Holding Moda’s Post

Renewcell was considered and widely endorsed as the beacon of hope for circularity in fashion. It topped $1b three years ago and was named as one of Fast Company’s Most Innovative Companies in the world. Renewcell managed to establish a full scale recycling plant in Sweden which was based on 100% renewable energy. Things changed drastically and on February 2024, the company filed for bankruptcy. This proves that the fashion industry fails to understand, conceptualise and support circularity. Fashion brands are not changing nor challenging any of the underlying systemic conditions, failing to accept radical change. They, instead, hijack theoretical concepts and attempt to shoehorn such innovative aspirations into a broken business model driven by self-interest, cost reduction and operational efficiency, aka financial indicators. ‘Renewcell’s failure proves systemic change can’t happen without significant industry overhaul.’, thank you, Rachel Cernansky Vogue Business #circulareconomy #circularfashion #fashion #textile #sustainability #recycling #waste #environment #sustainablefashion #supplychainsustainability #finance #supplychainmanagement #supplychainfinance #finance #systemschange #fibre #renewcell #voguebusiness

It’s a set back and bad testimony for the industry as such. However it is important to differentiate between recycling and upcycling at scale or the commercialization of next-gen bio based materials. Once those solutions are scaled up, they will progressively substitute materials with a large negative impact while making upcycling easier in the process, too.

This is an unfortunate reminder of the market’s unwavering infatuation with cheap goods. Renewcell was a heavily industrial, capital and labor intensive endeavor that was competing with very cheap and ,in many cases, subsidized raw materials/fibers. Pilot phase pricing makes it difficult to even get down stream customers to sample much less create enough demand to get economies of scale. Even if they would have gotten to scale, the margins would have been razor thin with a very long payback period and low returns. That is counter to the traditional investor’s mentality and return expectations. Brands are unaccustomed to the high working capital and low margins of industrial manufacturing operations. Brands and private investors can not tackle this issue alone because the economics don’t work. True public-private partnership is critical to get these kinds of Net Positive startups beyond the pilot phase. Without government subsidies and support, the traditional financing models will continue to fail as you simply can not compete with readily available, highly subsidized agricultural and petroleum based products. Renewcell’s efforts were not in vain. Barriers were broken and new visions will fill the void!

Is our aspiration for a transformative shift in the fashion industry overly idealistic? Regrettably YES! The struggle is real! The challenges I encounter in guiding the fashion industry towards change are substantial and recurrent. I frequently hear quotes like: "I really don't see why I should change my old way of doing fashion" or "I don't see FOR REAL any advantages on investing in expensive softwares to shift for digital sampling". Financial constraints are frequently cited, with statements like, "I had to invest in this, leaving me with insufficient funds for that," underscoring the financial burden faced by stakeholders... and the list goes on! The reality is that fashion enterprises rooted in underdeveloped nations find themselves grappling for survival amidst narrow profit margins, onerous tax structures, exorbitant expenses for machinery and software, reliance on modestly compensated labor forces, and the persistent challenge of competing with the low-cost garments emanating from China. Numerous considerations demand careful deliberation, and unfortunately, environmental concerns often find themselves relegated to the lower echelons of priority. The crux of the matter is that unless we instill a shift in consumer behavior through comprehensive education, transformative changes within the industry remain a distant prospect. It necessitates a concerted demand from consumers to propel the remaining entities (or survivors) of the industry towards meaningful change.

Advocating for sustainability in the fashion industry – a collective commitment to circularity. Joining forces for positive change. 🌍 #sustainablefashion #circulareconomy #industrycollaboration #instantreplay #circularfashion

“Experience the power of choice with OurSoftwareTech. We’re not creating garments, we’re curating them from diverse brands to match your unique style and tattoos. #NoGuesswork #TattooFashion” CALL IT WHAT U WANNA-its tattoo fashion #startup #startuptips #startupgrind #startuplifestyle #startupindia #startupquotes #startupstory #startupweekend #startupindonesia #startupcompany #startupstories #startupsuccess #startupideas #startupadvice #startupbrasil #startupworld #startupwomen #startupculture #startupcoach #startupbusinesses #startupcommunity

🌟As we step into 2024, the fusion of fashion and technology continues to evolve. Here's a look at 13 groundbreaking startups transforming our wardrobes and shopping experiences: - Heuritech (Paris, France) - Founders: Charles Ollion & Tony Pinville. Harnessing AI to decode fashion trends from social media imagery. - Italic (Los Angeles, CA) - Founder: Jeremy Cai. A unique marketplace offering luxury goods directly from manufacturers. - Dopple (San Francisco, CA) - Founders: Chao Wang & Janel Molton Hertz. Personalized children’s clothing subscriptions, blending style with convenience. - italist (Los Angeles, CA) - Founders: Andrea Milani, Giuseppe Sacco, Raffaele Giovine. Connecting shoppers with Italian boutiques for luxury goods at reduced prices. - Girlfriend Collective (Seattle, WA) - Founder: Ellie Dinh. Sustainable and inclusive athleisure made from recycled materials. - HELM Boots (Austin, TX) - Founder: Joshua Bingaman. Crafting durable, stylish boots with a timeless appeal. - Mejuri (Toronto, Canada) - Founders: Majed Masad & Noura Sakkijha. Direct-to-consumer fine jewelry for everyday elegance. - Depop (London, UK) - Founder: Simon Beckerman. A social shopping platform for unique fashion finds and vintage treasures. - SKIMS (Culver City, CA) - Founders: Jens Grede & Kim Kardashian. Inclusive shapewear and loungewear redefining comfort and style. - Intelistyle (London, UK) - Founders: Kostas Koukoravas & Michael Michelis. AI styling advice for fashion retailers and consumers. - Public Rec (Chicago, IL) - Founder: Zach Goldstein. Leisurewear that combines comfort with a tailored fit. - Good On You (Sydney, Australia) - Founders: Gordon Renouf & Sandra Capponi. An app rating fashion brands on their ethical and sustainable practices. - Queenly (San Francisco, CA) - Founders: Kathy Zhou-Patel & Trisha Bantigue. A marketplace for formal wear, making every woman feel like a queen. These startups are not just selling clothes; they're weaving technology, sustainability, and inclusivity into the very fabric of fashion. As we watch their growth, let's celebrate the innovation they bring to our closets! 👗🌍🔍 For more on these fashion-forward companies, dive into the full article and list here: https://lnkd.in/dgZaFe65 #FashionTech #SustainableStyle #StartupInnovation #2024Trends #FashionStartups

companies like Renewcell. Despite their groundbreaking work enabling high-quality recycled fiber generation from textile waste, Renewcell is facing bankruptcy. Unfortunately, Renewcell is not alone in its struggles, as other alternative materials firms have encountered similar difficulties. What will lead to scaling beyond the capsule level? In the absence of timely market adoption, we may very well rely more upon consumer advocacy and government action than previously thought. Keep an eye on next-generation material innovators in fashion, food, and packaging! We must recognize that the right idea at the wrong time should not be the reason why groundbreaking circular and regenerative solutions fail to reach viability.

This news story is taking over my LinkedIn feed. It is a huge bummer to see Renewcell, a sustainability pioneer, face such a daunting chapter. There are endless innovations and climate-smart solutions out there. How do we collectively (as consumers, brands, policy-makers, fellow innovators, etc.) ensure their/our success? Because it is necessary that we do so.