Article / Report

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

Fashion and Textiles

Working together with industry peers to engage in business activities or exploratory projects that advance the circular economy

Joint industry ventures, projects, pilots

Solutions at all stages of the textiles value chain.

Zero Waste Textiles

Other

Industries

small_coast-wind-turbine-sea-sky.jpg

thumbnail_coast-wind-turbine-sea-sky.jpg

coast-wind-turbine-sea-sky.jpg

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

large_photo-1515534238346-fb9ae3e399d0.jpg

medium_photo-1515534238346-fb9ae3e399d0.jpg

small_photo-1515534238346-fb9ae3e399d0.jpg

thumbnail_photo-1515534238346-fb9ae3e399d0.jpg

photo-1515534238346-fb9ae3e399d0.jpg

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

Urban Opportunities

![Screen Shot 2024-10-21 at 16.53.12.png](https://goldilocks-images.s3.eu-west-1.amazonaws.com/Screen_Shot_2024_10_21_at_16_53_12_12858da6aa.png)

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

medium_Screen Shot 2024-10-21 at 16.53.12.png

small_Screen Shot 2024-10-21 at 16.53.12.png

thumbnail_Screen Shot 2024-10-21 at 16.53.12.png

Screen Shot 2024-10-21 at 16.53.12.png

 If there’s one thing that the fashion industry knows very well, it’s change. Trends come and go, styles are replaced every season, and technological advancements are now being integrated. But, now more than ever, the fashion industry is facing what’s probably the biggest evolution that it has had because of the pandemic. The answer to most of fashion’s current challenges seems to be digital: Internet-based fashion shows, ramped-up online shopping experiences, and digital wallets. But, first, let’s look at what makes the fashion industry the behemoth industry that it is today: eCommerce and the General Fashion Industry  1. By 2024, the revenue of the fashion industry is projected to reach $953 billion with a compound annual growth rate (CAGR) of 9.4%. (Statista) It’s expected to have a revenue of $665 billion by the end of 2020. 2. In terms of revenue, Apparel remains to be the top segment in the fashion industry. (Statista) It has a projected market volume of $445 billion by the end of the year and an expected number of 3.5 billion consumers by 2024. 3. Online sales are expected to account for 24% of the total market revenue by 2024. (Statista) While offline channels still generate more sales, a positive growth is building in digital channels. 4. China is predicted to generate the biggest market volume ($284 billion) by the end of 2020. (Statista) It’s followed by the United States ($127 billion) and the United Kingdom ($33 billion). 5. In 2019, Asia-Pacific dominated the market, in terms of value, with a share of 38.8. (Fibre2Fashion) The market share of the region is expected to increase to 44.2% by 2025. Global Fashion Industry and COVID-19  6. The global fashion industry is expected to have a decline of 27%-30% by the end of the year, due to COVID-19. (Business of Fashion) However, a growth of 2%-4% is possible in 2021. 7. Global luxury fashion brands can lose as much as $12 billion in 2020. (Vogue Business) These brands rely heavily on consumers from Asia, where the pandemic has hit the longest. 8. In the US, retail sales in fashion had a -50.5% change from February 2020 to March 2020. (U.S. Department of Commerce) This affects the overall decline in the country’s retail sales. The last time that this drastic one-month drop happened was in Fall 2008. 9. In the US, 75% fashion companies can face debt challenges. (McKinsey) It all depends on how much longer stores will remain closed or partially operational. 10. In Europe and the US, at least 65% say that they have cut back overall spending on apparel, since the pandemic began. (McKinsey) Additionally, 56% of the consumers said that they purchase apparel only because of special promotions. Consumer Spending  11. A survey conducted in August 2020 said that 52% of US consumers spent less for online shopping of fashion items in that month. (Adobe) Similarly, the decline in revenue of fashion retailers contributes to the overall decline in eCommerce. 12. For millennials, Gen Xers, and Baby Boomers, not being able to try on a product is the biggest factor that stops them from purchasing. (BigCommerce) For Gen Zers, the biggest inconvenience is the wait time after ordering. The second biggest inconvenience across all audience segments is the shipping fee.  13. In a survey conducted in April 2020, 70% are more likely to still purchase and stick with a brand that they know and are loyal to. (McKinsey) This is mostly composed of Gen Xers. However, millennials and Gen Zers are more likely to experiment with smaller brands. 14. Consumers who didn’t shop online before are more open now to making purchases through online channels. (McKinsey) The younger segments of the consumers are leading this development. Imports and Exports  15. In 2019, China was the leading exporter of clothing, accounting for 30.8%. (Statista) It’s followed by Europe, Bangladesh, and Vietnam. 16. Upon comparing July 2019 and July 2020, the value of US apparel imports was down by 32%. (OTEXA) However, this decline is better than the previous months: 60% in May 2020 (vs May 2019) and 42.8% in June 2020 (vs June 2019). 17. Asia is the biggest source of apparel in the US. (OTEXA) Aside from China, the market is shared by Vietnam, ASEAN countries, Bangladesh, and Cambodia. 18. The value of apparel exports had a total of $492 billion in 2019, which was a decline of 0.4% from 2018. (WTO) The slowdown of the economy, weaker demand, and economic tensions among the biggest players contributed to this decline. Clothing and Apparel  19. In 2020, the global revenue of Apparel has reached $1.78 trillion. (Statista) It’s expected to grow at least 5.3% annually through 2025. 20. Womenswear is the largest segment around the globe. (Statistics) It has a market volume of $910 billion. 21. The market size of menswear is expected to have a compound annual growth rate (CAGR) of 6.3% through 2025, estimated at $741 billion. (Grand View Research) This growth can be attributed to millennial men becoming more fashion-conscious and designers offering more options for the target audience. 22. Clothing retailers in the US reported a decline of 89.3%, upon comparing sales between April 2020 and April 2019. (eMarketer) This was an even further dip than March 2020, where a decline of 51.3% was reported (versus March 2019). Footwear  23. The global revenue of footwear amounts to $432 billion in 2020. (Statista) The United States has generated a revenue of $86 billion. 