Dissertation

Sophie Cooper N1218866 26th April 2024

This dissertation is submitted in partial fulfilment of the requirements of the BA ( Honours ) Fashion Management

To my mum, dad, sister, and boyfriend. I wouldn’t have been able to make it through these 3 years of university without your love and support.

I would like to thank my dissertation leader Liz Watson. She was there during my first week at NTU and supported me throughout the transition, offering guidance and help when needed up until the end

I would also like to thank my girls from Solent University, Hana, Immy and Elle they made my time in Southampton as enjoyable as it could of, always offering support especially when I decided to move universities for my final year. Moving to Nottingham made me miss you loads but I feel you are friends for a lifetime.

To the girls I have met in Nottingham, Molly, Liv, Liv, and Ellie. You have made moving to Nottingham so easy and have been there the whole way throughout this year. I feel the short time I have known you all feels like a lifetime. You offered support and friendship when I needed it most coming to a new Uni in my final year. Giuliana, my flatmate, you have made living in Nottingham so fun, always being there for me, offering support and making me laugh. You made Nottingham feel like the best choice I could have made for myself

Jack and Emily, my boyfriend, and my best friend You have been there before Uni and throughout You have supported me in unbelievable amounts. I love you both.

I would like to help family and friends who helped with my primary research, by joining in on focus groups and sending questionnaires to endless people, you have been a great help and support. I would like to thank everyone who participated in my primary research, from industry interviews, to focus groups and filling out my questionnaire. This wouldn’t have been possible without you all.

This dissertation studies the second-hand market, determining if it’s a sustainable solution in the contemporary fashion industry. Through using a mixed methods approach with a focus on circularity an overview of the sustainable fashion industry has been outlined. Primary research methods such as focus groups, industry interviews and questionnaires have been used to gain deeper insight into the second-hand market, looking at consumers changing perspectives on the market and the growing potential of business models. Through secondary research such as reports, articles, and books an understanding of the impact the fashion industry is having on the environment and the positive impact the second-hand market can have on fighting this. The second-hand market has grown in popularity as conscious consumerism and sustainable values are at the forefront of consumer values today as well as economic pressure from COVID-19 and the cost-of-living crisis. Through business models such as rental, resale and repair it is expanding and becoming easily accessible to consumers. The pressure from these factors has been assessed showing the growing potential of the market for businesses to join. Pressure from consumers is encouraging brands to cater to their sustainable needs forcing brands to reconsider their business models, with brands with resale in their strategy already showing success The opinions of these consumers were examined showing there is greater concern for the environment which is influencing consumers to purchase resale. Conclusions were drawn to show the expansion of the market highlighting there is no sign of slowing down as well as the potential there is for businesses to support resale models in the future

Word count: 10, 898

Additional models and tables: 15

Reference count: 223 citations from 181 references

Keywords: Second-hand, circular fashion, resale, sustainability, conscious consumerism

Cover page: Circular fashion revolution: Analysing the second-hand market as a sustainable solution (Vogue,2021)

Cover page: Chapter one: Introduction (Vogue, 2022)

Figure 1: Closed-loop cycle (Project planet, 2020).

Figure2: Second-hand apparel market value worldwide from 2021 to 2027 (Statista, 2023).

Figure 3: Monthly downloads of the Depop App worldwide from January 2021 to December 2023 (Statista, 2024).

Cover page: Limitations, (Voguescandanvia, 2021)

Cover page: Chapter two: Research Methodolgy, (VogueIndia,2020)

Figure 4: Research Onion (Author’s own, 2024)

Figure 5: The Bottom up approach (Researchgate, 2024)

Figure 6: The convergent parallel triangulation model (Researchgate, 2024)

Figure 7: The Funnel approach (Nielson Norman Group, 2022)

Figure 8:: The CRAAP Model (Uchicago, 2023)

Figure 9: Approaches on collecting Primary Data (Springer, 2018)

Cover page: Chapter three: A sustainable Paradigm shift, (Cosmopolitan, 2014)

Figure 10: The Cradle-to-cradle model (Nemetschek, 2021)

Figure 11: The EPR (Sustainability mag, 2023)

Cover page: Chapter four: A comparative analysis of sustainable practices (Vogue, 2021 )

Figure 12: DEPOP PHONE (The cut, 2021)

Figure 13: DEPOP, (Cosmopolitan, 2022)

Figure 14: DEPOP PARCEL, (Cosmopolitan, 2022)

Firgure 15: Selfridges (Alamy, 2021)

Figure 16: Dimensions of brand equity (Semanticscholar,2014)

Figure 17: The Funnel approach (Nielson Norman Group, 2022)

Figure 18: The Trickle-down theory (Mohr et al,, 2022)

Cover photo: Chapter five: A measurement of the second-hand market expansion (BOF, 2024)

Figure 19: Emily Chan (Vogue, 2023)

Figure 20: Gigi Hadid (Vogue, 2022)

Figure 21: The diffusion of innovation (BUMC, 2024)

Figure 22: The theory of consumption values (Research gate, 2024)

Figure 23: “I don’t shop, I Depop” image, (Theindustry, 2023)

Cover photo chapter six: Conclusion (Vricks, 2023)

Cover photo: Chapter seven: Recommendations, (Creative review, 2023)

Cover photo: Chapter Eight: References, (Business insider, 2019)

Cover photo: Chapter Nine: Appendices, (Vogue, 2021)

Table 1: Aims and Objectives (Author’s own, 2024) 16

Table 2: Beneficiaries (Author’s own, 2024)………………………………………………………………………………17

Table 3: Key secondary sources (Author’s own, 2024)……………………………………………………………….24

Table 4: Key primary research interviews (Author’s own, 2024) Appendix 1

Circular fashio n - “Circular fashion is a system where the manufacture of an item and the end of its life are equally as important, as the aim is to prevent waste by intentionally designing items to be reusable, repairable, biodegradable and recyclable” (Hill, 2022).

Resale - “A sector of the broader “secondhand” market that includes more curated product assortments, often well merchandised and/or higher end. Examples include thredUP and The RealReal as well as upscale offline players like Buffalo Exchange. These secondhand options are primarily, but not exclusively, online” (ThredUp, 2023)

Peer - to - peer resale – “A third-party builds and facilitates a marketplace for brand customers to buy and sell pre-owned pieces from each other” (Thredup, 2023)

Fa st Fashion - Specialist clothing retailers with a fast stock turnaround and whose business models rely on selling high volumes at (usually) inexpensive price points. Examples include Shein, Zara, Forever 21” (Thredup, 2023).

Second - hand – “Consumption of all used apparel. Includes both the Resale sector and the Thrift & Donation sector” (Thredup, 2023)

C o rporate S ocial R esponsibility ( CSR ) – “The concept demonstrates how companies voluntarily participate in contributing to a cleaner environment and a better society by structuring their responsibilities. Such actions affect all stakeholders, both internal and external, and influence the companies’ success in the long-term” (Thorisdottir, Johannsdottir, 2020).

Closed loop systems – “A closed loop system is a design and production method that works to keep clothes in circulation for as long as possible (also called circular design)” (Stanton, 2021).

Holistic environmental sustainability - “Holistic environmental sustainability is an approach to development that considers the interconnectedness of various aspects of the environment and society and seeks to balance economic, social, and environmental well-being” (McBride Sustainability, 2023)

Rental fashion - “Rental fashion allows a person to borrow clothes for a fixed amount of time, returning the items to the company once they’ve finished wearing them” (Hughes, 2022).

Sustainab le – Defined by the Centre for Sustainable Fashion at the London College of Fashion as “Harnessing resources ethically and responsibly without destroying ecological balance” (Kim, 2015)

Generation Z (Gen - z) - “Generation Z is the name given to the generation of people born between 1997 and 2012. It's commonly referred to as "Gen Z," for short” (Warren, 2024)

Millennials - “Millennials are a demographic cohort, or age group, that falls between Gen X and Gen Z. They’re called Millennials because the oldest members of this generation became adults at the turn of the millennium. As of 2024, Millennials include anyone between the ages of 28 and 43” (BambooHR, 2024).

D epop – “Depop is popular among young people. It doubles as a resale and social media platform where sellers and buyers can DM one another, like items and follow one another” (Paul, 2021)

Vinted - “Vinted is an online marketplace and community that allows its users to sell, buy, and swap second-hand clothing items and accessories” (Definitions, 2024).

Authenticity - “Authenticity is a critical component for any fashion brand. An authentic fashion brand is perceived as genuine, consistent, and reliable. Ultimately, authenticity helps create a fashion product that people can relate to” (Leftyproduction, 2017).

G reenwashi ng - “The act of providing the public or investors with misleading or outright false information about the environmental impact of a company's products and operations” (Hayes, 2024).

