Targeted approaches to tackle the persistent “attitude-action” gap
One of the key roadblocks to the scale-up of circularity in fashion is overcoming the ongoing division between what customers say they’re prepared to do and how they behave in reality. This is known as the “attitude-action” gap, and addressing it is a top priority for brands invested in taking sustainable practices beyond the pilot stage.
This disconnect is addressed directly in Zalando’s recent It takes many report, which highlights the barriers preventing shoppers from acting on their good intentions.1 While 71% of customers surveyed say they want to buy more sustainably, significant obstacles are identified to making this a reality. Top of the list (for 44% of shoppers) is price. However, a range of other considerations is also cited, including the difficulty of identifying sustainable fashion items (27%), not knowing where to shop (24%) and lack of trust in companies’ sustainability claims (19%). In short, it appears that both ‘awareness’ and ‘consideration’ are high across the board, but converting this positive sentiment into consistent action will require targeted work to tackle key roadblocks.
71% of customers surveyed say they want to buy more sustainably
Targeted initiatives, impactful results
Ensuring circular fashion models succeed is, of course, inextricably linked to the changes in the fashion market. The most recent State of Fashion report by McKinsey and Business of Fashion identified two key trends that are significant for brands looking to increase circular buy-in: the twin emergences of the new ‘post-luxury white space’ and the ‘aspirational value-driven middle’. Meeting the needs of these two customer bases requires a deep understanding of what value circular fashion brings to them, specifically.
The post-luxury circular opportunity
As noted in State of Fashion 2026, considerable white space has opened up at the higher end of the fashion market in recent years.2 This is due to the ‘pricing out’ of former luxury shoppers, who are also responding to a perceived drop-off in cost-to-value combined with questions around sourcing. This has benefited ‘premium/bridge’ and affordable luxury players such as Ralph Lauren and Coach. Interestingly, Coach is also ranked among the top 10 circular brands in the annual Kearney Circular Fashion Index.3 Its approach to circularity demonstrates a well-adapted strategy that clearly resonates with the (younger-skewing) ‘post-luxury white space’ shopper. In particular, its Coachtopia sub-brand foregrounds circularity as a valuable brand-building asset, with a range of distinctive bags made from materials that would otherwise have gone to waste.4
Rather than simply creating a separate ‘resale’ section on its website, Coach has positioned its circular offering as a ‘hip younger sister’ to the main brand. This has the advantage of introducing brand-new customers to the Coach world. In addition, Coach offers ‘complimentary lifetime leather care and cleaning’ at Coach stores for all Coachtopia products. This is, of course, a fantastic way to get more customers through the door and foster lasting relationships with them. Coachtopia provides a clear business case for implementing circularity in this segment, targeting customers who are looking for luxury levels of quality and customer care without such high-end price tags.
Winning with the ‘aspirational middle’
But what about more price-sensitive customers who nevertheless prioritise quality and design? Circular business models can help to meet these dual requirements. One successful example is H&M’s resale platform, H&M Pre-Loved. Operated in collaboration with Swedish resale platform Sellpy, it presents a ‘secondhand edit’ of H&M Group brands and beyond, including designer collaborations and independent labels such as France’s Sézane. For customers looking to upgrade their wardrobe with carefully selected pieces at an affordable price point, it’s an ideal solution. In addition, just like Coachtopia, H&M Pre-Loved provides valuable brand-building benefits. This was particularly visible in the recent limited-edition H&M Pre-Loved Archive collection.
Delivered in collaboration with Bleckmann, Pre-Loved Archive presented an editorialised, tightly curated premium assortment from H&M’s back catalogue of designer collaborations, including Karl Lagerfeld, Versace and Kenzo. The premium appeal of Pre-Loved is underscored by its inclusion in H&M’s recently opened Marais concept store in Paris – a key strategic goal of which is to further elevate its positioning in this key market.5 This taps into the desire for discovery, uniqueness and storytelling that circular fashion offerings can deliver so well. Indeed, a recent report published by BCG in collaboration with French luxury resale platform Vestiaire Collective identified ‘Variety of choice and uniqueness’ and ‘Fun, thrill of the hunt’ as top drivers to buy secondhand (behind ‘Affordability and value’).6 It’s therefore no surprise that more and more platforms are leaning into the discovery aspect of circular, with features such as AI-powered personalised product recommendations becoming increasingly common.
Sparking curiosity, driving loyalty
As circular business models become an increasingly accepted part of the fashion ecosystem, the question of differentiation is looming larger in the minds of adopters. As with all aspects of the commerce experience, from transport to storefronts, customer experience is key to persuading a shopper to choose your circular service over a competitor’s. This has led to an increasingly visible battle for loyalty among leading players and brands engaged in circular models. This steady investment in customer experience appears to be paying dividends, with platforms such as Vinted achieving profitable growth,7 and Norway’s Tise being acquired by eBay in September of this year.8
However, for brands looking to enter the circular space, the increasing professionalisation of the resale and broader circular space poses a dilemma: how to compete for customers who are accustomed to higher levels of circular service? In response, more brands are turning to third-party white-label resale platforms such as Trove and Archive. These ‘white label’ players, often together with logistics providers, can support clients to deliver branded resale while reducing the need for capital expenditure. Crucially, brands can retain ownership of the customer experience, ensuring that they hit the ground running and reap the brand loyalty benefits of circular.
So, whichever emerging segment customers fall into, their circular hangups – as identified in Zalando’s It takes many report – are steadily being addressed. Whether it’s price, ease of findability or transparency (see chapter 8), the combined forces of technological progress and industry-wide normalisation are providing workable solutions. Deep and value-adding circular integration is now an operational reality. It’s up to brands how they use it, whether it’s providing a more affordable entry point for high-end products or adding aspirational pizzazz to elevate brand image. The mistake isn’t missing out on the circular opportunity. It’s missing out on the right circular opportunity.
