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<h2>What retailers and brands need to know.</h2>

When 22-year-old New Zealand designer Maggie Hewitt caught the eye of global luxury retailer Net-A-Porter, it was the start of a fairytale rise to the top of the fashion world.Over the next four years Hewitt and her <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainable</a> fashion label,&nbsp;<a href="https://maggiemarilyn.com/" rel="noopener noreferrer" target="_blank">Maggie Marilyn</a>, would quickly find their place among some of the most coveted brands in the world. The label was stocked by more than 60 retailers, from NAP to Bergdorf Goodman; worn by the likes of Meghan Markle and Michelle Obama; and feted by fashion magazines, with&nbsp;British&nbsp;Vogue&nbsp;describing her ascent as a “lightning rise”.&nbsp;But a ‘lightning rise’ was never the aim for Hewitt, who has always placed a premium on <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainability</a> and ethical production. So, last month she announced she was pulling her brand from the shelves of all her wholesalers, and doing away with seasonal collections.&nbsp;&nbsp;Why? To reduce carbon emissions and “use fashion to create a better world”.

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At any other time, the designer’s decision might have seemed hopelessly idealistic. But her approach reflects a new commercial reality – and puts her at the forefront of the growing, global trend towards conscious consumption.&nbsp;Around the world, there’s been an explosion in <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/business-sustainability-Prisca-Ongonga-Daehn" rel="noopener noreferrer" target="_blank">sustainable</a> fashion and beauty brands, from&nbsp;<a href="https://nagnata.com/" rel="noopener noreferrer" target="_blank">Nagnata</a>&nbsp;to Biossance, and an adjacent rise in profit-for-purpose retailers such as Warby Parker, which donates a pair of glasses for every pair sold, or Thankyou, which delivers 100 per cent of its profits to charity. Meanwhile, a growing chorus of brands are lending their clout to social causes, from #BlackLivesMatter to non-binary and gender inclusion.&nbsp;“People are becoming more aware of the planet and of the impact they have,” says Tim Duggan, the founder of youth media website Junkee and author of&nbsp;<a href="http://cultstatus.com/" rel="noopener noreferrer" target="_blank">Cult Status: How To Build A Business People Adore</a>.&nbsp;

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“People are becoming more aware of the planet and of the impact they have”

For the past decade, Duggan has overseen Junkee Media’s&nbsp;<a href="http://youthresearch.junkeemedia.com/" rel="noopener noreferrer" target="_blank">annual survey</a>&nbsp;of Australian Millennials and Gen Z, and says that conscious consumerism has emerged as an unmistakable trend. “What’s changed over the past 10 years is this rise in desire for brands to act ethically and with integrity. Brands still need to offer quality… and respond to customers, but the desire for brands to act ethically just overtook everything over the past few years.”Junkee’s research is backed by numerous other global studies. One Australian<a href="https://www.bepartnerready.com/research" rel="noopener noreferrer" target="_blank">&nbsp;study</a>&nbsp;found that a third of consumers have actively boycotted a company or brand in the past year, due to its poor social responsibility; another US study discovered that&nbsp;<a href="https://www.csrwire.com/press_releases/38312-new-cone-communications-research-confirms-millennials-as-america-s-most-ardent-csr-supporters-but-marked-differences-revealed-among-this-diverse-generation" rel="noopener noreferrer" target="_blank">nine in 10 Millennials</a>&nbsp;would prefer to buy from a brand that supported a cause.And this isn’t just a feel-good trend. Studies suggest that conscious consumerism makes commercial sense, too. A 2019<a href="https://www.stern.nyu.edu/experience-stern/news-events/nyu-stern-center-sustainable-business-and-iri-launch-new-sustainable-share-index" rel="noopener noreferrer" target="_blank">&nbsp;US study</a>&nbsp;found that although sustainably marketed products made up just 16.6 per cent of the consumer packaged goods market in 2018, between 2013 and 2018, they accounted for more than half of market growth.&nbsp;

<h2>What’s behind the rise in the conscious consumer?</h2>The advent of social media, as well as with our unprecedented access to information, is driving the trend, says Duggan. “Millennials and Gen Z are the most educated and connected generation in history. [This generation] has grown up online, and as part of a global community.”This has, in turn, fuelled demand for more transparency and accountability. “So, for example, if you think a brand isn’t up to scratch, you can call them out on social media and other people can also call them out, which creates a critical mass.”

