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Daily Newsletter

08 August 2023

Daily Newsletter

08 August 2023

SOEX, Circular Republic to ‘close loop’ along apparel value chain

Used apparel, footwear collection, sorting, reuse and recycling provider, SOEX, partners with the Circular Republic initiative to close the loop along the entire textile value chain.

Isatou Ndure August 08 2023

SOEX and Circular Republic seek to transform the traditional linear system of "produce, consume, dispose" into a continuous and sustainable cycle.

The working group, known as the "Circular Textile Platform," embraces the philosophy of waste reduction by promoting the prolonged use of resources, ultimately striving for a world without waste.

The joint efforts will explore new circular structures, transforming the vision of a waste-free world into reality, by collaborating with a diverse network of companies, initiatives, stakeholders, and representatives of scientific expertise united under the Circular Republic Platform.

Founder of the Circular Textile Platform at Circular Republic, Carl Warkentin cited his long-standing relationship with SOEX CEO Walter Thomsen and shared his commitment to sustainability and circular economy principles through his respective shoe companies, Monaco Ducks and GRND.shoes.

The long-term goal of the collaboration is to close the loop along the entire value chain of the textile industry. as well as advance the principles of the circular economy and invest in a resilient and sustainable future.

Circular Republic supports SOEX in extending its globally connected partner network from scientific and industrial sectors, facilitating dialogues with representatives from the textile industry. Their shared objective is to drive transformative impacts, reshape value chains, and create a sustainable and regenerative future.

SOEX emphasises the importance of reusing and recycling resources to conserve them and minimise waste.

The company aspires to keep 100% of used textiles in the product cycle, recognising that clothes that remain in use and are worn again significantly benefit the planet, as the material and energy used in their production do not need replacement.

However, SOEX states the textile industry still predominantly follows a linear model, with less than 1% of textile waste globally undergoing fibre-to-fibre recycling. Despite Germany's collection volume of 1.3 million tonnes of old textiles annually, the true closed loop is yet to exist, the company adds.

Acknowledging this gap, SOEX aims to optimise the cycle further and take on greater responsibility for climate protection.

Value apparel has gained appeal amid high inflation

Per latest GlobalData estimates, the global value apparel market was valued at $228.8bn in 2022, exceeding pre-pandemic levels and outperforming the other apparel price positions. This was partly due to consumers trading down to more affordable brands as they faced inflationary pressures, but also due to the rapid rise of fast fashion player Shein, which has leapt into the market leading position. Between 2022 and 2027, the global value apparel market is forecast to achieve a CAGR of 3.2%. Gen Z is a key target audience for value apparel players, due to their usually limited disposable incomes and high purchasing frequencies as a result of wanting to follow rapidly changing trends meaning they often prefer cheaper brands. As fashion is of high importance to this demographic, they are also less likely to cut back on spending on clothing and footwear amid inflationary pressures. However, value players are under pressure to reduce their environmental footprints amid changing consumer perceptions and evolving regulations regarding sustainable business practices. Supply chain disruptions and higher production costs continued to impact value brands in 2022 due in part to the outbreak of the war in Ukraine and lasting COVID-19 restrictions in China, which is highly detrimental to value players due to their already thin profit margins and their low price business models.

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