Circularity defines fashion as a system for creating value over time, transforming products, business models and competitiveness.
Circularity is emerging as a key driver of competition in the fashion sector, given the evolution of European regulations, changing consumer behaviour, and new market and capital dynamics.
The integration of ESG principles into business models directly influences profit margins, cost structures and brand positioning, transforming regulatory compliance into a lever for value creation. Circular models such as resale, take-back, repair, upcycling and the Digital Product Passport extend product monetisation throughout the entire lifecycle and strengthen lifetime value.
The shift from linear models to circular systems unlocks new revenue streams, improves operational efficiency, reduces exposure to regulatory risks and responds to the growing demand for durability, transparency and long-term value, with a focus on the European and Italian contexts and the growth prospects of the second-hand market.
The evolution of fashion models towards product lifetime value, with monetisation extending beyond the initial sale and the strengthening of brand equity and economic resilience.
ESPR, PPWR and EPR are redefining products, packaging and end-of-life management, transforming compliance into a key driver for risk reduction, growth and market access.