Upcycling – “To recycle (something) in such a way that the resulting product is of a higher value than the original item : to create an object of greater value from (a discarded object of lesser value)” (Merriam-Webster, 2024).

Conscious consumeri sm - “Conscious consumerism involves shoppers making informed choices considering their purchases' social, environmental, and economic impacts. It emphasises buying from brands that align with ethical and sustainable practices, like Fair Trade and reduced plastic use, and avoiding those that don't uphold these values”(Daryn, 2024)

Overconsumption - “excessive consumption or use of goods and services (energy, land, water or materials) that cause harm or detrimental effects to humans and/or the environment, namely by

exceeding the carrying capacity and life supporting systems of the planet and its ecosystems” (Gemet, 2021).

This research focuses on the second-hand market investigating consumer pressures and economicand social impact from the fashion industry.

In a time marked by heightened environmental consciousness and ethical considerations, the fashion industry finds itself at a pivotal paradigm (Sierra, 2024). Sustainability has become a beacon guiding the redefinition of fashion practices worldwide (Salem, 2024). The fashion industry has a fast-paced, low-cost production cycle fuelled by “fast fashion” impacting its ecological footprint (Hawthorn, 2024) Sustainability in fashion is a holistic approach, that seeks to address the environmental, social, and economic challenges ingrained in the traditional model of the industry, relating to a firm’s corporate social responsibilities (CSR) (Thorisdottir et al , 2020). At its core, it embodies a commitment to minimising negative impacts on the planet, fostering ethical labour practices, and reimagining consumption patterns (ApparelMagic, 2024).

Generations are becoming more aware of environmental concerns offering a space for fashion brands to alter their production and mission (Tran, 2022). However, there is a lot of room for improvement as the Fashion Revolution fashion transparency index highlighted that “88% of major fashion brands are still not disclosing their production volumes obscuring the scale and truth of overproduction,” (Fashion Revolution, 2023). This lack of transparency and manipulation is impacting fashion brands

with 99% of brands not disclosing a commitment to reducing the number of new items they produce (Fashion Revolution, 2023) With this lack of financial need to change from fashion brands, pressure from consumers is growing as greater concern for the environment grows at the same speed (Mckinsey&Co, 2023) The harsher legislation and policies are influencing the market and causing brands to reconsider what the environmental implications are whilst also catering to the consumer’s ever-changing values (Deeley, 2021).

Sustainability is being demanded by institutions such as The United Nations, outlining responsible consumption and production as their twelfth sustainable development goal (SDG’s)and climate action at their thirteenth (United Nations, 2024) Through the 17 SDG’s their aim is to transform the world, they are calling for action to end poverty, and inequality and protect the planet (UNIndia, 2024) A sustainable fashion industry would benefit all the goals set, which have been agreed upon by world leaders as the best way to protect the planet by 2030 (Yeoh, 2020). Sustainability is as just about the people as it is about the planet, ensuring workers are treated and paid fairly. As knowledge of unsafe working conditions has spread around the globe, it has provoked consumers to ask more questions surrounding the ethics of production. Fashion Revolutions #WhoMadeMyClothes campaign, created after the Rana Plaza disaster that killed 1,138 workers, was created to spark change, for consumers to ask for transparency in the industry promoting safe working conditions and fair wages (Newbold, 2019). Events like this further highlighted a need for change.

The shift in the importance of sustainability has caused a broader shift in a circular fashion industry which challenges the consumption, production, and disposal of fashion through the utilisation of what would be waste into quality products (Rathinamoorthy, 2019). It embodies the principles of sustainability and responsibility offering a revolution in the industry. Circular fashion offers a sustainable alternative to the common “take-make-waste” cycle (Ellen Macarthur Foundation, 2024)

Circular fashion aims to close the loop allowing resources to be kept in use for as long as possible, with minimal environmental impact and waste.

At the heart is “closing the loop” as shown in figure , starting by creating items that are made for longevity and durability, using materials which at the end of their life cycle can be responsibly disposed of, such as biodegradable or easily recycled (Pal, Gander, 2018) A circular economy is not a new concept but originates from Walter Stahel report “The Potential for substituting manpower for Energy,” from 1976 (Stahel, 1997). It suggested an economy in loops preventing waste and reducing the dependence on natural resources (Niinimäki, 2017)

A circular economy prioritises social responsibility, environmental stewardship, and sustainability through the entire lifecycle of each product, from design and production to consumption and disposal (D’Adamo et al., 2022) Circular fashion requires collaboration from all industries, from designers and manufacturers to retailers and consumers to develop new business models and consumption patterns. Consumer awareness and behaviour are huge factors influencing circular fashion, with a deeper emphasis on the importance of encouraging consumers to make conscious choices in their fashion consumption habits, such as buying second-hand or renting clothing (Gazzola et al., 2020).

(Arthurs 2024: Interview 7).

The second-hand market is a business model coming out of a circular economy and helping aid the transition to a more sustainable industry. Focusing on the buying selling and trading of preowned clothing as well as accessories and other fashion items. It provides an alternative model to the traditional retail model it is expected to grow 10x times faster than the traditional model by 2025, and by 2030 1 in 5 items in people’s wardrobes will be second-hand (Bakshi, 2023) The second-hand

Figure 1: Closed-loop cycle (Project planet, 2020).

market has emerged as a key component of the revolution, offering a sustainable answer to the industry’s environmental and social challenges. The value of the second-hand market is predicted to grow from “211 billion in 2023 to 351 billion by 2027” as seen in Figure 2 (Smith, 2023). This model is gaining popularity as shoppers consider new opinions and look for alternatives due to economic factors such as COVID-19 and the Cost-of-living crisis (VázquezMartínez et al., 2021).

According to a report by Statista in 2023, the online second-hand retail app Depop recorded 404,910 monthly downloads in April of that year shown in Figure 3, indicating an increasing interest in the platform and use of second-hand items (Statista, 2024). Second-hand fashion can extend the life cycle of clothing and reduce the amount going to landfills overall decreasing the carbon footprint of the fashion industry (Clarke, 2021).

In addition to environmental benefits, the second-hand market generates social and economic value. It provides affordable options for consumers to access fashion items, especially from a luxury perspective (Yang, 2024). “As of 2021, 42 per cent of millennial and Gen Z respondents stated that they were likely to shop second-hand for items,” younger generations are becoming more interested in purchasing second-hand supporting this increase in purchases (Smith, 2023) As consumers prioritise eco-friendly choices, the second-hand market has become a pivotal point for reducing environmental effects (Persson, Hinton, 2023) Second-hand retail has also spurred innovation giving a new generation of businesses that are focused on resale, rental, and circular fashion models a

Figure2: Second-hand apparel market value worldwide from 2021 to 2027 (Statista, 2023).

Figure 3: Monthly downloads of the Depop App worldwide from January 2021 to December 2023 (Statista, 2024).

space. These businesses are disrupting the traditional retail landscape and offering creative solutions brands such as The Real Real and Rent the Runway are two companies disrupting the rental industry in 2018 and are players tapping into consumer trends at scale (Gueye, 2021). This research will help steer the fashion industry towards a sustainable future by analysing components and informing decision-making, helping research endeavours dedicated to fostering a sustainable fashion landscape.

Aim: To analyse the potential of the second-hand market in the global fashion industry, understanding new sustainable solutions affecting environmental and social aspects which are promoting responsible consumption.

Objectives:

1. To identify challenges and barriers which may hinder the expansion of the second-hand market considering possible stigmas or quality concerns.

2. To investigate the social and environmental impact of the second-hand market on the fashion industry, resale apps and online marketplaces

3. To examine fashion brands and how they build sustainable models

4. To investigate the expansion of the second-hand market considering sustainable trends and consumer preferences.

5. To compare sustainable practices and their effect on consumer shopping patterns.

Rationale

The incentive behind researching this topic comes from the author’s perspective on second-hand fashion, stemming from the need for accessibility and affordability within the sustainable fashion

Table 1: Aim and Key objectives table (Author’s own, 2024)

industry to address environmental and social challenges within the current market environment as emphasised by Sorensen and Jorgensen (2019) and Styvén and Mariani (2020). The fashion industry contributes significantly to ecological degradation concerning increased water waste, pollution and rampant consumption which is therefore fuelling these issues (Weforum, 2020) This dissertation presents the aim of offering a comprehensive understanding of the potential of the second-hand market and the ability to effectively address these matters.