“If you think a brand isn’t up to scratch, you can call them out on social media”

Today’s conscious consumer hasn’t come out of the blue; it’s an evolution of previous social movements, says Duggan. “The difference is that it’s properly mainstream [now]. So, in the past you would have movements like Fair Trade or [business leaders] like Anita Roddick from The Body Shop talking about cruelty to animals, but those people were seen as revolutionaries or environmentalists – or very far to the left. Now that entire movement has shifted so far into the centre.”Clare Press, who hosts the sustainable fashion podcast&nbsp;<a href="https://thewardrobecrisis.com/podcast" rel="noopener noreferrer" target="_blank">The Wardrobe Crisis</a>, agrees. “The interest in sustainability has skyrocketed in the past two years. It now feels that I never receive a fashion-based newsletter or visit a fashion magazine website without being met by stories about upcycling, or even complicated issues like carbon neutrality.”This is a marked shift, says Press, who spent more than a decade working in magazines, including at&nbsp;Vogue. “When I worked in mainstream fashion media it wasn’t cool to be talking about values or ethics, but now you’ve got a whole generation that’s very motivated by this.”&nbsp;

“The interest in sustainability has skyrocketed in the past two years”

This is partly because today’s consumers are more aware of climate change and the textile waste caused by fast fashion, says Press.&nbsp;“We’ve doubled clothing production in 15 years. We’re producing more clothes and we’re throwing them away at a faster rate.”&nbsp;The issue of textile waste wasn’t even on the agenda when Courtney Holm attended design school in Melbourne in 2012. But when she landed her first job in fashion, she was horrified by the waste she discovered. “I guess I had a moment of clarity where I had to decide: ‘Do I get out of this [industry] entirely? Or am I going to try and change it?’, and that’s when I decided I would give it a try.”&nbsp;Today Holm runs the fashion label&nbsp;<a href="https://abch.world/" rel="noopener noreferrer" target="_blank">A.BCH</a>, which designs every piece – from the fabrics to the thread and buttons – with sustainability in mind. “We make garments that have fully considered lifecycles,” says Holm, who sends care instructions out with every garment, offers free repairs, and a “pathway for [customers] to send the garment back to us to be recycled at the end”.Holm also teaches fashion and says, unlike her days at design school, sustainability has become a core subject.&nbsp;

<h2>What’s next for the conscious consumer?</h2>As more fashion students study sustainability, and&nbsp;as Millennials and Gen Z rise into positions of power at work, Duggan believes that the influence of the conscious consumer will only grow. “I think that traditional companies with traditional leaders at the helm will not survive the next 30 years,” he says. “There are a lot of new players coming in and over the next 10 years they will put pressure on some of the traditional players.”What will change is that consumers will become more savvy about greenwashing, and third-party certification bodies such as&nbsp;<a href="https://goodonyou.eco/" rel="noopener noreferrer" target="_blank">Good On You</a>&nbsp;and&nbsp;<a href="https://www.bcorporation.com.au/" rel="noopener noreferrer" target="_blank">B-Corp</a>&nbsp;will become increasingly important. “On the surface, right now, it’s easy to say you’re sustainable or you use a recyclable material,” says Duggan. “The next change will be people really understanding what different labels mean.”Press believes that brands will need to work harder to appeal to consumers, especially after COVID-19, which has shown many people how to live with less.&nbsp;In the meantime, designers like Hewitt will continue pushing for change. “Whilst the last couple of years we have seen a rise in&nbsp;conscious&nbsp;brands and consumers, we are far from being a&nbsp;sustainable industry. But I believe one day we could be, and that is my North Star.”&nbsp;

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Discover what retailers and brands need to know about the conscious consumer in 2021 

