# CIRQUEL - Full Content Archive > Post-sale intelligence platform for brands. Captures condition and context at the moment of return, validates warranty claims, detects fraud, and routes each item to its highest-value outcome. Before the product reaches the warehouse. CIRQUEL was founded in 2024, headquartered in Barcelona and Berlin, by Anna Warchalowska (CEO), June Arrieta (COO), and Carlos Blanco (CTO). Backed by BEAM and Coben Group. This file contains the full text of all published blog posts for LLM ingestion. ## Team - [Anna Warchalowska](https://www.linkedin.com/in/anna-warchalowska-contact/) — CEO & Co-founder - [June Arrieta](https://www.linkedin.com/in/june-arrieta/) — COO & Co-founder - [Carlos Blanco](https://www.linkedin.com/in/blancoc/) — CTO & Co-founder Index: https://cirquel.co/llms.txt === # Europe Is Quietly Rewriting Fashion. Most Brands Haven’t Noticed Yet. URL: https://cirquel.co/post/europe-is-quietly-rewriting-fashion-most-brands-havent-noticed-yet Date: 2026-07-31 Author: Anna Warchalowska Tags: Circular Fashion, Regulation, ESPR, Digital Product Passport, EPR, Sustainability, KPMG, Product Lifecycle, Reverse Logistics, Europe Why the biggest transformation in fashion isn’t happening on the runway - but in regulation, operations and data. _Why the biggest transformation in fashion isn’t happening on the runway - but in regulation, operations and data._ When people talk about the future of fashion, the conversation usually revolves around creativity, consumer trends, artificial intelligence, or the next breakthrough material. Yet after reading the latest **KPMG × Fédération de la Mode Circulaire 2026** report, I came away with a very different conclusion. The most profound transformation taking place in fashion today isn’t about products at all. It’s about the rules that govern them throughout their entire lifecycle. Quietly, and without attracting the same headlines as generative AI or ultra-fast fashion, Europe is building a completely new operating model for the industry. What was once considered a sustainability agenda is becoming an industrial strategy: one that will reshape how products are designed, manufactured, sold, repaired, resold, recycled and ultimately valued. Rather than treating circularity as a niche environmental initiative, policymakers are steadily embedding it into the very foundations of how fashion businesses will operate over the next decade. ## Circularity Has Stopped Being an ESG Conversation Only a few years ago, circularity was largely viewed as an environmental ambition. Brands experimented with resale platforms, pilot repair services and recycling initiatives, often led by sustainability teams rather than business leaders. These projects were important, but they frequently remained disconnected from core commercial strategy. Today, the context looks entirely different. The report argues that circularity has become a **strategic necessity**, driven not only by environmental objectives but also by supply-chain resilience, competitiveness and long-term profitability. **Around 80% of a product’s environmental impact is determined during the design stage**, making decisions taken before production begins far more influential than anything that happens later. At the same time, scalable circular business models remain constrained by operational complexity, fragmented value chains and profitability—meaning that success will depend less on good intentions and more on execution. That distinction matters. The industry is no longer asking whether circularity is important. It is asking whether circularity can become commercially viable, operationally scalable and economically sustainable. ## Europe Is Changing the Economics of Fashion Perhaps the most overlooked message in the report is that regulation is no longer simply about compliance. It is becoming an economic framework. The combined impact of the Ecodesign for Sustainable Products Regulation (ESPR), Digital Product Passports (DPP), Extended Producer Responsibility (EPR), mandatory textile collection, repair initiatives and the upcoming Circular Economy Act is creating something much bigger than a list of legal obligations. Together, these policies encourage businesses to rethink how products generate value throughout their entire lifetime—not only at the point of sale. Rather than treating repair, reuse and recycling as downstream activities, Europe is steadily moving them closer to the centre of business strategy. The report identifies regulation not as a constraint on growth, but increasingly as one of its key enablers - creating stronger incentives for better product design, greater traceability, improved resource efficiency and new circular business models. This represents a significant shift in thinking. Five years ago, sustainability was largely voluntary. Today, the foundations of a new industrial framework are quietly being built around it. ![The economics of circular fashion in Europe](https://assets.cirquel.co/website/europe-is-quietly-rewriting-fashion-2.png) ## The Numbers Tell a Bigger Story One of the strongest aspects of the report is its economic perspective. According to KPMG and the Fédération de la Mode Circulaire, Europe’s four major circular fashion pillars could collectively represent a market of approximately **€104 billion by 2030**. Perhaps surprisingly, the largest opportunity is not recycling. It is **“Reinvent”**- designing products differently from the outset through eco-design, durability and circular product development-projected to reach approximately **€71 billion**. By comparison: - **Reuse**: approximately **€27 billion** - **Repair**: approximately **€3.7 billion** - **Recycling**: approximately **€2.4 billion** Collectively, these activities could support **more than 88,000 jobs** across Europe. These projections challenge many of the assumptions that still dominate public discussions around circular fashion. While recycling often receives the greatest public attention, the report suggests that the largest economic value will be created much earlier in the product lifecycle—through smarter design decisions, improved durability and operational models that prevent waste before it occurs. In other words, the future of circular fashion may depend less on managing waste and more on avoiding it altogether. ## Circularity Still Has One Major Obstacle: Execution Despite its optimism, the report is refreshingly honest about the barriers that remain. Circular business models continue to struggle with fragmented infrastructure, inconsistent economics and limited industrial capacity. Textile-to-textile recycling, for example, still faces considerable challenges related to feedstock quality, investment requirements and long-term profitability. Likewise, repair networks, reverse logistics systems and material recovery processes require far greater coordination than many current supply chains were originally designed to support. This is an important reminder. Technology alone will not solve circularity. Neither will regulation. The greatest challenge is operational. Building circular systems requires businesses to rethink how products move, how information flows between stakeholders and how value is created across multiple product lifecycles—not just one. That transformation is considerably more complex than launching another sustainability initiative. ## My Perspective: The Next Competitive Advantage Will Be Built After the Sale What struck me most while reading the report was not any single statistic or regulation, but the pattern that emerged across all of them. Whether the discussion focused on eco-design, Digital Product Passports, repair ecosystems or Extended Producer Responsibility, the underlying challenge remained remarkably consistent: the industry still has very limited visibility into what happens to products once they leave the point of sale. For decades, fashion has been optimised around getting products to the customer as efficiently as possible. Entire organisations, technologies and supply chains have been designed to support that journey. Yet the journey back—from returns and repairs to resale, refurbishment and recycling—has often remained fragmented, manual and largely disconnected from strategic decision-making. As circular business models continue to mature, that imbalance is becoming increasingly difficult to ignore. Every interaction after the initial purchase generates information that extends far beyond logistics. Returns reveal recurring sizing issues and changing customer expectations. Warranty claims expose weaknesses in product quality and manufacturing. Repair histories provide insight into durability, while resale performance offers a new perspective on long-term product value. Individually, these signals may appear operational. Collectively, they represent one of the richest sources of intelligence available to any fashion business. This is why I believe the next phase of circularity will be driven less by collecting more information and more by understanding how to use it. The organisations that succeed will not necessarily be those with the most sustainability initiatives or the most sophisticated compliance programmes. They will be the ones capable of connecting data across the entire product lifecycle and transforming it into better decisions-whether that means improving future collections, reducing returns, designing more durable products or allocating inventory more intelligently. In many ways, the conversation is already beginning to shift. Circularity is no longer simply about extending the life of products; it is about extending the value of the information those products generate throughout their lifetime. As regulatory expectations continue to increase, I believe the companies that view product lifecycle data as a strategic business asset—rather than a reporting obligation—will be significantly better positioned to compete over the coming decade. ## The Bigger Question If Europe is quietly redesigning fashion around product lifecycle management rather than product ownership, perhaps we’re asking the wrong question. Instead of asking: **“How can we become more circular?”** perhaps business leaders should be asking: - Are we redesigning our organisations - or simply adapting to new regulations?. - Are we treating product data as a compliance requirement or as a strategic business asset?. - And when every brand has access to similar regulations, similar technologies and similar sustainability commitments, what will ultimately create competitive advantage?. My belief is that it won’t be compliance alone. It will be the ability to understand products—not only before they are sold, but throughout everything that happens afterwards. Because Europe’s biggest fashion transformation isn’t about making better products. It’s about building better systems around them. --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Next Era of Luxury Will Be Built on Operational Intelligence URL: https://cirquel.co/post/the-next-era-of-luxury-will-be-built-on-operational-intelligence Date: 2026-07-23 Author: Anna Warchalowska Tags: Luxury, Circular Fashion, Sustainability, Returns, AI, Reverse Logistics, Operational Intelligence, Policy, Digital Product Passport Luxury is entering a fundamentally different operating environment. The brands that lead the next decade may not simply be those producing better products — they may be the ones learning more effectively from every product that returns. Over the last several months, the luxury industry has been asking increasingly difficult questions. Growth has slowed after years of exceptional performance, consumer behaviour is shifting, geopolitical uncertainty continues to affect demand, and brands are being forced to rethink how they create long-term value. Recent publications from **The Business of Fashion**, **McKinsey & Company**, **Global Fashion Agenda**, **Fashion for Good**, together with discussions led by experts including **Ken Pucker**, **Lutz Walter**, **Patrick Frisk**, and **Victoria C.N. Scholz**, all suggest that luxury is entering a fundamentally different operating environment. While each publication focuses on a different part of the value chain, they collectively describe an industry moving from growth optimisation toward operational resilience, customer intelligence, and lifecycle management. One of the clearest signals comes from the latest **Business of Fashion × McKinsey "State of Fashion: Face to Face With Luxury Clients"** report. Rather than focusing exclusively on attracting new ultra-high-net-worth customers, the report argues that luxury brands should rebuild stronger relationships with what it describes as the "critical middle" — established and aspirational luxury consumers who together represent an estimated **US$70–90 billion opportunity**. According to the report, years of aggressive price increases have unintentionally weakened accessibility for many loyal customers, creating space for new expectations around service, experience, and perceived value. Future growth, therefore, is expected to rely less on simply selling more products and increasingly on strengthening customer relationships across the entire lifecycle. The report also highlights how the physical role of luxury retail is changing. Flagship stores are evolving beyond traditional points of sale into immersive destinations that combine retail, hospitality, culture, gastronomy, education and community building. Examples such as **Louis Vuitton's "The Louis" flagship in Shanghai** and **ICICLE Garden** illustrate how brands are investing in spaces that deepen emotional engagement rather than maximise immediate transactions. The message is clear: luxury is no longer competing only through products. It is competing through experiences, long-term relationships and differentiated service. ![The New Luxury Experience](https://assets.cirquel.co/website/blog-next-era-of-luxury-2.png) Yet customer experience is only one side of the transformation. Behind the scenes, the operational landscape is becoming equally complex. Across Europe, the fashion and luxury sectors are simultaneously adapting to the **Ecodesign for Sustainable Products Regulation (ESPR)**, **Digital Product Passports (DPP)**, expanding **Extended Producer Responsibility (EPR)** schemes, the **Corporate Sustainability Reporting Directive (CSRD)**, new **Green Claims** legislation, revisions to the **Waste Framework Directive**, and mandatory textile collection requirements. As highlighted in the **Global Fashion Agenda Policy Matrix**, more than one hundred policy initiatives are now influencing how products are designed, manufactured, sold, repaired, collected, resold and recycled. Sustainability is therefore becoming embedded not only in brand communication but also in operational decision-making throughout the value chain. At the same time, organisations such as **Fashion for Good** continue demonstrating how rapidly circular technologies are maturing. Programmes including **Closing the Footwear Loop**, **Project Rewear**, and **Future Forward Factories** are exploring fibre-to-fibre recycling, automated textile sorting, product redesign, circular manufacturing, and scalable recovery systems. One particularly striking statistic highlights the scale of the challenge: approximately **23–24 billion pairs of shoes are produced globally every year, while an estimated 90% still end up in landfill, incineration, or unmanaged waste streams** due to the complexity of footwear construction and insufficient recovery infrastructure. These initiatives show that technological solutions are progressing quickly, but they also reveal another recurring theme. Every circular process depends on accurate information about the product itself. Material composition, condition, authenticity, damage, previous usage and recovery potential increasingly determine which circular pathway is technically and economically viable. Artificial intelligence is expected to accelerate many of these developments. Discussions across **London Tech Week**, **Viva Technology Paris**, and recent reports from **Fashion for Good** increasingly position AI as the orchestration layer capable of connecting manufacturing, logistics, compliance, customer service and circular operations. However, the success of AI depends less on model size than on data quality. Without structured information about returned products, warranty claims, customer feedback and product condition, even the most advanced AI systems remain limited in their ability to support operational decisions. In other words, artificial intelligence is only as valuable as the operational signals it receives. Looking across all these reports and initiatives, one observation repeatedly emerges. The industry has invested enormous resources into understanding how products should be designed, manufactured and sold. Comparatively little attention has been devoted to understanding products once they re-enter the value chain. Yet this is precisely where some of the richest commercial, operational and sustainability insights exist. Every return, warranty claim, repair request or quality assessment contains information about product durability, manufacturing consistency, customer expectations, resale potential, fraud risk and future product development. These signals influence not only reverse logistics but also future sourcing decisions, merchandising strategies, inventory planning and customer experience. ![Operational Intelligence in Reverse Logistics](https://assets.cirquel.co/website/blog-next-era-of-luxury-3.png) ### The Bigger Question Reading these publications together left me with one overarching reflection. Today's conversation around fashion and luxury is still largely centred on **products**. How they are designed? How they are manufactured? How they are marketed? How they are recycled? Far less attention is given to **how they are understood once they come back**. If Europe is serious about building a competitive circular economy, and if luxury brands are serious about strengthening customer relationships beyond the first transaction, then reverse logistics can no longer remain a back-office function. It needs to evolve into an intelligence layer connecting customer behaviour, operational excellence, compliance, sustainability and commercial performance. To me, that is where one of the industry's biggest opportunities lies. The brands that lead the next decade may not simply be those producing better products. They may be the ones learning more effectively from every product that returns. Because ultimately, circularity is not only about keeping products in circulation. It is about keeping **knowledge** in circulation. ### Further reading & inspiration This article draws on research and publications from **The Business of Fashion**, **McKinsey & Company**, **Global Fashion Agenda**, **Fashion for Good**, the **European Environment Agency**, and perspectives shared by **Ken Pucker**, **Patrick Frisk**, **Lutz Walter**, **Victoria C.N. Scholz**, and other leaders contributing to the future of fashion, luxury, AI, and circular supply