Beyond Threads podcast: How to get started with circular fashion

A global view on circular solutions

To start with, it’s important to choose the right approach. A key point discussed in this episode is how the popularity of different circular models varies by region, highlighting the need for an element of experimentation by brands to see what works best for them. In the US, for example, trade-in programmes that allow consumers to exchange used items for new ones are more popular. In Europe, meanwhile, ‘recommerce’ and upcycling pre-loved goods is the most successful model, while rental schemes are gaining traction in the UK. To stay competitive, brands are realising that they need to embrace a mix of these strategies, offering customers more flexible circular options.

Creating value through uniquely remade items

Our guests also explore how the ‘remake’ model is becoming a profitable strategy by adding individuality to refurbished items. By taking discontinued or unsellable products and transforming them into unique, one-of-a-kind items, brands are creating high-margin, premium pieces. What begins as a cost-saving measure can evolve into a lucrative circular model, as consumers are often willing to pay more for limited-edition pieces. It’s a great demonstration of how upcycling can also present opportunities for upselling.

Kick-start your brand’s circular fashion journey

Integrating circular solutions into your supply chain can seem daunting, and there is no one-size-fits-all approach. Different strategies will work for different brands. Ron’s advice? Start early and approach the process with an open and positive mindset. “Sustainability is a journey, not a destination – and it’s okay to fail at first,” says Ron. “The most important thing is to get started, begin experimenting with circularity and see what works best for your brand.”

Want to learn more about the role of circularity in the fashion industry? Check out the full episode now!

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Transcript

<sub>Erik Janssen Steenberg: Hello, and welcome to another Bleckmann Beyond Threads Podcast. I am your host, Erik Janssen Steenberg. And together we will be taking another deep dive into the subjects, trends and developments in fashion and lifestyle logistics. Today, we will be talking about circularity in logistics.

For that topic, we have invited two experts, knowing: Ron Thijssen. Bleckmann's very own CSR Director. Welcome.

Ron Thijsen: Good morning, Erik. Thanks for having us.

Erik Janssen Steenberg: Absolutely our treat. And of course, our Programme Manager for the Renewal Workshop: Hans Robben. Thank you for being here today.</sub>

<sub>Hans Robben: Thank you, Erik, for having me.

Erik Janssen Steenberg: Absolutely. So, guys, do me and our listeners a favour, please. Briefly introduce yourself, and your role within our company, of course.And perhaps you could also kick off the conversation in explaining. why circularity is so important and becoming even more important in fashion.

Ron Thijsen: Yes, to kick off: My name is Ron. I've been working for a little shorter than thirteen years at Bleckmann. Not always in sustainability. Started out in a commercial role. Later on, went to a more operational role. And the last five years now, leading the company in a more sustainable direction. Sustainable and logistics are things that are side by side. I mean, what is sustainability? It is to minimise your impact by looking out for your resources, your people, materials, et cetera. And logistics is the same. Being as efficient as possible in your processes.

Erik Janssen Steenberg: Right. So we need to touch on that social part as well. It's very important. Good that you mention that as well. Because when people talk about CSR everybody thinks it's all about the environment- Green, circularity.

Ron Thijsen: It's more than just the E of Environment, it's also the S of Social. We are a logistics company, we don't produce anything. Our people are our biggest asset, so we have to take care of our people. But not only the people, also the affected communities around us. And last, but not least: The G as in Governance. How do you lead your company, how do you run your company? What strategic choices do you make to develop a real strategic not strategic, a real sustainable strategy.

Hans Robben: I'm Hans, within Bleckmann Programme Manager for the Renewal Workshop. With the Renewal Workshop, we take care of all the operational aspects of renewing items and preparing them for their second life, their third life. And basically keeping them in continuous use. And you could say that circularity is a means to an end. Is a means for a company to become more sustainable. With circularity, we extend the lifecycle of fashion items. We reduce the impact, the need for virgin material in making these items. And also, we reduce the waste that is generated by this industry.

Erik Janssen Steenberg: Ron, looking at the developments over the last five years but also towards the future: What are the major issues you currently see, caused by the fashion industry?

Ron Thijsen: Well, the fashion industry has caused more issues than in just the last five years. We've been in business since 1862, being a part of the problem since that time. And we want to be more of a part of the solution in the next couple of years. But the major impact in the fashion industry is about pollution... it's about the usage of materials and the depletion of resources it's about carbon emissions, it's about working conditions. I can go on and on. I don't want to sound too negative. Luckily, things are changing. The industry is becoming more aware of the things they are responsible for. But not only from their own motivation. it is also legislation that is helping and guiding them to become a more circular and less impactful organisation.

Erik Janssen Steenberg: So, you paint a grim picture, so to speak. But the trend that you see is that we are moving towards a more knowledgeable...

Ron Thijsen: Absolutely. And it's not just the companies themselves it's the consumer that is driving the market. Which is even better.

Erik Janssen Steenberg: Even better.

Ron Thijsen: If the consumer decides to wear a green T-shirt as of tomorrow I'm sure our clients will produce nothing less than green T-shirts. So they have a voice in the whole transition towards circularity and being more sustainable.