Discover what retailers and brands need to know about the conscious consumer in 2021 from Afterpay Access

Why the Conscious Consumer is Here to Stay | Afterpay Access

Why the conscious consumer is here to stay

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<h2>Simple ways for brands to improve their environmental footprint. </h2>

Step inside Country Road’s flagship store in Melbourne’s Chadstone mall and you’ll be surrounded by linen dresses and tailored pant suits. But look beyond the clothing, and it’s the fittings and fixtures that make this store stand out.Designed to a rigorous 5-Star Green Star Design Review standard, the store features <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainable</a> flourishes like recycled wall cladding and clothing hooks.Such meticulous focus on sustainable design would have been unheard of for a major mainstream brand even a decade ago. But consumers&nbsp;<a href="https://intelligence.wundermanthompson.com/trend-reports/the-new-sustainability-regeneration" rel="noopener noreferrer" target="_blank">increasingly expect brands</a>&nbsp;to take the lead on environmental policies.&nbsp;Although not all retailers can afford to give their store a <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/business-sustainability-Prisca-Ongonga-Daehn" rel="noopener noreferrer" target="_blank">sustainable</a> makeover, experts say there are many ways to become more sustainable. The key, says Sydney retail strategist Selena Knight, is to “embrace sustainability as an ethos, not just a token marketing tactic”.

Here are five steps retailers can take to become more <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainable</a>:&nbsp;

<h2>1 - Evaluate packaging</h2>Look for opportunities throughout your business to reduce, reuse and recycle, says Melinda Tually, the director of consultancy&nbsp;<a href="https://www.ndless.com.au/" rel="noopener noreferrer" target="_blank">Ndless</a>, which helps retailers like David Jones and the Cotton On Group develop sustainability strategies.&nbsp;If you package products, avoid virgin paper or plastic, and switch to recycled packaging or compostable bags such as those produced by&nbsp;<a href="https://www.afterpay.com/en-AU/business/articles/exploring-sustainability/heaps-good-eco-packaging" rel="noopener noreferrer" target="_blank">Heaps Good</a>&nbsp;packaging. If your inventory arrives in soft packaging, which generally can’t be recycled in standard collections, consider partnering with&nbsp;<a href="https://www.redcycle.net.au/" rel="noopener noreferrer" target="_blank">Redcycle</a>&nbsp;to keep it out of landfill.&nbsp;&nbsp;Reassessing your approach to packaging might even save money: Australian beauty retailer Adore Beauty&nbsp;<a href="https://www.retailbiz.com.au/latest-news/how-adore-beauty-saved-235kg-of-cardboard-a-week/" rel="noopener noreferrer" target="_blank">reviewed</a>&nbsp;its packaging process in 2017, saving the company more than $100,000 the following financial year in the process.

<h2>2 - Change customer behaviour</h2>While asking customers if they need a bag before automatically providing one is an obvious way to reduce waste, there are plenty of other methods to encourage better habits, says Tually. Every transaction is an opportunity to effect change. “<a href="https://carbonneutral.com.au/plant-a-tree/" rel="noopener noreferrer" target="_blank">Plant a tree</a>&nbsp;for every purchase of a certain value sold, for example.” Platforms like&nbsp;<a href="https://www.iequalchange.com/" rel="noopener noreferrer" target="_blank">i=change</a>&nbsp;allow retailers and customers to donate to philanthropic causes, such as environmental charities, with every online transaction.&nbsp;

<h2>3 - Decrease returns</h2>One way to reduce your brand’s environmental footprint is to reduce the likelihood of returns, says the CEO of&nbsp;<a href="https://www.fluentcommerce.com/" rel="noopener noreferrer" target="_blank">Fluent Commerce</a>, Graham Jackson. “Take a look at the photographs of your products online - could they be better? Ensure that measurements and sizing are clearly understandable, and that the images shown accurately depict the quality of the item.”

