According to Sebrae (Brazilian Service of Support for Micro and Small Enterprises) data and the 2023 Fashion Threads report, Brazil generates around 170 thousand tons of textile waste per year. Of this total, only 20% is recycled or reused, the rest is improperly discarded. Faced with this scenario, applying circular economy principles in fashion has ceased to be an option and has become a strategic necessity for those who wish to innovate, reduce impacts, and explore new business opportunities.
For Vítor Vasconcellos, partner and CEO of Social Express, a network specializing in the rental of men’s formal wear, initiatives such as clothing rental, thrift stores, and upcycling are essential to transform consumption logic and strengthen sustainability in the sector. “For many, it is still not clear how the circular economy adds value. For companies, it reduces costs with raw materials and production. For consumers, it means access to more affordable products. And for the environment, gains include fewer emissions, less water pollution, and reduced waste in landfills,” explains the executive.
This movement finds echo in the global market. ThredUp’s 2025 Resale Report, one of the largest online fashion resale platforms, highlights the growth of second-hand clothing consumption among younger audiences. Although traditionally associated with older generations, this habit has grown among Millennials and Generation Z: 51% of Gen Z consumers have already bought second-hand items, and 46% are open to continue buying through this channel.
Purpose-driven business models
The circular economy, besides reducing waste, drives conscious consumption and strengthens brand reputation. Next, Vítor Vasconcellos points out three formats that are gaining relevance in the textile market:
- Rent of clothes
This model offers an effective alternative to traditional purchasing, extending the lifecycle of pieces. “By prioritizing renting, we avoid premature disposal and reduce pressure on natural resources. In 2024, we gained 3,800 new customers at Social Express and estimate a 30% revenue growth this year compared to 2023,” says Vasconcellos. - The strength of thrift stores
The reuse of clothing is also strengthened by thrift stores, which have ceased to be niche and are now a trend. According to Sebrae data from 2023, Brazil already had over 118,000 active thrift stores, equivalent to a 30.97% increase in the last five years. “Thrift stores are more sophisticated and diverse, offering unique pieces to different consumer profiles. This repositioning has expanded their acceptance and impact,” analyzes the CEO. - Upcycling: creativity with purpose
Another trend that is gaining strength is upcycling, a process that transforms discarded materials into new pieces, with creative design and added value, without degrading the original fibers. “This model reinforces conscious fashion, highlights exclusivity, and is being driven by influencers, original brands, and sustainable fashion events,” comments Vasconcellos.
These three models represent viable and scalable solutions for smarter consumption. Prolonging the useful life of pieces helps reduce the demand for new products, significantly decreasing textile waste. To operate a Social Express franchise, for example, the initial investment is R$ 250,000, with an estimated monthly revenue of R$ 70,000 and up to 24 months for return. “This is one of the alternatives that generates positive environmental impact and still offers a competitive advantage for businesses in light of the latest trends,” concludes the executive.
