There is an inherent conflict between capitalism and the circular economy. This is most evident in the fast fashion industry.

The circular economy is a model that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. In this way, the life cycle of products is extended. In practice, this means reducing waste to a minimum. As large companies pursue environmental, social and governance goals, they must also redesign their reverse supply chains to dismantle returned goods, save valuable materials and reuse them. Or to refurbish and resell goods that are repairable.

In some industries, such as electronics, laws require e-waste to be reduced. Despite these laws, 62 million tonnes of e-waste were generated worldwide in 2022, according to the United Nations Global E-waste Monitor. This waste could fill more than 1.5 million 40-ton trucks lined up bumper to bumper, forming a line long enough to circle the equator.

But the performance of other industries is far worse. The clothing industry is a prime example. The US Environmental Protection Agency (EPA) estimates that 11.3 million tons of textile waste ended up in American landfills in 2018.

Within the clothing industry, the waste generated by the fast-fashion segment is particularly insidious. Landfills in rich countries are not the problem. Fast-fashion waste is exported to the Third World. A mountain of unsold fast-fashion garments in the Atacama Desert in Chile has grown so large that satellites have captured clear images of it.

Businesses, of course, try to maximize their profits. That is the heart of capitalism. Advertising is the heart of getting consumers to buy. Whether consumers really need the goods or not is another question. This is not a new idea. In 1899, sociologist Thorstein Veblen coined the term “conspicuous consumption” to explain spending money on luxury goods specifically as a public display of wealth. Public display of disposable income signals high social status and can make the person displaying that wealth appear more desirable.

For years, The Hidden Persuaders was required reading in college sociology courses. In this book, first published in 1957, the author – Vance Packard – examined the use of psychological techniques by advertisers to create desire for products. He identified eight “compelling needs” that advertisers promise to fulfill through products – a sense of power, emotional security, affirmation of self-worth, ego satisfaction, creative expression, love objects, roots and immortality.

There are companies that sell recycled and refurbished clothing. Stuart Trevor, an industry veteran, has founded a company called Cats Who Care. The company takes back used clothing, refurbishes it and adds clever artwork to it. Mr. Trevor doesn’t mince his words when talking about fast fashion. Speaking at Infor Nexus’ European Advisory Customer Council meeting in Chamonix, France, Mr. Trevor told the audience, “Fast fashion is rubbish…” Customers should buy clothes that are “well made and last.”

A prime example of a fast fashion brand is Zara. In the early 2000s, Spanish retailer Zara developed a business model based on agile and responsive supply chain capabilities, giving birth to the fast fashion industry. Contrary to popular belief, Zara designed and distributed garments to market in just fifteen days, unlike the traditional clothing supply chain that took months to bring garments made in Asia to market. They were praised for their supply chain acumen.

However, other brands and retailers believe in well-made, durable and repairable products. Retailer DECATHLON allows customers who have purchased their tents to return them for repair and cleaning through the reverse supply chain. These tents cost half the price of a new tent, according to Mr. Trevor. DECATHLON has been working on developing their products for several years to extend their lifespan. They try to create products that not only offer high performance and reliability, but are also durable. During the design phase, their goal is also to build products that are easier to repair.

Patagonia offers a tough guarantee: “We guarantee everything we make. If you are not satisfied with any of our products when you receive them, or if any of our products do not work to your satisfaction, return it to the store where you purchased it or to Patagonia for repair, replacement, or refund. Damage due to wear and tear will be repaired for a reasonable fee.”

However, the market for refurbished clothing or repaired rugged clothing will likely remain a niche. People who buy these clothes are environmentally conscious or believe in a simple, unpretentious life. Consumers who want to signal that they are wealthy, sexy, fit or hip will likely always far outnumber them.