Status: 05.10.2021 3:49 p.m.
The trend towards climate and environmental protection does not stop at clothing manufacturers and retailers. Consumers place more value on sustainability, and corporations like Zalando are responding.
Second-hand and clothing from sustainable production have received a new boost from Corona. More and more retailers and manufacturers are adapting to this. Anyone who is already established in the sustainability niche should have good growth prospects in the coming years.
DAX newcomer Zalando has now launched a small sustainability offensive with publicity. Europe’s largest online fashion retailer wants to extend the life of clothing with the help of a repair service. This should start in a few days in Berlin and later also be offered in Düsseldorf.
Sustainability know-how from startups
“Many customers throw clothes away too early. We want to change that,” says Zalando manager Laura Coppen. Zalando works with the British technology startup “Save your Wardrobe” to repair clothing.
The group wants to anchor the topic of sustainability and the circular economy more firmly in fashion. Zalando has set itself the goal of generating around a fifth of its gross sales volume with more sustainable products by 2023. Last year it was around 16 percent. Around ten percent of the items on offer have a sustainability label. Zalando recently acquired a stake in the Finnish startup Infinited Fiber, which produces a special biodegradable fiber from textile waste.
The company is thus banking on a clear growth trend. The Boston Consulting Group already determined last year that sustainability also plays an increasing role for many consumers when buying clothes. This is also ensured by the climate debate – the manufacture of clothing and shoes accounts for around four percent of greenhouse gas emissions. Market researchers believe that the second-hand market alone will grow from the current two to up to 20 percent market share within five years.
Image: picture alliance / imageBROKER
Second-hand as a billion dollar market
It is no coincidence that in addition to Zalando, the Otto Group’s platform “aboutyou” also has worn fashion items on offer. The startup Vestiaire, which sells luxury fashion on the market by second hand, recently attracted a further 210 million euros in investor capital and is already valued at 1.7 billion euros. The French company includes the Japanese investment company Softbank and the US investor Generation Investment Management, of which ex-US Vice President Al Gore is a founding partner.
The second-hand range at Zalando has grown tenfold to around 200,000 items in the past twelve months. Zalando wants to invest 50 million euros here this year, for example in projects to reduce CO2 or in environmentally friendly packaging.