The potential of circular business models in the apparel market continues to grow - more and more experiments and pilot projects in the rental and resale of clothing are being launched and market growth is outpacing traditional retail. DFT offers technology to organize warehouse logistics for the remarketing of clothing. This includes sorting garments, accessories and shoes according to various criteria into different destinations, integration with cleaning technology and temporary storage.
Collected garments must undergo a series of processing steps (for example: sorting, cleaning, repairing, labeling and re-merchandising) in order to prepare them for resale or re-rental. The basic “make or buy” decision should be based on the expected throughput and necessary work steps. With its technology, DFT initially supports a manual, semi-automatic or fully automatic warehouse with goods receipt, storage and goods issue. Working with a solution provider (3PL) to outsource all or part of the work steps can also be a good way to reduce costs and improve the business case. DFT will be happy to help you find a suitable solution provider.
A strong business case will help your rental or resale offering to successfully scale and, over time, displace the traditional linear offering. In addition, you need a strong and healthy business case to secure the necessary resources to develop and launch a pilot and ultimately implement the model. While there are many ways to optimize this case, it is important to also consider the value it brings to your customers, as well as the environmental and social impact of the model on society.
Ideally, a new circular business model is designed in such a way that it fulfills three key criteria for success:
Creating Value
It must have a value proposition that is convenient and affordable for your customers.
Profitable business model
It must have a financially viable business case that can compete with the primary business model and even cannibalize it over time
Sustainability
It must have a net positive effect on people and the planet.
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