Circular economy and textile merch: practices and innovations

Circular logic is now emerging as an essential response to environmental, social and economic challenges. In the merchandising and fabric sector, this model is profoundly transforming the use and perception of products. Clothing, accessories and goodies are no longer simply communication tools, but are becoming levers for reducing waste, optimising resources and strengthening the relationship between brands and consumers. 

This article explores the principles of the circular economy as applied to merch, its practical uses, its challenges, and the innovations and initiatives that are redefining the future of fashion and corporate clothing. 

Understanding the circular economy in merch

Definition and principles of the circular economy

The circular economy differs from the traditional linear economy, which is based on the three-step process of extracting, producing and disposing. In merchandising, this classic model leads to overconsumption of raw materials, intensive production and massive accumulation of waste.

Conversely, circular logic aims to extend the life of products by reducing the use of new resources and promoting reuse, repair and recycling. It is a logic in which every garment, every object and every service is part of a virtuous cycle, limiting environmental impact while creating economic and social value.

The importance of merch in the circular economy

Merchandising is a strategic sector at the crossroads of fashion, communication and marketing. Every year, millions of T-shirts, tote bags, caps and sweatshirts are produced for promotional purposes. Often, these items end up at the back of a cupboard or, worse still, in the bin, reinforcing the negative effects of fast fashion.

Integrating the circular economy into this sector means offering businesses and consumers a sustainable alternative:

• clothes that last longer,
• environmentally friendly materials,
• products designed to be reused or recycled,
• communication aligned with sustainable development issues.

Sustainable practices in merchandising

Reduce, reuse, recycle in the product life cycle

The circular economy is based on the 3Rs rule: reduce, reuse, recycle.

• Reduce: limit the production of unnecessary goods, choose volumes that are suited to actual needs, favour high-quality raw materials that extend the product's lifespan.
• Reuse: encourage reuse through timeless and versatile designs that adapt to different uses (a tote bag that can be used at the office or for shopping).
• Recycle: recover value from textile waste by creating new fibres or reintegrating materials into the production chain.

This approach encourages more responsible consumption, which benefits both brands (positive image, consistent messaging) and consumers.

At Inkoo, we work with exceptional partners who supply us with the right volumes of recycled parts or parts produced under stricts certifications.

Positive environmental impact thanks to circular merch

Producing a conventional cotton T-shirt consumes an average of 2,700 litres of water, equivalent to what one person drinks in two and a half years. Choosing recycled or certified materials (such as GOTS cotton, recycled polyester or innovative fibres made from organic waste) can drastically reduce this footprint.

Well-designed circular merch can therefore:

• reduce resource consumption,
• limit fabric waste,
• raise consumer awareness of sustainable fashion issues,
• enhance the environmental credibility of brands.

The challenges and limitations of the circular economy in merchandising

Economic and logistical constraints

Despite its advantages, the circular model faces several obstacles:

• Costs: producing eco-friendly clothing or products can sometimes be more expensive than fast fashion options. For some companies, the investment may seem difficult to justify in the short term.
• Logistics: organising collection, sorting, repair and recycling requires infrastructure and services that are still insufficiently developed in this area.
• Scalability: moving from local initiatives to industrial production that complies with circular principles remains a challenge for many stakeholders.

Awareness and adoption by businesses

Another challenge lies in education. Many companies still do not perceive merchandising as a sustainable lever. Merch is too often seen as a simple marketing tool rather than a vehicle for values.

Convincing purchasing, marketing and communications departments to change their behaviour involves:

• concrete examples of positive impact,
• clear information on financial and environmental benefits,
• highlighting the good practices already in place in the sector.

The role of upcycling and local collaborations

A key pillar of the circular economy applied to clothing is upcycling. Unlike recycling, which transforms waste into new material, upcycling directly enhances existing textiles by giving them a new lease of life in another form.

At Inkoo, for example, we regularly work with upcyclers: 

• to limit textile waste in our own production processes,
• to provide them with stock or scraps that can be reused in their projects,
• to support creative and local initiatives that combine design and sustainability.

This circular approach has a dual advantage:

• reduce manufacturing waste,
• provide young designers and players in the textile industry with a solid foundation for developing their projects.

These collaborations demonstrate that the circular economy is not just a theory: it creates an ecosystem where manufacturers, artisans, brands and consumers work together to develop new practices.

Current innovations and trends

New environmentally friendly materials and technologies

The circular economy in fashion is advancing thanks to the emergence of innovative materials and smart technologies:

• Recycled fibres: post-consumer cotton, polyester from plastic bottles, reclaimed wool.
• Alternative materials: textiles made from mushrooms, seaweed or agricultural waste.
• Production technologies: more environmentally friendly textile printing (DTF, water-based ink screen printing), traceability thanks to blockchain technology, integrated resale or reuse platforms.

These innovations transform promotional products into true ambassadors for a more sustainable model.

Case studies: brands embracing the circular economy

Several examples show that this change is already underway:

• Patagonia: a pioneer in sustainable fashion, the brand offers a repair service and encourages the reuse of its garments.
• Stanley/Stella: European company specialising in eco-friendly textiles, incorporating certified materials, recycling and local manufacturing.
• Adidas x Parley: an initiative that transforms ocean plastic pollutants into sports shoes and clothing.

In the merch market, more and more companies are favouring sustainable goodies, clothing designed to last and products designed for multiple uses, at the crossroads of marketing and environmental commitment.

Conclusion

The circular economy is not just a marketing trend: it is a profound transformation of the consumption and production system. In the merchandising and textile industry, it represents a unique opportunity to rethink the use of resources, extend the life of products and create real added value for brands, consumers and the environment.

Reducing waste, promoting reuse, developing new materials, raising awareness among industry players: these are the paths to a future where merchandising is positioned as a lever for positive change.

Because ultimately, adopting the circular economy in fashion and merchandising is a good economic, social and environmental choice. It shows that it is possible to combine exchange, innovation and responsibility. Above all, it contributes to a more sustainable model, far removed from the excesses of fast fashion, for the benefit of society as a whole.