Traditional ‘linear’ economic models have dominated business thinking for decades. And while these models excel at measuring outputs and financial transactions, they fail to account for hidden costs – such as resource depletion, waste management and supply chain vulnerabilities, which directly impact operational efficiency and profitability.
Circular economics presents a strategic alternative that’s becoming increasingly important for fashion and lifestyle brands to understand and leverage. Unlike traditional models, circular approaches can help to optimise resource utilisation, reduce waste-related costs and create more resilient supply chains.
In the latest episode of the Beyond Threads podcast, Bleckmann’s Erik Janssen Steenberg and Nicole Bassett discuss how fashion businesses can benefit from adopting a more circular mindset within their existing operations.
Rethinking economic models: From linear to circular
The transition from linear to circular economics represents a fundamental shift in how businesses conceptualise value creation and resource management. This paradigm moves beyond the conventional ‘take-make-waste’ framework, instead emphasising regenerative systems that prioritise resource efficiency and waste elimination.
As Nicole explains, “We have to start evolving our thinking about an economy that isn’t just about financial transactions but also considers environmental and social well-being. Businesses that embrace circularity will be well-positioned to thrive in this new paradigm.” Circularity can therefore be a valuable differentiator for forward-thinking fashion brands, as well as bringing a number of operational benefits.
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Transforming cost centres into revenue streams
Indeed, implementing circular models can transform traditional cost centres into potential revenue streams. Where linear models simply view end-of-life products as waste that requires disposal, circular frameworks recognise these materials as valuable inputs for future production cycles. This creates opportunities for enhanced profit margins while reducing operational risks – not to mention regulatory ones.
First steps towards implementing circular frameworks
An increasing number of fashion brands are turning to circular models as a way to address mounting concerns around the environmental impact of fashion. But knowing where to start can be a challenge. Implementing circularity in fashion involves more than just product design; it also encompasses comprehensive lifecycle engagement strategies, such as take-back programmes, repair services and material recovery systems. Catch the next episode of the Beyond Threads podcast to find out more!
Ready to discover the business case for circular solutions in fashion? Press play on the Beyond Threads podcast to get the full story, or get in contact for a free consultation with a Bleckmann expert!
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Transcript
Erik (Host):
Hi there and welcome to another episode of the Beyond Threats podcast by Blackm. As always, I am your host Erik Jansburg, and today we will be looking into what is developing and what the trends are in fashion and lifestyle supply chain management and fulfillment. Today, we’re going to explore circular economy models and their role within today’s economic landscape.
For that, I am joined by Nicole Bassett, Circularity Lead at Blackmon. Nicole, you spend a lot of time looking at microeconomic trends and how circular business models fit within those trends, and I’m very happy to have you here. Welcome to the show.
Nicole (Guest):
Oh, it’s wonderful to be here. Thank you, Erik.
Erik:
Absolutely. And of course, you—the viewer and listener—will have already realized Nicole has been here before, so we’re proud to have her back as our go-to person for the questions we’ve lined up.
Nicole, for the people who haven’t had the pleasure yet, could you briefly introduce yourself and help us understand the current economic landscape we’re seeing day to day, how we got here, and what it means for businesses navigating circularity?
Nicole:
Certainly, it’s an absolute pleasure to be here. I’ve been working at the intersection between business and sustainability for about 20 years, and I’ve always been fascinated by the relationship economics has with the ecosystem and society that it relies on.
To talk about the current economic state, it’s helpful to think about how we got here. Economics is not new—it’s the system in which goods and services are produced, distributed, and consumed by a society. That’s been happening since there were humans, and it became more refined as a discipline around ancient Greece. Since then, things have evolved enormously.
As people tried to understand what’s happening in the world and in trade, we developed different metrics to measure economic health. Most people will have heard of the most famous metric: gross domestic product, or GDP. It measures a country’s output and became the dominant metric in the 1950s. While that was a long time ago, it’s also not that long ago.
Its creator, economist Simon Kuznets, warned that GDP is just one metric and does not measure overall well-being. Since then, we’ve added other metrics like inflation rates, employment statistics, and consumer sentiment. But these only tell part of the story, because they’re very financially focused.
They fail to account for other things that have immense value, such as clean air, clean water, mental and physical health, and social equity. These have traditionally been called “externalities,” meaning they sit outside the financial world and have largely been excluded from economic models—even though they are essential.
As a result, what we’re seeing now is a growing number of forward-thinking businesses and economists exploring alternative models that integrate economic prosperity with planetary and social well-being.
Erik:
That’s fascinating, because what you’re saying is that the models most people know don’t really work with circularity. We’re omitting components of our economy that should be the most important to us, which doesn’t make much sense.
So you mentioned alternative models—what are they, and how do they allow circularity to play a role?
Nicole:
Exactly. It seems obvious in hindsight, but it’s surprising when you ask why we don’t measure ecosystem health or clean air or clean water.
When I started this work, we talked about “people, planet, profit” as if they were three separate buckets. But you don’t get to have an economy without a society, and you don’t get to have a society without a living planet. These things are part of one interconnected system.
That’s why many economists and practitioners are now advocating for systems thinking—a holistic approach to economics that recognizes this interconnectedness.
One framework I really like is Doughnut Economics by Kate Raworth. As the name suggests, the model looks like a donut. The outer ring represents planetary boundaries—limits we cannot exceed without causing serious harm. The inner ring represents social foundations, such as access to food, water, clean air, and basic well-being.
The goal is to operate within the space between those two rings—to do business inside the donut.
Similarly, the circular economy moves away from the traditional linear model of taking raw materials, making products, selling them, and throwing them away. Instead, it focuses on designing products and services for longevity, reuse, and regeneration. There’s no “end of the line”—resources are brought back into the system, increasing efficiency and resilience.
Businesses that adopt this way of thinking are going to be very well positioned in the future economy.
Erik:
It sounds like some of us are becoming more aware. You need awareness before you can act and improve.
But given today’s volatile geopolitical developments, why is now the right time for businesses to invest in circular models?
Nicole:
I come back to reality—what Al Gore famously called an “inconvenient truth.” Even if you’re a business leader who only cares about strategy and growth, you know the economy of the future won’t look like today’s. You won’t be able to rely on the same resources.
There’s a reason we can do business today: the current conditions of the Earth. We can grow cotton because the climate allows it. We can ship goods across oceans because environmental and geopolitical conditions permit it.
But that stability is at risk. The last ten years have been the hottest ten years on record. We’re also experiencing massive biodiversity loss—around 27,000 species go extinct every year. These changes directly affect the ecosystems businesses depend on.
So companies are asking themselves how to design their products, supply chains, and business models for this future reality.
Consumers are also stepping up. Many are saying they don’t want to be complicit in the problem—they want to buy from companies doing the right thing. Some are even starting their own businesses to address these issues.
On top of that, regulation is pushing this forward. Europe has very progressive laws around circularity, and several U.S. states are introducing policies like extended producer responsibility and carbon accounting.
This is the “green wave” we’ve talked about before—legislation, consumer awareness, and businesses all moving in the same direction.
Erik:
That’s the change you mentioned earlier—people wanting to be part of the solution, not the problem.
Nicole:
Exactly. These forces may not dominate culture yet, but they exist, and they are pushing the economy in this direction.
Erik:
Thank you very much for being with us today. Unfortunately, that’s all the time we have, but there will be a part two. So stay tuned for the next episode of Beyond Threats by Blackmon. See you soon.