chains. --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # From Policy to Practice: Why fashion's circular future depends on better decisions? URL: https://cirquel.co/post/from-policy-to-practice-why-fashions-circular-future-depends-on-better-decisions Date: 2026-07-06 Author: Anna Warchalowska Tags: Circular Fashion, Sustainability, Returns, AI, Reverse Logistics, Policy, EPR, Digital Product Passport Fashion is entering a new chapter. The question is no longer whether circularity matters - it is whether brands have the operational capability to make circularity work. For years, the fashion industry's sustainability conversation has been dominated by the same themes: better materials, cleaner production, renewable energy, traceability, and more responsible sourcing. These are all fundamental building blocks of a more sustainable industry, and the progress made over the last decade should not be underestimated. Yet, over the past few weeks, I found myself reading a series of reports and reflections from very different voices across the ecosystem, including **Global Fashion Agenda**, **Fashion for Good**, **Ken Pucker**, **Patrick Frisk**, **Lutz Walter**, **Victoria C.N. Scholz**, and **Circular Fashion News**. Although each approached the topic from a different perspective, they all seemed to point toward the same conclusion. Fashion is entering a new chapter. The question is no longer whether circularity matters. The question is whether brands have the operational capability to make circularity work. ![From Policy to Practice](https://assets.cirquel.co/website/from-policy-to-practice-1.jpg) ## Circularity is becoming a business requirement The latest **Global Fashion Agenda Policy Matrix 2026** illustrates just how rapidly the regulatory landscape is evolving. The report maps well over one hundred policy initiatives influencing the global textile and fashion industry, with Europe clearly leading the transformation. From the **Ecodesign for Sustainable Products Regulation (ESPR)** and the upcoming **Digital Product Passport (DPP)**, to **Extended Producer Responsibility (EPR)**, the **Corporate Sustainability Reporting Directive (CSRD)**, the **Green Claims Directive**, revisions to the **Waste Framework Directive**, mandatory textile collection requirements, and the future **Circular Economy Act**, the direction is unmistakable. Fashion is moving from voluntary sustainability commitments toward measurable operational accountability. At the same time, the challenge facing brands continues to grow. According to the **European Environment Agency**, Europeans discard approximately **5.8 million tonnes of textiles every year** - roughly **11 kilograms per person annually** - while collection, sorting, reuse and recycling systems still struggle to keep pace. The regulatory environment is evolving precisely because the existing system is no longer capable of absorbing the scale of consumption and waste the industry generates. Circularity is no longer becoming a competitive advantage. It is gradually becoming a licence to operate. ## Innovation Is Accelerating, but mostly before the customer One of the most encouraging developments over the past year has been the number of ambitious initiatives trying to redesign the industry's future. **Fashion for Good's Closing the Footwear Loop** initiative highlights the enormous complexity of footwear circularity. Today, approximately **23–24 billion pairs of shoes are produced globally each year**, while an estimated **90% still end up in landfill, incineration, or unmanaged waste streams** because existing recovery infrastructure cannot adequately process their material complexity. Projects such as **Project Rewear**, **Closing the Footwear Loop**, and **Future Forward Factories**, together with partners including **H&M Foundation**, **Laudes Foundation**, **Arvind Limited**, and numerous innovators across the ecosystem, demonstrate remarkable progress in fibre-to-fibre recycling, automated sorting, manufacturing optimisation, product redesign and new circular business models. These initiatives are exactly what the industry needs. But reading across them, one observation kept returning to me. Almost every initiative focuses on improving what happens **before** the product reaches the customer - or after it reaches dedicated recycling infrastructure. Very few begin with what happens **the moment the product comes back.** ![Innovation Before the Customer](https://assets.cirquel.co/website/from-policy-to-practice-2.jpg) ## AI doesn't need more data. It needs better signals. Artificial intelligence has become the defining technology conversation across almost every industry, and fashion is no exception. Most discussions focus on demand forecasting, design generation, inventory optimisation or supply chain planning. Those applications are undoubtedly valuable. However, I believe AI's greatest opportunity lies somewhere much less visible. Every returned product tells a story. It tells us something about product quality, customer expectations, sizing accuracy, durability, logistics performance, manufacturing consistency, and even future product design. Yet in many organisations, these signals are still captured through manual inspection, generic return categories, fragmented spreadsheets, or sometimes not captured at all. This is particularly striking because many of the reports I have been reading - including recent work from **Fashion for Good** and **Circular Fashion News** - emphasise that AI will increasingly become the engine behind circular supply chains. I completely agree. But AI can only optimise what it is able to understand. Without structured, high-quality operational data, even the most sophisticated AI systems cannot make consistently intelligent circular decisions. The missing ingredient is not the algorithm. It is the signal. ## Reverse logistics is becoming a strategic intelligence layer For decades, returns have been treated primarily as an operational inconvenience. A cost centre. A logistics problem. Something to process as efficiently as possible. I increasingly believe this perspective is becoming outdated. Every returned product represents one of the richest sources of business intelligence available to a brand. It provides direct feedback on product quality, material performance, manufacturing consistency, customer behaviour, warranty risks, resale potential, repair feasibility and future product development. The question is no longer simply how quickly a return can be processed. The question is how much knowledge a business can extract before value is lost. This is precisely the philosophy that has shaped the way we are building **CIRQUEL**. Rather than viewing returns, warranty claims and unsold inventory as isolated operational events, we see them as continuous data streams capable of improving commercial decisions across the entire product lifecycle. Through computer vision, structured product assessment, contextual customer inputs - including voice-based feedback - and intelligent routing recommendations, our goal is not simply to automate reverse logistics. It is to transform reverse logistics into an intelligence layer connecting customer behaviour, operational efficiency and circular decision-making. ![Reverse Logistics as Intelligence Layer](https://assets.cirquel.co/website/from-policy-to-practice-3.jpg) ## The Bigger Question is... Reading all these reports together left me with one overarching conclusion. Almost every conversation today focuses on **how products are made**. Far fewer discuss **how products are understood once they return.** I believe this is where the next decade of innovation will happen. At CIRQUEL, we often say that a returned product is not simply a returned product - it is one of the richest sources of intelligence a brand will ever receive. Every image, every warranty claim, every customer explanation, every quality assessment, and every routing decision generates knowledge that can improve future design, manufacturing, sourcing, customer experience, and ultimately business performance. If Europe is serious about building a truly circular economy, reverse logistics cannot remain an afterthought. It needs to become an intelligent infrastructure layer connecting regulation, sustainability, customer behaviour, and commercial performance. For me, the future of circularity is no longer only about keeping products in circulation. It is about keeping **knowledge** in circulation. Because in the end, better circularity begins with better decisions. ### Further reading & inspiration This reflection was inspired by recent work and discussions from **Global Fashion Agenda**, **Fashion for Good**, **Ken Pucker**, **Patrick Frisk**, **Lutz Walter**, **Victoria C.N. Scholz**, **Circular Fashion News**, together with broader research from the **European Environment Agency**, **McKinsey & Company**, and ongoing conversations across Europe's circular fashion ecosystem. --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Closing the Loop is no longer optional: Why Fashion's Next Competitive Advantage Starts After the Sale? URL: https://cirquel.co/post/closing-the-loop-is-no-longer-optional-why-fashions-next-competitive-advantage-starts-after-the-sale Date: 2026-06-23 Author: Anna Warchalowska Tags: Circular Fashion, Sustainability, Returns, AI, Reverse Logistics, EPR, Digital Product Passport For more than a decade, the sustainability conversation in fashion has largely focused on what happens before a product reaches the customer. A different question is now starting to emerge. For more than a decade, the sustainability conversation in fashion has largely focused on what happens before a product reaches the customer. The industry invested in better materials, lower-emission manufacturing, renewable energy, supplier transparency, and increasingly sophisticated compliance frameworks. These changes were necessary and continue to matter. But looking across recent industry conversations - from **Fashion for Good's work on circular infrastructure and AI**, to reflections from **Ken Pucker**, perspectives shared by **Patrick Frisk**, legal commentary from **Victoria C.N. Scholz**, and broader market analysis by **McKinsey & Company** and **The Business of Fashion** - a different question is starting to emerge. Not how we make products, but what happens once they leave the warehouse. ![Closing the Loop](https://assets.cirquel.co/website/4.png) This shift is not philosophical - it is becoming operational and increasingly regulatory. According to the **European Environment Agency**, Europeans generate approximately **5.8 million tonnes of textile waste every year**, equivalent to around **11 kilograms per person annually**, while collection, sorting, reuse, and recycling infrastructure still lag behind the pace of consumption. At the same time, new European requirements are changing the rules of the game. Mandatory separate textile collection has begun entering implementation phases across Europe, while frameworks such as **Extended Producer Responsibility (EPR)**, the upcoming **Digital Product Passport (DPP)**, growing ESG reporting requirements, and broader circular economy legislation are gradually moving brands from product responsibility toward lifecycle responsibility. Combined with the continued growth of e-commerce and returns, brands are increasingly expected not only to manufacture responsibly but also to understand, document, and optimise what happens after purchase. ![Circular Fashion Infrastructure](https://assets.cirquel.co/website/2.png) What became especially visible in recent circular innovation initiatives is that the industry is already trying to build this future - but mostly from the upstream side of the value chain. In **Fashion for Good's Closing the Footwear Loop** initiative, developed together with ecosystem partners working on circular systems, one number stands out: approximately **23–24 billion pairs of shoes are produced globally each year, while close to 90% still end up in landfill, incineration, or unmanaged waste streams** due to complex construction and limited recovery infrastructure. Similar patterns appear across projects such as **Project Rewear** and **Future Forward Factories**, supported by organisations including **H&M Foundation**, **Laudes Foundation**, and industrial partners. These programmes explore new recycling technologies, sorting systems, material innovation, recovery pathways, and manufacturing redesign that could significantly reduce environmental impact while improving economic resilience. The direction is promising and necessary — but it also reveals a structural blind spot. Most circular innovation still begins before the customer. Very little begins when the product comes back. ![Fashion Returns Intelligence](https://assets.cirquel.co/website/5.png) At the same time, AI is entering fashion at unprecedented speed. Much of today's conversation focuses on demand forecasting, intelligent sourcing, inventory optimisation, generative design, or autonomous supply chain orchestration. Fashion for Good's recent future scenarios for **Fashion Supply Chain 2036** envision increasingly adaptive, predictive, and AI-native operating models across the industry. But one assumption often remains hidden underneath these projections: that reliable operational data already exists. In reality, one of the least structured parts of retail remains post-purchase operations. Returned products frequently enter reverse logistics flows with minimal context and fragmented documentation. Decisions with direct financial, operational, and environmental consequences are still too often based on manual inspection, generic return categories, and incomplete information. Yet every returned product carries a signal — about quality, durability, customer expectations, product-market fit, usage behaviour, supply chain decisions, and future product development opportunities. The challenge is not the absence of data. It is the absence of systems capable of capturing and translating it. ![CIRQUEL AI Returns Platform](https://assets.cirquel.co/website/3.png) This is where our perspective at CIRQUEL begins. We believe the next generation of circular fashion infrastructure will not be built around waste management alone - it will be built around intelligence. CIRQUEL is an **AI returns intelligence platform** helping brands transform returns, unsold inventory, and warranty claims into structured operational decisions. Through visual inspection, quality forecasting, anomaly detection, and contextual data collection - including structured inputs directly from end consumers - we help brands understand the condition of products earlier and act on that information faster. Every product returning to the ecosystem becomes an opportunity to generate insight: insight about product performance, recurring defects, customer sentiment, material longevity, monetisation pathways, and future sourcing decisions. In that sense, returns are no longer simply a cost centre or an unavoidable consequence of commerce. They are becoming one of the richest and least utilised sources of intelligence available to brands. As regulation evolves and circular business models mature, the companies that create competitive advantage will not necessarily be those producing more products - but those learning more effectively from the products already in circulation. Closing the loop will not happen through recycling alone. It will happen when circularity becomes measurable, operational, and intelligent. ![Closing the Loop](https://assets.cirquel.co/website/title.png) --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Question Returns Has Never Asked URL: https://cirquel.co/post/the-question-returns-has-never-asked Date: 2026-06-18 Author: Carlos Blanco Tags: AI, Technology, Returns, Reverse Logistics, Circular Fashion, Data, Voice AI, Engineering AI is shifting the fundamental question from 'what can we do?' to 'can it be done?' Most industries are adapting. Returns operations are not. Here is why that matters and what changes when you ask the right question at the right moment. Across a few events and conversations over the last couple of months, one idea has come up consistently and in different forms. Our CTO [**Carlos Blanco**](https://www.linkedin.com/in/blancoc/) has been turning it over in the context of returns, and what it means for brands who are still using the same tools they had ten years ago. Here is his thinking. --- ### The question has changed One of the more useful framings for what AI actually represents came up at an event in London recently. The argument was this: the first industrial revolution scaled human labour. What AI is scaling is human cognition. And that shift changes the fundamental question you are allowed to ask. For most of human history, ambition has been a function of individual capability. You set your goals based on what you can do. The honest version of that question is: given what I know, what I can afford, and what I have time for, what is achievable? CEOs have always operated under a different constraint. They do not ask what they can do. They ask whether it can be done, and then curate the capabilities needed to answer yes. The distinction matters because the two questions have entirely different ceilings. What AI does is make the second question available to everyone. For the first time, ambition does not have to be bounded by individual skill. The question shifts from what can I do to can it be done. That is a larger change than it sounds. Most industries have not yet worked out what it means for them specifically. --- ### Returns are still asking the old question In returns, the old question sounds like this: given what the customer filled in on the return form, what do we do with this item? That question has shaped the entire infrastructure. Dropdown reason codes. Manual inspection on arrival. Condition assessments made by whoever is working the returns bay that day. Decisions routed by habit rather than evidence. The whole system is built around what has always been extractable from a return, which is very little. The reason codes most brands collect are not useless. Sizing issue, changed my mind, not as described. But they are a heavily filtered signal. Customers do not always know precisely why something did not work. The decision to return an item is often not a single moment of clarity. It is a gradual realisation that happens over days, sometimes weeks, and by the time the return form appears the original reasoning has already been simplified and partially lost. As agent-mediated purchasing becomes more common this gets structurally worse. When an AI selects and orders an item on a customer's behalf, the person filling in the return form may have had limited involvement in the original decision. What they write in the reason field reflects even less of the actual story. Part of the problem is that a return form is the wrong type of interface for the question being asked. A form is a search interface. You present a query and receive a categorical answer. That works when the information is readily retrievable. It does not work when what