H&M Group has become an avid champion of the circular economy, investing heavily in resale strategies, eco-friendly packaging and garment recycling.
The company is also doing its part to extend the life of garments at the retail level. The fast-fashion giant is teaming with Sellpy, an online secondhand shop, to continue its expansion in the Netherlands and Austria.
In 2015, H&M Group began investing in the Swedish resale business that has since expanded internationally. H&M is now a majority owner, and just last year used the service to launch a vintage clothing selling platform for its women’s brand, & Other Stories.
“We’re excited about Sellpy’s continued international expansion which we support with our investment and strategic partnership,” said Nanna Andersen, head of H&M’s investment arm CO:LAB H&M Group. “We truly believe in the entrepreneurs and team behind Sellpy and their unique circular business model, which perfectly aligns with our vision to become fully circular.”
Sellpy expanded to Germany in June 2020 and is now the second-largest online shop and sales service for secondhand items in Sweden.
According to Sellpy CEO Michael Arnör, the resale market will only continue to grow in popularity.
“We see a steady growth in demand for sustainable consumption, where second-hand is a great option,” he said. “Every garment bought pre-owned saves resources for our planet. It’s therefore very exciting that we continue to grow and empower more customers in Europe to live circular.”
H&M is one of many retailers shifting their sights to the resale market, as the industry experiences a boom in response to consumers’ growing sustainability concerns. A 2019 report from ThredUp estimated that fashion resale is a potential $50 billion market.
The fast-fashion retailer was also one of the early adopters of the Ellen MacArthur Foundation’s Jeans Redesign program, which set guidelines for the durability, material health, recyclability and traceability of jeans. In October, H&M launched its first collection of men’s denim designed according to the new guidelines.
