According to data from Sebrae (Brazilian Service for Support to Micro and Small Businesses) and the 2023 Fios da Moda report, Brazil generates approximately 170,000 tonnes of textile waste annually. Of this total, only 20% are recycled or reused; the remainder is improperly discarded. Given this scenario, applying circular economy principles to fashion has ceased to be an option and has become a strategic necessity for those seeking innovation, reducing impacts, and exploring new business opportunities.
For Vítor Vasconcellos, partner and CEO of Social Express, a network specializing in the rental of men's formal wear, initiatives like clothing rentals, thrift stores, and upcycling are essential to transforming the logic of consumption and strengthening sustainability in the industry. "For many, it's still unclear how the circular economy adds value. For businesses, it reduces costs on raw materials and production. For consumers, it represents access to more affordable products. And for the environment, the benefits include fewer emissions, less water pollution, and a reduction in landfill waste," explains the executive.
This movement resonates in the global market. ThredUp's 2025 Resale Report, one of the largest online fashion resale platforms, highlights the rise of secondhand clothing consumption among younger demographics. While traditionally associated with older generations, this habit has been growing among Millennials and Generation Z: 51% of Gen Z consumers have already purchased secondhand items, and 46% say they are open to continuing to buy through this channel.
Business Models with Purpose
Circular economy, besides reducing waste, drives conscious consumption and strengthens brand reputation. Following, Vítor Vasconcellos points out three formats gaining relevance in the textile market:
- Rental of clothing
This model offers an effective alternative to traditional purchasing, extending the lifespan of parts. "By prioritizing leasing, 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% increase in revenue this year compared to 2023," says Vasconcellos. - The strength of secondhand stores
Clothing reuse is also gaining strength with thrift stores, which have moved beyond a niche market and are now a trend. According to 2023 Sebrae data, Brazil already had over 118,000 active thrift stores, representing a 30.97% increase over the past five years. "Thrift stores are more sophisticated and diverse, offering unique items for different consumer profiles. This repositioning has broadened their acceptance and impact," analyzes the CEO. - Upcycling: creativity with purpose
Another trend gaining traction 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 components helps reduce demand for new products, significantly decreasing textile waste. For example, operating a Social Express franchise requires an initial investment of R$250,000, with an estimated monthly revenue of R$70,000 and a return on investment within 24 months. "This is one of the alternatives that creates a positive environmental impact and still offers a competitive edge for businesses in light of current trends," concludes the executive.
