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.

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.