Adopting the circular economy approach could be an exciting market opportunity for startups and SMEs, given the forecasted market growth and consumer behaviours changes.
Second-hand fashion is expected to gain huge popularity in the coming years as more and more consumers realise the importance of sustainability.
A 2020 report by ThredUp found that the second-hand market is set to hit $64 billion within the next five years, and leading this growth is the resale sector.
Beyond the environmental benefits of adopting a circular economy approach, there are many other benefits for a business.
For one thing, the increasing scarcity of non-renewable resources, ie. Fossil fuels, minerals and metals result in higher resource prices and price volatility.
By adopting a circular economy model, businesses can lower the number of materials they need while still meeting their customers’ needs.
Another way the circular economy benefits business is by ultimately giving you a green image and better positioning of your brand.
Consumers are becoming increasingly aware of the environmental impact of the products they purchase. As a result, they are aligning their purchasing decisions with their sustainability values.
Thinking circular in a business is like looking through a new lens at its operations and revenue model.
This could provide new insights and therefore, stimulate innovation while also offering an opportunity for growth by exploring new niches, which are ideal for startups and SMEs.