Current consumer motivations are at an all-time high with generations becoming more conscious and aware of sustainable issues which are in turn impacting their consumption decisions based on their beliefs and values (Weforum, 2022). Societal norms and trends are playing a pivotal role in shaping the UK consumer. This dissertation intends to bridge knowledge gaps for stakeholders, policymakers and consumers offering a strategic decision-making tool contributing to current sustainable solutions in place in the fashion industry. Understanding current patterns will help to predict the trajectories of sustainable fashion and identify potential challenges and opportunities.

Beneficiaries:

Beneficiaries:

Aim:

Perceived value: Sustainable fashion brands Sustainable fashion brands aim to refine their brand identities and marketing approaches based on insights into consumer preferences and market trends within the secondhand market.

The value perceived by brands lies in the opportunity to better connect with ecoconscious customers and stand out in a competitive market. By adopting sustainable practices and addressing challenges within the second-hand market, brands can strengthen their reputation and loyalty among environmentally aware customers.

Consumers The second-hand market can help consumers make more informed purchases by understanding the social and environmental

Consumers find value in supporting initiatives that align with their values and contribute to positive social and environmental outcomes. By choosing to participate in the second-hand market,

impact encouraging them to be conscious consumers they can reduce their environmental footprint and promote responsible consumption in the fashion industry.

Environmental organisations Environmental organisations aim to advocate for policies and initiatives that promote responsible consumption and reduce the environmental footprint of the fashion industry based on insights from the Author’s findings..

The dissertation's value lies in its ability to use evidence-based research to influence policymaking and industry practices. The findings of the dissertation can be used by environmental organisations to advocate for systemic changes that can address sustainability challenges within the fashion industry, and ultimately contribute to broader environmental conservation efforts.

This research focuses on understanding the potential of the second-hand market concerning sustainable fashion and the contemporary fashion industry. Using a market assessment to calculate the current competitors, trends, and targets within the current second-hand fashion industry (Askattest, 2022), the scope of the research is outlined. With consumer behaviour being one of the largest factors affecting sustainable fashion (Mandaric et al., 2022), critical social and environmental influences are taken into consideration encompassing economic considerations affecting the ecommerce fashion industry. This dissertation will investigate the environmental impact of the fashion industry surrounding waste and carbon footprint (Genevaenvironmentnetwork, 2024), and the pivotal impact second-hand fashion is having on reducing this (Loopgeneration, 2024) Identifying challenges and barriers will show the implications on market growth for the second-hand market and measuring the market expansion highlights growth trajectory in coming years The analysis of both online and inperson shopping experiences through different business models in sustainability highlights opposing brand strategies such as Selfridges and H&M.

Table 2: Beneficiaries table (Author’s own, 2024)

This research acknowledged several limitations that may have impacted the depth of analysis Sample representation may have influenced findings and external factors such as economic fluctuations, exacerbated by the current cost-of-living crisis (Commonslibrary, 2022) Due to the cost-of-living crisis current consumer shopping patterns have changed due to it impacting households’ disposable income, introducing confounding variables (Stokel-walker, 2022). The broad scope that was studied, which encompassed all ages over 18, offered an area of uncertainty in findings. To ensure validity for these two limitations a triangulation-based framework was used by the author to analyse secondary research alongside quantitative and qualitative, providing robust results (Turner et al , 2017) Moreover, the popularisation of micro trends due to social media sites such as TikTok, it has posed challenges in the ability to predict sustainable trends in the long run (Mikhaylyants, 2023) Through expert interviews and data analysis, this limitation was met with detailed research. Additionally, the author had limited access to potential interviewees affecting the depth of knowledge, through online platforms, such as LinkedIn, interviewees offered further connections to the author, facilitating a more comprehensive analysis and a “snowball effect” (Mitchell, 2022) Despite these limitations, the study offers insights into the potential of the second-hand market and how it is contributing to a more sustainable fashion industry.

Using a philosophical paradigm known as interpretivism the research presents a qualitative analysis to obtain the results. The data has been interpreted by the author to make sense of the impact secondhand fashion is having, looking at both the positive and negative connotations and the theories behind it. The use of a research onion involved layering different stages of analysis to systematically explore existing literature, this allowed the author to appropriately research making sure it was coherent with the research question (Melinikovas, 2018)(Figure)

This research was inductive due to the author developing a theory based on the conclusion drawn from the data collected. Inductive reasoning is a “bottom-up approach,” shown in figure 5 , meaning the author gathered observations, discovered patterns created a tentative hypothesis and then a final theory and it adopts a flexible structure which allows for change or variation in research (Usman, 2021) The approach to the dissertation is inductive because the author has developed a theory based on conclusions drawn from the data collected (Usman, 2021). Through this approach, a wider range of data will be collected and compared. A mixed-method approach to the research will be used to understand the qualitative data whilst also using a theoretical framework and philosophical assumptions, to mitigate any limitations by comparing data for deeper analysis (Tenny et al., 2017).

Figure 5: The Bottom up approach (Research gate, 2024)

Figure 4: Research Onion (Author’s own, 2024)

Using the convergent parallel triangulation model, the author analysed data side by side to mitigate limitations surrounding the broad scope of participants and confounding variables such as the cost-ofliving crisis (Hatta et al, 2018)

Secondary research analysis for this dissertation involved finding and evaluating existing information on this research topic. Using the funnel approach, which is highlighted through a paradigm funnel, the author started with a broad search of sources and gradually narrowed and finetuned to the most relevant sources for this dissertation (Berthon et al., 2003) Screening titles, abstracts, and keywords to find the best, then evaluate them to check quality and credibility.

Several different secondary resources were used and to remove bias each source was evaluated by the CRAAP MODEL to allow for a deeper analysis across

Figure 6: The convergent parallel triangulation model (Researchgate, 2024)

Figure 7: The Funnel approach (Nielson Norman Group, 2022)

2.2.1 B ooks & journals

academic disciplines The models help the author assess reliability based on 5 criteria: Currency, Relevance, Authority, Accuracy and Purpose (Muis, 2022). Taking into consideration the information is up to date, directly related, comes from reputable authors and is accurate it will ensure trustworthy and relevant sources.

Books were used to provide deeper insights using industry models which can then be applied to the research. The use of books offers a personal account of an individual’s thoughts regarding sustainability in the fashion industry and the impact it is having, whilst showing important key statistics “The standard type of secondary book in history is the scholarly nonfiction monograph. Intended for an academic audience, it is an extensive, in-depth discussion of a topic” (Pressbooks, 2019).

2.2.2

R eport & d atabases

The use of recognised industry platforms such as Edited and Mintel to seek credible reports on sustainability in recent years. These reports offer wider insights into consumer opinions and shopping trends and patterns recently and in the past.

2.2.3

Vid eos

The author used videos to gain greater knowledge of the negative impact of the fashion industry worldwide, highlighting the need for change and showcasing brands leading the way through documentaries and educational content.

2.

2. 4 Online articles and websites

Articles have offered insights into the controversial side of the fashion industry further supporting the sustainable movement, as well as highlighting the impact second-hand fashion has had in offering a positive factor.

Title Source Type

Author

Fashion Transparency index Report Fashion Revolution(Fashion Revolution, 2023)

Reason for importance Objective

This source offers deep insights into the world’s largest fashion brands regarding their supply chain, practices, and impacts. This helps fuel activism This article highlights the environmental impacts, transparency, and several other issues. Whilst addressing new business models being created such as resale 3, 2

The myth of sustainable fashion Article Kenneth P. Pucker (P. Pucker, 2022)

Resale report 2024 Report Thredup (Thredup 2024)

This article highlights the environmental impacts, transparency, and several other issues. Whilst addressing new business models being created such as resale 2

Thredup report shows the significant progress in circularity in fashion, the growth of resale and its positive impact on the environment and economy 4,5

The state of fashion report 2024 Report Mckinsey & Company (Mckinsey & Co, 2023)

The rise of resale: How second hand became Article Ellie Pithers(Pithers, 2022)

This report highlights key areas shaping the fashion industry year on year. Specifically in this report it highlights the growth of fast fashion brands and changing business models affecting sustainability in fashion

Through a deeper analysis of the resale of luxury items this article shows how the luxury markets success is growing through the use of second-hand shopping.

1

1

fashions first port of call

“Primary data refer to the first-hand data gathered by the researcher himself. Some sources of primary data are surveys, observations, questionnaires, focus groups, case studies and interviews” (Ajayi, 2017). Primary research has been gathered to analyse the second-hand market as a sustainable solution in the contemporary fashion industry A communicating approach was taken to self-administer surveys and personal interviews (Dalati, Gómez, 2018). Gaining perspectives from consumers and industry professionals further allowed the Author to compare these findings from both perspectives.