matters is not a fact but a path. Why did this item come back is a navigational question. The customer's path from purchase to return involves expectation, comparison, and realisation. Compressing that path into a dropdown does not summarise it. It erases it. Brands have been asking one question of every return: what can we extract from it? That question has a ceiling. And the ceiling is low. --- ### What any intelligent system actually needs There is a principle that holds across every domain where AI is now being applied to real operational problems. The quality of the output is determined almost entirely by the quality of the context available before the system starts working. This is not a model selection problem. It is a data capture problem. You see it in document retrieval systems, where encoding the right metadata at ingestion time matters more than the sophistication of the query. You see it in voice agents, where every decision the system has to make at runtime adds latency, and latency in a live conversation is experienced directly as uncertainty and incompetence. The teams shipping the most capable systems are not the ones with access to the best models. They are the ones who did the most work before the system was ever invoked. The pattern is consistent: the moment of capture determines everything downstream. If the right context was not collected at the right time, no amount of downstream intelligence recovers it. In returns, that moment is singular. It is when the customer has the item in hand, knows why it is coming back, and has not yet sent it. Everything after that is reconstruction. The item goes into transit. Days pass. The customer moves on. The warehouse receives something in a bag with a label. Whatever story existed when the return was initiated has been almost entirely lost by the time anyone with the capacity to act on it gets involved. --- ### The question that changes everything The new question is: can we capture the full story of why this item came back, at the only moment that story exists completely? The answer is yes. But the window is narrow. I wrote earlier this year about the photograph at the point of return, the starting point for condition data that most brands are not capturing. But condition is only one of the two questions. The other is why. Why did this item come back? The photograph does not answer that. Voice does. At the moment a customer initiates a return, they have the item in front of them. They know exactly what they think of it. Their words in that moment, before the decision has been rationalised and before the reason code has compressed it into a category, carry genuine signal. So does the condition of the item before it is packed and handled. So does the product metadata that already exists from the original order. Voice and image, captured together at initiation, before the item ships. That is what changes when you ask the new question. A voice note describing the return in the customer's own words is not the same thing as a dropdown selection. It captures intent. It captures the distinction between an item that was genuinely defective and one that simply did not match expectations. It captures the nuance that matters for routing. Whether an item is resellable as-is, whether it warrants repair, whether the issue is a product quality signal worth feeding back to the brand. None of that is in the reason codes. Most of it is in what the customer says in thirty seconds if you give them the opportunity. An image at intake gives you condition before the item has been touched or processed. It creates an objective record that is independent of whoever handles the return that week and separates what the customer reported from what is actually true of the item. Resell, repair, recycle, write off. That decision can be made in under sixty seconds with this evidence, rather than days later from incomplete information at the warehouse. Returns cost brands roughly forty percent of retail price to process. Most of that cost reflects decisions made without adequate context, resolved slowly, at the wrong stage. --- ### The compounding case Every return captured with voice and image is a labelled data point. The condition of the item. The customer's own description of why it came back. The product category, brand, and material. The time since purchase. The routing decision made and the outcome that followed. That dataset does not exist anywhere at scale. There is no corpus of returns data with this level of structure and specificity. The general models have not seen it because it has not been captured. Brands that start capturing it now are building something that becomes genuinely difficult to replicate. A model trained on consistent, structured return data from a specific category is more useful than any general model. What a lightly worn cashmere piece looks like after six months versus eighteen. How a particular defect presents across different weights. What voice signals correlate with fraudulent returns versus genuine dissatisfaction. That specificity only comes from operational data captured consistently over time. The ceiling on what can be extracted from a dropdown is fixed. The ceiling on what can be learned from structured voice and image data captured at scale is not. That is the difference between asking what can we do and asking whether it can be done. --- _Carlos Blanco is CTO and co-founder of CIRQUEL. If you are a brand, investor or operator thinking about returns, reverse logistics, or AI applications in physical supply chains, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL at EIC Summit 2026: Scaling Innovation, Supporting Women Leaders, and Building Europe's Future URL: https://cirquel.co/post/cirquel-at-eic-summit-2026-scaling-innovation-supporting-women-leaders-and-building-europe-s-future Date: 2026-06-09 Author: Anna Warchalowska Tags: EIC Summit, Women in Innovation, European Innovation, Mentorship, Startup Anna joined the new mentor pool of the EIC Women Leadership Programme 2026 while attending the EIC Summit, where Europe's innovation ecosystem gathered to tackle the challenge of scaling ambition into reality. For CIRQUEL, this year's summit carried an additional meaning. Alongside attending the summit itself, Anna officially joined the **new mentor pool of the EIC Women Leadership Programme 2026**, supporting a new generation of women innovators and entrepreneurs across Europe. The programme, organised by the European Innovation Council, combines mentoring, leadership development, business coaching, peer learning, and access to investors and senior ecosystem leaders to help women researchers and founders strengthen their leadership journey and scale their ventures. ![Anna Warchalowska - our CEO and Co-Founder now also in a role of mentor for the EIC Women Leadership Programme of 2026.](https://assets.cirquel.co/website/external-file_edited.jpg) _Anna Warchalowska - our CEO and Co-Founder now also in a role of mentor for the EIC Women Leadership Programme of 2026._ Across the summit, one theme appeared repeatedly across panels, side discussions, and networking sessions: **Europe knows how to create innovation - but now needs to become better at scaling it.** Many of the conversations focused on how Europe can remain competitive globally while keeping talent, intellectual property, and venture creation within the continent. Topics around startup financing, venture capital maturity, reducing the gap between research and commercialisation, strengthening founder support, and creating conditions for startups not only to launch in Europe - but to remain and grow here - resonated particularly strongly. For a founder building in AI, supply chains, and circular infrastructure, these discussions felt especially relevant. ## Finalist of Women Innovators Prize ![Finalist of Women Innovators Prize](https://assets.cirquel.co/website/IMG_2122.jpg) One of the highlights of the summit was the **European Prize for Women Innovators**, jointly organised by the **European Innovation Council (EIC)** and the **European Institute of Innovation and Technology (EIT)** to recognise women building transformative innovation across Europe. The award celebrates founders and entrepreneurs whose work contributes to Europe's competitiveness and future economy through commercially viable innovation. ![EIC Summit 2026](https://assets.cirquel.co/website/IMG_2131.jpg) This year's ceremony was especially meaningful for CIRQUEL because of the connection to the wider EIC Women Leadership community. Congratulations to the recognised innovators and finalists, including **Katerina Spranger (Oxford Heartbeat)**, **Marta Passarinho Oliveira (ATMOS Space Cargo)** and **Ella Cullen (Minespider)**, among others who are shaping Europe's innovation future through science, technology, and entrepreneurship. Beyond the stages and sessions, however, what remained most valuable were the conversations in between. ![Agenda of 2026 EIC Summit, Day 2.](https://assets.cirquel.co/website/5B3A7454-CC5B-4E7C-BEF1-09147833FC65.JPG) _Agenda of 2026 EIC Summit, Day 2._ Throughout the summit Anna had the opportunity to exchange perspectives with founders, investors, mentors, policymakers, and ecosystem leaders including **Agnieszka Stasiakowska, Ewa Kocinska-Lange, Laurence Petit, Ronald Wuijster, Matthew J. Smith-Marino, Ekaterina Zaharieva, Jillian Manus, Pierre Limouzin, Francesco Matteucci, Mihaela Rucinschi, Angele Giuliano, Maria Cristina Russo, Eliza Kruczkowska, Sven De Cleyn, Maria Abad Molina, James Mawson, Alicia Martínez Piñeiro, Shaunik Sachdev, Olga Senko, Matheus Provinciali, Silke Wettach, Howard Wright, Bart Becks, Javier Lahuerta i De Manuel, Suvy Otgonbayar, Kaja Vidic, Aygen Kurt Dickson, Eva Maydell**, and many others across the European innovation ecosystem. ![Anna Warchalowska at EIC Summit 2026](https://assets.cirquel.co/website/A08F1961-74DD-4E6D-90CD-7F647FC0C453.JPG) _Anna Warchalowska at EIC Summit 2026_ Those moments reinforced something we strongly believe at CIRQUEL. The future of European innovation will not be built only through capital, technology, or regulation. It will be built through people - founders, researchers, operators, mentors, investors, and institutions willing to stay in the room long enough to build something ambitious together. And we are grateful to continue contributing to that future. 🚀 --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL's May 2026 Milestones: Building the Future Across Innovation, Circularity, and Global Ecosystems URL: https://cirquel.co/post/cirquel-s-may-2026-milestones-building-the-future-across-innovation-circularity-and-global-ecosystems Date: 2026-06-08 Author: Anna Warchalowska Tags: Events, Milestones, Networking, Ibiza, Munich, Innovation, Circularity May became one of CIRQUEL's most international and ecosystem-driven months so far - taking us from startup challenges and investor conversations in Ibiza to industrial circularity discussions in Munich. May became one of CIRQUEL's most international and ecosystem-driven months so far - taking us from startup challenges and investor conversations in Ibiza to industrial circularity discussions in Munich. Across both experiences, one common theme kept appearing: the future belongs to businesses that can combine technology, operational intelligence, and human collaboration into scalable systems. This month reinforced something we increasingly observe across markets: circularity is no longer being treated as a sustainability initiative - it is becoming infrastructure. ![CIRQUEL May 2026 Milestones - From Ibiza to Munich](https://assets.cirquel.co/website/milestonesmay.jpg) _Milestones of May - From Ibiza to Munich_ ## From Startup Competition to Founder Community: CIRQUEL at Ibiza Tech Forum & The Next Unicorn One of the biggest highlights of the month was CIRQUEL's participation in **Ibiza Tech Forum** and **The Next Unicorn programme**, where our Co-Founder & CEO **Anna Warchalowska** represented CIRQUEL as one of only **25 selected startups from more than 500 international applications**. The programme went far beyond a traditional pitch competition. Across several days, founders took part in workshops, investor sessions, startup challenges, mentoring, filming, and immersive experiences designed to test both business thinking and personal resilience. Hosted across iconic locations in Ibiza, the format created space not only for visibility and pitching but for building relationships across founders, investors, operators, and ecosystem builders. ![Anna Warchalowska pitching at the Next Unicorn competition](https://assets.cirquel.co/website/0b0d6edb-e2ca-489d-a4bc-b1007b0e0d51%202.JPG) _Anna Warchalowska pitching at the Next Unicorn competition_ Throughout the week, CIRQUEL had the opportunity to connect and exchange perspectives with an exceptional group of startups including **Orobo, Fazil Crypto, BioTitan Nanotechnology, Mediterranean Algae, zick learn, Amilis, dataLobster, Hulahoop, GREENJET, Bluana Foods, XRAI | Radiografías Dentales con IA, Skor, FlamAid, IKI Health Group, EnerKite GmbH, Kenomic, Whale Dock, AiKit, Sentinella, VENTUREST, Kolbev, Nantek, Algocyte**, and many more. A special thank you goes to the **Ibiza Tech Forum & The Next Unicorn** team - **Carlos Toribio, Angelica Ortega, Ramón Castro, Rafa and the production crew**, as well as the jury **Marcus Dantus, Mitchell Weinstock, Ron Oliver, Desirée Alayza Serra, Adel Alawadhi and Daniela Machado**. Beyond the event itself, the experience reminded us of something we strongly believe at CIRQUEL: behind every startup, investor, and ecosystem initiative, there are people - and those relationships often become the most valuable outcome. ## From End-of-Life to Infrastructure: CIRQUEL at IFAT Munich ![June Arrieta representing CIRQUEL in Munich](https://assets.cirquel.co/website/munich.jpeg) _June Arrieta representing CIRQUEL in Munich_ While Ibiza focused on entrepreneurship and future-building, Munich brought another perspective: what happens when circularity becomes operational. This month CIRQUEL also attended **IFAT Munich**, one of the world's leading trade fairs dedicated to environmental technologies, resource recovery, and circular systems. One of the strongest themes emerging across discussions was impossible to ignore: **textile recycling and circular infrastructure are scaling faster than ever — driven simultaneously by regulation, technology maturity, and supply chain pressure.** For years, fashion and retail operated with limited visibility over what happened after purchase. Product complexity, blended materials, globalised logistics, and growing return volumes created fragmented end-of-life systems that were difficult to optimise. What stood out at IFAT was how quickly this is changing. Across sessions such as the **Textile Spotlight Talks** and **Textile Recycling Masterclass**, several trends became visible: - More advanced collection and second-hand logistics systems - AI-enabled textile sorting and automated composition detection - Intelligent routing between reuse, resale, refurbishment, and recycling - Rapid progress in fibre-to-fibre and chemical recycling technologies - New applications for recycled textiles beyond apparel, including furniture and industrial use It was especially valuable to continue conversations and exchange ideas with organisations and companies including **Circular Republic, Looper Textile Co., VDMA, REDWAVE TEX, Planq, TRIGEMA W. Grupp KG, GRS PRO textil**, and many others shaping the future of circular systems. Across almost every discussion, one message repeatedly surfaced: **data quality is becoming one of the strongest enablers of circular transformation - and AI is increasingly becoming the layer translating that data into operational decisions.** ## Why This Matters for CIRQUEL These two experiences - one founder-led and one industry-led - may seem different at first glance, but together they describe exactly the future CIRQUEL is building toward. At CIRQUEL, we believe circularity only works when intelligence exists across the full product lifecycle. That is why we are building an **AI returns intelligence platform** - helping brands understand product condition, generate structured signals at return, detect anomalies, forecast recovery potential, and route products toward their highest-value next outcome. Whether in startup ecosystems or industrial transformation forums, one message became increasingly clear this month: The next decade of circularity will not be built only through better materials or recycling technologies. It will be built through better decisions - powered by better data. Stay tuned for more milestones, product updates, and reflections as CIRQUEL continues expanding across Europe. 🚀 --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Circularity, Serendipity & Startup Life: CIRQUEL's week at Ibiza Tech Forum & The Next Unicorn URL: https://cirquel.co/post/circularity-serendipity-startup-life-cirquel-s-week-at-ibiza-tech-forum-the-next-unicorn Date: 2026-05-20 Author: Anna Warchalowska Tags: Events, Milestones, Networking, Ibiza, Startup, Innovation Selected among 25 startups from more than 500 international applications, CIRQUEL joined an intensive week of workshops, founder challenges, investor sessions, mentoring, and moments of exchange at Ibiza Tech Forum's The Next Unicorn programme. Some events stay with you because of the stage, some because of the conversations - and some because they remind you why you started building in the first place. ![Ibiza tech forum - main stage](https://assets.cirquel.co/website/3M3A7772.JPEG) _Ibiza tech forum - main stage_ This month, CIRQUEL had the privilege to participate in **The Next Unicorn programme as part of Ibiza Tech Forum**, represented by our [Co-Founder & CEO **Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/). Selected among **25 startups from more than 500 international applications**, CIRQUEL joined an intensive week of workshops, founder challenges, investor sessions, mentoring, filming, live presentations, and moments of exchange designed to push both companies and people outside of their comfort zones. Ibiza Tech Forum is not structured as a traditional startup conference. It combines entrepreneurship, media production, investment readiness, leadership development, and experiential learning into one immersive programme. Throughout the week, founders worked side by side while engaging with investors, jury members, operators, and ecosystem builders - not only pitching their companies, but also testing ideas, navigating uncertainty, and building relationships. Activities took place across locations including **Romeo's Motel & Diner**, **Bonito Ibiza**, and the **Palacio de Congresos de Ibiza**, creating an atmosphere that felt closer to building together than competing. ![Anna Warchalowska at the Ibiza Tech Forum - one of the 25 Unicorns!](https://assets.cirquel.co/website/IMG_0957.jpg) _Anna Warchalowska at the Ibiza Tech Forum - one of the 25 Unicorns!