Business case

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Reduced use and withdrawal of water and rate of recycling and reuse of water

Save Water (SDG6)

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Producing textile and leather products and processing them into apparel and accessories

Fashion and Textiles

Marketplaces or services that enable the second hand sale of products

Second-hand sale, distribution

Selling high quality, long-lasting products

Sale of durable, long-lasting goods

VISION:
Raw materials are renewable, recyclable and safe, kept in continual circulation.

DETAIL:
Imagine a time when…the raw materials that are used to make things are sourced from existing products and regenerative agriculture, via carbon negative and climate neutral processes. Biodegradable raw materials are used for products with biodegradable end routes. Toxic chemicals have been washed out of the global materials pool, disposed of safely and replaced with beneficial alternatives. Virgin fibres made from fossil fuels have been banned, while secondary synthetic fibres, derived from what was already in the system, are kept in constant circulation as a resource. Circularity accounting methods, built on science-based metrics, help to manage a balanced system of resources, across all industries, and in line with the planet’s environmental limits.

Raw Materials and Planetary Boundaries

Impacts

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Industries

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The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

It is 2050.  Full systems change has taken place. This wouldn’t have been possible without the immediate action and radical steps taken from 2020 onwards. Many targets had to be identified in the early 2020s and achieved by 2030 to ensure that the 2050 goal happened in full. A sense of urgency, turbo stakeholder collaboration, supportive government regulation and clear, data driven targets enabled the mindsets and systems change needed to transform to a fully circular textiles ecosystem.

A circular economics model underpins what we have created. It reflects and supports a living organism made up of makers, users and restorers, interacting across vibrant and interconnected networks. Checks and balances, alongside transparency and accountability, ensure a healthy system. Financial, environmental, and social metrics have the purpose of serving communities and the planet. There is shared ownership of profit and loss – across all three metrics – throughout the value chain.

This is what we’ve achieved over the last 30 years:

WCTD Themes

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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 Vestiaire Collective announced a new funding round. The company has raised $216 million, or €178 million — it has reached a valuation above $1 billion, making it a unicorn. French fashion and luxury group Kering is leading the round with Tiger Global Management. Kering now owns 5% of Vestiaire Collective.
The startup operates an online marketplace where you can find pre-owned luxury and fashion items. And it’s a complicated industry, as you don’t want to buy a damaged item or a cheap knockoff. The company controls and authenticates some items before they reach the buyer. If you opt for direct shipping, you can get reimbursed if there’s something wrong with what you ordered.
In addition to the two lead investors, many of the company’s existing shareholders are investing once again, such as Vestiaire Collective’s own CEO Max Bittner, Bpifrance’s Large Venture fund, Condé Nast, Eurazeo through Eurazeo Growth and Idinvest Venture, Fidelity International, Korelya Capital, Luxury Tech Fund and Vitruvian Partner.
As you may have noticed, it’s been a bit harder to travel and buy fashion items in stores. Many fashion e-commerce companies have been thriving during the coronavirus outbreak, and Vestiaire Collective is one of them. Transaction volume doubled in 2020 compared to 2019. There are 140,000 new listings every week.
In addition to the current pandemic, many consumers are concerned about the impact of fashion on the environment. At the lower end of the spectrum, retailers and fast fashion brands encourage you to buy more and more stuff as trends change with each season. At the higher end of the spectrum, luxury brands don’t want to undermine the value of their goods by putting items on sale to clear room for a new collection.
That’s why Vestiaire Collective is particularly well-positioned to find new customers who are looking for quality goods that are going to last for a while and that haven’t been specifically produced for them. Similarly, people can sell their stuff instead of throwing it away.
While Vestiaire Collective originally started in Europe, the company is now growing rapidly in the U.S. and Asia. “As of January 2021, local sellers in those regions had increased their items sold by more than 250% year-over-year,” Tiger Global partner Griffin Schroeder said in the release.
With today’s funding round, the company plans to further develop partnerships with brands through buy-back circular solutions. The company also wants to encourage more people to sell something every time they buy something. Vestiaire Collective aims to be carbon neutral by 2026 and get the B Corp certification. The startup will also hire 155 people in the technology team. Early Stage is the premier “how-to” event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company building: Fundraising, recruiting, sales, legal, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included in each for audience questions and discussion. 


 Just six years ago,
Rebelle.com was founded in Hamburg. Today, 90 employees work for the online
platform that specialises in second-hand luxury fashion, offering more than
150.000 items sold around the world. Numerous cooperations with influencers
who sell their designer pieces through Rebelle boost reach and demand. What
is special about Rebelle.com is the innovative concept that the company
uses to connect online with offline: Founder Cécile Wickmann organises
shopping events with retail stores and brands where customers can buy new
items and sell their vintage treasures. This creates wardrobe space and
demonstrates a sustainable approach. We asked Cécile Wickmann how this
works exactly.  At the beginning, we often asked ourselves what to call what we do.
Second hand still had something outmoded at that time - just like how it
often used to smell in second hand stores back then. So in the beginning,
we had to fight enormous prejudice. We wanted to revolutionise the dusty
second hand market, not only because second hand is more sustainable than
new fashion, but also because we offered a trustworthy service that would
make customers lose their fear of used goods and fakes. Today, six years
later, that image has changed drastically. Not only stars and starlets are
vintage lovers today; second hand has become absolutely socially acceptable
as part of sustainable consumption. We already know a great deal about car
sharing in Germany today or healthy food, but with fashion, many people
often don't know yet which brands they can trust. Second hand is a great
opportunity to express sustainability and individuality at the same time.