2.3.1 Questionnaire

Quantitative data was collected through a questionnaire to reach more perspectives and a wider audience, a questionnaire was sent out allowing for the Author to understand varying perspectives on Sustainable fashion and the second-hand fashion market. Firstly, a pilot study questionnaire was conducted and distributed to 11 respondents to determine whether the questions were coherent and easily understood. Feedback received from this survey resulted in changes to certain questions, changing options when answering and the wording or depth of some, these changes minimised research bias and improved to respondents’ experience and understanding of the final survey. See appendix 1 for specific changes.

Table 3: The Funnel approach (Author’s own, 2024)

Figure 9: Approaches on collecting Primary Data (Springer, 2018)

The author collected responses through several channels for the final questionnaire to gauge a larger variety of responses. Social media sites were the most impactful medium. Snapchat was used to personally ask individuals to complete the survey as well as a story post on Instagram to gain further responses. The questionnaire was uploaded to Facebook group chats with a large proportion of students and an interest in fashion. A LinkedIn post was made by the Author to reach their connections and further respondents. Finally, in-person requestions to family and friends were made Overall, 171 responses were recorded. For questionnaire questions and responses, see Appendix 1

2.3.2

Focus G roups

Two qualitative focus groups were conducted with 3 participants in Group One and 4 participants in Group Two. The original research plan was to choose two focus groups which were met by the author and participants were carefully selected to create an environment comfortable for those taking part for the focus group to succeed (Côté-Arsenault, Morrison-Beedy, 2005) By using focus groups, it offered a deeper complexity than that of questionnaires. It allowed for an in-depth understanding of personal experiences when shopping second-hand or how the consumers truly felt regarding sustainability in fashion. The use of focus groups Focus Group One had participants of the ages 20-23 whereas Focus Group Two had 2 participants aged 60 and 63 and one aged 23 to gauge a different perspective. For the questions and transcripts, see appendix 4

2.3.3

Interviews

Using both structured (via email) and semi-structured (face-to-face) interviews to question industry professionals working with a sustainable background or in the second-hand market the author was able to gain an insight into the fashion industry. This helped achieve the author’s objectives particularly 2 and 3 by offering brand-specific data. The initial aim forms the research proposal was the gain 10-15 interviews, the author carefully selected 13 interviewees who aligned with the dissertation research specifically. Each was obtained to gain a greater spread of results from business owners, CEOs, and sustainability experts all from different markets in the fashion industry shown in Appendix 2 interview list For the questions and transcripts, see appendix 2

E thics:

All research was conducted under “The Nottingham Trent University’s Research Ethics Policy”.

Circular fashion represents a transformative approach to sustainability in the contemporary fashion industry seeking to address environmental and social challenges which are embedded in the traditional fashion model. The essence of circular fashion is to reduce, reuse, recycle, and repair, aiming to create a closed-loop system traced back to 1976, when Canadian denim created a pioneering initiative, collecting waste cotton and recycling it (Colucci, Vecchi, 2021)

More recently the term “circular fashion” was coined in 2014, by experts one of which being Anna Bismar, at a seminar in Sweden, focusing on transitioning the fashion industry to a more circular model (Hill, 2022) This seminar in Sweden was one of the turning points and catalysts for introducing a new vision for fashion (Totebag, 2021). Now over a decade on from the seminar, the support for ethical and sustainable initiatives has grown significantly, the benefits of a circular economy are becoming known, and consumers are choosing to donate or swap clothes with friends rather than send them to landfills (Jimenez-Fernandez et al, 2023) However, only 28.5% of individuals understood the concept of circular fashion in relation to the second-hand market suggesting despite the growing appreciation of sustainability in fashion, the concept of circular fashion is still relatively unknown. (Apendix 1)

Longevity, non-toxicity, biodegradability, good ethics, and efficiency are all attributes associated with the circular fashion model, however putting these into place comes from creating a circular economy (Totebag, 2021) Circular fashion has evolved in response to growing concerns surrounding the fashion industry, now encompassing broader concepts and initiatives such as embracing holistic approaches to the design process.

The cradle-to-cradle (C2C) concept directly links the linear economy, it’s the formation of two cycles integrated into one using a biological

Figure 10: The Cradle-to-cradle model (Nemetschek, 2021)

metabolism and a technical metabolism as shown in research by Drabe and Herstatt (2016) The aim is to look at waste produce as a resource from the start ensuring the use of materials in the biological cycle are biodegradable and can be added to the ecological system and the valuable materials in the technology cycle can be recycled and reused (SustainabilityGuide, 2018) Using the C2C concept to produce a zero-waste production line will further aid the emergence of circular fashion “Cradle to Cradle certification, for example, provides a standardised approach to material circularity. It assesses whether products have been suitably designed and made with the circular economy in mind covering five critical categories: material health, material reutilisation, renewable energy and carbon management, water stewardship and social fairness” (Lissaman, 2019).

(Rapazote 2024: Interview 5)

The circular economy has encouraged the fashion industry to reflect on the need for systematic change and encourage the use of resale and rental to combat the consumer with 87% stating they have purchased second-hand clothing (Appendix 1) As stakeholders become increasingly aware of the impact of their actions, there is a greater need for adopting sustainable practices Circular fashion designs out the waste, keeping products in use for as long as possible to enable natural systems to regenerate by taking into consideration what will happen at the end-of-life stage (Lissaman, 2019).

Dating back to Italian markets in Venice where vendors had to undergo 5 years of training to have their own second-hand store or the famous Resin market in Ercolano which appeared during World War 2, resale has always been around (Ethitude, 2017)

The rise of sustainable fashion has led to an increase in second-hand fashion, aligning with the aim of circular fashion to ensure clothes are in the lifecycle for as long as possible (Machado et al., 2019). The second-hand market provides multiple platforms for shopping such as resale apps (Vinted, DEPOP, Ebay), vintage stores, charity shops and clothing rental services, each playing a crucial role in reducing the overconsumption of shoppers (Textile Consult, 2024) Through these resale platforms, they are actively changing the environmental footprint of the fashion industry and offering consumers

a sustainable and ethical way to shop, with several fashion brands following suit launching their resale platforms such as Ganni, Gucci, Levi’s, Nike, and Adidas which has contributed to a 275% uplift in brand owned resale apps (Benson, 2022). With 32% of consumers stating they more inclined to purchase second-hand online (Apendix 1) Drivers such as consumer preferences and issues surrounding sustainable awareness and brand transparency have all factored into the market changes With 95.6% of consumers believing that the second-hand market plays a significant role in promoting sustainability in the fashion industry (Appendix 1) Since Covid-19 there has been significant growth in the second-hand market, with Vinted growing by 51% in 2023, causing the UK government to attempt to measure the growth and monitor is to understand the volume of goods being sold, suggesting importance in the economy (Bavister, 2024). The growth is seeing a modernisation of charitable resale with Carnaby Street in London opening its first Charity shop Mind in 2022, holding unique second-hand pieces, showing the demand for second-hand businesses and availability (Bavister, 2024).

The expansion of the second-hand market has opened several advantages for both social and environmental factors Purchasing pre-owned clothes provides them with a second life and further use, reducing the need for overproduction, thereby mitigating the impact on manufacturing, waste generation and resource extraction all factors damaging the planet (Masi, 2020). The second-hand market is also encouraging a reuse and recycling culture within today’s society, influencing consumers to be more conscious and think about the impact of their purchase (Machado et al., 2019). The second-hand market contributes positively to the circular economy by keeping materials in the loop for as long as possible.

Second-hand apparel attracts consumers due to other factors such as the uniqueness of products and the feeling of euphoria when you find a product which is different and special (Meacham, 2016) Ultimately driving consumers away from fast-fashion brands which produce thousands of the same item and are trend-driven. The shift towards conscious consumerism reflects a broader societal switch towards sustainable and ethical decisions by today’s consumers, impacting the trajectory of

the future fashion industry (Adomßent, 2013) Stakeholders must understand the dynamics of the second-hand market to place responsible business practices and support sustainable solutions in the business

The onset of the second-hand market has pushed fashion brands to adopt sustainable solutions within their current business models to improve initiatives within the brand. Initiatives involve the aim to reduce environmental impact, promote responsible consumption and decrease the amount of waste at production. Implementing eco-friendly production processes and encouraging brand transparency within supply chains are factors changing the current fashion industry (Cleff et al., 2018). “Being really transparent, budget, because a lot of them sustainability brands are start-up and also where often the margins aren't as big because if you're doing processes properly there shouldn’t be any exploitation in your supply chain” (Arthurs 2024: Interview 7) highlighting that brands can have a significant change to their supply chain however it significantly relates to cost and budgeting

Nike highlights green initiatives through their advertising showing a line of sustainable products made from recycled polyester and they use renewable energy in the manufacturing process, pressing 650 of their suppliers to implement environmental policies (Lawson, 2024). By putting these changes into place, they are creating repairable and recyclable items increasing the lifespan. EBay is another brand implementing sustainability, focusing on the reuse of items in a circular economy, but also partnering with USPS (United States Postal Service) to create priority mail packaging which earned them Cradleto-Cradle certification (Lawson, 2024).