<h2>4 - Switch couriers</h2>If you use couriers, find one with a strategy to reduce carbon emissions, such as&nbsp;<a href="https://movepal.com.au/" rel="noopener noreferrer" target="_blank">Movepal</a>, which offsets every trip through not-for-profit organisation Greenfleet. There’s also&nbsp;<a href="https://www.sendle.com/" rel="noopener noreferrer" target="_blank">Sendle,</a>&nbsp;which is 100 per cent carbon neutral and geared towards small business. You could also send items by bike instead of car as much as possible. Offering a collection point service like&nbsp;<a href="http://www.hubbed.com.au/phone/parcel-support.html" rel="noopener noreferrer" target="_blank">Hubbed</a>, which allows customers to pick up purchases from more than 2000 newsagents, service stations and other collection points around Australia, can also cut emissions.&nbsp;

<h2>5 - Reduce or avoid travelling</h2>Consider whether meetings can be done via Google Hangouts or Zoom instead of travelling. When travel is a must, commit to a policy that sees all flights offset through a reputable programme such as those offered by Virgin Australia, Jetstar and Qantas. These voluntary programs are certified and&nbsp;<a href="http://www.environment.gov.au/climate-change/government/climate-active/certification" rel="noopener noreferrer" target="_blank">independently verified</a>&nbsp;under the federal government’s National Carbon Offset Standard.&nbsp;

Discover simple ways to improve improve your business sustainability quickly with examples from Virgin Airlines and others.

Discover simple ways to improve improve your business sustainability quickly with examples from Virgin Airlines and others on Access Afterpay

5 Tips for a More Sustainable Business | Access Afterpay

5 Ways your business can become more sustainable (right now)

Three retailers – Wittner, NICO and Team Timbuktu – on the steps they’re taking towards a more ethical future.

<h2>“We’re focussed on becoming a plastic-free company”</h2>When the&nbsp;<a href="https://wittner.com.au/" rel="noopener noreferrer" target="_blank">Wittner</a>&nbsp;shoe brand started production more than 100 years ago, <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainability</a> wasn’t a key consideration. But, as production manager Anderson Maciel explains, the brand has evolved over the past 20 years“Since 2000, we’ve operated a vertical production philosophy, which means we seek transparency at every stage of production. But in the past two years, we’ve really started to focus on <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainability</a> and our supply chain, because customers want it and it’s the right thing to do.&nbsp;I noticed that the good tanneries in China were joining the&nbsp;<a href="https://www.leatherworkinggroup.com/?gclid=CjwKCAiA_eb-BRB2EiwAGBnXXk0_GPoOKZn7DEiAefBv6R3E9hJHSInIog4IVTsehU981T5YCF0i2hoC0GIQAvD_BwE" rel="noopener noreferrer" target="_blank">Leather Working Group</a>, for example, which is a not-for-profit organisation that audits them for carbon emissions, water and power use, and where materials are sourced. Now we look for that accreditation and we’ve become an active member of the group ourselves – I don’t want us to be left behind.&nbsp;We also look for factories that meet high European standards for their working environment and supply chain. Certification is so important; a lot of component suppliers say their products are vegan or recycled but, when we ask for proof, they become evasive. Consumers need to know that they can trust you.

“A lot of component suppliers say their products are vegan or recycled but, when we ask for proof, they become evasive”

