Cabinet business model has not yet proven itself, marketing and sales

The good old concept of returnable milk bottles is not dead. For a year or two, the young brands that have grown up on the web have taken this model from last year: taking back products or packaging by giving a customer an amount, a coupon, or an advantage. Then recycle the merchandise or put it back on the second-hand market.

Fashion is not immune to this flashback, which is fueled by the anti-speed fashion movement in the textile industry reputed to be one of the most polluting industries in the world. In September 2020, United Nations workshops, an ethical and collaborative fashion brand, launched on the Ulule platform a pair of returnable tights in recycled nylon that sold for €23 including €2. A fairly positive first test: in three weeks, more than 6000 copies have been sold, and since the fall, 500 pairs have been returned to turn them into locks.

Reducing materials for recycling

Deposit is more beneficial for products with short shelf life, such as tights “, valuable Matthew Jungfer who co-founded Ateliers Unes in 2018. But it may be about more detailed articles. In this case, the filing obligates the brand with advanced environmental design efforts. There is no point in taking back products if they cannot be reused. And therefore , hopal She ensured that her returnable “Infinie” jacket, developed from French 1083 jeans, used only one material, French-made recycled polyester. Thus the company can give it a second life more easily. The digital recycled clothing brand launched in 2017 has made 400. The vast majority have already been sold, at €205 each, including €20 deposit.

Even more complicated is the mission of Panafrica, a sneaker brand made in Africa with waxy fabrics from Senegal, Burkina, and Ghana. Her shoes already combine many materials, completely different: rubber, polyester, cotton, canvas, glue … However, the little shot tried her luck in April 2020 with an Arusha basketball, which sold for 145 euros, including 10 euros of deposits. buying. Environmental design, the model limits the number of materials used as much as possible. Critical Test: Within three weeks, nearly 1,500 copies found their custodians on the Ulule platform. “ Over the past year, Panafrica has recovered 150 pairs, but is waiting until it can stock 3,000 of them to begin the process of sorting and recycling. ‘, pointed Reschwitz WolfranCo-founder of the brand. Less worn out shoes used will be either resold on site or sent to Waste Free Shoes, which specializes in refurbishment. The others will be sent to a Portuguese partner who will grind the slippers to make new pairs.

Nearly 1,500 pairs of Panafrica Arusha sneakers were sold in 3 weeks on the Ulule platform.
– Panafrika

Additional Deposit Costs

How do you determine the deposit price? The balance is hard to find. Enough incentive, the price should not weigh down the value of the product either stop buying. At Hopaal, the issue of the reward was first raised to 1,000 customers or visitors to the site. 63% said the bonus would encourage them to return the jacket. Opinions were divided on the amount: 27% for 10 euros, 22% for 15 euros, and the quantity for 20 euros. ” Finally, due to the product being relatively expensive, we chose €20 to increase the likelihood that customers would return their jacket to us. ‘, he explains Clement MollafCo-founder and President of Hubal. Consensus appears to be emerging around 10% of the value of the product. But nothing is less certain! Guide, Panafrika plans to go from 10 to 5 euros. By limiting the cost that will grow as returns are received, the brand seeks to maintain its margins.

And for good reason, the filing system Generates consecutive costs. The first item of expenditure is from Product return costs Amount sent: €5.50 excluding VAT per shipment in the case of Panafrica sneakers. It is difficult to put that cost on the individual who is already putting in the effort by returning the article. Second focus of expenditures: Store returned items while waiting for treatment. It is then necessary to consider the transfer to partners who specialize in recovering used batches and, at the end of the chain, processing costs for recycling. Thus, extending the deposit to the entire offer without testing the logistics and assessing costs would be risky. Product recovery and reuse requires a well-equipped organization. Otherwise, the process may become financially unsustainable.

Test before you generalize

To circulate the deposit, new resources must be mobilized. So far, participating brands have preferred crowdfunding. Atelier Unes finished last May a Fundraising €400,000 On the crowdfunding platform “To develop 100% recycled and returnable clothing by 2023 The Parisian brand of 7 employees just released a belt made of vegetable matter (Marc grapes) at a price of 50 euros, including 5 euros as a deposit. The start of a full range of returnable accessories (hosiery, tights, etc.) responsible for preparing the floor For all garments.

Ateliers Unes, an ethical and collaborative fashion brand, is turning its pairs of recycled nylon tights into hair darlings.
United Nations Workshop

After the “Infinite” jacket, Hopaal plans to repeat the approach to recyclable shirts. But Biarritz intends to take its time to prepare a full course that does not generate unbearable additional costs. ” The ideal is access to a T-shirt at 55 euros including 5 euros as a deposit, which is an acceptable price compared to our classic models at 45 euros “Clément Maulavé summarizes. In Panafrica, the goal is to gradually generalize the deposit to the entire group. The brand’s website should be redesigned soon to support the process.

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