24. By 2027, the footwear market is expected to reach $530.3 billion. (Allied Market Research) Its compound annual growth rate (CAGR) is estimated at 5.5%. 25. Athletic footwear is seeing a promising growth with an expected compound annual growth rate (CAGR) of 6.3% through 2027. (Allied Market Research) This can be attributed to increased health awareness, which has led to more people doing workouts and fitness-related activities. 26. Nike is the leader in the top footwear companies in the world. (Technavio) The brand is followed by Adidas, New Balance, and ASICS. Bags and Accessories  27. The global revenue of bags and accessories is expected to reach $119 billion by the end of 2020. (Statista) It has a compound annual growth rate (CAGR) of 9.6%, resulting in an expected market volume of $171 billion by 2024. 28. In the US, the revenue of this segment is estimated to reach $19 billion by the end of the year. (Statista) Its compound annual growth rate (CAGR) is at 8.5%, contributing to projected market volume of $26 billion by 2024. 29. Asia-Pacific is the fastest growing market in this segment. (Mordor Intelligence) China and India are two of the top contributors, due to the shift in consumer behavior, bigger spending power, and influence of celebrities. However, North America remains to be the largest market. 30. Personalization, technological developments, and inclusivity are the top trends that are contributing to sales of bags and accessories. (Euromonitor) Brands in this segment are experimenting with limited editions, co-creations, and customer-driven designs to increase sales. Jewelry and Luxury  31. The global market size of jewelry and luxury is expected to reach $480.5 billion by 2025. (Grand View Research) With an expected compound annual growth rate (CAGR) of 8.1%, the growth is due to the increase in disposable income and shift in shopping behavior. 32. So far, China has generated the biggest revenue in 2020 with an ongoing total of $6 billion. (Statista) It’s followed by the United States, Italy, France, and Germany. 33. In the US, the revenue of jewelry and luxury in 2020 is currently estimated at $5 billion. (Statista) The market in this territory is expected to grow by 6.6% every year through 2025. 34. LVMH is currently the top company in the jewelry and luxury segment. (GlobeNewswire) In late 2019, the company acquired Tiffany & Co; however, its Watches and Jewelry group showed a decline of 39% in the first half of 2020. Fashion and Social Media  35. Globally, 43% of Internet users go to social media to research about a product that they want to purchase. (We Are Social) However, only 12% said that a “buy” button on a social media platform would make them check out. 36. In the US, social media influences the fashion purchases of Gen Zers the most. (eMarketer) This information was from a survey conducted in late 2019. The next biggest age groups are millennials and Gen Xers. 37. Instagram is currently the best-performing social media platform for fashion brands. (Statista) Video streaming of live online selling, in particular, is an emerging trend and promising sales-driver.  38. At least 800 million people from 70 different countries use Facebook Marketplace every month. (CNet) Other platforms that will soon have shopping options are Instagram and WhatsApp. Employment in Fashion  39. The fashion industry employs at least 300 million people all over the world. (MCPI) These people provide different forms of services for the fashion industry that’s worth $1.3 trillion. 40. In the US, at least 86,000 people are employed under the Apparel Manufacturing subsector, as of August 2020. (BLS) This is a huge decline from 112,000 people employed in August 2019. 41. The average monthly wage of a garment worker is estimated at $200. (Clean Clothes Campaign) However, this amount continues to suffer a drastic decline because of COVID-19. 42. At least 85% of all garment workers around the world are women (The Circle) Most of them are from China, India, and Cambodia. Going Global  43. When it comes to cross-border shopping, most consumers purchase products from the US. (Flow) Other top countries where cross-border consumers shop from include China and the UK. 44. By 2024, the revenue of the UK’s fashion industry is expected to reach $39 billion. (Statista) Its current revenue for 2020 is estimated at $32 billion with a compound annual growth rate (CAGR) of 4.7%. 45. The fastest growing fashion city is Beijing. (McKinsey) The other top cities include Shanghai, São Paulo, Moscow, and London. These cities are also considered as emerging markets in the fashion industry. 46. Among the 10 fastest growing retail brands of 2020, the only fashion brand included is Canada’s lululemon. (Kantar) The apparel brand saw a 40% increase in brand value, compared to 2019. Fashion and Technology  47. Artificial Intelligence (AI) is gradually being integrated by fashion brands for a better shopping experience. (Cognilytica) It’s being used in generating new designs, always-on customer service, hyper-personalized marketing, smart shopping, and overall convenience. 48. The global market size of smart clothing is expected to reach at least $5 billion by 2024 or 2025. (Statista) Smart clothing includes fitness-tracking wearables, smart sport apparel, and outerwear with LED, among others. 49. Sustainability is one of the biggest factors that affect consumers’ purchase intentions, especially since the pandemic. (McKinsey) Fashion brands are looking into technology to reduce their waste and have an eco-friendlier production. 50. The global sales of mobile commerce (or m-commerce) are forecast to reach $3.56 trillion by the end of 2021. (eMarketer) This growing shift is attributed to the preference of mobile phones over other devices and more digital wallet options. Conclusion While the fashion industry is currently facing a downward trend, it’s doing multiple stretches and working double time to bounce back. After all, a “V-shaped” trend is forecast for the industry in the coming years. Moreover, consumers are slowly but surely adjusting to the “new normal” and have discovered other (and maybe more convenient) ways to shop. With an industry as big and formidable as this, fashion has not met its end just yet. It will dress itself up again in just a matter of time!  