Erik Janssen Steenberg: So a drive, or a push coming from the clientele of the brands is actually more compelling than legislation?

Ron Thijsen: Yes. Legislation is more like guiding, to make certain, how do you say measurable KPIs. If it comes to percentage of circularity, if it comes to KPIs on carbon emission your impact, et cetera. We are now on the verge of implementing the CSRD Corporate Social Responsibility Directive in which a company that is eligible for this CSRD legislation has to report at a maximum of 1140 KPIs. So it's going to be measurable.

Erik Janssen Steenberg: Yes. So there is a distinct need to become more aware, professional. on the side of the brands. Okay, that makes perfect sense.

And Hans, when we then look at circular fashion: How does that fit into the strategies like Ron just mentioned? How is that a vital component in sustainability and circularity?</sub>

<sub>Hans Robben: Well, circularity is a means for a company to become more sustainable. And they do this by keeping the items they produce in continuous use. So circularity extends the lifecycle of fashion items, firstly. And secondly, it's also about reducing the virgin materials that are used to create new items. And ultimately, reducing waste. So these three aspects play perfectly into the sustainability goals of the CSRD.

Erik Janssen Steenberg: And during your introduction you mentioned a third or even a fourth cycle, or lifecycle of products. That is something that is filling me with joy. Because I know, from a business perspective I always highlight value retention. But if it's actually being sold a third and a fourth time it quite clearly shows that the products that have been returned are still in pristine condition or by your operation brought to that pristine quality to be resold again.

Hans Robben: Exactly. That's what we see as well. We see that eighty per cent of garments that are at the moment seen as being waste still have a commercial value.

Erik Janssen Steenberg: Eighty per cent?

Hans Robben: Eight zero. So that means that through repair and cleaning steps you can bring these items back to a higher quality and to a commercial value as a pre-owned, pre-loved, restored item. That means that you can sell them again, give them a second life and maybe also a third life and a fourth life. That is definitely possible within the industry at the moment.

Erik Janssen Steenberg: And sorry to say, because it is, of course, your expertise but I think it is important that we underline that we have our own locations in country. So we're not sending it back to East Asia.

Hans Robben: Correct.

Erik Janssen Steenberg: We're doing it in-country. And are therefore further limiting carbon footprint, et cetera. And have revenue retention on the spot.

Hans Robben: Exactly. That's one of the big differences between the circular business model and let's say, the linear one, take-make-waste. With take-make-waste, the makers are oftentimes in the Far East whereas in circular business models you try to do the repair and cleaning as close to the consumer as possible. Exactly to limit the impact of that business model on the environment.

Erik Janssen Steenberg: And I know that there are a lot of brands listening or at least the people working in the sustainability teams, project teams. So making sure that they don't have to reinvent the wheel over and over: What are the different options that we,as Bleckmann, offer in circular fashion?

Hans Robben: For brands, there are different business models that they can choose from. The most known will be the resale and recommerce business models in which brands organise trade-in programmes. They ask you to send your weater back in return for a voucher to buy something new. Those items can be renewed and then also prepared for resale again. That's one business model that they can operate.

Another one is customer repair where you can send back your damaged sweater to the brand the brand repairs it and sends it back to you. That is basically a very old business model because previously, you would go to the local repair shop. And now, a layer of convenience is added where you can send it to the brand, and it is automatically sent back to you.

But there is also the business model of rental, for example, in which you don't own the garments you wear anymore. You just rent them for the time that you need them. That also means that each item is used multiple times almost automatically.

And there is one, maybe the easiest one to start with for a brand that is rescuing damaged returns. We know that the fashion industry suffers from a high return rate. Twenty, thirty per cent is no exception. And an important part of these returns is damaged. When you try on a new sweater and maybe it's a size too small you tear off a button, or a seam becomes loose, or whatever. These items can be repaired with a success rate of up to fifty per cent and can be sold as new again. Whereas at the moment these items are being stockpiled in the corner of a warehouse and then, after three years, they are discarded. That's a relatively easy step for a brand to start their journey to circularity.

Erik Janssen Steenberg: And I particularly like the options of rental and trade-in because there, the customer is also involved. So then the whole chain is working on the solution together. That's one thing. And when I was in the US I saw that trade-in was a real important service. And at the moment, I don't really see that too much in Europe. Do you expect that to change, do you expect that to grow in the near future?

Hans Robben: Yes, definitely. Trade-in and recommerce will definitely grow but it is true that customer repair is, at the moment the prevailing business model on the continent. In the UK it's mostly rental as well. And by this, you see that each consumer group has its own preferences. But that also means that as a brand you need to be active in several business models at the same time. You cannot bet everything on recommerce, or bet everything on rental. It's very important that you keep trying out different business models at the same time in the different regions.

Erik Janssen Steenberg: And when we look at our own existing operations in the several countries that we have them: Who are the main brands that are really advocating on behalf of the environment? Advocating sustainable practices? Who do we work with? Who do we learn with?

