The circular fashion market : engagement, acquisition, retention
Return on the webinar of the October 5th 2021
As part as the digital transformation program "DIGITAL@MODE", the DEFI and Creative Valley address through a series of webinars, the different challenges of digital. Return on the October 5th event, which had for theme the circular economy digitalization in the fashion sector.
During this webinar, we were pleased to welcome Aymeric Dechin, co-founder of Faume, a company that offers a technological and logistical solution to brands wishing to launch their second-hand offer, and Alexis Collon, co-founder of Redonner, a platform that rewards customers for donating clothes with benefits from partner brands
This exchange, animated by Carole Barkatz has raised many questions around the issue :
"How to get into the circular fashion and make it a lever for engagement, acquisition and retention ?"
What is circular fashion ?
As a reminder, the concept of circular economy is a transformation of the classical production process, to which 2 major features are added : collection and recycling.
An action plan has been voted by the European Parliament in February 2021, which is based on the following 3 main levers : the transition towards sustainable products, making key sectors circular, and finally the management and transfert of waste.
A few figures in order to better understand circular fashion :
62% of french people consume second-hand goods, 48% of whom buy online (according to a Refashion study), especially from a young clientele.
Second-hand is growing 21 times more faster than new products
9 months of extra life for a garment means reducing its carbon footprint by 20 to 30%
The existing solutions
In order to respond to the fashion industry's existing bottlenecks and customer needs as much as possible, Faume has set up an easy and efficient second-hand steering solution for brands.
Through this fast-track system, the company has established a buying experience that is as close to new as possible for both the buyer and the reseller customer :
a 100% integrated white label e-commerce website, impeccable merchandising, an automated pricing strategy (up to 80% discounted), and associated services that meet the quality standards of the new.
The Redonner company defines itself as "the digital solution for collecting, recycling and rewarding your customers' textile donations."
In order to a better production, consumption and recycling, Redonner offers a turn-key solution that allows retailers to collect their customers' clothes and re-engage them in the positive action of a more circular fashion, by revaluing the garment, thanks to plug-ins with partner brands that reward textile donations.
This retention, through rewards, take the form of points (1 garment deposit in one of the 40.000 collection sites = 50 points) and results in discounts, vouchers, free shipping costs... for donor customers.
Benefits and effectiveness of the solutions
Circular fashion is very effective and offers many assets to brands that engage in this approach :
Acquire visibility and embody sustainability by affirming its eco-responsible approach
The set up of a sustainable growth relay thanks to second-hand ;
Acquisition of a new customer base via the reconditioning ;
Retention of an existing customer base ;
Increase in shop traffic and interactions multiplication by the creation of new contact points ;
Generate new incomes (upsell rate +130% thanks to vouchers)
Following this very captivating and interactive exchange with Faume and Redonner, we have been able to understand what makes the circular fashion a major lever for acquisition, retention and conversion.
This new production and distribution economical model paves the way to new market shares for brands, while registering in an environmental virtuous approach.