UK’s Circular Fashion Innovation Network (CFIN) has released a landmark report— detailing two years of industry-led collaboration—that provides actionable guidance for brands, retailers, manufacturers, recyclers, innovators, investors, academia, NGOs and policymakers, as they move along the path of turning fashion green.
The key findings and opportunities include:
- CBMs or circular business models: While 81% of fashion organisations surveyed include circularity in their five-year strategies, 63% of customer-facing initiatives remain in pilot phases. the research reveals significant growth opportunities across:
- Resale: Attracting mass market and premium retailers with 78% of initiatives in pilot phases.
- Repair: Showing strong adoption in premium sectors (57%) with the highest customer participation rate (25%).
- Takeback: Presenting potential for mid-market retailers (38% adoption) due to higher production and consumption volumes.
- Rental and Remake: Emerging models with growth potential in specific product categories.
- Sustainable Manufacturing: The UK’s textile and apparel manufacturing sector offers substantial opportunities for economic growth and competitive advantage.
- Recycling Infrastructure: With 1.45 million tonnes of post-consumer textiles generated annually in the UK, a socio-economic impact analysis had demonstrated the significant potential benefits of developing this infrastructure.
- Novel Technology: The Novel Technology theme that connects innovative startups with brands, retailers, and investors to scale commercially viable circular solutions, identified key technology opportunities, implementation barriers, and strategic recommendations to accelerate adoption.
- Green Growth: A commissioned expert research examined how circular fashion businesses can access funding needed to scale, and an analysis challenged persistent investment myths while providing practical recommendations for mobilising capital across different stakeholder groups.
- Diverse and Futureproof Workforce: The skills research identified critical capability gaps and tracked progress in education and training. Recommendations provide targeted guidance for industry, education providers, government, and employers to build the workforce needed for circular transformation.
- Policy: Through its policy working group and collaboration with experts, it developed a detailed proposition for implementing EPR legislation for textiles that balances environmental goals with business practicality.
CALL TO ACTION: CFIN, through its research and stakeholder engagement demonstrated the need for a mandatory, eco-modulated EPR system with fees ringfenced for reinvestment in circular infrastructure and innovation. It is now inviting stakeholders across the fashion and textiles value chain to build on the foundation established by CFIN through the following actions.
- Brands and retailers: Implement the circular business models identified in this report, setting ambitious targets for resale, repair, and takeback services while integrating sustainability metrics into core business strategies.
- Manufacturers: Explore automation, reshoring, and sustainable production opportunities highlighted in the research, partnering with technology providers to build more resilient and responsive supply chains.
- Investors and financial institutions: Address funding gaps for circular innovations by developing specialist knowledge of textile value chains and creating investment vehicles tailored to circular business models.
- Policymakers: Advance the detailed EPR framework proposed in this report while creating consistent regulatory incentives that drive circular practices across the industry.
- Education providers: Integrate circular economy principles into curricula and develop targeted training to address the skills gaps identified in the research.
RECOMMENDATIONS: The report has recommended the following actions based on its research findings.
For Industry
- Develop a modern narrative around fashion and textile manufacturing that highlights technology integration and sustainable practices to attract new talent.
- Implement targeted upskilling programmes for existing workforce, focusing on digital literacy, sustainability principles, and technology operation.
- Establish knowledge transfer mechanisms between experienced workers and new entrants to preserve valuable traditional skills.
- Create cross-functional teams that unite sustainability, technical, and commercial expertise to drive circular innovation.
For Education Providers
- Collaborate with industry to develop curriculum content that addresses identified skills gaps in circularity and digital technologies.
- Integrate sustainability and circular economy principles across fashion and textile educational programmes rather than treating them as separate specialisations.
- Establish continuous knowledge exchange programmes that showcase emerging technologies and best practices.
- Design practical learning experiences that prepare students for technology-enhanced manufacturing environments.
For Government and Policymakers
- Support development of national occupational standards and qualifications that include circular economy competencies.
- Fund targeted training programmes to address critical skills shortages in technical areas like automated sorting, chemical recycling, and digital product tracking.
- Create incentives for employers investing in workforce development for circularity.
- Coordinate regional skills initiatives that align with infrastructure development in textile recycling and sustainable manufacturing.
For Manufacturers and Employers
- Invest in internal workforce training on sustainable practices and technologies.
- Frame technology adoption as skill enhancement rather than replacement, highlighting how automation and AI can augment human capabilities.
- Partner with education providers to offer work placements that expose students to modern manufacturing environments.
- Develop clear career pathways that highlight opportunities in technical and sustainability-focused roles.
ABOUT: CFIN, led by the British Fashion Council (BFC) and the UK Fashion & Textile Association (UKFT), in partnership with UK Research and Innovation (UKRI), has completed two years of work to accelerate the UK’s transition to a circular fashion ecosystem.