 Sustainability is an important issue in fashion today. How did you
come up with the business idea to sell second hand fashion from designer
labels online? 
 Apart from sustainability, I was initially mainly interested in
offering a service. The idea arose out of a private situation: I owned many
fashion articles from previous jobs, which I couldn't take along when I
moved abroad for my studies and later, when I started working in Hamburg.
So I stored everything in my father’s basement until one day the call came
to empty out everything! I didn't have time to take care of it then, and so
I had the idea that it would be great if one had a super comfortable and
trusted opportunity to sell such things.   How has Rebelle developed economically? 
 We have grown strongly in recent years. Today, we ship all over the
world. Approximately 70 percent of our products are actually sold across
borders, i.e. seller and buyer are located in different countries. Our
online shop is available in five languages by now.   How does Rebelle.com work exactly? 
 There are two options: First, the do-it-yourself service, where
customers can take pictures and describe the articles themselves and use
our platform to sell them. These articles are sent to us after the sale, we
check condition and authenticity and send the product to the buyer. The
other option - which is already in place - is our so called concierge
service. Here, a customer sends us the product and we take over the entire
sales process: checking the condition, the product description, taking
pictures, pricing, storage and shipping. If the product is sold, we receive
a commission but we are never the owner of the goods. We only assure a
smooth transaction. In doing so, the buyer not only has a great shopping
experience but also the certainty that he or she is buying real products of
very good quality. And the seller is happy with a great service.   These cooperations are very well received because they provide a
win-win situation. Retailers and brands can contribute to extending the
life cycle of their products and reduce their ecological footprint at the
same time. And customers get the opportunity to make money with their
vintage treasures and to invest the money in new pieces. We have conducted
shopping events with many multi brand stores in Germany, the Netherlands,
Italy and Great Britain - for example with Unger in Hamburg. But we also
cooperate with brands, for example Dorothee Schumacher or Madeleine
Thompson, and develop our own products.   How do these cooperations work? 
 Customers are invited to bring the designer pieces they want to sell to
classic shop events, regardless of the brand. We check the articles and
keep them so that we can prepare them for sale. The seller often also
receives goodies or a voucher from the participating store. After the sale
on rebelle.com, we transfer the proceeds to the seller. Sometimes there are
also special sales cooperations, for example at Uzwei in Hamburg, where we
sold vintage Hermès and Chanel bags that the store had selected.   How does the ability to connect online and offline help you? 
It helps us a lot. We use this opportunity particularly to become well
known in new markets. The advantage: The retailers are already in touch
with the local target group and present us in a much more personal and
trustworthy way. Through the launch of a website alone it would be much
more difficult to convince customers that we sell only originals and are
absolutely trustworthy. It takes away the digital inhibition, which
especially the older generation sometimes still has.   Are there differences from country to country? 
 It was exciting for us to see that there are only small regional
differences when it comes to the top 10 brands in the luxury segment! In
most countries, brands like Louis Vuitton, Gucci, Chanel, Hermès etc. top
the list. In Germany, for example, Gucci ranks fourth and first in Italy.
The luxury market is very international. Back when we started with
Rebelle.de, we thought the differences would be much bigger. 
 It is often said that the quality of clothing has decreased to such an
extent that extending the product’s life cycle would not be possible at
all. Is that true? 
 I can't confirm that. This is where the fashion industry is divided
into two big halves: luxury fashion and fast fashion. With luxury fashion,
the quality does definitely not deteriorate, no brand could get away with
that.   There are more and more companies that jump on the second hand band
wagon - from Momox to H&M. What is your take on that? 
 This development makes us very happy and affirms what we do. Momox has
its target group in the medium price segment, and from brands like H&M, one
would never have expected them to collect second hand clothes! A rethinking
is taking place and barriers disappear - not only on the consumer side but
also on the company side. They have to act because consumers are
increasingly expecting this. The new generation in particular attaches
importance to a sustainable concept of consumption. 
 What are your plans for the future? 
 We started in Germany in 2013 and focused our business model on the
German-speaking market (Germany, Austria and Switzerland), where we are
strongest today. This is closely followed by Italy, the UK, the Netherlands
and Belgium. Many of these markets are still quite young, but we can see
that the concept is very well received. In addition, customers from 29
countries sell on rebelle.com and we ship products to over 40 countries.
Our goal is to become even stronger there and to further increase our
profile. Also an expansion in Europe and further East is one goal.   Are you thinking about opening your own second hand shops offline?

 No, that's not on the agenda right now. In 2017, we had a very
successful pop-up boutique in Hamburg for some months but our own shops
would be a big challenge, in particular with regard to their real-time
connection to the online store. Now we would like to focus on even more
retail partnerships. 
This article was originally published on FashionUnited DE. Edited and
translated by Simone Preuss. 
 Photos: Rebelle 

Germany

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REBELLE

<p>REBELLE is an online marketplace for high-quality designer fashion in the second hand sector.</p>