_ For CIRQUEL, this experience was especially meaningful because it reinforced something we deeply believe: innovation is never built in isolation. Alongside us were outstanding startups tackling challenges across AI, climate, biotech, health, infrastructure, consumer products, and industrial transformation: **Orobo, Fazil Crypto, BioTitan Nanotechnology, Mediterranean Algae, zick learn, Amilis, dataLobster, Hulahoop, GREENJET, Bluana Foods, XRAI | Radiografías Dentales con IA, Skor, FlamAid, IKI Health Group, EnerKite GmbH, Kenomic, Whale Dock, AiKit, Sentinella, VENTUREST, Kolbev, Nantek, Algocyte**, and many more founders and teams bringing bold ideas into reality. ![CIRQUEL at Ibiza Tech Forum](https://assets.cirquel.co/8d6782f2-ba78-40e3-908e-edf0fa39ef99.JPG) We would like to extend a special thank you to the entire **Ibiza Tech Forum & The Next Unicorn** team for making this experience possible - particularly **Carlos Toribio**, **Angelica Ortega**, **Ramón Castro**, Carla, Yassir and all the people working behind the scenes who continuously adapted, solved problems, and created an environment where founders could focus on building and connecting. A huge appreciation also goes to **Rafa and the production crew**, whose work documenting the journey reminded us how much effort goes into storytelling beyond what appears on camera. We are equally grateful to the jury - **Marcus Dantus, Ron Oliver, Desirée Alayza Serra, Adel Alawadhi, Daniela Machado, and Mitchell Weinstock** - for their openness, mentorship, feedback, and the conversations that extended far beyond evaluation. ![Amazing jury](https://assets.cirquel.co/3M3A7856.JPEG) _Amazing jury_ But above all, what CIRQUEL is taking back from Ibiza are the people. The founders behind the startups. The investors behind the capital. The organisers behind the experience. The conversations between sessions, unexpected introductions, and moments of serendipity that often become more valuable than the programme itself. At CIRQUEL, we often talk about circular systems, intelligent infrastructure, and building for the future. But this week reminded us that behind every ecosystem, every company, and every breakthrough - there are people. And we have a strong feeling that many of these paths will cross again. Stay tuned !!! more reflections and behind-the-scenes insights from Ibiza will follow soon. 🚀 --- _Anna Warchalowska is CEO and co-founder of CIRQUEL. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL's April 2026 Milestones URL: https://cirquel.co/post/cirquel-s-april-2026-milestones Date: 2026-05-11 Author: Anna Warchalowska Tags: Milestones, Barcelona, Portugal, Lisbon, Demo Day, LX Circular, Circular Economy, Reverse Logistics April 2026 marked another important chapter in CIRQUEL's growth journey - one shaped by international expansion, founder visibility, ecosystem collaboration, and deeper conversations around the future of AI, logistics, and circularity. ## From Barcelona's Innovation Ecosystem to Expanding into Portugal ![Anna Warchalowska - Co-founder and CEO presenting CIRQUEL at Vtex retail Tech Award.](https://static.wixstatic.com/media/4b53c3_7ec3ad14d40642d49fc627c3d31a2e10~mv2.png/v1/fill/w_499,h_323,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_7ec3ad14d40642d49fc627c3d31a2e10~mv2.png) April 2026 marked another important chapter in CIRQUEL's growth journey - one shaped by international expansion, founder visibility, ecosystem collaboration, and deeper conversations around the future of AI, logistics, and circularity. Throughout the month, CIRQUEL continued strengthening its position within Europe's innovation landscape, with our team participating in high-level accelerator programmes, founder workshops, investment simulations, and international circular economy initiatives across Spain and Portugal. ![](https://static.wixstatic.com/media/4b53c3_b6474023da324022bcc127ef06a0db76~mv2.png/v1/fill/w_373,h_373,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_b6474023da324022bcc127ef06a0db76~mv2.png) One of the highlights of the month was CIRQUEL's participation in the [**VTEX**](https://www.vtex.com/en-us/) & [**BCombinator**](https://bcombinator.com/) **Demo Day**, where our Co-Founder & CEO [**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/) pitched CIRQUEL among a curated selection of emerging startups building technology-driven solutions across industries. The event brought together founders, investors, operators, and ecosystem leaders, creating an environment focused not only on fundraising and visibility, but also on strategic collaboration and future growth opportunities. For CIRQUEL, the Demo Day was an important opportunity to present our vision of AI-powered post-purchase infrastructure and reverse logistics intelligence - positioning returns, resale, anomaly detection, and circular routing as one of the next critical layers of retail and supply chain innovation. ![Anna Warchalowska presenting CIRQUEL to FM Logistics](https://static.wixstatic.com/media/4b53c3_8f25c1bb0cbf46129bd8c6f448025f21~mv2.jpg/v1/fill/w_446,h_335,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_8f25c1bb0cbf46129bd8c6f448025f21~mv2.jpg) Another meaningful milestone this month was CIRQUEL's participation in the [**Fair Cultures Barcelona Learning Expedition**](https://www.faircultures.com/fairbarcelona2025), where Anna Warchalowska represented the company during an intensive workshop and investment simulation organised together with enterprise and institutional partners including [**FM Logistic**](https://www.fmlogistic.ua/en/), **Port de Barcelona**, **BluetechPort**, **ABB Robotics**, **ACCIÓ**, and **TBS Education**. The programme gathered director-level and C-suite leaders from across the world to discuss the future of leadership, automation, sustainability, robotisation, and logistics transformation. As part of the founder sessions and "Shark Tank"-style simulations, CIRQUEL joined fellow Barcelona-based startups including [**Grasshopper Air Mobility**](https://www.grasshopperairmobility.com/), **Cadence AI**, and other innovators exploring the future of intelligent infrastructure and industrial transformation. The experience offered not only the chance to present CIRQUEL's perspective on reverse logistics and circular systems, but also to gain direct insight into how large enterprises such as FM Logistic view the future of supply chain resilience, automation, and sustainable operations. The workshop reinforced an increasingly visible industry shift: circularity and AI are no longer separate conversations, they are becoming deeply interconnected operational priorities. April also marked CIRQUEL's expansion into a new ecosystem: Portugal. We were proud to join the newest cohort of the [**LX Circular programme in Lisbon**](https://www.lxcircular.pt/), developed together with organizations including [**Impact Hub Lisbon**](https://lisbon.impacthub.net/), [**Unicorn Factory Lisboa**](https://unicornfactorylisboa.com/), [**IES Social Business School**](https://www.ies-sbs.org/), **Câmara Municipal de Lisboa**, and other ecosystem partners supporting circular innovation and sustainable entrepreneurship. ![LX Circular](https://static.wixstatic.com/media/4b53c3_78d4c5c469ef4cc69e58c2c797acc240~mv2.png/v1/fill/w_317,h_317,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_78d4c5c469ef4cc69e58c2c797acc240~mv2.png) For CIRQUEL, joining LX Circular is an important strategic step toward expanding our network across the Iberian Peninsula and exploring new opportunities with Portuguese brands, partners, and investors. Portugal's strong textile and manufacturing ecosystem makes it an especially relevant market for the future of post-purchase infrastructure and reverse logistics intelligence. The programme also aligns naturally with CIRQUEL's broader European journey - a company conceptually born through Berlin's startup ecosystem, built and scaled from Barcelona, and now increasingly connecting with innovation communities across Europe. What connected all these milestones was not simply visibility, but validation. Across accelerator programmes, logistics workshops, investor discussions, and international circular economy initiatives, one message became increasingly clear: the industry is actively searching for smarter ways to manage what happens after the sale. As regulatory pressure, operational complexity, and AI-driven commerce continue evolving, reverse logistics is rapidly becoming one of the defining infrastructures of the next decade. At CIRQUEL, we are excited to continue contributing to that future - together with founders, institutions, logistics leaders, and circular innovation ecosystems across Europe. 👉 Stay tuned for more updates, product developments, and upcoming milestones as CIRQUEL continues its European expansion journey. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Missing Intelligence Layer in Circular Fashion: CIRQUEL's Afterthoughts on Fashion for Good's 'AI in Fashion Supply Chain 2036' URL: https://cirquel.co/post/the-missing-intelligence-layer-in-circular-fashion-cirquel-s-afterthoughts-on-fashion-for-good-s Date: 2026-05-11 Author: Anna Warchalowska Tags: AI, Circular Fashion, Reverse Logistics, Supply Chain, Fashion for Good, Circular Economy In April 2026, Fashion for Good published one of the most thought-provoking future-facing pieces the industry has seen this year. Here is what it reveals — and what it leaves unsaid — about the intelligence layer fashion still needs most. In April 2026, [Fashion for Good](https://www.fashionforgood.com/) published one of the most thought-provoking future-facing pieces the industry has seen this year: _["AI in Fashion Supply Chain 2036: How Artificial Intelligence Is Transforming Every Step."](https://www.fashionforgood.com/our_news/ai-fashion-supply-chain-2036)_ The article imagines what an AI-native fashion industry could look like ten years from now - from programmable raw materials and predictive manufacturing to autonomous logistics and recycling systems. The piece positions AI not as an "extra tool," but as the invisible operating system of the entire fashion value chain. And importantly, it is not pure science fiction. Fashion for Good grounds this future in technologies and startups already emerging today, mentioning innovators such as **[Solena Materials](https://www.solena-materials.com/)**, **[Avalo AI](https://www.avalo.ai/)**, and **[Osium AI](https://osium.ai/)**, while building on years of research and ecosystem work across circularity, traceability, material science, and supply chain transformation. Fashion for Good itself has become one of the most influential global platforms for sustainable fashion innovation, backed by partners including **[Laudes Foundation](https://www.laudesfoundation.org/)** and inspired by the Cradle-to-Cradle philosophy of co-founder **[William McDonough](https://mcdonough.com/)**. Through collaborations with brands like **adidas**, **Zalando**, **Target**, **C&A**, and **Kering**, the organisation has consistently pushed the industry toward systemic circularity rather than isolated sustainability initiatives. ![](https://static.wixstatic.com/media/4b53c3_83562d4976154aebb58789c17c9150cc~mv2.jpg/v1/fill/w_372,h_465,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_83562d4976154aebb58789c17c9150cc~mv2.jpg) ## The AI-native supply chain is already emerging One of the strongest messages from the Fashion for Good article is that the supply chain of 2036 will no longer react - it will anticipate. AI systems will increasingly predict demand, optimise production allocation, simulate material performance before manufacturing, and dynamically route inventory in real time. The article describes a future where designing a material "looks less like farming and more like pharmaceutical discovery," with biodegradability, tensile strength, and carbon footprint engineered before anything is physically produced. This aligns with broader industry forecasts. According to research cited by DataArt, the global AI supply chain market could exceed **$157 billion by 2033**, while Generative AI applications in supply chains are projected to grow at over **45% CAGR**. Meanwhile, publications such as [Vogue Business](https://www.vogue.com/business) and [McKinsey & Company](https://www.mckinsey.com/) continue highlighting that AI is becoming foundational in areas such as inventory forecasting, compliance, sourcing, and operational resilience. The logic is clear: fashion's future competitive advantage will not come only from creativity or branding, but from intelligence embedded into operational infrastructure. ## But one critical layer is still missing: Reverse Logistics Intelligence ![CIRQUEL - reverse logistics AI-intelligence](https://static.wixstatic.com/media/4b53c3_7d5e8dcaa7114f8bbb27d4d22fca623e~mv2.jpg/v1/fill/w_326,h_217,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_7d5e8dcaa7114f8bbb27d4d22fca623e~mv2.jpg) What Fashion for Good's vision indirectly reveals - perhaps without fully naming it - is that the industry is still largely focused on intelligence _before_ the sale. Yet one of fashion's biggest economic and environmental problems begins _after_ the purchase. Even in a highly optimised AI-native future, products will still come back. Consumers will still change their minds. Sizing issues will still exist. Rental, resale, subscription wardrobes, and AI-assisted shopping will likely create even more dynamic product movement across ecosystems rather than less. The rise of autonomous purchasing agents may actually increase returns because the person receiving the product may not be the one who selected it in the first place. And this is where reverse logistics becomes one of the most strategic blind spots of the next decade. The industry already loses billions annually through returns, overstock, and unsold inventory. According to multiple analyses referenced by [Vogue](https://www.vogue.com/business) and [BCG](https://www.bcg.com/), fashion overproduction and excess stock remain among the sector's largest structural inefficiencies. Yet most brands still process returns with surprisingly limited structured intelligence. A returned garment often generates more operational complexity than manufacturing the item itself, but the data extracted from that moment remains extremely poor. ## The future of fashion needs post-purchase intelligence At CIRQUEL, we believe the next frontier of AI in fashion is not only predictive manufacturing, it is predictive post-purchase infrastructure. While many companies are redesigning the front end of the supply chain, CIRQUEL focuses on the intelligence layer after the item leaves the warehouse: understanding product condition, anomaly detection, return reasoning, repurposing pathways, and optimal next routing. ![](https://static.wixstatic.com/media/4b53c3_fbffc859b52144b0be8a795662a9493d~mv2.jpg/v1/fill/w_325,h_183,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_fbffc859b52144b0be8a795662a9493d~mv2.jpg) Today, in 2026, CIRQUEL already enables brands to assess returned products using AI-driven visual intelligence and structured return data. Through image recognition, condition analysis, and customer-generated signals, including vocal or written return explanations, brands can begin understanding not only _what_ came back, but _why_ it came back and _what should happen next_. That matters because every return is more than an operational event. It is a dataset. A damaged zipper may indicate a manufacturing issue. Repeated complaints about fabric feel may expose sourcing inconsistencies. High return concentration from a specific demographic or climate region may suggest product-market mismatch. At scale, reverse logistics becomes one of the richest feedback systems in the entire fashion ecosystem. And unlike speculative AI futures, this infrastructure can already be implemented today. ![](https://static.wixstatic.com/media/4b53c3_a840e409285a4a4fa3d6412b4a550884~mv2.jpg/v1/fill/w_293,h_195,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_a840e409285a4a4fa3d6412b4a550884~mv2.jpg) ## From circularity as theory to circularity as infrastructure Fashion for Good's article paints an exciting picture of a future where AI coordinates materials, production, logistics, and recycling in near real time. But circularity only works if products continue generating value _after disruption_- not only before purchase. The reality is that circularity cannot depend solely on better materials or smarter manufacturing. It also depends on how intelligently brands manage uncertainty once products are already moving through the market. That means: - detecting condition before unnecessary transport, - forecasting resale or refurbishment potential, - reducing landfill outcomes, - automating routing decisions, - and continuously learning from every returned item. This is precisely where CIRQUEL positions itself: as an AI returns intelligence platform helping brands transform reverse logistics from a cost centre into a circular value system. In many ways, the future imagined by Fashion for Good is already beginning. The question now is not whether AI will transform fashion, it is whether brands are building intelligence across the _entire_ lifecycle of the product. Because in the next decade, the brands that win will not simply manufacture smarter. They will learn faster from what comes back. ### Sources & References: - [Fashion for Good – AI in Fashion Supply Chain 2036](https://www.fashionforgood.com/our_news/ai-fashion-supply-chain-2036) - [Fashion for Good Official Website](https://www.fashionforgood.com/) - Cloudflare Radar - [Vogue Business](https://www.vogue.com/business) coverage on AI, circularity, and supply chains - [McKinsey & Company](https://www.mckinsey.com/) reports on AI and fashion operations - [Boston Consulting Group](https://www.bcg.com/) analyses on inventory and overproduction - Academic references on AI in fashion and supply chain optimisation --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Hidden Data Gap in Your Returns URL: https://cirquel.co/post/the-hidden-data-gap-in-your-returns Date: 2026-04-17 Author: Carlos Blanco Tags: AI, Technology, Agentic AI, Circular Fashion, Home Decor, Returns, Data, Reverse Logistics, Computer Vision AI agents are already browsing, comparing and influencing purchases online. As that behaviour grows, the nature of returns will change with it. Most brands are not ready, and the fix starts with something surprisingly simple. Across the events and conversations of the last couple of months, one theme has come up consistently: the internet is being rebuilt around machines as first-class users. Our CTO [**Carlos Blanco**](https://www.linkedin.com/in/blancoc/) has been distilling what that shift means in practice, and specifically what it means for fashion and home decor brands managing returns. Here is his thinking. --- ### The agent is already shopping According to [Cloudflare Radar](https://radar.cloudflare.com/), more than half of all traffic across Cloudflare's network is now automated. Cloudflare sits in front of roughly 20% of the internet, so this is not a niche signal. Bots, crawlers, AI agents. The number shifted sharply in Q4 of last year and is continuing to grow. Shopping assistants are no