Collaborations between resale platforms and fashion brands are on the rise, allowing brands to interact with a new consumer segment whilst also prolonging their clothes. Vestaire Collective collaborates with brands such as Gucci, Chloé, Courrèges and My Theresa, introducing in 2021 ‘Resale as a Service’ (RaaS) which aims to reduce the number of counterfeit products on the internet and to embrace circularity (VestiaireCollective, 2024). Recurate creates in-house second-hand platforms for brands and has noticed a need from brands to get in on the business model, with the VP of partnerships stating, “Luxury brands keep seeing more third-party marketplaces pop-up and they’re like how do we keep them in the ecosystem and make them feel like they’re really part of our brand?” (Madden, 2022) Shilpa Shah, co-founder and Chief experience officer of Cuyana, stated “I believe that the popularity of brands launching resale is due to the rising, industry-wide recognition that sustainability spans far beyond how a product is made…This means investing in high-quality,

responsibly made materials that extend the product lifecycle and platforms that ensure each piece has a home, whether it is through repairs or a second-life program” (Madden, 2022).

The extended producer responsibility (EPR) model emphasises the role of managing the disposal and recycling of products from manufacturers, holding producer’s responsible puts greater pressure to change and improve the entire lifecycle of a product, currently, France is the only functioning textile EPR with Canada in the pipeline (Watson, 2014). France has implemented this for more than a decade and the European Commission is due to publish a proposal for textiles, it ensures that the retailer (producer) is charged a fee to cover the cost of recycling (Circular, 2023). “I strongly believe that when EPR does come to the UK, that extended producer responsibility and I'll just recap, if your name is in the back neck tag, that person or that entity will be liable for the take back. So there has to be a take back scheme, and that takeback scheme will be probably a street collection” (Beaumont Swindlehurst 2024: Interview 8) suggesting the need for this scheme in the UK but better disposal of item needs to be put in place for success.

Throughout Chapter Three it explores the second-hand market as a pivotal factor in sustainable solutions for the fashion industry. Tracing the evolution of circular fashion and emphasising its key principles, reducing, reusing, recycling, and repairing clothing. The chapter briefly delved into the historical root of resale and then the growth of the second-hand market, highlighting the secondhand market role with circular principles and reduction of overconsumption. The chapter examines sustainable initiatives being adopted by fashion brands such as Nike, intending to be eco-friendly and transparent in their supply chain and production lines. The chapter concludes with an exploration of theoretical framework such as the extended producer responsibility model offering insights into brand engagement and consumer behaviour within the second-hand market. Subsequently, Chapter Three offers a comprehensive overview of circular fashion’s evolution and the sustainable solution emerging within this industry.

Figure 11: The EPR (Sustainabilitymag, 2023)

Sustainable business models are essential to ensure growth in the second-hand market by offering consumers more options to shop consciously (White et al., 2019) As this revolution in the circular fashion industry gains more momentum approaches such as resale, rental and repair are becoming more accessible and convenient for shoppers, creating an economic and social benefit to the environmental footprint coming from the conventional fashion industry (Hokkanen, 2020) Resale, the system of selling goods that are pre-loved, has seen a surge in popularity (Butler, 2023) Online platforms such as Vinted, DEPOP and eBay democratise the resale market making it accessible to consumers all around the world (Finamore, 2024) These second-hand resale platforms are offering opportunities for businesses and individuals to foster a place in the fashion economy, with DEPOP sellers seeing huge success on the site enabling them to make it their full-time job taking it from a hobby to a business venture (Depop, 2024) “I am a Depop and eBay full-time seller I thought okay I'll start buying from the car boots and then over time I started earning money from the clothing and I then quit my job and started doing it more”(White 2024: Interview 2) highlighting the new jobs opportunities in resale.

Second-hand sites are allowing consumers to purchase items they may have not considered before for half the price, with some consumers stating they only shop second-hand now (Dockterman, 2021)

With 33.4% stating that price is one of the main factors influencing their decision to shop secondhand (Appendix 1) Resale apps have positive connotations with easy-to-navigate websites and systems to look for new items or upload old ones however only 8% stated that accessibility was a key factor in buying second-hand clothing (Escalante, 2022)(Appendix 1). Resale encourages the consumer to declutter their wardrobe with the reward of reselling, offering a slow fashion approach to purchasing habits. The rise of second-hand resale platforms shows no sign of slowing, coupled with growing concerns regarding the ethical and environmental impact of supply chains, Depop is just one example showing success (Wong, 2021)

With Harry Riley stating he felt Depop and Vinted were solely responsible for growth of the second-hand market (Riley 2024: Interview 3)

Figure 12: (The cut, 2021)

on social media is supporting this rise, with Vinted reporting a 680% growth since June 2023, however, the gentrification of the re-sale apps is coming under scrutiny as users have started uploading low-quality items for disproportionately high prices (Makey Myers, 2024)

Rental is another second-hand business model showing success, offering an extension to clothes lifespan and an alternative to traditional ownership with an expected growth of 3 billion dollars from 2021 to 2026 (Zitter, 2023). Rental creates an opportunity for consumers to wear pieces for special events that they may not have worn again or couldn’t afford to purchase outright in the first place

With participant 1 stating “I suppose it’s a good idea, because if I bought a dining in suit how times would I use it? You may change shape and gain weight.” And participant 2 stating “It’s not a wasted item, it’s used” (Appendix 4: Focus group 2) suggesting rental is convenient and supporting the reduction of waste items

Rental reduces demand and promotes a shared economy where consumers can access high-quality pieces often from the luxury sector. Rental is still trying to become a staple in wardrobes with brands such as Rent the Runway, My Wardrobe HQ, By Rotation, Hurr, Hire Street and On Loan

Repair all getting investment as they test consignment, peer-to-peer, pop-ups, and design partnerships capitalising on social media trends and building like-minded communities (Metherington, 2022)

Figure 13: (Cosmopolitan, 2022)

Figure 14: (Cosmopolitan, 2022)

Repairing items already in your wardrobe to create a working and functional piece will slow overconsumption as consumers become more aware of the worth of their products choosing to repair them before recycling (Pandit, 2019) With 90.3% of consumers stating repair services in fashion shops contribute to the overall reduction of fashion waste however 71.3% have not used them yet (Appendix 1) The greater concern for the environment and the impact of shopping habits could sway consumers to consider mending apparel at home as investments in brands such as Sojo, The Restory, The Clothes Doctor and The Seam are indicators that there is a market for restoring and repairing clothes (Metherington, 2022) Promoting a culture of care, and repair services will be able to foster a deeper connection to mindful consumption. “I don't think people nowadays understand that you can look after an item of clothing and it can last you, everybody sees it as disposable and so they don't bother to look after items. If you want to be able to repair your clothes you need to start looking after them at the start”(Appendix 4: Focus group 2) indicating that consumers need to understand the value of their clothes.

Traditional retailers such as Urban Outfitters and Weekday are reimaging their business model to fit the second-hand market, selling vintage items in stores, and listening to consumers’ changing interest in the planet (FRA, 2023) Brands are being encouraged to make their own rental, repair, and resale platforms to promote slow consumption and the longevity of their items (BOF studio, 2023) 2 in 3 retailers, who have already invested in resale, say their investment in resale will grow in 2 years and 58% say offering resale options is becoming tables stakes with more than half, with resale programs, stating it gets brought up to the Director/ Board level (Thredup, 2023) By diversifying their revenue streams, they are allowing a different consumer market to purchase reaching eco-conscious consumers.

