According to the fourth edition of Kearney’s Circular Fashion Index (CFX), to achieve circularity, brands need to prioritisethree strategies. First, focus on materials that are biodegradable or mono-materials for easier reclamation at the product’s end of life. Second, design products with modularity in mind to simplify disassembly. Third, integrate recycled, upcycled, or downcycled materials into new designs, ensuring a clear path for second-life uses. Additionally, extending product life through repair and recovery services can foster consumer loyalty and market strength.
Operating within the traditional linear models, most fashion brands environmentally suboptimal choices from raw material selection to consumer education. Despite extensive discussion around circularity, actual redesign and implementation lag behind. Debates often focus on material choices, like cotton versus polyester, without consensus on their environmental impacts, overshadowing the need for comprehensive end-to-end assessments.
Current life cycle assessments are limited and often lead to debatable conclusions. Kearney PERLab's study found that cotton, while worse for land and water use, is better in terms of emissions compared to polyester. However, a holistic approach is needed to embed circular principles throughout a product’s life cycle, from sourcing to recycling.
Despite challenges, there are promising developments. The CFX 2024 expanded to include 235 brands across 18 countries and five categories, with refined price segmentation. The average CFX score improved to 3.20 out of 10, driven by better care instructions and increased emphasis on circularity in brand communications.
Top performers like Patagonia and Levi’s, and strong improvers like Coach, Uniqlo, and Zara, are leading the way. Coach’s Coachtopia focuses on minimising new materials and extending product life, while Uniqlo’sFurugi Project expands its pre-owned segment. Zara’s Pre-Owned platform offers repair, resale, and recycling services.
Footwear brands like Allbirds, Timberland, Brooks Running, Golden Goose, and Ugg show significant progress in circular initiatives. However, widespread adoption of circular practices is still limited. Regulatory changes in the EU and US are pushing brands to increase transparency and accountability, potentially accelerating circularity efforts.