longer a concept being piloted in a lab. They are here, being used by real consumers to browse catalogues, compare options, and in some cases complete purchases on their behalf. A customer asking an AI to find them a sofa in a particular style, within a budget, and order it is not a far-fetched scenario. For many consumers it is already the default. When an agent mediates the purchase, the relationship between the buyer and the item changes. The person who receives the product was not necessarily the one who chose it, evaluated it against alternatives, or decided it met their needs. The distance between the decision and the experience grows. And when that distance grows, return rates tend to follow. Agentic browsing also introduces patterns that look nothing like human browsing. Agents access long-tail product pages that human traffic rarely reaches. They run multiple parallel sessions. They interact with product catalogues and inventory systems in ways those systems were not designed for. The traffic shape is fundamentally different, and most e-commerce infrastructure was not built with this in mind. --- ### Returns face the same problem Brands are asking the wrong question at the point of return. Most return processes are built around a binary: did this item come back or not. Some go a step further and ask the customer to select a return reason from a dropdown. Sizing issue. Changed my mind. Item not as described. That data is better than nothing, but it is not very useful. Customers do not always know why something did not work. And as agent-mediated purchases become more common, the stated return reason will matter even less. When a customer returns a jacket or a chair that an AI selected for them, the person filling in the return form may have had limited involvement in the original decision. There is a genuine legal question emerging around this: when an agent acts on your behalf and the outcome is not what you wanted, accountability for that outcome is genuinely unclear. Who decided? What information did they have? What were the parameters? Brands processing those returns are left with very little signal to work with. A dropdown selection that does not reflect the actual decision process is not a useful input for improving anything. The question that actually matters is: what is the condition of this item, and why did it come back? Those two things require evidence. They require a signal captured at the moment the item is received. --- ### The simplest thing most brands are not doing A photograph. At the point of return, before the item is touched or processed. It sounds trivial. It is not. A photograph at intake gives you an objective record of condition at the moment of return. It separates what the customer reported from what is actually true of the item. It makes condition assessment faster, more consistent, and less dependent on the individual judgment of whoever is processing the return that day. It creates an audit trail. And it gives you the raw material to do something much more valuable over time. Most fashion and home decor brands skip this step entirely. The item arrives, a person looks at it, makes a call, and it moves on. No image. No structured record. No data. --- ### The operational case is immediate With image capture at return, condition assessment can be supported by computer vision. Rather than relying on a person to evaluate wear, defect type, and resale viability from memory and habit, the image becomes an input to a model that has seen thousands of similar items. This matters for speed. It matters for consistency across warehouses and processing centres operating at different scales. And it matters for the decision itself: whether a garment is resold, repaired, donated, or recycled, or whether a piece of furniture goes back into inventory, gets refurbished, or is written off, is a consequential choice with real cost and sustainability implications. Getting it right consistently requires more than a quick look from a different person each day. The structured data produced at this step, category, brand, material composition, condition grade, defect type and location, paired with return reason and time since purchase, is the foundation for better routing decisions. Not just today, but at scale. --- ### The strategic case compounds over time Every image captured is a labelled data point. And labelled, real-world data about returned fashion and home decor items is genuinely scarce. AI systems are increasingly useful not when they have been trained on everything, but when they have been trained on the right things. The shift happening across AI applications right now is from bulk ingestion toward targeted, structured datasets that ground models in domain-specific reality. A model that understands what a lightly worn cashmere jumper looks like after six months versus eighteen months, or how a particular fabric defect presents across different weights, or how upholstery wear differs by material and usage pattern, is more useful than a general model with access to everything. That kind of specificity only comes from real operational data, captured consistently and structured in a way that makes it usable. Brands that start capturing images at return now are building that dataset. Brands that do not are making a decision they will have to reverse later, at much higher cost, and with much less data to work with. The gap between early movers and late movers here is not linear. Every return processed adds a data point. Every data point improves the next assessment. After two or three years of volume, that compounding effect becomes a genuine competitive asset that is very difficult to replicate from a standing start. The window to build this foundation is open now. It will not stay open indefinitely. --- ### What CIRQUEL does This is exactly the problem we built CIRQUEL to solve. Our platform captures structured visual data at the point of return and uses computer vision to assess item condition consistently and at scale. Every item that moves through CIRQUEL generates a structured record: condition, defects, category, material, return context. That data feeds the routing decision immediately and contributes to a model that improves with every return processed. We have validated this across both fashion and home decor, running pilots with brands in sportswear, footwear, accessories, furniture and home décor. The same principle holds across categories: the image is where the signal begins, and without it the rest of the process is guesswork at varying degrees of accuracy. For brands, the result is faster and more accurate triage, better decisions about resale versus repair versus recycling, and a growing dataset that becomes more valuable as return volumes shift and as agentic purchasing introduces patterns that existing processes were not designed to handle. The infrastructure for agents to shop already exists. The question is whether brands are building the data foundation to understand what comes back when those agents are buying at scale. Starting with a photograph is not a small thing. It is where the signal begins. --- _Carlos Blanco is CTO and co-founder of CIRQUEL. If you are a brand, investor or operator thinking about returns, reverse logistics, or AI applications in physical supply chains, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL joins LX Circular - expanding Circular Innovation into Portugal URL: https://cirquel.co/post/cirquel-joins-lx-circular-expanding-circular-innovation-into-portugal Date: 2026-04-13 Author: Anna Warchalowska Tags: LX Circular, Portugal, Lisbon, Circular Economy, Ecosystem, Europe As CIRQUEL continues to grow across Europe, we are excited to announce that we have joined the latest cohort of the LX Circular programme in Lisbon - a leading initiative focused on accelerating startups building solutions for the circular economy. As CIRQUEL continues to grow across Europe, we are excited to announce that we have joined the latest cohort of the [**LX Circular programme in Lisbon**](https://www.lxcircular.pt/) - a leading initiative focused on accelerating startups building solutions for the circular economy. LX Circular is designed for **early-stage and growth startups** tackling challenges across sustainability, resource efficiency, and circular business models. The programme brings together a strong ecosystem of partners, including organizations such as [**Impact Hub Lisbon**](https://lisbon.impacthub.net/), [**IES Social Business School**](https://www.ies-sbs.org/), [**Unicorn Factory Lisboa**](https://unicornfactorylisboa.com/), and public institutions like [**Câmara Municipal de Lisboa**](https://www.lisboa.pt/) - all working together to support ventures that rethink how products, materials, and systems are designed, used, and reused. Previous cohorts have brought together startups across sectors such as sustainable materials, waste reduction, circular retail, and new consumption models, with a shared goal: to make circularity scalable and economically viable. For CIRQUEL, joining LX Circular is a natural extension of our mission. We are building **AI return intelligence infrastructure for post-purchase operations**, enabling brands to assess product condition, forecast outcomes, and orchestrate the best next step - whether that is resale, repurposing, buy-backs or recycling. By reducing unnecessary logistics loops and unlocking value from returns and excess inventory, we help brands turn operational complexity into structured, data-driven decision-making. In a country like Portugal, with a strong textile and manufacturing heritage, these challenges, and opportunities, are especially relevant. Our journey has always been inherently European. CIRQUEL was **born in Berlin (at [BEAM](https://beamberlin.com/) - venture builder backed by BEUMER Group)**, where we began shaping the foundation of our technology, while being **built and scaled from Barcelona**, one of Europe's most dynamic startup ecosystems. From there, we have been expanding steadily, working with brands across Germany and Spain, and continuously refining how circularity can be implemented in real operational environments. Joining LX Circular marks an important next step in this journey. While we are not relocating, the programme opens the door to **new partnerships, clients, and investor conversations in the Portuguese market**, allowing us to bring our experience into a new ecosystem while learning from local industry leaders and innovators. It is also a reminder of how interconnected Europe's innovation landscape has become: ideas, talent, and solutions increasingly move across borders, shaping more resilient and collaborative systems. As we continue to grow, we are excited to contribute to the LX Circular community and to explore how CIRQUEL's technology can support Portuguese brands in navigating the complexities of circularity and reverse logistics. Stay tuned as we share more updates from the programme and our expansion into new markets. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL's March Momentum: From Global Tech Stages to Strategic Growth URL: https://cirquel.co/post/cirquel-s-march-momentum-from-global-tech-stages-to-strategic-growth Date: 2026-04-12 Author: Anna Warchalowska Tags: Milestones, MWC, 4YFN, QCon, Microsoft for Startups, Barcelona, London, AI March has been a defining month for CIRQUEL - marked by international visibility, deep technology insights, and meaningful ecosystem expansion. From standing on one of the world's largest innovation stages in Barcelona, to engaging with cutting-edge AI discussions in London, and joining global programmes supporting female-led startups. March has been a defining month for CIRQUEL - marked by international visibility, deep technology insights, and meaningful ecosystem expansion. From standing on one of the world's largest innovation stages in Barcelona, to engaging with cutting-edge AI discussions in London, and joining global programmes supporting female-led startups, the past few weeks reflect a clear trajectory: building, learning, and scaling across Europe. ## From Barcelona to the World: MWC & 4YFN 2026 At the beginning of the month, CIRQUEL was proud to participate in [**Mobile World Congress**](https://www.mwcbarcelona.com/) and **4YFN**, two of the most important global gatherings for technology, startups, and corporate innovation. Represented by our co-founders [**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/) and [**Carlos Blanco**](https://www.linkedin.com/in/blancoc/), CIRQUEL hosted a booth in collaboration with [**eWorks by Esade**](https://www.esade.edu/en/learning-innovation/rambla/eworks), connecting with founders, investors, and corporate leaders from across the globe. Beyond the exhibition, we were selected to participate in the [**Open Innovation Challenge organised by ACCIÓ**](https://www.accio.gencat.cat/en/serveis/innovacio/innovacio-oberta-disruptiva/reptes-i-solucions-innovacio/), where startups engage directly with corporates to address real industry challenges. For CIRQUEL, this was a valuable opportunity to position our solution within broader supply chain and circularity conversations, while exploring potential pilot projects and partnerships with established industry players. ## Deep Tech, Real AI: QCon London Insights While Barcelona was buzzing with global innovation, CIRQUEL's technical exploration continued in parallel. Our CTO, **Carlos Blanco**, represented the company at [**QCon London**](https://qconlondon.com/), a leading conference focused on how advanced technologies are actually implemented at scale. The insights gathered at QCon reinforced a core belief we hold at CIRQUEL: **AI success is not about model size, but about engineering discipline and domain expertise**. From "context engineering" approaches that improved accuracy from 35% to 98%, to discussions around retrieval systems and long-term memory in AI agents, the conference highlighted how production-ready AI systems are built - and how these principles directly apply to our work in reverse logistics and post-purchase decision-making. ## Scaling with the Right Ecosystem: Microsoft for Startups Another important milestone this month was CIRQUEL joining [**Microsoft for Startups**](https://www.microsoft.com/en-us/startups) as a **female-led startup**. This programme provides access to technology, mentorship, and a global network that supports startups in scaling both their product and market reach. For CIRQUEL, this is more than recognition - it is a strategic step in accelerating our AI capabilities and strengthening our position within the global tech ecosystem. Being part of such an initiative also reinforces the importance of diverse leadership in shaping the future of technology, particularly in areas like sustainability and circular economy. ## Building Momentum Across Markets Taken together, these milestones highlight a broader pattern: CIRQUEL is not only growing - it is growing **intentionally across ecosystems**. From engaging with corporates in Barcelona, to deepening our technical foundations in London, and expanding our network through global programmes, each step contributes to building a more robust and scalable solution. As we move forward — including the upcoming start of our **pre-seed fundraising round in April 2026**- these experiences are instrumental. They allow us to refine our product, validate our positioning, and build the partnerships necessary to scale across new markets. ## Looking Ahead March has set a strong foundation for what's next. With continued expansion across Europe, new conversations with partners and investors, and a growing demand for smarter post-purchase solutions, CIRQUEL is entering a new phase of growth. 👉 Stay tuned as we continue to share insights, milestones, and product developments in the coming weeks. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # From Context to Cognition: What QCon London 2026 Taught Us About Building Real AI URL: https://cirquel.co/post/from-context-to-cognition-what-qcon-london-2026-taught-us-about-building-real-ai Date: 2026-03-20 Author: Carlos Blanco Tags: AI, Technology, QCon, London, Production AI, Circular Fashion, Engineering, Events Three days at QCon London with engineers from Netflix, LinkedIn, Rabobank and Anthropic sharing what it actually takes to ship AI in production. Here is what our CTO Carlos Blanco took away. Last week our CTO [**Carlos Blanco**](https://www.linkedin.com/in/blancoc/) attended QCon London and really enjoyed the depth of knowledge and experience shared by both speakers and fellow attendees. As Cirquel's CTO he was particularly interested in how teams are actually shipping AI into production and came back with a lot to bring back to the team. Here is a quick recap of the insights that resonated most and why. ![Patrick Debois on stage at QCon London 2026](https://assets.cirquel.co/website/IMG_0080.jpeg) _Patrick Debois on stage for "The Right 300 Tokens Beat 100k Noisy Ones: The Architecture of Context Engineering"_ --- ### Context is an engineering problem One of the sessions Carlos enjoyed most made the case that bigger context windows do not make agents smarter and more documentation does not mean better answers. What actually degrades performance is loading everything into context at once and hoping the model figures out what is relevant. The alternative is what some people are calling context engineering, building small modular units of context that only get loaded when they are actually needed. The description of each unit is what the agent uses to decide whether to load it at all, so getting that right matters more than the content itself. The results shared backed it up well: 35% accuracy with no structured context versus 98% with properly organised skills, rules and documentation. --- ### Domain depth is the moat One talk he really enjoyed made a simple argument: the most defensible advantage in AI right now is not your model or your team size but how deeply you understand your industry. Frontier models are pushing aggressively into applied verticals and startups without real domain knowledge to direct the technology are going to find it very hard to compete. What stood out most was the scale one team is operating at, 22 people supporting hundreds of billions in assets under management and building products that would traditionally require hundreds of people over multiple years. Of course results will vary but the direction of travel is clear. --- ### Retrieval needs proper engineering One of the most practically useful sessions covered building a research assistant for searching thousands of regulatory documents and walked through everything that went wrong along the way. Two key takeaways: - Document parsing: Switching from a standard OCR pipeline to an agentic document understanding approach combining visual reasoning with traditional OCR improved retrieval accuracy by 16 percentage points on its own. It is a foundational step that is easy to underestimate. - Recency signals: Semantic similarity retrieves documents that look like the query but not necessarily ones that are current. Encoding