Patagonia has a Worn Wear program in which consumers are encouraged to send back items they no longer wear and will be rewarded with store credit whether or not the item sells, and you can shop on the website for other pre-loved items (Hirsh, 2023) Carhart announced their resale platform in March

2023 called Carhart Reworked allowing consumers to trade in used items for a gift card, with the only terms being they must be under 10 years old and worth at least $50, items sent in will be added to their Carhart Reworked website for others to shop (Hirsh, 2023) Selfridges also launched their ReSelfridges platform offering ‘fully authenticated’ designer items and now offers rental services in the London and Manchester stores and repair services for pieces to maximise longevity (Mansi, 2022)

Selfridges takes into consideration all three factors to increase your wardrobe lifespan, through reselling, repairing, and renting, they are integrating sustainability into their marketing model leveraging it as a differentiator and a leader in sustainable consciousness (Thorisdottir, Johannsdottir, 2019). Selfridges highlights Project Earth as a sustainable strategy to show its vision of changing the way we shop and do business (Selfridges, 2024). Brands are recognising the growth in resale and exploring circular models to fit the changing economy. Rui Rapazote CEO of Luxclusif, recognised this “Selfridges for example like they actually been playing very well, putting all the models side by side and really engaging into a full on sustainability strategy” (Rapazote 2024: Interview 5)

Figure 15: (Alamy, 2021)

Levi’s and Patagonia have in-store services for customers to send items to be repaired, due to changing consumer awareness of sustainability there has been a need for this (Leslau, 2023) Levi’s is also allowing customisation to make products feel more special and offering guides on how to do it at home online, whilst another jean brand Nudie Jeans is offering free repairs instore and free repair kits to be sent to you at home also offering a 20% discount on a new pair of jeans if you send a pre-loved pair to them (Leslau, 2023) Sojo, a brand launched by a Depop seller who saw a gap in repairs service convenience, provides a delivery service to seamstresses to get consumer ’ s clothes repaired without going instore, following in the footsteps of the luxury brand The Restory which mends clothes, shoes, and bags, linking to the trickle-down theory (Webb, 2021)

Keller’s brand equity model suggests that building strong brand equity involves four components, brand awareness, brand associations, brand loyalty and perceived quality, overall impacting on the purchase intention of consumers (Kan et al., 2015) About Selfridges sustainable model, through launching a resale and rental platform with several brands they are reaching a larger consumer base looking for a specific item for a reasonable price. By creating this platform to sell second-hand Selfridges is creating an association with their brand of sustainability and responsibility which is associated with reselling sites. Selfridges platform will help build brand loyalty as consumers are more aware of sustainable problems in the fashion industry and they can see Selfridges are attempting to make an impact on this. With Selfridges having high-end brands within their stores the quality of luxury is expected, creating a resale platform where they expertly curate and authenticate pre-loved pieces (Selfridges, 2024)

Following Keller’s brand equity model Selfridges have leveraged ReSelfridges as a part of their strategic brand management putting themselves in front of competitors and influencing consumer purchasing intentions If other brands, follow suit they will see successful use of their resale platforms as well as greater brand equity.

Figure 16: Dimension of brand equity (Semanticscholar, 2014, 2024)

The cycle of trends happens from emerging, gaining popularity and eventually declining over time. The trickle-down effect relates to the effect that occurs when trends are adopted by high designers and celebrities before filtering down to mainstream acceptance (Mohr, 2022). Selfridges is a retailer selling several high-end brands such as Dior, Channel, Cartier, and Gucci (Selfridges, 2024) Through the promotions of reselling, they are setting a standard for other retailers, they are at the start of the line and are required for future retailers and consumers to join with resale and other models such as rental

Both segments of the industry explore sustainable practices within the fashion industry, the secondhand market is paving the way setting impressions of the impact and success they are gaining, from this, traditional fashion retail is adopting second-hand models to improve several factors of their business model, such as environmental consciousness and responsible consumption. Depop, Vinted and eBay highlight the scale of popularity that has surrounded resale showing successful platforms which are fully conscious of environmental impact and overconsumption (Butler, 2023) In contrast, the traditional fashion industry that is adopting resale, rentals, and repairs, is adopting it for environmental consciousness and consumer appeal (Mohr, 2022). Brands such as H&M and Zara are in the talks for providing repair services but questions regarding the quality of the items in the firstplace lead to questions on the true intentions behind adopting it, with environmental records facing pressure this could be the cause (Agrawal, 2023)

Beth Arthur, sustainable marketing strategist, commenting on the suggestion H&M may start repairs in stores:

Figure 17: The Trickle down approach (Mohr et al., 2022)

H&M and Zara have already had issues not fully disclosing environmental initiatives and breaking clothing recycling promises making the idea of repairs contradictory to helping the planet with the lack of change in other areas through Greenwashing (Costinhas, 2023) (Adegeest, 2023) Leveraging sustainability in their marketing strategy is an important factor for today's consumers as conscious consumerism is on the rise.

This chapter delves into the transformative role sustainable business models are having on the fashion industry, with a focus on the second-hand market and the integration of sustainable practices from traditional fashion retailers. The surge in popularity of the second-hand market through apps such as Depop, Vinted and eBay, has offered greater accessibility to consumers to shop consciously through resale and rental. Offering repair options keeps the longevity of items going and allows consumers to consider second-hand. The cultural shift in fascination towards pre-loved fashion through social media should encourage the possible future growth.

Traditional fashion retailers are adopting and embracing second-hand models such as Patagonia’s Worn wear program and Selfridges ReSelfridge platform both showing success (Patagonia, 2024) (Selfridges, 2024) However, controversy does lie with fast-fashion brands attempting to adopt second-hand business models when they already have a history of greenwashing and environmental controversies such as H&M and Zara (Costinhas, 2023) Both segments of the fashion industry are responding to consumer demand for sustainable solutions albeit with varying degrees of authenticity. Traditional retailers are navigating challenges adopting the practices whilst second-hand is still seeing remarkable success. Ultimately, the impact of initiatives depends on the genuine commitment of brands to sustainability and their ability to drive change within the industry.

Exploring the environmental and social impacts of second-hand fashion showed mostly promising results for the industry, however, second-hand fashion can only be truly sustainable if there is a change to the source, looking at paying fair wages to the production line and creating a sustainable manner (McDowell, 2023) As consumers we need to value our clothes to understand how much they are worth and see them as an investment piece, but with the fast-fashion model around there will continue to be environmental degradation and worker exploitation (McDowell, 2023) Shopping second-hand reduces carbon footprint and by extending the lifecycle, it’s in turn decreasing resource consumption, energy usage and textile waste but rental and resale have shown factors suggesting the processes aren’t as sustainable as once thought (Laurastar, 2020) Buying second-hand feels more morally right than buying fast fashion and therefore there is a lack of guilt associated, however, this lack of guilt allows consumers to turn to overconsumption from trend cycles and microtrends forming the need to always have the latest trend. 84% of all donated clothes are sent to landfills so the key to buying sustainably is to buy less and pressure fast-fashion companies to change the way they produce (Makey Myers, 2024)

Triple Bottom Line T heory:

The triple bottom-line framework evaluates sustainability performance based on three main points, economic, social, and environmental factors (profit, people and planet) (Park et al., 2016) Resale within the second-hand fashion market has contributed to economic sustainability through the circulation of goods and fostering a circular economy where items are reused and revalued generating revenue for sellers and the resale sites facilitating transactions, with Depop earning $85 million in 2021, in revenue with $552 million in annual gross merchandise sales in 2022 Saving money is one of the biggest factors in purchasing second-hand and the second is to be more sustainable (Perkins, 2023) Vinted currently in terms of revenue is 4 times larger than that of Depop showing the

success of resale apps (Curry, 2024) This resale market offers opportunities for individuals to earn an income by turning idle assets into financial resources, stimulating consumer spending Social benefits associated with resale represent the communities created and the relationships between buyers and sellers, they serve as an online platform consumers can connect By enabling individuals with limited disposable income to buy without comprising their budget. The environmental benefits include several factors mentioned before such as the reduction of carbon emission and waste production but by prioritising reuse over disposal consumers are reducing the demand for new products. The secondhand market contributes to the triple bottom line theory showing social, economic and environmental benefits highlighting it as a key pillar in the contemporary fashion industry as a sustainable solution.

With resale seeming positive concerning sustainability there is doubt about rental with suggestions it may fuel our fashion appetite for clothes (Gmyrek, 2024). Whilst renting one piece of clothing can save up to 24% water, 6% energy and £% Carbon dioxide emissions, in comparison to new clothing, rental is not synonymous with sustainability (Gmyrek, 2024) Instead of peer-to-peer often rental platforms are online, according to Steven Curtis a researcher at Sweden’s Lund University, it is called Share-washing indicated through his studies that “access-based models can actually induce higher consumption patterns – feeding the industry’s over-production and hyper-consumption problem” (Gmyrek, 2024) Suggesting rental is feeding the consumers overconsumption rather than promoting conscious consumerism supporting Lou Stokes, sustainable fashion expert, where she stated “is this just an excuse for overproduction and overconsumption? (Stokes 2024: Interview 11)

Industry analysts are now saying brands adopting rental business models such as Urban Outfitters and American Eagle in America, are attempting to appeal to conscious consumers, with experts stating they don’t know if rental is sustainable yet (Cline, 2019). Considering the return and delivery of items the transportation of the item in a vehicle will cause carbon dioxide to be emitted, and delivery is second to the manufacturing of clothes as the largest footprint according to a study by Roos et al , (2015). Suggesting the rental market could be counteracting its environmental efforts.