Hans Robben: I thinhttps://www.bleckmann.com/craf...k one of the examples towards a recommerce business model is COS. COS, part of the H&M group, is organising trade-in programmes where their customers can send worn items back. We renew these items and we prepare them for resale. And the resale is done in, at the moment, seventeen stores across Europe where COS has organised a separate corner for their restore collection. So that's a good example. Another example is Otrium, the online outlet platform... for which we are repairing the damaged returns. They also suffer from a high percentage of returns also a high percentage of damaged returns, So we can repair, back to a new-state, approximately fifty per cent of those returns that can be sold as new again the next day or the next week. Which, of course, for them has a huge impact. Not only on the environment, but also business-wise.

Erik Janssen Steenberg: And is it always a given that a repaired or a renewed product is sold under, let's say, a pre-loved or a resell label?

Hans Robben: No, not necessarily. Coming from a brand, they try to market it as a separate collection with a separate name, restore, and that works very well. But if you sell something on Vinted or eBay you don't say it's Erik-renewed, or Erik-pre-owned. You just sell it as a used item and there is not a lot of marketing involved. And that is still also a very important volume, let's say of renewed or second-hand items.

Erik Janssen Steenberg: I specifically ask that, because I have a sixteen-year-old daughter. And she scouts all the socials and pre-loved platforms looking for that one item that is repaired by, for example, Bleckmann and has a specific differentiator. And when she finds it, she has a one-off. And she is actually almost inclined to pay more than for a new product because it is a one-off.

Hans Robben: Because it is unique. And that's what you see in the remake business model where brands make a new collection, or a new item out of multiple defective items. They take the parts and components and they make one new item, and by doing that, they create a unique collection. And indeed, they can sell these items at a higher value than the normal collection.

Erik Janssen Steenberg: Even in circularity, there is also a high value to be made. Which is, at least to my modest opinion, a huge gamechanger. Previously, people who bought resell were looking for a bargain. And now, it's almost upselling. So the trends are changing. And are bettering, to my opinion.
Ron, what do you see as next steps for the brands in finding the right partner, in finding the right operations in finding the right way to adhere to new legislation?</sub>

<sub>Ron Thijsen: Well, as Hans also said: Companies now are looking for the best and most sustainable option or the best circular way of doing things. I think it is most important, and it sounds perhaps a bit strange because every company is set up for success. and sustainability is a journey, it's not a destination: You have to go along and figure things out. You are allowed to fail, but just make the start and try a different approach. Whether it comes to production or transport or packaging materials: Every single step of the production process or the supply chain you have to look at and see: Is there a way we can do things differently? If you look at, for example, outbound transport: Is it going to be electrical? Is it going to be HVO?

Is it going to be hydrogen fuel driven? Are we still using trucks, smaller vans? Are we going to operate drones to deliver? I mean, there are certain aspects of the whole process you really have to look at. But please, make the step. Just sitting there and thinking about things, how to change is not going to solve the problem. You have to start. And then again, you are allowed to fail. However small the step is it doesn't matter, as long as it's in the right direction.

Erik Janssen Steenberg: So it's better to simply start and maybe not be perfect than stay rigid and be part of the issue. Yes, it's an evolution.

Hans Robben: I completely agree with Ron. The industry is at a very uncertain era, let's say there are a lot of moving parts at the moment. So it's very difficult to know or to have a crystal ball and to say: For me, it will be recommerce. Or: customer repair is not the business model for me. You don't know, because your consumers don't know yet. So instead of waiting and then maybe being too late compared to other companies it's much more useful to try different options and to learn from your customers what works and what doesn't work. And then adapt and try again.

Ron Thijsen: That's why we also organise those round tables to invite our clients, the brands to sit around a table and discuss openly what they have tried. What is successful for them? What does work, what doesn't work? Why doesn't it work? And learn from each other. Be open, be transparent and help each other. You have to find the right partners. It comes in a supply chain, or even with your competitors. You can learn from previous mistakes or previous successes.

Erik Janssen Steenberg: So when listeners that are currently not part of our clientele, so to say when they want to be part of those round table discussions or when they simply want to pick your brain on what's next or how can we do this in a better or more sustainable way how can these companies reach out to you and have a discussion?

Ron Thijsen: Very simple, go to the website: www.bleckmann.com. Send an email. And we will send out an invitation. If they want to participate to share knowledge, to gain knowledge. It's all about partnership.

Erik Janssen Steenberg: Very good. I think our main message is that we want to lower the threshold as much as we can. And invite people to simply start.

Ron Thijsen: It's a problem. It's everybody's problem, so everybody has to contribute to the solution. Not only our clients.

Erik Janssen Steenberg: Very good.
Gentlemen, thank you very much. Unfortunately, we're already at the end of our episode. That's all the time we have. Thank you and talk to you soon. Ladies and gentlemen, thank you very much for watching today. An insightful episode, in which we all have learned a lot about circularity and fashion and lifestyle. Hopefully, it has incentivised you to become part of the solution and not of the problem. Please, make sure to subscribe to our podcast, follow our socials so that you will be part of our next episode.

Thank you very much for watching again and see you soon.</sub>