We’re focussed on becoming a plastic-free company. In March, we launched an eco-shoe box that I’d spent about six months developing. It’s made from 100 per cent recycled pulp and has a handle, which means customers don’t need a plastic bag to take it home. The box costs us about 3-5 per cent more than a standard box.Cost is, of course, a consideration – there’s a limit to what you can absorb and still maintain an acceptable brand pricepoint. Two years ago, costs for sustainable suppliers were high, but now it’s becoming easier to find competitively priced suppliers as demand has grown.&nbsp;Our next step is using different materials,&nbsp;with innovation in sustainable materials.&nbsp;Wittner has always been known for its&nbsp;quality&nbsp;leather shoes, but this month, we’re launching a vegan&nbsp;friendly&nbsp;range made from recycled&nbsp;plastic&nbsp;bottles. This was a bit of a mindset-break for us and required a lot of testing to ensure the material could withstand sufficient wear and tear&nbsp;and maintain our high quality standards. We’re looking forward to seeing how customers respond. We’re also exploring other technical innovations in materials as we take this next stage in our journey.”<h2>“Our goal is to become carbon neutral”</h2>For&nbsp;<a href="https://nicounderwear.com/" rel="noopener noreferrer" target="_blank">NICO</a>&nbsp;founder and designer Lis Harvey, sustainable fabrication was just the first step in becoming an ethical brand&nbsp;“When we started the brand eight years ago, we didn’t intend it to be ethically focussed – we just wanted to make lovely underwear! But once we started looking at supply chains and sourcing materials, my personal ethics stepped in and I realised that I was only comfortable working with sustainable suppliers.&nbsp;Our organic cotton is&nbsp;<a href="https://www.global-standard.org/" rel="noopener noreferrer" target="_blank">GOTS</a>&nbsp;certified and we use&nbsp;<a href="https://www.tencel.com/" rel="noopener noreferrer" target="_blank">Lenzing Modal</a>&nbsp;botanic fibre from beechwood trees, but really, environmental sustainability is now a factor in every decision we make. For example, shipping can be hugely wasteful – our factories used to ship every item to us in plastic polybags.&nbsp;We were like, ‘This has to stop.’ So now they put everything in one larger bag, which makes a huge difference. We also started using compostable mailers about two years ago – they’re marginally more expensive, but the goodwill from our customers makes it well and truly worthwhile.Next year, our goal is to become carbon neutral, which is complex as it involves considering every stage of the supply chain. I’m confident that our production partners share our ethos – for example, the guys who dye our fabrics naturally are converting their premises to run on solar power, which is cool. But I think we will get outside help on how to achieve neutrality.&nbsp;&nbsp;

“Next year, our goal is to become carbon neutral, which is complex as it involves considering every stage of the supply chain.”

There’s a real advantage to starting on the right foot and building sustainability into the brand from the start. So, I’d suggest new brands keep sustainability front and centre from the beginning. For established brands, it might feel overwhelming, but, really, it’s just taking a bunch of small steps, and doing what you can, when you can.”<h2>“We needed to educate people about our product”</h2>Customers have lots of questions about&nbsp;<a href="https://teamtimbuktu.com/?gclid=CjwKCAiA_eb-BRB2EiwAGBnXXrDVrvb_1r8JAEoSlTFQAwlnX0cL4pU2l6Dn5M-o0V10ied8jhrbxRoCFqIQAvD_BwE" rel="noopener noreferrer" target="_blank">Team Timbuktu</a>’s raincoats and activewear, which are made from recycled plastic bottles, says founder Rhianna Knight“Even before I started Team Timbuktu in June 2018, I had good relationships with factories and suppliers through my previous role in skiwear design. I knew it was possible to make high-quality fabrics using recycled plastic and that they would be as effective as non-sustainable synthetics, but we’ve had to educate consumers along the way.&nbsp;To use marketing speak, at the top of the funnel they’re really excited about it, then by the consideration phase they’re asking questions like, ‘Is this going to make me sweaty? What’s it going to feel like?’

“We’ve had to educate consumers along the way...&nbsp;by the consideration phase [customers] are asking questions like, ‘Is this going to make me sweaty?”

So, we connect with them through the website via private chat, or through social media, or they might read a blog or review. Customer reviews are also really important as they offer social proof.&nbsp;It was important to me to visit our factories overseas, as it enabled us to build a better relationship with them. When you visit suppliers, they appreciate the effort you’ve made. It’s also important to check certification to ensure, say, that the raw materials they’re using are indeed post-consumer recycled plastic bottles.&nbsp;We use compostable bags for shipping and mailing, and in 2021 we’ll be planting a tree for every order. We trialled this initiative in November, to counter Black Friday, and planted 10 trees for every order, which ended up being 2000 trees. It was pretty exciting.&nbsp;But our long-term goal is circularity. You can use the most sustainable fabric in the world, but at the end of its life the garment often goes to landfill. Circularity is a real challenge for small businesses and for synthetic, mixed fibre material. Our leggings are made from 75 per cent recycled polyester and 25 per cent elastane, which are really difficult to separate into the single fibres that you need to create another garment. At the moment, you can only separate them using heat or chemicals, and it’s really complicated.&nbsp;But there are companies investing in research right now, so we’re hopeful.”

