Market Insights

Repair, resell, recycle: what if this became the new fashion model baseline?

May 20, 2025
/
5 min to read

Long confined to thrift stores, circular fashion in Europe is undergoing a radical transformation. At the intersection of shifting consumer expectations, regulatory pressures, and competitiveness challenges, it is becoming a major strategic lever for brands.
According to a study by the Fédération de la Mode Circulaire and KPMG, the European circular fashion market could reach €31.3 billion by 2030, across four key pillars: eco-design, repair, second-hand, and recycling. A revolution that could also create more than 88,000 jobs.

But this momentum isn’t limited to Europe.
According to the 2025 ThredUp Resale Report, the global second-hand market is expected to reach $367 billion by 2029, growing twice as fast as traditional fashion.
In the U.S. alone, it will represent $74 billion, driven by a new generation of buyers and sellers who put second-hand at the core of their consumption habits.

A reinvented value chain

First pillar: “Re-invent,” or how to design differently. 80% of a garment’s environmental impact is determined at the design stage.
Eco-design, durability, mono-materials, repairability, it’s no longer optional. It’s a strategic necessity.
This approach helps anticipate future requirements like digital product passports or recyclability standards, while strengthening brand image.

But more importantly, it lays the groundwork for a long-term relationship with the customer.
By creating products designed to last, to be cared for and passed on, brands invest in long-term loyalty.
A garment made to live multiple lives becomes a coherent extension of the brand’s message: responsible, enduring, sincere.

Producing better also means creating more value.Well-designed, durable, and repairable items allow brands to achieve stronger margins over time, thanks to resale potential, extended lifecycle, and integration into circular models.

Second-hand, rental: when use replaces ownership

The “Re-use” pillar reflects the growing power of second-hand.
Estimated at €26 billion in Europe by 2030, this segment is gaining traction for environmental, economic, and stylistic reasons.
And the figures support this shift: in 2024, 58% of American consumers bought second-hand, and 68% of younger generations (18–44) did so.
Even more telling: 56% of them say second-hand is their first instinct when shopping for clothes.

Rental, while still niche, follows the same usage-driven logic. It addresses specific needs (events, maternity, sports) while widening access to brands.

For brands, launching a second-hand platform means extending product life and creating new touchpoints with customers.It also deepens emotional connection by valuing every stage of a product’s life.Giving customers the chance to resell, trade, or buy back an item creates an engagement cycle that goes beyond the transactional.It’s a new way to nurture loyalty, reward brand attachment, and bring clients back into an active dynamic.

Repair: a market in full revival

Extending a garment’s life by just 2.2 years reduces its carbon footprint by 73%.
The European repair market is expected to reach €3.7 billion by 2030, supported by initiatives like the French repair bonus.
In the U.S., 43% of consumers say it’s hard to part with clothes responsibly but 57% say online resale has helped them do so.

For brands, offering or promoting repair is a tangible way to show commitment.
But it’s also a means to elevate perceived value: what can be repaired, lasts. And what lasts, matters.
A piece worth repairing becomes a meaningful object and the bond with the brand that created it grows stronger.
At a time when loyalty is built on durability rather than novelty, repair becomes a strategic tool for customer engagement.

Even more: repair and resale are powerful re-engagement levers. They give customers the chance to revisit their relationship with the brand.
By offering rewarding post-purchase experiences, brands create emotional, useful, and lasting points of contact.

And there’s a valuable time-based dynamic at play: the longer a garment lasts, the longer the relationship with the brand lasts.
A garment that’s kept, repaired, resold, or repurchased becomes a thread connecting seasons, uses, and even generations.
The brand becomes a companion on a journey not just the starting point of a transaction.

To fully realize this potential, education plays a key role:Integrating educational content across touchpoints (newsletters, packaging, product pages, social media) helps raise awareness about the benefits of repair, the value of reselling over discarding, and the overall logic of circularity.A better-informed consumer is a more committed one.

Recycling: the next frontier

Expected to hit €1.6 billion by 2030, textile recycling is becoming essential.
Faced with dwindling resources and stricter regulations, brands are investing in recycled fibers, bio-based materials, and textile innovation.
The rise of recycling is especially strategic as it aligns with a global wave of regulatory frameworks.
In the U.S., 66% of retail executives say they’re actively seeking to extend garment life through repair, upcycling, or second-hand.

A systemic (and profitable) shift

What’s emerging is a full model pivot: from a linear “make, sell, dispose” system to a circular ecosystem where every item lives multiple lives.
This model reduces negative externalities and creates value:

-New revenue streams (resale, services)

-Stronger margin control via flow optimization

-Enhanced brand image on ESG performance

-Lower risk exposure to upcoming regulations

Second-hand is no longer a side channel.
47% of consumers say they prefer to try a brand via second-hand before buying new.
And 42% of young consumers have already exchanged clothes for a voucher with a brand.

Most importantly, these circular models increase the lifetime value of both product and customer.
A garment that can be repaired, resold, or taken back becomes an asset.
Each post-purchase interaction becomes a chance to generate value, deepen connection, and build long-term engagement.

Faume, a partner for brands turning circular

In this context, Faume supports fashion brands in building their circular systems: second-hand platforms, take-back programs, authentication, reverse logistics, pricing and inventory management.
By enabling the operational roll-out of these often complex initiatives, Faume acts as a catalyst between strategic vision, operational reality, and customer experience.

A demanding, but necessary transformation

The study is clear: circularity requires deep organizational change.
Processes must be rethought, teams trained, and investments made in new tools (traceability, digitization, reverse logistics).
But the benefits are real: greater resilience, stronger alignment with new generation values, and increased efficiency across the value chain.

In summary

Circular fashion is no longer a trend: it’s a structural reset of the system.

Brands that manage to connect eco-design, repair, reuse, and recycling will hold the keys to sustainable growth, aligned with the times and capable of generating greater customer value, for longer.

And with partners like Faume, this transition is not only possible, it’s profitable.

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