Global Fashion Agenda (GFA) is a non-profit organisation that fosters industry collaboration on sustainability in fashion to accelerate impact.



large_blob

medium_blob

small_blob

thumbnail_blob

blob

Global Fashion Agenda

<p>This first edition of the Report on the Pulse of the Fashion Industry exposes the challenges in a number of sustainability impact areas and along the industry’s value chain, from design and development to end-of-life for apparel and footwear. It aims to provide transparency on the industry’s stance in terms of its environmental, social, and ethical footprints—topics that have been much debated, yet without a common baseline and framework against which to evaluate change. It also reviews ways in which the industry can maintain and even strengthen its profitability despite the pressures of rising costs. The overarching objective of the report is to provide a direction and guidance towards a better fashion industry.</p>

Pulse of the Fashion industry

large_CFP_Indonesia_Logo_Dark gray.png

medium_CFP_Indonesia_Logo_Dark gray.png

small_CFP_Indonesia_Logo_Dark gray.png

thumbnail_CFP_Indonesia_Logo_Dark gray.png

CFP_Indonesia_Logo_Dark gray.png

The Circular Fashion Partnership is a cross-sectoral initiative that aims to develop effective circular fashion systems by capturing and recycling post-industrial textile waste. This collaborative effort promotes best practices and helps drive the adoption of sustainable practices across Indonesia's fashion industry. 