recency as a temporal vector and combining it with the semantic embedding at query time lets you account for both at once. The broader point was to evaluate everything with real user queries, start small and monitor from day one, which is underrated advice that a lot of teams skip early on. --- ### Agents need memory The final insight came from a talk about building cognitive memory into a large scale AI agent and it addressed something we think about a lot at Cirquel. Language models are stateless and every session starts from scratch even though users expect the system to know them and adapt over time. The approach shared was to model long term memory as a tree rather than a knowledge graph because trees are cheaper to maintain and much more efficient to update incrementally. After a year in production the results were impressive: 81% fewer profiles reviewed to find a match, 66% higher acceptance rate on AI drafted outreach emails, and 1.5 hours saved per user per task cycle. --- ### What we are taking back The consistent theme was that shipping AI that actually works in production is an engineering discipline and not just a model choice and the teams doing the most interesting work are the ones with deep domain knowledge. All of this maps pretty directly to what we are building at Cirquel. How we structure context when assessing a returned fashion item matters more than the model we choose. Our advantage is understanding how a returned garment moves through a supply chain in ways a general purpose model cannot easily replicate. And every time our AI processes a return it generates a signal that over time should make the system genuinely smarter. Context, retrieval and memory are the three things we are most focused on getting right and it was really useful to see how other teams are approaching the same problems. A big thank you to the QCon team and all the speakers for a genuinely useful three days. We are heading into our pre-seed fundraising round in April 2026 and if you are a founder, investor or engineer interested in where AI meets sustainability we would love to connect at [cirquel.co](https://cirquel.co). --- **Talks referenced** - [The Right 300 Tokens Beat 100k Noisy Ones: The Architecture of Context Engineering](https://qconlondon.com/presentation/mar2026/right-300-tokens-beat-100k-noisy-ones-architecture-context-engineering) — Patrick Debois and Baruch Sadogursky, Tessl - [The Realities of Building an AI Native Fintech Startup](https://qconlondon.com/presentation/mar2026/realities-building-ai-native-fintech-startup) — David Lin, Linvest21 - [Reliable Retrieval for Production AI Systems](https://qconlondon.com/presentation/mar2026/reliable-retrieval-production-ai-systems) — Lan Chu, Rabobank - [Beyond Context Windows: Building Cognitive Memory for AI Agents](https://qconlondon.com/presentation/mar2026/beyond-context-windows-building-cognitive-memory-ai-agents) — Karthik Ramgopal, LinkedIn --- _Carlos Blanco is CTO and co-founder of Cirquel. Follow along on [LinkedIn](https://www.linkedin.com/in/blancoc/)._ --- # CIRQUEL at MWC & 4YFN 2026: Where innovation, purpose and people meet URL: https://cirquel.co/post/cirquel-at-mwc-4yfn-2026-where-innovation-purpose-and-people-meet Date: 2026-03-10 Author: Anna Warchalowska Tags: MWC, 4YFN, Barcelona, Events, Milestones, Networking, Fundraising Each spring, Barcelona becomes the global epicenter of technology, entrepreneurship and industry transformation. CIRQUEL was proudly represented at MWC & 4YFN 2026, building partnerships, validating our value proposition, and expanding our network ahead of our pre-seed funding round. Each spring, Barcelona becomes the global epicenter of technology, entrepreneurship and industry transformation as it hosts [**Mobile World Congress (MWC)**](https://www.mwcbarcelona.com/) and [**4YFN (Four Years From Now)**](https://www.4yfn.com/) - two of the most influential gatherings for startups, scaleups, corporates, investors and policymakers worldwide. The 2026 editions once again brought together tens of thousands of attendees from across the globe to explore the technologies and business models shaping our collective future. MWC is widely regarded as the world's most important connectivity and mobile technology congress, while 4YFN serves as its startup-focused platform - a space where emerging ventures meet capital, partners and customers. For startups, being present is more than visibility; it is a strategic opportunity to engage directly with global ecosystems, test ideas in real time, and build relationships that accelerate growth far beyond the event itself. ![CIRQUEL at MWC 2026 in Barcelona](https://assets.cirquel.co/website/IMG_8479.jpg) _CIRQUEL at MWC 2026 in Barcelona_ ## What CIRQUEL focused on CIRQUEL was proudly represented by our co-founders [**Anna Warchalowska (CEO)**](https://www.linkedin.com/in/anna-warchalowska-contact/) and [**Carlos Blanco (CTO)**](https://www.linkedin.com/in/blancoc/). For us, this year's congress came at a particularly pivotal moment. As we prepare to open our **pre-seed funding round in April 2026**, the event offered a powerful platform to strengthen market presence, validate our value proposition, and expand our network of partners and supporters. ![Anna Warchalowska and Carlos Blanco at 4YFN 2026 in Barcelona](https://assets.cirquel.co/website/IMG_8537_edited.png) _Anna Warchalowska and Carlos Blanco at 4YFN 2026 in Barcelona_ Our agenda centered on the themes most critical to CIRQUEL's mission: - Venture building in the age of AI - Circularity and sustainability as core business infrastructure - Supply chain transformation and reverse logistics innovation - Practical applications of AI across operational and industrial ecosystems - The growing leadership and influence of Women in Tech Beyond learning, we engaged in high-value conversations with potential clients, explored proof-of-concept opportunities with corporates, connected with fellow startups for ecosystem synergies, and received strong interest from venture capital funds and business angels. The congress proved to be not only an inspiration hub but also a catalyst for tangible business momentum. ![CIRQUEL at 4YFN 2026](https://assets.cirquel.co/website/IMG_8448.jpg) ## Meaningful side events & ecosystem connections Some of the most valuable moments happened beyond the main stages, in curated side events that fostered deeper, more authentic dialogue. CIRQUEL participated in gatherings including: - **HER/O Breakfast** hosted by _HearstLab_ & _Norrsken_ - **MWC Night** by _Antai Ventures_, _Earlybird VC_, _JME Ventures_, _PSG Equity_ & _Microsoft for Startups_ - **Don't Pitch, Connect @ 4YFN** networking meetup - **Financial Times x Bain & Company** innovation forum - **Stripe AI Monetization Workshop** - **AVOW x Xiaomi "Sip & Sizzle" Supper Club** - **Norrsken After-Hours & Art Exhibition** ![CIRQUEL networking at MWC & 4YFN 2026](https://assets.cirquel.co/website/IMG_8485.jpg) These environments encouraged honest exchange, practical insights and long-term relationship building across founders, investors, operators and corporate leaders. ## Because innovation is built by people As many speakers echoed throughout the week, technology and strategy alone do not move industries forward - people do. Behind every company, product and investment decision are individuals building trust, sharing knowledge and collaborating across borders. The spirit of MWC & 4YFN reinforced a simple truth: **innovation accelerates where human connection meets shared purpose**. We were honoured to meet and reconnect with founders, programme leaders, ecosystem builders, venture partners and corporate innovators who are shaping the next generation of responsible technology and sustainable industry. ![Team CIRQUEL at the MWC and 4YFN](https://assets.cirquel.co/website/IMG_8531.jpg) _Team CIRQUEL at the MWC and 4YFN_ ## What's next? MWC & 4YFN 2026 marked an energising milestone in CIRQUEL's journey - but it is only the beginning of an exciting year ahead. As we move into our fundraising phase and continue advancing our AI-powered circular logistics solutions, we look forward to sharing more milestones, partnerships and product updates soon. 👉 **Stay tuned to our blog for upcoming announcements and deeper insights into CIRQUEL's roadmap.** --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL's January & February 2026 Milestones: Recognition, ecosystem momentum & AI infrastructure in motion! URL: https://cirquel.co/post/cirquel-s-january-february-2026-milestones-recognition-ecosystem-momentum-ai-infrastructure-in Date: 2026-02-27 Author: Anna Warchalowska Tags: Milestones, Awards, Recognition, Zaragoza, F6S, MCP, Paris, AI From winning 1st prize at Startup Boost in Zaragoza, to being ranked Top 4 Spanish fashion circularity startup by F6S, to engaging with cutting-edge AI infrastructure at MCP Connect Day in Paris - 2026 has started with strong momentum. The beginning of 2026 has already set a powerful tone for CIRQUEL. Across two months, we have experienced a combination of industry validation, ecosystem recognition, and deep technological engagement - reinforcing that reverse logistics and circular infrastructure are becoming central to the future of fashion, home, and textile-based industries. From winning first place at a national acceleration programme, to being ranked among Spain’s leading circular fashion startups, to engaging with cutting-edge AI infrastructure discussions in Paris - the year has started with strong momentum. ![CIRQUEL January & February 2026 Milestones](https://static.wixstatic.com/media/4b53c3_3f7e1ea97d39445487b89c8bf016c9d7~mv2.png/v1/fill/w_395,h_395,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_3f7e1ea97d39445487b89c8bf016c9d7~mv2.png) ## 1. CIRQUEL Wins 1st Prize at Startup Boost Investor Day in Zaragoza On January 15th, at Etopia in Zaragoza, CIRQUEL was awarded **1st Prize** at the Investor Day concluding the five-month Startup Boost acceleration programme, led by **Sherpa Tribe** within the framework of **INCIBE Emprende**, in collaboration with **Fundación Ibercaja**, **Mobility City**, and the **Ayuntamiento de Zaragoza**. The programme, inaugurated on September 17th, brought together 10 finalist startups pitching before an expert jury and investors, including representatives from **Dozen Investments** and key ecosystem leaders such as **Inés G. (INCIBE)**, **Jaime Armengol (Mobility City)**, and **Stéphane L. Maisons (Sherpa Tribe)**. The finalist startups included: - **CIRQUEL** - **BID FACTORY ZARAGOZA** - **VFenixX** - **Ostirion** - **Biopareja** - **Mettis AI** - **Bugcle** - **Pulpop** - **SCAI Engineering** - **JMA Energía Renovable** ![June Arrieta representing CIRQUEL at Startup Boost Investor Day in Zaragoza](https://static.wixstatic.com/media/4b53c3_57f422f6387649c0b43b6ac9309776de~mv2.jpg/v1/fill/w_253,h_337,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_57f422f6387649c0b43b6ac9309776de~mv2.jpg) Final awards were announced as: 🥇 CIRQUEL 🥈 BID FACTORY ZARAGOZA 🥉 VFenixX ✨ Special mention: Ostirion CIRQUEL was represented on stage by Co-Founder **June Arrieta**, who delivered a focused 5-minute pitch presenting our vision for AI-powered reverse logistics and circular infrastructure across fashion, home, and textile ecosystems. Winning first prize is not only recognition of our technology - it is validation of the urgency of solving what happens _after_ purchase. ## 2. We were ranked Top 4 Spanish Fashion Circularity Startup by F6S In February, CIRQUEL was ranked **#4 among the top Spanish fashion circularity startups** by **F6S**, one of the world's largest startup and investor networks. F6S connects millions of founders and investors globally and is widely used by accelerators, venture funds, and innovation programmes to identify high-potential startups. Being ranked among Spain's leading circular fashion startups reinforces CIRQUEL's positioning within the European ecosystem as a technology company focused on circular post-purchase infrastructure. This recognition reflects not only our product development but also our growing relevance in the conversation around responsible afterlife management of textiles - across fashion, home decor, accessories, and even adjacent industries like automotive interiors. ![F6S Top Spanish Fashion Circularity Startups](https://assets.cirquel.co/website/logo-F6S.png) ## 3. CIRQUEL at MCP Connect Day in Paris In February, our CTO **Carlos Blanco** represented CIRQUEL at [**MCP Connect Day in Paris**](https://luma.com/bj6kgvxh), organised by the team at [**Alpic**](https://alpic.ai/). ![CIRQUEL at MCP Connect Day Paris](https://static.wixstatic.com/media/4b53c3_0426af4505f74a63aab32bff6e1e6a5a~mv2.jpg/v1/fill/w_315,h_307,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_0426af4505f74a63aab32bff6e1e6a5a~mv2.jpg) The conference brought together engineers and product leaders from companies including: - **OpenAI** - **Hugging Face** - **Mistral AI** - **GitHub** - **Postman** - **Air France** - **Glovo** - **Google** - **Cisco** - **PrestaShop** - **Canal+** - **Betclic** - and others across AI and enterprise ecosystems The event focused on the evolution of the **Model Context Protocol (MCP)** and its implications for scalable AI systems. Key insights Carlos brought back: - MCP is rapidly maturing, but scaling challenges remain protocol-level. - Stateless architecture is becoming critical for large-scale deployments. - Discoverability remains one of the ecosystem's biggest unresolved challenges. - Generative UI is still early but sandboxed models (like MCP apps) may unlock safer innovation. - Most importantly: building MCP infrastructure is not about exposing APIs, it's about designing experiences for intent-driven agents. For CIRQUEL, this is directly relevant. Our work in AI-powered defect detection, anomaly assessment, and repurposing forecasting depends on scalable, agent-oriented infrastructure. Staying close to the MCP ecosystem ensures that our architecture decisions today align with where AI tooling is heading tomorrow. ![MCP Connect Day Paris](https://static.wixstatic.com/media/4b53c3_03974927e1834b87a122810e7036d4eb~mv2.png/v1/fill/w_160,h_93,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_03974927e1834b87a122810e7036d4eb~mv2.png) ## Looking Ahead: Barcelona, MWC & 4YFN And we are not slowing down. In just one week, CIRQUEL (represented by [**Anna Warchalowska - CEO**](https://www.linkedin.com/in/anna-warchalowska-contact/) and [**Carlos Blanco - CTO**](https://www.linkedin.com/in/blancoc/)) will be attending [**MWC Barcelona and 4YFN**](https://www.4yfn.com/), where we will continue building partnerships, meeting forward-thinking brands and logistics players, and expanding our circular infrastructure vision across Europe. The momentum is building across ecosystems, technology, and regulation. Stay tuned for more updates from Barcelona and beyond. Follow CIRQUEL for the next chapter! --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL Wins 1st Prize at Startup Boost Investor Day in Zaragoza URL: https://cirquel.co/post/cirquel-wins-1st-prize-at-startup-boost-investor-day-in-zaragoza Date: 2026-01-26 Author: Anna Warchalowska Tags: Awards, Recognition, Startup, Spain, Zaragoza CIRQUEL is awarded 1st Prize at the Startup Boost Investor Day in Zaragoza, marking the culmination of a five-month acceleration programme. CIRQUEL is proud to start the year by being awarded **1st Prize at the Startup Boost Investor Day in Zaragoza**, marking the culmination of a five-month acceleration programme that began on 17 September 2025 and concluded on 15 January 2026. The programme was led by **Sherpa Tribe** within **INCIBE Emprende**, in collaboration with **Fundación Ibercaja**, **Mobility City**, and the **Ayuntamiento de Zaragoza**. The final Investor Day, hosted at **Etopia**, brought together ten finalist startups pitching in front of an expert jury and investors, showcasing innovation across multiple sectors. ![CIRQUEL winning the 1st Prize at the Investors Day by Sherpa Tribe, INCIBE, Iberacaja and Ajutamiento de Zaragoza](https://assets.cirquel.co/website/zaragozawin.jpeg) CIRQUEL winning the 1st Prize at the Investors Day by Sherpa Tribe, INCIBE, Iberacaja and Ajutamiento de Zaragoza CIRQUEL team came all together to Zaragoza (**Carlos Blanco, Anna Warchalowska** and June Arrieta). We were represented on stage by one of our co-founders - **June Arrieta**, who delivered a five-minute pitch presenting our vision for **AI-powered reverse logistics and circular infrastructure** across fashion, home, and textile-based industries. The strong reception from the jury and investors validates both the relevance of the problem we are addressing and the momentum our team has built during the programme. ![CIRQUEL winning the 1st prize in Zaragoza at the Investors Demo Day for the best startup and circular solution](https://assets.cirquel.co/website/zragozawin2.jpeg) This recognition reflects more than a single pitch or technology - it represents months of learning, collaboration, and resilience supported by an exceptional ecosystem of mentors, partners, and organisers. We are deeply grateful to the teams at INCIBE, Sherpa Tribe, Mobility City, and Fundación Ibercaja, as well as to the jury members and mentors who accompanied us throughout this journey. Winning this award is a meaningful milestone for CIRQUEL and a strong signal as we move forward in scaling our mission to enable circular systems through technology. ![Happy CIRQUEL team: from the left - Carlos Blanco, June Arrieta, Anna Warchalowska](https://static.wixstatic.com/media/4b53c3_2fd39fa93594409cb0714fd137b01a5c~mv2.png/v1/fill/w_501,h_701,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_2fd39fa93594409cb0714fd137b01a5c~mv2.png) Happy CIRQUEL core team!!!! --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Fashion at a turning point: CIRQUEL's take on the State of Fashion 2026 and the rise of afterlife responsibility URL: https://cirquel.co/post/fashion-at-a-turning-point-cirquel-s-take-on-the-state-of-fashion-2026-and-the-rise-of-afterlife-re Date: 2026-01-26 Author: Anna Warchalowska Tags: Fashion, Industry Trends, State of Fashion, Sustainability, Resale This summary is based strictly on the BoF x McKinsey 'The State of Fashion 2026' report, analyzing critical challenges in fashion including resale, returns, and afterlife responsibility. This summary is based strictly on the [**BoF**](https://www.businessoffashion.com/) **x** [**McKinsey "The State of Fashion 2026"**](https://www.businessoffashion.com/user/document-viewer/?payload=eyJjdGFMaW5rIjoiaHR0cHM6Ly9jZC5idXNpbmVzc29mZmFzaGlvbi5jb20vcmVwb3J0cy9UaGUtU3RhdGUtb2YtRmFzaGlvbi0yMDI2LnBkZiIsImFydGljbGVJZCI6IkpXVVoyTFJVREZGSEpFNEZLVkU1TVNQSFlBIiwiYXJ0aWNsZVVybCI6Ii9yZXBvcnRzL3RoZS1zdGF0ZS1vZi1mYXNoaW9uLWluZHVzdHJ5Iiwic2lnbmVkIjpmYWxzZSwidXNlcklkIjoiMTQ1MzIwNTcyMTc3NiJ9) report. The report is led by [**Imran Amed**](https://www.linkedin.com/in/imranamed/?originalSubdomain=uk) **(Founder, CEO & Editor-in-Chief, The Business of Fashion)**, [**Gemma D'Auria**](https://www.linkedin.com/in/gemma-d-auria-885262/?originalSubdomain=it) **(Senior