Hear how three Australian brands, Wittner, NICO and Team Timbuktu, are taking steps towards a more ethical future. 

Hear how three Australian brands, Wittner, NICO and Team Timbuktu, are taking steps towards a more ethical future on Afterpay Access

3 Sustainable Fashion Brands Reveal Their Journey | Afterpay

3 brands reveal their sustainability journey

What the growing fashion rental market means for retailers

Last October,&nbsp;<a href="https://www.davidjones.com/" rel="noopener noreferrer" target="_blank">David Jones</a>&nbsp;launched a&nbsp;<a href="https://davidjones.glamcorner.com.au/" rel="noopener noreferrer" target="_blank">pop-up</a>&nbsp;within its flagship Sydney store that – at first glance – seemed to contradict the retailer’s basic aim of selling clothes.In partnership with rental company&nbsp;<a href="https://www.glamcorner.com.au/" rel="noopener noreferrer" target="_blank">GlamCorner</a>, the Elizabeth Street store’s activation allows customers to rent pieces from its stock of designers, including Aje, Acler and Lee Mathews. Where once the typical David Jones customer might have come in to buy a great dress for a night out, now they can just rent one.For&nbsp;Audrey Khaing-Jones, co-founder and COO of GlamCorner, the collaboration makes perfect sense. “The partnership&nbsp;was a natural alignment with our mission to drive a generational shift in fashion consumption and accelerate the transition to a more circular economy,” she says.&nbsp;Yet it’s also a smart move for David Jones as it ramps up its focus on sustainability at a time when consumers are more careful about what they buy. Rather than seeing rental as a market in competition with its own, the retailer is embracing it as an additional revenue stream.&nbsp;One of the key characteristics of Millennial and Gen Z consumers is their preference for sustainably minded brands and products. Now, these consumers are emerging from lockdown with a more cautious attitude to spending and an even greater commitment to sustainability, says Dr Stephen Wigley, Associate Dean of Fashion Enterprise at RMIT.“COVID-19 might not have been directly an environmental issue, but it has given us pause for thought about how our world operates,” he says. “I think people will still be interested in dressing up for work or going out, but there will be ethics around what that means.”<h2>Who is offering rental, and why?</h2>Pre-COVID, the rental market was growing rapidly and was expected to almost&nbsp;<a href="https://www.researchandmarkets.com/reports/5021689/online-clothing-rental-market-global-industry?utm_source=dynamic&amp;utm_medium=BW&amp;utm_code=32ckzr&amp;utm_campaign=1385742+-+Global+Online+Clothing+Rental+Market%2c+Forecast+to+2025&amp;utm_exec=joca220bwd" rel="noopener noreferrer" target="_blank">double in value</a>&nbsp;to more than $US2 billion ($AUD2.6 billion) globally by 2025.&nbsp;Surprisingly, although lockdown affected fashion rental initially, the sector quickly bounced back – in fact, says Wigley, rental is one of the few COVID-19 success stories. At UK service By Rotation, rentals fell but&nbsp;<a href="https://www.telegraph.co.uk/fashion/brands/has-coronavirus-pandemic-stopped-fashions-rental-revolution/" rel="noopener noreferrer" target="_blank">listings increased</a>&nbsp;as people ‘Marie Kondoed’ their wardrobes. Since March, GlamCorner has experienced a 50 per cent rise in subscriptions – and in October announced a&nbsp;<a href="https://www.afr.com/companies/retail/glamcorner-raises-12-million-in-series-b-round-20201026-p568ps" rel="noopener noreferrer" target="_blank">$12 million series B</a>&nbsp;funding round, which will allow the company to move to a fulfilment centre five times bigger than its current home.&nbsp;“Based on the effects of the pandemic, our most popular categories have veered towards more casualwear, with athleisure, knits and ‘waist-up dressing’, says&nbsp;Khaing-Jones. “Our customer is looking for options such as workwear for two-to-three days a week.“We’ve also seen a surge in sign-ups for our maternity subscription-box offering in 2020.”