Where sustainable concerns are surrounding rental brands such as My Wardrobe HQ, the UK’s first rental marketplace, which are combating this with sustainable choices for delivery by partnering with Green Courier “the UK’s leading environmentally friendly” courier company, by addressing the issues

threatening sustainability in the product cycle will help to make rentals impact prominent in the fashion industry (MyWardrobeHQ, n.a) The chair of MyWardrobeHQ, Jane Shepherdson, stated “I should say that I don't for one minute think that rental is THE answer, merely one plank on the bridge to a more sustainable industry. We try to be as sustainable as we can in the moving of stock - electric as much as we can, and in our ozone and spot cleaning of the clothes. As a lot of our business is in London at the moment, this is achievable, but will become more difficult as we grow” (Shepherdson 2024: Interview 10)

One of the key reasons second-hand has been so successful over the past years is due to an increase in awareness for sustainable practices, after understanding the impact fashion has on the world, with 10% of global carbon emissions coming from fashion production (Maiti, 2024). Fashion causes pollution in rivers and streams whilst 85% of textiles go to landfills each year and from clothes that are kept and washed, they are releasing 500,000 tonnes of microfibres into the oceans each year (Maiti, 2024)

Statistics like these are becoming more and more publicised reaching more consumers influencing them to make conscious choices to help make less of an impact than is already being done but consumers still free brands could do more with a consumer stating “I think they should put more statistics on how sustainability can actually benefit the environment so more people are aware and then more people will be incentivised to use it”(Appendix 4: Focus group 1) and “People are hungry for that sort of information I would say 9 out of 10 customers ask about where the products have come from and how they were made”(Appendix 4: Focus group 2) suggesting there is still lack of information. Looking at motivations for second-hand purchases 75% of survey participants from the US, UK and Australia stated “reduce consumption” was their biggest motivation for purchasing on Depop supporting the increase in consciousness (Sabanoglu, 2021). As well as consumers changing opinions trends are shaping the second-hand market with the capsule wardrobe trend/campaign and buy five items sell five items this year trend both becoming popular over social media sites. These trends are setting the tone for a new fashion industry focused on improving their impact on the world.

Capsule wardrobes limit the amount of clothes in your wardrobe focusing on quality, longevity, minimal design, and classic, timeless pieces, creating a seasonal mix of pieces that can create several outfits throughout all seasons (Bardley et al., 2022) It has been around since the 1980s when Donna Karen introduced a “seven easy pieces” collection encouraging consumers to use the during the day and at night (Waldow, 2024) Linked to the rise of fast fashion and influencer’s need to post a new outfit in every social media post, overconsumption was at a high but so was the backlash of fast fashion, whilst consumers wanted to create fashionable outfits, they also wanted to create a wardrobe which is timeless and sustainable, which grew the capsule wardrobe trend (Eggenberger, 2024) The key takes to creating a capsule wardrobe is to invest in solid basics, create a capsule for the life you live, don’t be swayed by trends through these steps you can ensure you are buying items you will truly enjoy and use, capsule wardrobes allow the consumer to appreciate the wardrobe they have and the value (Eggenberger, 2024) In terms of second-hand, consumers should consciously look for quality pieces and use them for as long as possible, avoiding overconsumption.

Buying less and buying better is a key feature going into the coming years and the buy 5 sell 5 a year or “rule of five” campaign/trend has caused the consumer to consider their purchases, looking at quality and price as well as how badly they need the product (Chan, 2023) The campaign was started by Tiffanie Darke a fashion consultant in 2023, she wanted to give a radical but doable number to ensure you love the items you choose, and she found by cutting out purchases she used rental, altercation, swapping and unworn more (Darke, 2024) Emily Chan, vogue ’ s sustainability editor took this challenge and found impulse buying was one of the biggest causes of purchasing and by the end, she no longer found herself endlessly scrolling on resale sites for the next find (Chan, 2023) The trend of buying five and

Figure 18: (Vogue, 2023)

selling five forces consumers to slow down their consumption and understand the true cost of each product they purchase.

Through sustainably focused trends such as upcycling “throw away fabric,” consumers and fashion brands are creating unique pieces with less detrimental impact on the world, brands such as DKNY creating a bottle SS collaboration (Kim, 2015). “There has definitely been a move towards alteration, mending, and upcycling which can only be a good thing” (Shepherdson 2024: Interview 10 ). Trends in sustainability are swaying away from being a trend but instead marking a stable activity kept in the consumer ’ s life, changing it to a lifestyle (Kim, 2015) Each trend promotes buying second-hand and reimagining products, appreciating the time and effort put into them initially.

“So what we see here is a much more positive attitude which actually triggers this circularity because with more people buying, there are more people selling as well, which actually triggers the overall growth of the industry”(Rapazote 2024: Interview 5)

Consumer attitudes towards shopping second-hand have taken a shift to embracing sustainability with resale growing 15x faster than broader retail clothing sectors in 2023 (Thredup, 2024) This shift is causing a circular fashion revolution as more and more consumers are researching how to shop second-hand. The second-hand market is playing a pivotal role in promoting responsible consumption and addressing social and environmental issues that fast fashion deals with. ThredUp’s 2024 Resale report highlighted 60% of consumers purchasing second-hand feel they are getting more for their money and 41% said when seeking a deal second-hand is the first place they look (ThredUp, 2024) With more consumers choosing to shop second-hand and 47% saying the resale value of a purchase is important, it is clear brands need to support this consumer need with 26% stating they

are more likely to shop with a brand that offers second-hand apparel (ThredUp, 2024) Consumers are actively seeking sustainability in fashion 42% of consumers believe the government should take legislative action to help promote sustainable fashion with 43% of consumers stating the government isn’t doing enough to lessen the impact of fashion on the environment.

As well as being conscious of the environmental issues of the fashion industry and choosing sustainable alternatives, resale is also being fuelled by social media trends on sites such as TikTok and Instagram to create “Depop girlies” (Benson, 2024). Known for buying second-hand items in charity shops or car boots and then reselling on Depop or Vinted profiting from the cheaply bought items. (Hartig, 2022).

Consumers are seeing the business side of buying and selling second-hand, especially for Gen-Z with them making up 90% of Depop users (Antino, 2023)

Figure 19: (Vogue, 2022)

The diffusion of innovation theory can be used to examine the growth of the second-hand market through consumers by explaining how behaviour and trends spread over time proposed by Rogers in 1962 (Workman and Lee, 2017) Innovators and early adopters start the initial shift towards embracing second-hand shopping and sustainability, these individuals are often more open to new ideas before they are widespread. Early innovators of second-hand shopping recognised the importance of environmental and social change before others (Irick, 2013). Early majority and Late majority are the second groups to gain momentum, appealing to a broader audience influenced by the increased visibility of sustainable practices and the economic benefits of buying pre-loved clothing with the growth of Depop helping the accessibility. Laggards are slower to embrace practices and are hesitant to change needing more time to be persuaded to change (Irick, 2017). But as second-hand becomes more widespread and consumers grow older more generations will grow up consciously thinking about sustainable practices. If laggards have not taken up second-hand shopping already, they likely will in the coming years (Irick, 2017) Social media has had a huge influence on encouraging consumers to change their shopping patterns, whether that be by informing them of the damage the fashion industry does to the environment or by suggesting alternative sustainable models to use instead.

Figure 20: Diffusion of innovation theory (BUMC, 2022)

According to the theory of consumption values 5 different values influence an individual decision to purchase, functional value, social value, emotional value, epistemic value, and conditional value (Koay et al., 2022). Offering three assumptions “consumer choice is a function of multiple consumption values”, “the consumption values make differential contributions in any given choice situation”, and “the consumption values are independent” (Koay et al., 2022). This theory was modified by Chun to propose 5 unique values to upcycling, social value, emotional value, functional value, economic value, and eco value (Koay et al., 2022).

Concerning the second-hand market specifically, the social value of shopping second-hand is the fact you are finding like-minded individuals who have the same priorities, some consumers also feel a social responsibility due to the reduction of environmental footprint. For emotional value, shopping second-hand can offer a sense of nostalgia but can also evoke a more moral feeling for choosing second-hand. The practical benefits or functional value is saving money and finding a unique vintage finds whilst stimulating the growth of businesses online, a local businesses on the high street which is an economic value. The second-hand market embodies eco-value promoting sustainability and reducing environmental impact.