Partner, McKinsey & Company; global leader of Apparel, Fashion & Luxury)**, and [**Anita Balchandani**](https://www.linkedin.com/in/anita-balchandani/?originalSubdomain=uk) **(Senior Partner, McKinsey & Company; co-lead of Apparel, Fashion & Luxury in EMEA)**. The acknowledgements also reference interviewed industry leaders including [**Michelle Gass**](https://www.linkedin.com/in/michellegass/), [**Rati Sahi Levesque**](https://www.linkedin.com/in/rati-sahi-levesque-782b824/) **(President & CEO, The RealReal)**, [**Alexis Nasard**](https://www.linkedin.com/in/alexis-nasard-2b106b8/?originalSubdomain=ch), [**Joshua Schulman**](https://www.linkedin.com/in/joshua-schulman-b155b85/?originalSubdomain=uk), [**Ahmed Zaidi**](https://www.linkedin.com/in/azaidi93/?originalSubdomain=uk), and others. ![CIRQUEL's afterthoughts on the state of fashion in 2026 published by McKinsey & Company x BoF](https://assets.cirquel.co/website/Screenshot 2026-01-26 at 12.12.03.png) CIRQUEL's afterthoughts on the state of fashion in 2026 published by McKinsey & Company x BoF ## Macro and consumer reality check: "The Age of Volatility" is the operating system The report's framing is clear: fashion is now operating in **"The Age of Volatility"** with geopolitics, trade, consumer behaviour and technology evolving simultaneously. The executive mood has shifted: **"Challenging"** overtakes **"uncertainty"** as the most common word executives use to describe 2026, with **tariffs cited as the number one hurdle**. The sentiment split is one of the most decision-relevant metrics in the report: **46% of executives expect industry conditions to worsen** (up **8 percentage points** YoY), while **25% expect improvement** (up **5pp**), signalling a more polarised market where "winners win harder." Trade pressure is no longer niche: **40% of leaders cite "disrupted trade flows/deglobalisation" among their top-three growth risks** (up **25pp** YoY), driven by tariffs reshaping supply chains and input costs. The cost/pricing outlook is equally pointed. In 2026, **nearly three-quarters of executives expect to raise prices**, a **+19pp** jump from 2025. In North America specifically, **45%** plan to raise prices by **more than 5%** to offset tariff-driven input costs, and **nearly one-quarter** expect **COGS** to rise by **more than 9%**. These numbers matter because they imply a tough loop: rising prices meet "critical consumers," pushing shoppers toward value and alternatives (including secondhand), while brands must protect margins through productivity and inventory discipline. Technology is the other big structural shift. The report argues AI moves from "nice-to-have" to necessity under slow growth and cost volatility; executives identify scaling AI and related digital capabilities as the **single biggest opportunity for 2026**. Meanwhile, the consumer funnel itself is changing: the report introduces **Generative Engine Optimisation (GEO)** as an essential counterpart to SEO, as "fashion brands' presence in AI chatbot responses [becomes] the new SEO." ![Resale, second-hand, vintage, recycle - trends of 2026 that will sky-rocket](https://static.wixstatic.com/media/nsplsh_58bc1ee4b5ee438ba586ef5feee27f8a~mv2.jpg/v1/fill/w_332,h_221,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_58bc1ee4b5ee438ba586ef5feee27f8a~mv2.jpg) Resale, second-hand, vintage, recycle - trends of 2026 that will sky-rocket ## Resale and secondhand: "Resale Sprint" goes mainstream and gets profitable at scale The report treats resale as a foundational shift in the fashion system, not a trend. It forecasts the secondhand market will grow **two to three times faster** than the first-hand market from **2025-2027**, as consumer appetite expands and **scale + technology unlock profitability**. The headline market number is explicit: the **global secondhand apparel market is expected to reach $317 billion by 2027** (source: [**ThredUp**](https://www.thredup.com/?srsltid=AfmBOoqYo5j8dPpYFA_p5UBcuNZt9mMjwpH5BdQiSHjblkYKZzrA8uEm), **GlobalData**). Within that growth story, the channel mix is heavily digital: **online marketplaces account for 88% of resale spending in the US in 2024**, and **US online resale** is forecast to grow **16% annually** to reach **$34 billion by 2027**. Consumer intent is equally strong and geographically uneven: **59% of global consumers** say they are likely to purchase secondhand in 2026, and the figure exceeds **70% in China**. The report also flags that **Asia** is now the largest and fastest-growing resale region, with China as a key driver and points to a luxury resale market in China expected to reach **$33 billion by 2025** (cited in the report). Resale demand is not only about price. The report shows motivation splits by age and psychology: beyond budget pressure, **61% of consumers** say they would continue to buy or sell via resale even if they had more money to spend, often due to the "thrill of the hunt," uniqueness, and identity. It also gives a tariff-linked behavioural signal: [**ThredUp reports nearly 60% of consumers**](https://www.thredup.com/?srsltid=AfmBOoqYo5j8dPpYFA_p5UBcuNZt9mMjwpH5BdQiSHjblkYKZzrA8uEm) would seek more affordable options like secondhand if tariffs increase apparel prices; as early signs, [**Depop app**](https://www.depop.com/theme/app/) **downloads rose 125%** in **Q1 2025** vs the previous quarter as tariff discussions intensified. The report provides hard evidence that resale platforms are moving into an "inflection point" where operational maturity drives profit. It notes [**Vinted**](https://www.vinted.es/) **grew net profit more than 330% from 2023 to 2024**, supported by continued investment in services like Vinted Go and Vinted Pay. It also highlights how authentication and quality assurance are being re-engineered with AI. In a case study, [**The RealReal**](https://www.therealreal.com/) uses proprietary tools to "save time and money on authentication," including **Shield** (a counterfeit inspection model using **50+ product attributes**) and **Vision** (photo-based AI examining fine details such as leather grain and threading) to predict counterfeit likelihood. One of the most "taggable" executive quotes in the report comes from **Rati Sahi Levesque (President & CEO, The RealReal)**: **"There's always going to be people who want the real deal."** Strategically, the report recommends brands define their resale model (from platform partnerships to brand-led offerings powered by Resale-as-a-Service providers), prioritise categories with strong resale value (e.g., outerwear, bags), and use resale to build "loyalty loops" and a brand halo around quality and durability. ![Fashion industry sustainability](https://static.wixstatic.com/media/nsplsh_7339727359752d42594e6f~mv2_d_5103_3402_s_4_2.jpg/v1/fill/w_334,h_223,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_7339727359752d42594e6f~mv2_d_5103_3402_s_4_2.jpg) ## Sustainability, AI and circular solutions: pressure rises even as momentum stalls A key paradox in the report is **"Sustainability Stalemate"**: sustainability momentum slows, but pressure rises via regulation and consumer expectations. This is where AI intersects with sustainability, not as "innovation theatre," but as infrastructure for compliance, cost management and customer experience. On the consumer side, AI is reshaping discovery and conversion. In the second quarter of 2025, **53% of US consumers who used generative AI for search** also used it to **help them shop**. Shopping-related searches on GenAI platforms grew **4,700% between 2024 and 2025**, and **85%** of GenAI shoppers report higher satisfaction with AI-assisted shopping journeys than conventional ones. Trust in AI search is also climbing: **41% of consumers** say they trust generative AI search results more than traditional paid search ads. The report's **_SEO-for-AI_** theme is highly tactical. It advises companies to audit digital infrastructure for "agent interaction," structure product catalogues and data-sharing feeds so AI agents can interpret and display products, and treat AI ecosystems as a new marketing channel requiring dedicated budget and strategy. It notes that even today, AI is already a measurable traffic source: **ChatGPT accounted for 16% of [Zara](https://www.zara.com/)'s inbound referral traffic**, and **8%** for [**H&M**](https://www2.hm.com/es_es/index.html) **and Aritzia** (June–August 2025). At the same time, the report argues that "circularity" is increasingly being pulled into the operating model by regulation. It explicitly cites the EU's [**Ecodesign for Sustainable Products Regulation (ESPR)**](https://commission.europa.eu/energy-climate-change-environment/standards-tools-and-labels/products-labelling-rules-and-requirements/ecodesign-sustainable-products-regulation_en) and California's [**Responsible Textile Recovery Act**](https://www.sgs.com/en-es/news/2024/11/safeguards-15824-california-sb-707-the-responsible-textile-recovery-act-of-2024) as examples of legislation that will **penalise unsold or obsolete stock**, impose recycling and take-back obligations, and raise non-compliance costs. The sustainability implication is blunt: in 2026 and beyond, circular flows (repair, resale, take-back, recycling) increasingly become a regulated, measurable requirement - not just a brand narrative. ![Circular fashion](https://static.wixstatic.com/media/nsplsh_abf256cf9a564eaba14455b328e475cc~mv2.jpg/v1/fill/w_308,h_411,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_abf256cf9a564eaba14455b328e475cc~mv2.jpg) ## Inventory excellence: demand-driven supply chains become margin protection and regulatory risk control Inventory is one of the most operationally "load-bearing" themes of the report. It cites McKinsey Global Fashion Index analysis showing **days inventory outstanding reached all-time highs in 2024**, meaning companies held stock longer before converting it into sales. In a world where demand is volatile, trade is disrupted and price increases are constrained by value-seeking consumers, inventory becomes both a margin drain and a strategic liability. The report frames "demand-driven inventory optimisation" as a central lever to protect margins and reduce exposure. Technologies such as **digital textile printing** combined with **AI tools** that analyse demand and optimise production workflows are making **on-demand** and lower-risk approaches more viable. It cites [**Nike**](https://www.nike.com/es/) **'s SNKRS Reserve** (select customers preorder sneakers before they are made) as an example of experimentation in demand-led production. There's also a clear pricing/inventory feedback loop in the "Efficiency Unlocked" section: AI enables real-time integration of cost, competitor and customer data to optimise pricing, and supports more targeted promotions by channel/product/store to clear inventory where needed while avoiding unnecessary discounting. The report's core message for operators is that static pricing and periodic manual reviews are structurally too slow in 2026 conditions and that inventory performance is increasingly tied to data fluency. A leadership-level case also appears in the report's interviews: an executive describes taking "decisive action" through deep markdowns to clean up inventory and finish a fiscal year with **7% less inventory**, enabling investment back into "the new." The operational lesson is that inventory clean-up, cost discipline and customer closeness are increasingly linked and slow-moving inventory constrains the ability to invest in growth. ## Returns and afterlife responsibility: why reverse logistics becomes a strategy, not a cost centre ![Reverse logistics](https://static.wixstatic.com/media/11062b_2db6a48d5760448e93b8857556695e10~mv2.jpg/v1/fill/w_353,h_235,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_2db6a48d5760448e93b8857556695e10~mv2.jpg) While the report's most explicit circularity framing is around regulation, resale, and inventory (rather than a dedicated "returns" chapter), the direction is unambiguous: **afterlife responsibility is becoming enforceable**, and inventory/unsold stock becomes financially riskier due to take-back obligations and penalties. This shifts the operating question from "How do we handle returns?" to "How do we design a post-purchase system that protects margin, customer experience and compliance?" The resale chapter shows the blueprint: brands must decide whether to partner with marketplaces, run brand-led resale, or use resale-as-a-service providers; then focus on categories with strong resale value; then use resale to bring in new customers and create loyalty loops. The-But the hidden complexity in all those models is reverse logistics: inspection, authentication/quality grading, routing, pricing, and speed-to-relist. The RealReal case illustrates how AI systems are being built precisely to reduce the cost and time of verification, prioritising higher-risk items for the most experienced inspectors. Regulation makes this even more urgent. The report explicitly links 2026 legislation (ESPR in the EU, Responsible Textile Recovery Act in California) to penalties and obligations around unsold/obsolete stock and take-back/recycling. The executive implication is that brands need a repeatable, auditable afterlife system: what happens to returned goods, how they are processed, which pathways are chosen (resale, repair, donation, recycling), and how data is captured to prove compliance. In practical terms, the report pushes leaders toward a combined playbook: **inventory excellence + resale strategy + AI-enabled operations + regulatory readiness**. That combination is what will determine which brands can turn volatility into advantage - and which ones pay for excess in both margins and compliance exposure. ## Why CIRQUEL's work matters now more than ever? The _State of Fashion 2026_ makes one thing unmistakably clear: fashion is entering an era where **afterlife responsibility is unavoidable**. Products no longer stop mattering at the point of sale, they continue to shape environmental impact, regulatory exposure, and consumer trust long after purchase. As inventories grow, regulations tighten, and consumers become more critical, brands are being asked a new question: _what actually happens to products once customers return them or discard them?_ Historically treated as operational noise, returns and unsold items are now moving into the spotlight - measured, audited, and increasingly regulated. This is precisely where CIRQUEL operates. By bringing intelligence, traceability, and decision-making into reverse logistics, we help ensure that no product is written off before its potential is understood, whether it can be repaired, resold, repurposed, or responsibly recycled. For consumers, this means trust and transparency. For the planet, fewer unnecessary shipments and less waste. And for brands, a way to meet rising expectations without pushing the problem downstream. In a system defined by volatility and accountability, managing the afterlife of products is no longer a niche capability - it is core infrastructure. The future of fashion belongs to brands that design not just for sale, but for what comes after. Read the full State of Fashion 2026 report [**here**](https://www.businessoffashion.com/user/document-viewer/?payload=eyJjdGFMaW5rIjoiaHR0cHM6Ly9jZC5idXNpbmVzc29mZmFzaGlvbi5jb20vcmVwb3J0cy9UaGUtU3RhdGUtb2YtRmFzaGlvbi0yMDI2LnBkZiIsImFydGljbGVJZCI6IkpXVVoyTFJVREZGSEpFNEZLVkU1TVNQSFlBIiwiYXJ0aWNsZVVybCI6Ii9yZXBvcnRzL3RoZS1zdGF0ZS1vZi1mYXNoaW9uLWluZHVzdHJ5Iiwic2lnbmVkIjpmYWxzZSwidXNlcklkIjoiMTQ1MzIwNTcyMTc3NiJ9). --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL's November Milestones: Innovation, Academic Dialogue & Global Recognition URL: https://cirquel.co/post/cirquel-s-november-milestones-innovation-academic-dialogue-global-recognition Date: 2025-12-05 Author: Anna Warchalowska Tags: Milestones, Awards, Recognition, ESADE, IESE, Global Change Award November has been one of CIRQUEL's most defining months - a period where our mission resonated across academic institutions, innovation ecosystems, and global sustainability platforms. November has been one of CIRQUEL's most defining months to date - a period where our mission resonated across academic institutions, innovation ecosystems, and global sustainability platforms. With three meaningful milestones unfolding across Barcelona and beyond, CIRQUEL strengthened its visibility, sharpened its message, and validated the growing relevance of reverse logistics and circularity across multiple sectors. ![Milestones of CIRQUEL in November 2025](https://assets.cirquel.co/website/milestonesofnov.png) Milestones of CIRQUEL in November 2025 On **11 November**, CIRQUEL proudly presented at the [**Esade**](https://landings.esade.edu/landings/executive-masters?source=google&medium=paid_search&campaign=exed_eemm-lead-eemm_transversal_master-prs-busqueda_marca-barcelona_es-1&content=eemm_transversal_master-kw-rlsa&term=busqueda-landing&gad_source=1&gad_campaignid=1826194025&gbraid=0AAAAADlpHXTRWkld1Cu_q6UypYULWgO3G&gclid=Cj0KCQiAosrJBhD0ARIsAHebCNriiKNjf7FwEtnKHcGDmFXi15senj7AbpX3U2FtJ0LBqzSiYvUDrw8aApsoEALw_wcB) [**eWorks Demo Day**](https://www.techbarcelona.com/en/event/eworks-accelerator-25-demo-day/), the final showcase of Esade's highly competitive acceleration programme. At the beginning of the programme, close to **150 startups** applied and participated in early stages. Only **25 were selected** to exhibit at Demo Day and CIRQUEL was ranked **among the top 11**. This achievement underscores both our rapid progress and the strong market validation of our technology. ![Anna Warchalowska and Carlos Blanco presenting CIRQUEL at their booth at ESADE Demo Day](https://static.wixstatic.com/media/4b53c3_9586bbb794b14a4aa8d7f3730ccd3c69~mv2.png/v1/fill/w_188,h_251,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_9586bbb794b14a4aa8d7f3730ccd3c69~mv2.png) [Anna Warchalowska](https://www.linkedin.com/in/anna-warchalowska-contact/) and [Carlos Blanco](https://www.linkedin.com/in/blancoc/) presenting CIRQUEL at their booth at ESADE Demo Day From our booth at Estrelladamm in Barcelona, Co-founders: **Anna Warchalowska (CEO)** and **Carlos Blanco (CTO)** engaged with venture capital firms, business angels, corporate innovators, and leaders from Esade's extensive entrepreneurial network. Demo Day proved to be an invaluable platform to demonstrate how CIRQUEL is redefining the post-purchase journey through AI-powered anomaly detection, quality forecasting, and circular orchestration, helping brands transform textile returns from an operational burden into a new source of value. Conversations throughout the event reinforced a clear market shift: reverse logistics is no longer a backstage process, but a strategic pillar for profitability, sustainability, and regulatory readiness. ![eWorks by ESADE Demo Day](https://static.wixstatic.com/media/4b53c3_bf7ba79392cd46c993a602fdd68ce9dd~mv2.png/v1/fill/w_381,h_508,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_bf7ba79392cd46c993a602fdd68ce9dd~mv2.png) eWorks by ESADE Demo Day Only a few days later, on **17 November**, CIRQUEL returned to the academic stage at [**IESE Business School's**](https://formscloud.iese.edu/landings-mba-programs-and-mim/?utm_source=google&utm_medium=cpc&utm_content=DEGREE_MBA_SPAIN_GADS_SEM_BRAND_ALL_CONV_Online_Paid_25-26&utm_campaign=701Qu00000TMnOEIA1) **EIC Day 2025**. For the second time this year, Anna was invited as a panelist to present CIRQUEL's case study during the workshop _"From Ideas to Impact - The Art of Persuasion."