“We’ve also seen a surge in sign-ups for our maternity subscription-box offering in 2020.”

While David Jones and Country Road are among the few retailers in Australia to dip their toes into the rental market, overseas there are more brands that have brought rental in-house.In the US, Urban Outfitters launched its own in-house rental platform – called&nbsp;<a href="https://www.nuuly.com/" rel="noopener noreferrer" target="_blank">Nuuly</a>&nbsp;–&nbsp;for its private label brands. Subscribers pay a monthly fee of $US88 to rent six items each month, including shipping and cleaning. Nuuly’s stock is held in a purpose-built, 28,000 square-metre warehouse that contains a laundry facility.&nbsp;Banana Republic offers a similar&nbsp;<a href="https://www.brstylepassport.com/pages/pricing-and-plan-selection" rel="noopener noreferrer" target="_blank">monthly subscription</a>&nbsp;service for $US75 a month, for which customers are able to hold three items at a time – but can return them and receive new ones whenever they like.&nbsp;These services are ideal for Millennials and Gen Z consumers who love novelty, but are aware of the environmental costs of fast fashion, says Associate Professor Nitika Garg at UNSW Business School. “For a brand like Banana Republic, rental keeps them relevant. It also indicates an awareness that people are becoming more price-sensitive – thanks to the pandemic recession –and feel unable to bank on a steady income.” Bringing rental in-house also cuts out the middleman, she adds. “You can protect your brand.”<h2>So, should you try it?</h2>While the idea of rental seems appealing, there are barriers for retailers that don’t have the deep pockets of Urban Outfitters.&nbsp;“There are basically two types of rental model for businesses: the direct-to-consumer type where the customer rents an item and the business takes care of the cleaning and processing; and the use of a peer-to-peer platform, where a business would work with a company like GlamCorner to handle the processing,” explains Wigley.&nbsp;“My instinct would be to try to set up an in-house model, because you have more brand control, but it obviously takes time and money to operate.”Garg argues that brands need to conduct market research before trying any type of rental proposition. “You need to really understand your consumer and know what you’re going to gain, and what you might lose,” she says. “Does rental gel with your brand image? Will demand justify the cost?”

“You need to really understand your consumer... Does rental gel with your brand image?”

Rental might be worth investigating if you have a distinctive offering, such as overseas labels that are difficult to source, says Wigley. “Or you might have a brand that designs and makes products that are distinctive or expensive, and they may want to find a way of not necessarily selling more, but maximising the revenue streams from those products.”Even with the success of GlamCorner and now David Jones’ entry into the market, fashion rental is still a nascent sector here, adds Garg. “Part of the reason is that the Australian market overall is smaller than the US, which is also much more consumerist. But, long-term, I think the rental market will be strong.”

As the market continues to grow, learn everything retailers and brands need to know about fashion rental and how it affects traditional business.

As the market continues to grow, learn everything retailers and brands need to know about fashion rental and how it affects traditional business on Afterpay Access

