Forget retail, it’s resale

A green wave is sweeping over the Indonesian retail industry.

What goes into a pair of jeans, other than legs? Cotton, dyes and 2,000 gallons of water.

According to the UN Environment Programme, the global fashion industry is the second biggest consumer of water and is responsible for 8-10 percent of global carbon emissions — more than emissions by international flights and maritime shipping combined.

The demand for fashion is also higher — compared to buyers 15 years ago, the average consumer today buys 60 percent more clothing but only keeps them for half as long.

As Southeast Asia’s leading textile and apparel producer, Indonesia plays an important role when it comes to sustainability in the fashion industry.

Resale fashion is a sustainable practice that has emerged, and is becoming increasingly popular particularly among the younger generation.

For the fashionable, trend-conscious-but-limited-funds consumer, resale fashion has an immediate appeal: they can sell their old, unworn and/or unwanted clothes and purchase pre-owned clothes from other like-minded sellers. At best, it’s a chance for consumers to clear out their closets to make space for trendier clothes that they can buy at cheaper prices.

Globally, the resale fashion market has grown 21 times faster than retail fashion over the past three years, and is expected to grow into a US$51 billion industry by 2023.

In Indonesia, resale e-commerce stores such as Tinkerlust and HuntStreet are gaining traction, capitalising on trending fashion’s short lifespan to create a long-lasting business venture.

It looks like Indonesia has what it takes for the next big thing in sustainable fashion, and this will contribute to the country’s economic growth in the next few years. See what other investment opportunities there are beyond fashion in Indonesia with Eastspring Investments today at www.eastspring.com today.

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