Understand Fashion Companies’ Merchandising and Marketing Strategies for Clothing Made from Recycled Materials

Abstract

With consumers’ increasing awareness of sustainability and building a circular economy, more and more fashion retailers carry clothing made from recycled materials. This study aims to explore U.S. fashion retailers’ detailed merchandising and pricing strategies for clothing made from recycled material to provide more business insights into this fast-growing market.

By leveraging StyleSage, a big data tool for the fashion industry, we checked millions of clothing items (at the Stock Keeping Unit, SKU level) made from recycled materials available in the U.S. retail market from June 2018 to June 2021. The results show that:

  • First, top U.S. sellers of clothing made with recycled materials include BOTH sustainability-based brands and fast-fashion brands.
  • Second, the most utilized recycled textile fibers include Polyester, Nylon, and Cotton.
  • Third, U.S. retailers adopt unique product assortment strategies for clothing made from recycled material. Recycled clothing, in general, carry more “Shorts” and “outerwear, coats, and jackets,” and fewer “Sleepwear” and “dresses.”
  • Fourth, U.S. retailers adopt unique color strategies for clothing made from recycled materials, using “black” more often but using “Neutral color” much less.
  • Fifth, U.S. retailers typically price clothing using recycled materials at least 50% lower than regular new clothing. The price difference for “Bridal”, “Suits”, “Causal jackets and blazers” and “Outerwear, coats, and jackets” was particularly notable.

The study’s findings confirm that clothing made from recycled materials is a critical market to watch with growing business opportunities. The findings also suggest that U.S. fashion retailers adopt unique merchandising and pricing strategies for recycled clothing, affected by the product supply and consumers’ preferences. Additionally, the study’s findings call for more exploration of leveraging recycled clothing to achieve sustainability and lower sourcing costs.

By Ally Botwinick (2021 UD Summer Scholar, Fashion merchandising and Management Major); Faculty advisor: Dr. Sheng Lu

Full article: Ally Botwinick & Sheng Lu (2021). Market promising for clothing made from recycled materials. Just-Style

This research was presented at the 2021 University of Delaware Undergraduate Research Symposium on August 12, 2021.

Author: Sheng Lu

Professor @ University of Delaware

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