What Fashion Rental Means for Retailers | Afterpay Access

Inside retail's big new rental opportunity

From #BlackLivesMatter to climate change, 2020 was the year of brand activism

It was exactly a year ago that tens of thousands of outraged Australians took to smoke-filled streets to protest against climate change. But it wasn’t just individuals calling for action; brands like tech giant Atlassian to luxury jeweller Tiffany &amp; Co. also entered the fracas.Those protests signalled the start of an unprecedented wave of brand activism. Just a few months later, public outcry over the killing of George Floyd sparked a resurgence in the #BlackLivesMatter movement, which engulfed social media. Once again, brands joined in, posting black squares and calling for action. Then, during COVID-19, campaigns like #MakeItFree, calling for universal childcare, also drew corporate backers.There’s little doubt, says Dr Abas Mirzaei, a senior lecturer in marketing at Macquarie Business School, that brand-led social activism – from calls for same-sex marriage to the #MeToo movement – is on the rise.&nbsp;“It’s definitely increasing, and more brands are trying to show their support,” he says, pointing to&nbsp;<a href="https://cmosurvey.org/results/february-2020/" rel="noopener noreferrer" target="_blank">research</a>&nbsp;that shows that 44 per cent of marketing leaders at billion-dollar brands would take a stance on politically charged issues.&nbsp;Mirzaei points to campaigns by Pepsi and Gillette as examples of social activism that backfired, adding that countless brands were also criticised during #BlackLivesMatter for posting black squares and doing little else.&nbsp;“The jury’s still out on whether brand activism helps or hinders [brands’ bottom lines],” says UNSW Business School Associate Professor Nitika Garg, who is researching consumer perceptions of brand activism.&nbsp;

“The jury’s still out on whether brand activism helps or hinders [brands’ bottom lines].”

The challenge for companies, she says, is that increasingly, “consumers expect brands to participate. They want more from brands now, especially the established ones.”&nbsp;It’s no longer enough, she adds, for brands to appoint a Corporate Social Reasonability (CSR) unit to support non-controversial issues “like, say, the environment or Breast Cancer Foundation”.&nbsp;Mirzaei agrees. “Brands used to go with ‘safe’ choices.” Now, thanks to social media, “the topic is being provided to them”.<h2>So, how can brands navigate social activism?</h2>

Here are five things to consider before entering the arena.&nbsp;1. Ensure there is an authentic alignment“There has to be a degree of alignment between the organisation’s core purpose, image and business and the [cause],” says Mirzaei.That means that an outdoor clothing business like Patagonia, which offers a number of recycling and clothing-repair services, can credibly speak out over climate change. A brand selling bottled water? Not so much.&nbsp;2. Make a long-term commitment&nbsp;Pick a cause and stick with it, advises Mirzaei. “You need to show continuous commitment over time, instead of, say, launching a campaign to fight toxic masculinity one month, and then after a few months launching a new campaign that has nothing to do with that.”

“You need to show continuous commitment over time.”

3. Consider your audience&nbsp;Too often, brands support activist messages because a CEO wants to demonstrate their own principles, says Dr Garg. “But at the end of the day, any publicly traded company is accountable to its shareholders, so you have to make sure your initiatives align with your audience.”She warns that any form of brand activism will inevitably alienate some consumers. “Brand activism is, by definition, controversial. There are people on both sides.”Early findings from Dr Garg’s research into consumer perceptions of brand activism show that people with liberal or left-leaning views tend to think more highly of – and are willing to pay more for – brands that advocate for social change, compared to those who are more conservative. “If your segment is more left-leaning, then activism is a good route to go financially,” she says, with proxies like education levels and age also offering a guide. “We know that Millennials and Gen Z are more left-leaning than older generations,” she says.4. Take concrete actionDuring #BlackLivesMatter, Mirzaei says that brands generally fell into three camps: “symbolic supporters”, who posted on social media but did little else; “brand promisers”, who pledged to do better in the future; and brands who actually changed their practices.&nbsp;He says that the “single most important factor” for any brand engaging in social activism is to take concrete action, by either changing its operations or making a financial donation. That donation should be relative to your brand’s size, he says, allaying any fears that small businesses may have over their ability to donate.“Generally, small businesses are perceived as more genuine and authentic,” he says. The key is to communicate the actions your business is taking. “So, perhaps you say, ‘I am a small brand with $2m revenue but I have invested $10k.’”5. Anticipate questionsBefore posting on social media, think carefully about the questions that consumers might ask in response. If you’re campaigning on gender equity or diversity, take a hard look at the make-up of your own business first. “You’re better off not doing anything than doing something that’s perceived as lip service or disingenuous,” points out Dr Garg.

From #BlackLivesMatter to climate change, 2020 was the year of brand activism. Here are five things to consider before joining the fray.

From BlackLivesMatter to climate change, 2020 was the year of brand activism Here are five things to consider before joining the fray