London, 14 April 2025
What’s blocking adoption of circular initiatives in the fashion industry? A new British Fashion Council-backed report reveals the most significant barriers & proposes a way forward.
According to the Circular Fashion Innovation Network (CFIN), 40% of UK brands and retailers identify customer communication as a significant obstacle to circular initiative success. Consumer scepticism around green claims, confusing messaging, and lack of incentives create friction and push customers away. To drive real engagement, brands must make circularity convenient and compelling.
A first-of-its-kind industry report looking into these obstacles has been compiled by Clarasys and released in partnership with CFIN, a coalition led by the British Fashion Council (BFC) in partnership with UK Fashion & Textile (UKFT) and produced with input from leading fashion brands including John Lewis, Burberry and New Look. The report, entitled “Shaping the future of circular fashion communication”, highlights the key barriers that organizations face when trying to adopt circular business models, and calls for change within the industry.
Sara Elkholy, CFIN Programme Director, BFC explained: “There is a strong desire within the industry to improve circularity. However, significant barriers are preventing organizations and customers from buying fashion in a more sustainable way. Complex regulatory challenges, low customer engagement, and significant issues around scaling circularity initiatives are just some of the reasons why fashion organizations have struggled to become more sustainable.”
While 82% of fashion brands have implemented at least one circular initiative, scaling these models remains a significant challenge, according to CFIN.
The fashion industry needs clear definitions, aligned global standards, and predictable enforcement. Without this, brands hesitate to communicate their efforts - afraid of saying too much (greenwashing) or too little (greenhushing). This is resulting in missed opportunities for engagement, innovation, and impact.
“This report is welcomed at a time when every industry is feeling pressure to become more sustainable,” said Loic Le Fouest, a Circular Economy specialist from leading consulting firm Clarasys. He continued, “Bold commitments to circularity often clash with the realities of execution; siloed teams, competing priorities, and resource constraints make it challenging to align vision with action. At the same time, technological and logistical hurdles, like supply chain traceability, prevent brands from engaging customers and delivering on their promises. Overcoming these barriers is essential to turning ambition into impact and will provide leaders in this space a competitive advantage, futureproofing their brand.”
The in-depth publication has been produced jointly by the customer experience and sustainability experts at Clarasys, CFIN, and environmental innovators Ape Studios. Clarasys, having recently worked with luxury and retail fashion companies to explore their circularity options and comply with upcoming ESG legislation such as the CSDDD and CSDR, was well placed to facilitate the research and workshops involved in producing this report.
The report provides a structured, phased approach to embedding circularity into business strategy, from compliance to customer trust and internal transformation. It aims to help brands turn sustainability into a competitive advantage while meeting evolving customer and regulatory demands. By implementing the roadmap it presents, fashion brands will be equipped to:
- Navigate the GCD with confidence, ensuring transparency, legal compliance and trust.
- Engage customers in circular business models effectively, overcoming behavioral barriers and driving participation.
- Transform operations, marketing, and supply chains, embedding circularity at the heart of the brand.
- Lead the industry’s transition toward a regenerative fashion ecosystem, setting new benchmarks for sustainability and innovation.
