Consignment and clothing rental: redefining the textile industry’s economic landscape

The circular economy is reshaping the textile industry’s norms. Faced with the environmental challenges posed by textile production, brands need to redesign the way they create and market their products. Consignment and rental provide practical solutions to these pressing concerns: these ReCommerce strategies prolong the lifespan of clothing, minimize textile waste, and encourage recycling. In this article, we’ll explore how these approaches are revolutionizing the textile industry, their advantages, and the new dynamics they introduce.
Consignment: an emerging economic model
The mechanics of consignment
Consignment is a retail model that allows individuals to hand over their textiles to a retailer, who then sells the items on their behalf. The retailer acts as an intermediary, marketing the products without ever owning them. This approach helps extend the lifecycle of clothing within the textile industry, providing garments a second chance. By promoting reuse and recycling over the production of new textiles, it fits seamlessly into the circular economy. This model addresses growing consumer demand for solutions that combine cost efficiency, environmental responsibility, and sustainability. According to ThredUp’s 2024 report, the global market for second-hand textiles could reach $350 billion by 2028.
Before resale, textiles are meticulously sorted to determine their condition. For this sustainable model to succeed, retailers must set clear selection criteria for deposited items. This strategy can further connect with recycling systems for unsold textiles.
Advantages for consumers and retailers
Consumers can access high-quality recycled textiles at prices significantly lower than new items. As of today, 50% of consumers in France have embraced second-hand goods. This model not only allows them to easily resell clothing but also generates additional income. It promotes sustainable practices by curbing the textile industry’s environmental impact linked to new product production. Extending product lifespan is key to waste reduction.

For retailers, consignment presents a low-risk business opportunity as they do not have to own the products. This approach reduces costs associated with inventory and unsold stock. It also enhances the brand image by showcasing a solid commitment to sustainable commerce. This recycling-centric system expands the customer base by appealing to new consumers.
Impact on the circular economy
This model significantly cuts down on the consumption of materials needed for new production while promoting the recycling of existing clothing. By extending the lifecycle of textiles, consignment helps reduce waste generation within the industry. Economically, this approach fosters a virtuous cycle where textiles maintain their market value rather than being discarded.
Consignment gradually encourages consumers to adopt more sustainable textile consumption habits. As its popularity increases, it plays a crucial role in democratizing sustainable practices and making the textile industry more eco-friendly. Recycling becomes a vital element of the circular economy, especially for garments that have reached the end of their lifecycle.
In line with its circular economy commitment, Kiabi introduced Kidkanaï, a fresh concept for selling second-hand items. The company selected the Orisha Commerce solution to enhance the management of second-hand textiles for this initiative.
Rental: a sustainable alternative for the textile industry
Available clothing and accessories
Initially, textile rental focused mainly on items for special events like weddings. Today, the scope has widened considerably. High-end clothing is now included, enabling users to enjoy luxury pieces without the hefty price tag. Moreover, ready-to-wear clothing suitable for professional environments is available for those seeking sustainable wardrobe updates.
Technical garments also benefit from rental services. Users can access specialized equipment without the expense of rarely used items. Rented outdoor apparel typically features technical fibers designed for intensive use. This trend extends to accessories as well. This strategy showcases a significant shift in consumption habits within the textile industry, moving from ownership to usage.
Leading market players
The French textile rental market is dominated by three main categories of players:
- Specialized platforms,
- Premium brands,
- Traditional ready-to-wear retailers.
Services such as Le Closet provide monthly subscriptions for unlimited clothing rentals. Other platforms concentrate on luxury textiles, featuring items from high-end fashion houses. Brands like Maje are also venturing into textile rental, especially for single-use evening wear.
Kiabi has started testing in select stores, offering subscription plans that enable renting up to 20 pieces of clothing for varying durations.
Environmental and economic benefits
Despite advances, textile production continues to produce significant waste. Adopting a circular economy model, renting instead of buying reduces the impact associated with manufacturing and raw material use. Economically, textile rental offers users access to high-quality items at lower costs, encouraging temporary rather than permanent use.
For textile brands, this ReCommerce approach offers the chance to generate regular income. It facilitates optimized inventory management, as textiles re-enter the cycle instead of becoming unsold stock. This method cuts down on waste production and attracts a more committed clientele.
Current trends in the textile industry within the circular economy
Changing consumer buying behaviors
In 2024, 61% of French consumers bought a second-hand product, showing strong interest in second-hand textiles and recycling.

