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

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.