A new report has looked to calculate displacement rates for circular fashion business models, and has found for every five preloved items bought, three displace new purchases – resulting in a displacement rate of 64.6%.
Global environmental action group WRAP has developed ‘Displacement Rates Untangled’ – an updated methodology for measuring displacement rates, to bring about greater consistency and standardisation across the industry.
Tested by preloved and repair platforms eBay, Vestiaire Collective, Depop, The Seam, SOJO and brand Finisterre, the research has provided insight into the environmental savings of circular business models. It has produced a UK weighted average displacement rate for resale and, for the first time, repair.
It has found buying a preloved pair of jeans online instead of buying a brand-new pair could save over 30kg CO2e, equivalent to making 600 cups of tea.
Looking at repair, the study has found for every five items repaired, four displace a new purchase – resulting in a displacement rate of 82.2%.
Additionally, repairing one cotton t-shirt instead of buying a brand new one could save over 7.5kg CO2e, equivalent to ironing for 25 hours.
“This research enables businesses to benchmark their impact and compare performance across the industry. The methodology is also applicable to redistribution, charity retail and rental models,” WRAP said in a statement.
The project was supported by the IMPACT+ Network, led by Northumbria University and funded by the UKRI Circular Fashion and Textiles Programme: NetworkPlus – a trilateral initiative from the Natural Environment Research Council, Arts and Humanities Research Council and Innovate UK.
Find out more about how retailers are approaching more circular business models in the RetailX Global Sustainability report.
The reports looks at the growth of the secondhand market, as retailers take responsibility for their products post sale. RetailX research explores the behaviour of different demographics, countries, and retailer actions.
It also examines the strategies, challenges and upcoming legislation around extending product life and ultimately closing the loop.
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