Second-hand clothing markets and a just circular economy? Exploring the role of business forms and profit

Abstract

Second-hand consumption of clothing can support the transition to circular economies by prolonging the lifespan of products through reuse. Historically, not-for-profit businesses have been dominant actors in second-hand markets across Western Europe and North America. However, with the growing interest in second-hand consumption, for-profit firms have increasingly entered this market over the last decade. Through a qualitative case comparison, consisting of three not-for-profit businesses and three for-profit businesses operating in the Swedish second-hand clothing market, we explore the relationship between different business forms present on a changing second-hand market and a socially just circular economy. This study concludes that while a growing second-hand clothing market may support the transition to a future circular economy, there are issues related to which market actors have access to the used clothes, how these materials flow, and how profits are eventually distributed. Thus, we argue that particular attention should not only be paid to the material flows but also the legal structures and financial flows of firms present in circular markets. These aspects can in turn improve our understanding of who benefits from the transition to a circular economy, and under which conditions this transition can be made more socially just.