**Get your circular activities on the map by adding your activities [here](https://knowledge-hub.circle-economy.com/CFPIndonesia/article/new).**

large_CFP_Indonesia_Logo_Dark gray_ square.png

medium_CFP_Indonesia_Logo_Dark gray_ square.png

small_CFP_Indonesia_Logo_Dark gray_ square.png

thumbnail_CFP_Indonesia_Logo_Dark gray_ square.png

CFP_Indonesia_Logo_Dark gray_ square.png

Circular Fashion Partnership: Indonesia

large_image (5).png

medium_image (5).png

small_image (5).png

thumbnail_image (5).png

image (5).png

Business case

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)

Engaging in discussions with industry stakeholders to share circular economy best practices and push the industry towards greater circularity

Guidance, dialogue with industry stakeholders

Engaging in discussions with government bodies and policymakers to push for regulations that support the circular economy

Advocacy for circular economy policy

Conduct research

Impacts

small_climate-4803653_640.jpg

thumbnail_climate-4803653_640.jpg

climate-4803653_640.jpg

A framework of policy instruments that enabled and encourage the transition to the circular economy

Policy Instruments

medium_image-20160922-22514-1aqaw5j.jpg

small_image-20160922-22514-1aqaw5j.jpg

thumbnail_image-20160922-22514-1aqaw5j.jpg

image-20160922-22514-1aqaw5j.jpg

A framework of policy instruments that enable and stimulate the transition to the circular economy

        It does not affect the taste of the water or affect its properties, and also has a reduced impact on the environment: glass is a homogeneous and inert material, which makes it the perfect choice for the perfect preservation of food and drinks. This is precisely why Levico Waters chose it for its water.
Glass is transparent like water, and like Levico’s values. . An effective solution for the environment – in contrast with plastic – which presents a risk of contamination and takes several centuries to degrade. The returnable glass bottles, in particular, are reusable up to 30 times and 100% recyclable.
Those who drink Levico water have respect for the environment and their own health. Find out where to find us.            
   Water in returnable glass bottles, 
a resource for the environment. RETURNABLE GLASS BOTTLES   Discover               Levico has always bottled its light mineral water exclusively in glass bottles , – a high quality choice which is also environmentally friendly. In particular, we have embraced the returnable glass philosophy, a practice which is already widespread in many countries. 100% infinitely recyclable, these bottles can also be reused up to 30 times before being recycled due to use. Choosing glass wastes less resources and less energy, producing even less waste.
In fact, every year over 30 million tons of solid urban waste are produced in Italy. Over half is represented by packaging and a good part of this is from plastic bottles. The reasons are easily understood: plastic is lighter, cheaper and easier to throw away. But the disadvantages cannot be ignored: if released into the environment – the oceans in particular – it causes serious damage to the ecosystems because it can take up to 500 years before decomposing completely.
Using returnable glass bottles for the distribution of Levico water aims to guarantee a better future for our planet, in line with our values.           The convenient and elegant six-litre bottle basket for home use.      
           

         Levico water can be delivered directly to your door thanks to the home delivery service. Distributed in 1 litre glass bottles, it is available as natural, sparkling and lightly sparkling.
Why order for your home?
Enjoy the pleasure of drinking pure spring water without making the slightest effort. The door-to-door service delivers the case of Levico water directly to your home, then collects the empty returnable glass bottles.
What is the container-deposit legislation?
It is a form of recycling that allows the glass to be given a new lease of life. In other words, the used glass bottles should not be thrown away with your recycling, but are instead returned to the distributor. After collecting them from your home, the latter returns them to the company who carries out thorough cleaning cycles and then reuses them. . It is a virtuous practice which has already been adopted in numerous geographical areas, such as Germany and the Scandinavian countries, as well as in some areas of Italy – Trentino-Alto Adige taking the lead.
What are the benefits of using glass bottles?
– Healthier for the consumer
Glass bottles maintain the purity of the water unchanged over time, without contamination;
– More environmentally friendly
Glass, unlike plastic, is 100% recyclable. Another helping hand to safeguard our planet and its seas;
– More convenient
The glass bottles are in fact collected from your home by the distributor.
If we have convinced you, and you want to help the planet, immediately find the distributor closest to you.         

Europe

Bangladesh

<p>Global Fashion Agenda (GFA) is a non-profit organisation that fosters industry collaboration on sustainability in fashion to accelerate impact.</p>