According to data from Sebrae (Brazilian Micro and Small Business Support Service) and the Fios da Moda 2023 report, Brazil generates around 170 thousand tons of textile waste per year. Of this total, only 20% is recycled or reused, while the rest is improperly discarded. Given this scenario, applying the principles of the circular economy in fashion has ceased to be an option and has become a strategic necessity for those who want to innovate, reduce impacts, and explore new business opportunities.
For Vítor Vasconcellos, partner and CEO of Social Express, a network specialized in renting men’s formal wear, initiatives like clothing rental, thrift stores, and upcycling are essential to transforming consumption logic and strengthening sustainability in the sector. ‘For many, it is still unclear how the circular economy adds value. For businesses, it reduces costs in raw materials and production. For consumers, it means access to more affordable products. And for the environment, the benefits include fewer emissions, less water pollution, and reduced waste in landfills,’ explains the executive.
This movement finds resonance in the global market. ThredUp’s 2025 Resale Report, one of the largest online fashion resale platforms, highlights the growth of secondhand clothing consumption among younger audiences. Although traditionally associated with older generations, this habit has been growing among Millennials and Gen Z: 51% of Gen Z consumers have already bought secondhand items, and 46% say they are open to continuing purchasing through this channel.
Purpose-driven business models
The circular economy, in addition to reducing waste, drives conscious consumption and strengthens brand reputation. Below, Vítor Vasconcellos highlights three formats that are gaining relevance in the textile market:
- Clothing rental
This model offers an effective alternative to traditional purchasing, extending the lifecycle of garments. ‘By prioritizing rental, we avoid premature disposal and reduce pressure on natural resources. In 2024, we retained 3,800 new customers at Social Express and estimate a 30% revenue growth this year compared to 2023,’ says Vasconcellos. - The power of thrift stores
The reuse of clothing is also strengthened by thrift stores, which have moved beyond niche status to become a trend. According to Sebrae data from 2023, Brazil already had over 118,000 active thrift stores, equivalent to a 30.97% increase over the last five years. ‘Thrift stores have become more sophisticated and diverse, offering unique pieces for different consumer profiles. This repositioning has expanded their acceptance and impact,’ analyzes the CEO. - Upcycling: Creativity with purpose
Another trend gaining momentum 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, independent brands, and sustainable fashion events,’ comments Vasconcellos.
These three models represent viable and scalable solutions for smarter consumption. Extending the lifespan of garments helps reduce demand for new products, significantly decreasing textile waste. To operate a Social Express franchise, for example, the initial investment is R$ 250 thousand, with estimated monthly revenue of R$ 70 thousand and a return on investment within up to 24 months. ‘This is one of the alternatives that generates a positive environmental impact and also offers a competitive edge for businesses in light of the latest trends,’ concludes the executive.