This movement towards a circular economy fits into a larger trend, with studies indicating a significant change in purchasing habits could cut greenhouse gas emissions by up to 70%. Consumers are increasingly responsive to brands’ recycling initiatives.
Responding to this shift, more retailers are adapting their offerings and developing strategies to inform customers about sustainable textiles. Some fashion brands are even revising their production methods to align with actual demand, thereby reducing their environmental footprint.
Adoption of circular practices by major brands
Several textile brands, including Patagonia and Levi’s, have effectively implemented circular strategies. Patagonia offers recycling programs for used textiles, while Levi’s creates collections from recycled fibers and materials and has systems in place to recover garments in stores.
Luxury brands are also investing in the circular economy:
Stella McCartney has long prioritized recycled materials and is exploring rental for her key pieces;
Gucci and Burberry are progressively integrating circular strategies through digital second-hand platforms.
At the same time, leading fast fashion brands like H&M and Zara are making efforts to adopt circular economy practices. H&M has launched a global collection system for used clothing, aimed at reusing or recycling fibers. These brands are creating a holistic approach to the circular economy by combining rental, resale, and recycling.
The future of consignment and rental in the textile industry
Consignment is poised to become more prevalent, seamlessly merging the digital and physical customer journey. The growth of online platforms and mobile apps specializing in textiles will boost the visibility of second-hand items. Ultimately, we can envision a complete integration between physical stores and digital platforms, optimizing circular economy flows. Textile rental is also expected to move towards a standardized strategy, with monthly or annual subscription plans gaining traction.
With Extended Producer Responsibility (REP) for textile waste, known as TLC, companies must now fund systems for collection, sorting, and recycling. REP aims to enhance the tracking and collection of TLC. Over time, these regulations might tighten to make the circular economy a standard in the textile sector.
Each year, millions of tons of clothing are produced, worn only a few times, and then discarded. Preferred by consumers who are increasingly mindful of their impact, consignment and rental are helping transform the textile sector. These models are becoming integral to buying habits, forming a virtuous cycle where recycling and sustainable consumption reinforce each other. For textile brands ready to embrace this opportunity, it’s a pathway to create value in innovative ways.
Frequently asked questions
What is the circular economy in textiles?
The circular economy in the textile industry focuses on reducing waste by extending the lifespan of products and minimizing the production of new items. This includes second-hand goods, rental, repair, and using recycled fibers and materials. Material choice directly impacts the recyclability of clothing and its environmental footprint. Some materials, like recycled cotton or mono-material fibers, are more easily reusable and contribute to garment durability.
Recycling plays a crucial role in this model, enabling the transformation of used textiles into new, reusable resources. Textile recycling also aims to decrease the necessity for producing new products.
How does textile rental fit into the circular economy?
Textile rental fits into the circular economy by providing an alternative to outright purchase. By enabling multiple individuals to use the same item sequentially, it aims to extend the item’s lifespan. This approach helps reduce waste production and curbs the extraction of natural resources through the recycling of raw materials. Textile rental also fosters a shift in mindset among users, focusing on usage rather than ownership. It complements other pillars of the circular economy like repair and recycling, and mitigates the environmental impact of the fashion sector. Unified commerce brands equipped with suitable software platforms are better positioned to appeal to consumers who value responsible consumption.
What types of textile products can be rented?
The textile rental market today is diverse and expansive. Primarily, event wear such as evening gowns, which are infrequently worn and ideal for occasional use, are available for rental. Moreover, some brands provide subscription plans that cover everyday apparel, making it easier for consumers to maintain a sustainable wardrobe.
Is consignment profitable for a retailer in the textile industry?
Absolutely. Consignment is profitable in the textile industry because it operates on a low-risk model: products are sold without the retailer needing to purchase them beforehand. This method draws customers who are both deal-seekers and environmentally conscious.
What is the regulation for REP of textile waste (TLC)?
The REP (Extended Producer Responsibility) framework for TLC textile waste seeks to oversee the entire lifecycle of clothing, household linens, and shoes intended for consumers. Companies are required to focus on TLC prevention, promote eco-design, extend product life, and manage the collection and end-of-life treatment of these items.
The objective is to minimize the environmental impact of textiles at each stage of their lifecycle. Systems are in place for the collection, sorting, and recycling of TLC, guaranteeing a second life for these materials.