, trend-led pieces | – Reduces overconsumption- Recurring revenue- Increases access | – Logistics-heavy- High cleaning/return costs | Rotaro (UK), Rent the Runway (US) |
| Resale & Recommerce | Brands with quality, durable pieces | – Cuts waste- Builds community- Lower barrier to entry | – Inventory management- Potential brand dilution | Eileen Fisher Renew, Patagonia Worn Wear |
| Repair & Care Services | Brands focused on longevity and quality | – Low setup cost- High loyalty- Adds brand value | – Labour intensive- Perceived as low-status without good branding | Nudie Jeans, TOAST Repair |
| Made-to-Order / On-Demand | New/emerging brands, slow fashion | – No deadstock- Customisation appeal- Better resource planning | – Longer lead times- Needs reliable production partners | MaisonCléo, Revel Studio |
| Product-as-a-Service | Tech-savvy or service-oriented brands | – Recurring revenue- Insight-rich- Builds strong user loyalty | – Complex ops- High initial investment | Unown (Germany), The Devout (UK) |
| Upcycling & Reuse | Creative brands or working with artisans | – Low material costs- Unique products- Great storytelling tool | – Scalability issues- Unpredictable inputs | Bethany Williams, Iro Iro (India) |
How to Use This Chart:
- Start where you are. What strengths do you already have (e.g. community, creativity, quality craftsmanship)?
- Pick one or two models to test. Trying to do everything at once can dilute your message and overwhelm your team.
Think long-term. Circularity is a journey — not a checklist. Your model can evolve as your business grows.
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