We can see that the second-hand market has grown exponentially in the past decade but there are still factors which are influencing it to expand further The Fashion Transparency Index by Fashion Revolution, states three main areas that need to change for the fashion industry to improve, policy change, cultural change, and industry change (Fashion Revolution, 2023) To make a real difference in

Figure 21: The theory of consumption values (ResearchGate, 2024)

the world, the fashion industry needs to address the damage caused by the fashion industry at its source and production line. Brands must recognise their mistakes and make changes if they want to succeed in a sustainable industry Overcoming stigmas associated with the second-hand market will take a significant barrier away to then expand the second-hand market further. Some consumers still perceive second-hand items as inferior or low quality in comparison to new ones due to charity shops being created to support lower-income individuals, but these consumers don’t understand that some items sold are brand new or in perfect condition (Sensiblyfrigaliving, 2022) One of the biggest challenges is the limited inventory selection as items are often available in just one size, which discourages customers from finding a suitable item that they like and that fits Concerns surrounding quality and trust in the seller is another deterring factor, with some consumers receiving falsely advertised items and then having negative experiences with the seller when trying to sort the issue. Instagram accounts such as DM Drama (Depop Drama), have amassed over 600,000 followers showing disputes between Depop and vinted sellers and buyers, highlighting the negative side of shopping second-hand (Savin, 2024)

Industries need to change in the first place, calling for more change from the government to make harsher legislation and policies which will force fashion brands to rethink their environmental impact is the best way to show as the consumer how much your care. Educating more consumers through awareness campaigns will be able to reach more people helping to level the playing field between new and second-hand products. Earlier this year in January HMRC said as part of a crackdown on side hustle tax sellers on Vinted, eBay and Depop are required to report their seller information, with the government stating it would help “bear down on tax evasion” (Smith, 2024). This upset a lot of sellers who were earning more than £1735 a year but it was not their full-time job, meaning money from an extra side hustle was now having to pay tax on it (Smith, 2024) Initiatives like this are putting off sellers from uploading items reducing the amount of second-hand items sold, sellers are trying to find sites which will not tax them, with one Twitter user stating “The folk I know who use Depop are all students selling second-hand clothes they got from charity shops trying to get enough money to eat. Ludicrous” (Muir, 2024) There are several challenges and barriers affecting the expansion of the

second-hand market but by changing policies, culture, and the industry surrounding fashion the second-hand market can grow further

Chapter 5 highlights changing consumer opinions and trends surrounding the second-hand market as well as addressing challenges which are hindering the growth of the market. Examining the environmental and social impacts of the second-hand market fashion which is showing promising results, but true sustainability requires addressing sourcing issues. Despite examining reducing carbon emissions and extending product lifecycles, concerns have raised surrounding rental’s sustainability and its potential to fuel overconsumption. Through theories such as the triple bottom line and theory of consumption value the author was able to gage an understanding behind consumer intentions and why they choose or don’t choose second-hand. Overall, the chapter underscores the complex interplay of values, trends, and obstacles shaping the second-hand market's trajectory towards sustainability and widespread adoption.

Figure 22: “I don’t shop, I Depop” (Theindustry, 2023).

The overall purpose of this dissertation was to show the extent the second-hand market is growing and understand the potential it must grow even further into the future, understanding the challenges and barriers hindering this expansion and the model supporting the growth. Through primary and secondary research to determine the immersion of the second-hand market and how brands are beginning to corporate resale business models, this was met.

The research followed 5 objectives, the first being to identify challenges and barriers which may hinder the expansion of the second-hand market considering possible stigmas or quality concern. The second-hand market has several challenges which is impacting it, such as the lack of governmental support as well as the growth of fast fashion and microtrends fuelling overconsumption. The stigmas surrounding second-hand fashion seems to be slowly reducing as more consumers are choosing to purchase second-hand with it being the first choice for some consumers. The second objective investigated the social and environmental impact the second-hand market has on the fashion industry, resale apps and online marketplaces The second-hand market contributes to a reduction of waste materials and encourages conscious consumption, overall causing an impact on the environment by reducing the amount going to landfills. The social impact of the second-hand market creates online platforms which likeminded individuals who can purchase from each other, Vinted and Depop allows for communication between seller and buyer creating a relationship between the two.

The third objective examined fashion brands and how they build sustainable models, by following Selfridges the Author was able to understand the steps they take to create a sustainable strategy Selfridges involves resale, repair and rental in their strategy representing all major models in the second-hand industry (Selfridges, 2024) Looking at brands that are in the talks for repair services showed the interest in the fashion industry to expand into second-hand whilst also outlining those that are already succeeding. The fourth objective investigated the expansion of the second-hand market considering sustainable trends and consumer preferences. The expansion of the market has been huge, we can see it in the brands involving themselves as well as by industry individuals and what they are stating in relation to the expansion It’s going to be a huge market which is already seeing success due to economic factors such as the cost-of-living crisis. The fifth and final objective compared sustainable practices and their effect on consumer shopping patterns. The author outlined the difference in opinions on different resale models with varying perspectives on rental and resale and whether these platforms are truly sustainable, or a guilt cover up for overconsumption.

The potential of the second-hand market as a sustainable solution in the contemporary fashion industry is ever growing and shows huge potential in today’s market, with greater consumer concerns on the environment and pressure being put onto brands from consumers and wider governmental pressures.

Recommendations can be made for fashions retailers in the industry as well as online second-hand fashion retailers specifically. Consumers are going to continue shopping second-hand due to sustainable awareness in the fashion industry suggesting the second-hand market will grow. By implementing these both fashion retailers and second-hand retailers can position themselves as laeders in the circular fashion revolution.

Online Second - hand fashion retailers

Online second-hand retailers should prioritise the speed of uploading items to stay competitive with other retailers. Enhancing the user experience will encourage more consumers to get involved. Offering bulk services or more automation features will create a user experience which is quick and more convenient. By focusing on Swift time uploads retailers can maintain dynamic inventory, this will help online resellers who have large amounts of uploads, overall enhancing the buyer and seller journey. Adding more sustainability messaging and encouraging conscious consumerism with consumers will help to have consumers that care about the environment and are buying second-hand for the right purposes and not just for trends and overconsumption because that is where the issues lie Online fashion retailers need to take advantage of their features, by streamlining their listing process they will enable consumers to have an enjoyable experience on the app or the websites. Online-fashion retailer need to ensure that interest grows and does not slow, resale is helping to decrease waste and without the fashion industries impact will be eve more impactful.

Traditional f ashion retailers

The biggest recommendation is to include circularity in their business model as it is one of the leading models influencing second-hand purchases and encourages sustainability Using their platforms as a brand, they can reach more consumers educating them on the importance of second-hand. Implementing rental, resale, repair services as well as take back schemes to extend the products longevity that the brand is offering. Fashion retailers also need to be more transparent because consumer is becoming sceptical of brands intentions due to them lying about their environmental

initiatives. Making sure the brand sticks for what its stands by will be the biggest course for success in the growing industry surrounding sustainability Fashion retailers in the traditional industry have a huge amount of responsibility because so many consumers look up to them as well as other brands, retail brands need to set the tone for the industry and make a stance against overconsumption and the damage the industry is doing to the world. Without change brands will struggle to succeed as more and more consumers are choosing to only shop sustainably.

For consumers, making yourself aware of the damage the fashion industry is doing to the planet and educating yourself on how you can help decrease this will allow you to make conscious choices which are making a detrimental impact negatively. Change is needed now more than ever as more consumers are choosing sustainability there is greater need to be conscious with your choices. Understand the value of the clothes you have and consider only purchasing items that have longevity or that you will wear for several years. Trends are causing damage in the industry as fast fashion fuels the need for new clothes monthly, instead of purchasing from fast fashion brands get involved in playing an active role in the sustainability journey through using resale apps such as Depop and Vinted to resell your own clothes and promote a circular fashion.

For this study the author advises focus groups of specific ages ranges in each group, looking into the generational perspectives and more specifically if second-hand resale is being passed through generations, with Gen-Z currently being the leading group. Conducting more in-depth analysis of the consumer attitudes and behaviours will highlight more barriers which are impacting the expansion of the market and exploring specific demographics and cultures will show how second-hand varies around the world, and whether this is a worldwide trend Comparing the sustainable performances of the different resale models in relation to social and environmental impact will show how well the models are doing in the world of sustainability further proving or disproving the idea that secondhand as a sustainable solution

As technology grows and improves in the world using this to improve and analyse the sustainable market will help to study how it can be improved further. Exploring new emerging technology in efficiency, transparency and sustainability of second-hand retail operations will show models that are successful at improving this market. Investigation surrounding the adoption of blockchain, artificial intelligence and virtual reality, all key players in the world of fashion. A study on the effects of these in the second-hand market would show consumers different experiences or elevate the way consumers shop on the resale platforms or in-store second-hand markets.The use of rental can be further researched to determine whether it is truly sustainable as there is still lacking research on the true impact it is making and whether its positive or negative for the fashion industry.