Exploring the dynamics of fashion resale: a critical typology of resale business models in Denmark

Abstract

Purpose There is an urgent need to prioritise the inner circles of the circular economy by promoting business practices that limit resource consumption and increase clothing utilisation. This article presents a typology of fashion resale business models in Denmark and critically examines their potentials to slow consumption cycles. Design/methodology/approach The research draws on qualitative data from 24 Danish fashion and textile companies collected between fall 2021 and spring 2024, specifically eight semi-structured interviews and participant observations from six collaborative industry workshops. Giving attention to key concepts from the business model (BM) literature, data were analysed using the Gioia methodology. Findings Analysing five fashion RBMs - (1) branded resale, (2) multi-brand trade-in resale, (3) peer-2-peer (p2p) resale, (4) resale boutiques and consignment shops, and (5) resale shelf stores and closet sales – the article supports previous research, suggesting that slowing consumption cycles is tied to a deep understanding of products, users and local contexts. Practical implications Providing insights into real-life RBMs and reflecting critically on their potentials to replace dominant linear business structures, the article can inform resourceful BM innovation for an effective fashion resale economy. Originality/value Combining one of the world's largest clothing consumption rates with a strong demand for pre-owned fashion, Denmark provides a relevant context to explore RBMs while offering critical insights into their potentials to support garment use extension and slow resource consumption.