Circular Economy Suitability Enables a Quality Leap in Clothing Consumption

The circular economy suitability of cars is high. For many, it’s a given, because a car is an investment. In Finland, 600,000 used cars and 100,000 new cars are sold annually, so the market consists mostly of used vehicles. Many also know that a Mercedes holds its value better than a more affordable popular car, and knowledge of resale value influences purchasing decisions. In reality, it’s about better circular economy suitability, even though the circular economy isn’t typically associated with cars. The ratio of used to new cars is 6:1, whereas for clothing it’s only 1:30, meaning only a few percent of all clothing consumption is used items.

Circular Economy Suitability Is a Guarantee of Quality

The value of any brand in the customer’s mind is a combination of the product’s actual quality and its perceived value. The latter is built through image. In addition to physical durability, perceived value is also important in the secondhand market, where the best brands circulate. I myself tolerate my worn Gucci sneakers, even though with another brand, their lifecycle in my shoe cabinet would already be over. A respected brand thus extends the product’s lifecycle, as long as the secondhand market functions. Circular economy suitability is therefore a combination of a product’s durability and its brand value.

Circular economy suitability has quietly become the secret weapon of branders. Marketing departments won’t admit this, but secretly enjoy seeing their products circulate in the resale market, which has become a kind of guarantee of quality. The long life of products as secondhand items also increases the value of new products: a brand that holds its value when used is also a better investment when new. This creates a positive cycle where high-quality products and respected brands thrive—a quality leap enabled by the circular economy. Reima’s children’s clothes or Nanso’s dresses are good examples of circular economy suitability. Both brands are highly desirable and their clothing is of high quality, as proven by their strong position in the used clothing market.

"The poor can’t afford to buy cheap" holds true

One fact that gets little attention in the discussion is that quality also generates income for people: a €150 dress that can be resold for €80 is a better purchase for a consumer’s personal finances than a €100 dress that retains only €25 of its value. Continuously improving resale markets enable people to make higher-quality purchases, which ultimately enrich consumers as the value of newly bought clothes is better preserved. The old saying that the poor can’t afford to buy cheap is thus rationally proven. The enabler is the ever-improving circular economy suitability, where more high-quality products are purchased and they circulate for longer. The growing and developing secondhand market is like a sea whose tide lifts all quality ships and sinks unsustainable junk.

According to research, doubling the number of times clothes are worn would reduce the entire industry’s emissions by up to 44 percent. The quality leap enabled by circular economy suitability thus has a huge impact on combating climate change. And best of all, in a circular economy, we all dress in higher-quality clothes. A change where everyone wins.

Timo Huhtamäki

CEO, Emmy Clothing Company