Circular Entrepreneurs - We Should Not Compete Against Each Other

We usually speak directly to fashion brands, but today, we’re switching it up. This blog is for the circular entrepreneurs - those who are stepping into the fashion industry with fresh ideas and a mission to make sustainability work. The truth is, while circularity has been gaining momentum, it’s still nowhere near where it needs to be. And time isn’t on our side—our planet is running out of resources, and we need to act fast. That means thinking beyond competition.

Instead of trying to outdo one another, circular entrepreneurs should focus on filling in the gaps to strengthen the system as a whole. Because in this space, collaboration beats competition every single time.

Why Competing Against Other Circular Businesses Might Be Holding Us Back

Traditional business models are built around competition - who can sell the most, who can scale the fastest, who can dominate the market. But circularity isn’t about domination. It’s about building an interconnected system where every player has a role to keep resources in use for as long as possible.

So, what happens when circular businesses start competing against each other, instead of working together? We create inefficiencies. We slow down progress. We waste resources - ironically, the exact thing we’re trying to prevent. Instead of duplicating efforts or fighting over the same slice of the pie, we should be growing the entire pie together by addressing the gaps in the system.

Reclot’s Approach: A Facilitator, Not a Competitor

Let’s take our own journey at Reclot as an example. The process of handling pre-sale garment defects is already in placewithin fashion brands - damaged garments are identified, repair centers fix them, logistics providers move them around, and warehouse teams sort them. But the process is far from efficient. It’s fragmented, time-consuming, and often so frustrating that brands end up skipping repairs altogether.

That’s where we come in - not to replace anyone, but to connect everyone. We see ourselves as a facilitator within the repair ecosystem, bringing together all the stakeholders - fashion brands, repair service providers, and logistics companies - to make the whole process smoother, faster, and more reliable. By improving how things work systemically, we make pre-sale repair a default, not an afterthought.

A New Mindset: Sharing, Not Just Competing

What if, instead of trying to outperform other businesses in circularity, we focused on profit sharing, collaborative innovation, and new revenue models that lift everyone up? Imagine a system where:

• Repair services, resale platforms, and recycling initiatives work hand-in-hand, ensuring every garment finds its best next life.

• Revenue from circular initiatives is shared fairly, encouraging more businesses to participate instead of seeing each other as threats.

• Resources are allocated based on need, rather than businesses pouring money into competing for the same customers.

• Constant dialogue between circular businesses leads to faster industry-wide adoption of sustainable practices.

When circular businesses work together, we move beyond just being “sustainable brands” to being a sustainable industry. And that’s what will truly drive change. The reason so many businesses target the same circular needs is often due to a shortsighted focus on replicating the success of existing booming businesses. But to truly move forward, we need a new mindset - one that encourages entrepreneurs to deeply understand the circular value chain, identify fail points, and tackle inefficiencies. By doing so, they can create real impact while also securing financial rewards from their business endeavors.

Circularity Moves Faster When We Work Together

The fashion industry’s circular transition isn’t something that will happen overnight. But it will happen a lot faster if we stop thinking in silos and start seeing the bigger picture. The circular economy isn’t about outcompeting - it’s about building a system where everyone plays their part, making sure resources are used efficiently, and ensuring that sustainability is the norm, not the niche.

So if you’re a circular entrepreneur looking to make an impact in fashion, ask yourself: What gap am I filling? How can I work with others to strengthen the system? Because in circularity, the real win isn’t being the biggest - it’s making sure the whole system works better for everyone.