_ The session explored how founders, policymakers and innovators communicate complex ideas to multiple stakeholders - investors, customers, teams and institutions - without losing sight of mission or truth. Anna shared CIRQUEL's experience of navigating stakeholder alignment across logistics partners, brands, sustainability teams, and regulatory pressures. The dialogue among founders and experts demonstrated how persuasion in entrepreneurship is rooted in clarity, empathy, and evidence - the ability to articulate why circularity matters now, how it solves industry pain points, and what future it enables. CIRQUEL is grateful to IESE for fostering such a rich environment of reflection, challenge and collaboration, and we look forward to continuing this dialogue. ![CIRQUEL's pre-selection as a Nominee for the 2025 Global Change Award](https://assets.cirquel.co/website/Screenshot 2025-12-05 at 14.05.16.png) The most transformative moment of the month, however, was CIRQUEL's **pre-selection as a Nominee for the [2025 Global Change Award](https://hmfoundation.com/gca/)** in the category of _Mindful Consumption_. Created by the [**H&M Foundation**](https://hmfoundation.com/gca/), in partnership with the [**Ellen MacArthur Foundation**](https://www.ellenmacarthurfoundation.org/topics/circular-design/overview?gad_source=1&gad_campaignid=18189424489&gbraid=0AAAAACb4JAetYVKYYRhCZRzbAEjOGejaC&gclid=Cj0KCQiAosrJBhD0ARIsAHebCNqQFPU5L6HdmLpuq--qvyohMK-PO0qz7GTpPvpYJ0sNiiJo9XSYDUUaAs7_EALw_wcB), the Global Change Award is one of the most influential challenges accelerating circularity in textiles worldwide. Each year, innovators are selected from thousands of submissions and share a **€2 million grant** along with access to a world-class accelerator programme run together with [Accenture](https://www.accenture.com/es-es), [KTH Royal Institute of Technology](https://www.kth.se/en), and the Ellen MacArthur Foundation's global circularity network. Past winners include Rubi Laboratories, Fairbrics and Phycom - pioneers in carbon recycling, regenerative materials and biotechnology. Their success demonstrates the award's ability to elevate early-stage ideas into globally recognised transformation engines. The _Mindful Consumption_ category acknowledges business models that extend textile lifecycles, influence purchasing behaviours, and reduce waste. ![CIRQUEL's pre-selection as a Nominee for the 2025 Global Change Award](https://assets.cirquel.co/website/Screenshot 2025-12-05 at 14.05.27.png) CIRQUEL's nomination reflects the growing understanding that circular reverse logistics, supported by intelligence and localised orchestration, is an essential part of solving the industry's overproduction and waste crisis. And while the award is rooted in fashion, CIRQUEL's impact already extends far beyond it. Textiles play a critical role not only in apparel but also in **home décor, bedding, furniture, upholstery and automotive interiors**- all verticals where returns, waste, and lack of traceability create both financial losses and environmental burdens. Our technology ensures that every textile item, regardless of industry, has a second-life pathway - whether through recommerce, refurbishment, repurposing, or responsible material recovery. As November concludes, CIRQUEL moves forward with gratitude and purpose. The visibility gained at Esade, the academic engagement at IESE, and the global recognition from the H&M Foundation reinforce that what CIRQUEL is building is not only timely - it is necessary. The world is shifting toward a circular future, fuelled by regulatory momentum, ESG accountability, and consumer awareness. The post-purchase journey, once a logistical afterthought, is becoming a strategic touchpoint where value, sustainability and innovation converge. CIRQUEL is proud to help lead that transition, and we look forward to expanding our collaborations and impact in the months ahead. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # From Ideas to Impact: CIRQUEL at IESE's EIC Day 2025 on the Art of Persuasion URL: https://cirquel.co/post/from-ideas-to-impact-cirquel-at-iese-s-eic-day-2025-on-the-art-of-persuasion Date: 2025-11-28 Author: Anna Warchalowska Tags: Entrepreneurship, IESE, Public Speaking, Business Schools Persuasion sits at the heart of every ambitious idea - our CEO Anna Warchalowska speaks at IESE Business School about shaping messages for different audiences. ![Panelists: Manu, Victoria, Phuong (IESE), Anna, Miryam.](https://assets.cirquel.co/website/f1ee9f3b-1e08-4086-a975-96ec8db336f5 2.jpg) Panelists: Manu, Victoria, Phuong (IESE), Anna, Miryam. Persuasion sits at the heart of every ambitious idea - especially in innovation. Whether a founder is pitching to investors, aligning with partners, guiding a team through uncertainty, or communicating a new vision to the market, the ability to shape a message for different audiences is as critical as the idea itself. This theme was the foundation of this year's _"From Ideas to Impact – The Art of Persuasion"_ panel at [**IESE Business School's EIC Day 2025**](https://prdt.iese.edu/EIC-Newsletter-September-2025-39-EN), where our co-founder & CEO, [**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/), was invited to speak alongside fellow innovators and policymakers. ![IESE Business School - Nord Campus in Barcelona](https://assets.cirquel.co/website/IMG_3613.jpg) IESE Business School - Nord Campus in Barcelona The session brought together diverse perspectives: agri-tech founder [**Miryam Adni**](https://www.linkedin.com/in/miryam-adni/), music/psychology tech-driven entrepreneur [**Victoria Williamson**](https://www.linkedin.com/in/drvickyw/), and [**Manu Reyes**](https://www.linkedin.com/in/manureyeslopez/), Mayor of Castelldefels - each navigating persuasion in radically different environments. While their industries and roles vary, the challenges echoed each other: finding clarity in complexity, communicating with integrity, and ensuring that the mission behind the work doesn't get lost as the message adapts. This honest exchange created a rare and meaningful space for collective learning. From CIRQUEL's side, Anna shared the everyday reality of building an AI-powered circular logistics infrastructure, a mission that requires constant communication across stakeholders who speak different "languages." She discussed what it means to persuade a fashion brand to rethink returns as an asset, a logistics partner to integrate anomaly-detection workflows, or an investor to recognise circularity as a scalable, revenue-driven opportunity. As Anna described it: _"Persuasion in a startup isn't about convincing - it's about translating value so each stakeholder can see their place in the future you're building."_ ![Panel description](https://assets.cirquel.co/website/Screenshot 2025-11-28 at 14.44.53.png) Panel description The day continued with an interactive IESE workshop, where faculty and participants examined each speaker's case study, unpacking communication strategies, decision-making frameworks, and the nuances of influence in both public and private sectors. For CIRQUEL, this offered tangible insights into how we communicate our impact, frame our technology narrative, and articulate our value proposition within the broader circularity landscape. These reflections are especially important as we expand into new verticals and markets, and engage with partners who are shaping the future of sustainable logistics. We are deeply grateful to [**Phuong Pham**](https://www.linkedin.com/in/phuong-pham-30692a9/) and the entire **IESE EIC Department** for organising yet another thoughtful and impeccably structured event. It's a privilege for CIRQUEL to contribute to these conversations, share our journey with emerging talent, and continue strengthening our voice in spaces where innovation, purpose, and leadership intersect. We look forward to future collaborations with IESE and to bringing the lessons from this session into our ongoing mission to make reverse logistics circular, efficient, and intelligent. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # How the Logistics 4.0 Incubator is accelerating CIRQUEL's circular innovation journey URL: https://cirquel.co/post/how-the-logistics-4-0-incubator-is-accelerating-cirquel-s-circular-innovation-journey Date: 2025-11-28 Author: Anna Warchalowska Tags: Logistics, Innovation, Barcelona, Incubator, AI The Logistics 4.0 Incubator led by CZFB has become a strategic hub where robotics, AI, automation, IoT and data-driven models converge to shape the future of supply chains. The recent feature published by [**El Mercantil**](https://elmercantil.com/2025/11/25/la-logistica-del-futuro-toma-forma-en-la-logistics-4-0-incubator/) shines a spotlight on the dynamic work taking place inside the **Logistics 4.0 Incubator**, an initiative led by the **Consorci de la Zona Franca de Barcelona (CZFB)** to foster technological innovation and sustainability across Spain's logistics ecosystem. As the article outlines, the incubator has quickly become a strategic hub where robotics, AI, automation, IoT and data-driven models converge to solve operational challenges and shape the future of supply chains. ![Excerpt from the article - interview with Anna Warchalowska - Co-Founder of CIRQUEL.](https://assets.cirquel.co/website/Screenshot 2025-11-28 at 14.24.37.png) Excerpt from the article - interview with Anna Warchalowska - Co-Founder of CIRQUEL. For CIRQUEL, being part of this ecosystem represents an important step in our mission to make reverse logistics more intelligent, circular and sustainable. Through access to expert mentors, corporate partners, knowledge exchanges and hands-on testing environments, we've been able to refine how our **AI-powered anomaly detection, quality forecasting and circular routing** support not only fashion brands but also adjacent sectors such as accessories, homeware and home décor. The collaborative environment has allowed us to validate ideas faster, engage with logistics operators and understand the scalability needs of large brands and warehouses. In her interview with _El Mercantil_, our co-founder **Anna Warchalowska** shared CIRQUEL's perspective on the changing role of reverse logistics and the value of the incubator. Below are her quotes in both their **original Spanish** and **English translation**: > **«Ser parte de la Logistics 4.0 Incubator nos está permitiendo validar, ajustar y escalar nuestro enfoque de logística inversa basada en IA con la ayuda directa de expertos del sector y otros proyectos innovadores.»** > > _"Being part of the Logistics 4.0 Incubator allows us to validate, refine and scale our AI-driven approach to reverse logistics with direct input from industry experts and fellow innovators."_ And on how the incubator supports CIRQUEL's mission: > **«Este entorno nos ayuda a acelerar nuestra visión de circularidad, conectándonos con actores clave y creando un espacio donde podemos probar nuestra tecnología en condiciones reales.»** > > _"This environment helps us accelerate our circularity vision, connecting us with key stakeholders and giving us a space to test our technology in real operating conditions."_ The article also highlights how the incubator fosters a space where collaboration, experimentation and shared problem-solving become the foundation for future-ready logistics models. For CIRQUEL, this has been invaluable - not only for technological development, but also for strengthening our ecosystem, expanding our network and shaping a solution that is aligned with industry needs and upcoming regulatory requirements around circularity, transparency and textile waste. We are deeply grateful to **El Mercantil**, CZFB and the entire Logistics 4.0 team for recognising the importance of circular logistics and for supporting startups dedicated to building the next generation of sustainable supply chains. 📖 Read the full article: [https://elmercantil.com/2025/11/25/la-logistica-del-futuro-toma-forma-en-la-logistics-4-0-incubator/](https://elmercantil.com/2025/11/25/la-logistica-del-futuro-toma-forma-en-la-logistics-4-0-incubator/) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Beyond Fashion: The high-stakes sustainability crisis in Home & Furniture returns and how AI can fix it URL: https://cirquel.co/post/beyond-fashion-the-high-stakes-sustainability-crisis-in-home-furniture-returns-and-how-ai-can Date: 2025-11-18 Author: Anna Warchalowska Tags: Home & Furniture, Returns, Sustainability, Circular Economy While fashion still dominates e-commerce, home and furniture has quietly become one of retail's fastest-growing engines - with the highest cost-to-value return ratio. ## The Home & Furniture boom...and its hidden operational burden While fashion still dominates e-commerce, it's the **home and furniture category** that has quietly become one of retail's fastest-growing engines. According to [**McKinsey's State of Fashion: Home & Lifestyle 2024**](https://www.consumeredge.com/resources/the-state-of-retail-2025-apparel-accessories-footwear/?utm_term=the%20state%20of%20fashion%202025%20mckinsey&utm_campaign=Search_Corporate&utm_source=google&utm_medium=cpc&hsa_acc=4353012362&hsa_cam=20557452946&hsa_grp=163776083272&hsa_ad=722122155973&hsa_src=g&hsa_tgt=kwd-2498788397647&hsa_kw=the%20state%20of%20fashion%202025%20mckinsey&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gad_source=1&gad_campaignid=20557452946&gbraid=0AAAAAqODFUF280OtokjjMifsX7EWyXxA7&gclid=CjwKCAiAz_DIBhBJEiwAVH2XwFT_DDxGO3XHGei9z42Fy7uLqddzrfjCn2Ghj1OlfkzeXp7c3GPhKxoCxBMQAvD_BwE), homeware, furniture, and décor grew **nearly twice as fast as apparel online**, driven by rising urbanization, hybrid working, and the "comfort-centric" consumer shift. Yet behind this boom lies a structural challenge most retailers underestimate. As _[Sarah Kent](https://www.linkedin.com/in/sarah-kent-21253323/)_ _of_ _[Business of Fashion](https://www.businessoffashion.com/)_ notes, _"Home divisions are becoming retail's fastest-growing category, but also the least optimized operationally, especially when it comes to returns."_ Bulky items, complex materials, multi-component packaging, and variable product tolerances make returns vastly more expensive than typical apparel. And as online penetration increases, so does the exposure to logistical inefficiencies, sustainability pressures, and customer dissatisfaction. ![Returning a pair of shoes may cost a retailer €12. Returning a sofa can cost €150–€500](https://static.wixstatic.com/media/nsplsh_9c9586e3cef34bf2827f0af94c116307~mv2.jpg/v1/fill/w_341,h_341,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_9c9586e3cef34bf2827f0af94c116307~mv2.jpg) ## The soaring cost of bulky returns and when logistics breaks the margin Returning a pair of shoes may cost a retailer €12. Returning a sofa can cost **€150–€500**, according to internal estimates referenced in [Vogue Business](https://www.vogue.com/business) (2024). This single operational reality explains why return rates in furniture (though lower than fashion) are **financially far more destructive**. Heavy, oversized shipments often require specialized handling, multi-man pickup, re-packaging, storage, and (increasingly) repair or partial refurbishment. As _[Rachel Cernansky](https://www.linkedin.com/in/rachel-cernansky/)_ _of Vogue Business_ writes, _"Furniture returns have the highest cost-to-value ratio in e-commerce. Each single return can erase the margin of several successful sales."_ Add to this trend the increasing shift toward online purchases for large items - 2025 data from [Statista](https://www.statista.com/?srsltid=AfmBOopWFFaBFbfcxzXGUEV3YsGuoo2qqemix3RTyPG38XuRxBne2gPs) shows a **36% YoY rise** in online furniture purchases across EU markets and retailers find themselves exposed to an entirely new cost structure. In the US, returns already cost retailers **$743 billion annually** (NRF 2024), and bulky home items account for the fastest growth within that number. ![If apparel returns are bad for the planet, furniture returns are catastrophic](https://assets.cirquel.co/website/foad-roshan-zy1bW5DHo_Y-unsplash.jpg) ## The sustainability blind spot ---> Why furniture returns are so carbon-heavy? If apparel returns are bad for the planet, **furniture returns are catastrophic**. A single return journey for a table or armchair emits **8-12x** more CO₂ than a clothing return [(European Environment Agency, 2024)](https://www.eea.europa.eu/en). Add the carbon footprint of repackaging, reconditioning, restocking, or too often disposal, and the environmental impact becomes staggering. Despite growing regulatory pressure, nearly **50% of returned home goods** still end up in landfills or incineration, according to a [2025 EU Ecolabel](https://environment.ec.europa.eu/topics/circular-economy-topics/eu-ecolabel_en) assessment. The EU's new [**Extended Producer Responsibility (EPR)**](https://www.unep.org/ietc/what-we-do/extended-producer-responsibility) for textiles is expanding into homeware and household fabrics, and similarly, upcoming revisions to the Waste Framework Directive will place tighter controls on take-back, durability standards, and waste prevention for furniture. As found in the [McKinsey](https://www.mckinsey.com/?cid=brand24-pse-ggl-mbm-m01-brand24-nsa-oth&keyword=mckinsey&gad_source=1&gad_campaignid=21752301305&gbraid=0AAAAA-HEd2eOQBAzoGDYzyYaJ1PLJikls&gclid=CjwKCAiAz_DIBhBJEiwAVH2XwL0HQ1zd5juG6MECWIAfW5X8QIJOFw58PKWutDl_srpz58Omv7gW-BoCxVcQAvD_BwE) report, _"Bulky-category returns are structurally inefficient. The carbon footprint alone makes them a priority target for circular redesign."_ ![Furniture returns fraud](https://static.wixstatic.com/media/nsplsh_85ddd77eaefa43859662278c158c436c~mv2.jpg/v1/fill/w_321,h_283,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_85ddd77eaefa43859662278c158c436c~mv2.jpg) ## Fraud, Damage & Trust: The underestimated risk in homeware reverse logistics Furniture returns are also disproportionately subject to **fraudulent claims**, mis-declared damage, or swapped items - losses that compounds already heavy costs. A 2023 study in the _[Journal of Retail & Consumer Logistics](https://www.sciencedirect.com/journal/journal-of-retailing-and-consumer-services)_ found that fraudulent oversized returns are **54% costlier** and **2.3x more common** than retailers report. As _[Prof. David R. King](https://business.fsu.edu/person/david-r-king)_ explains, _"Fraud in oversized returns is significantly underreported, and the operational burden on carriers is growing faster than mitigation strategies."_ Damaged-in-transit claims, customer-assembled errors, or minor defects can often be resolved locally, but brands lack visibility into actual product condition, or the logistical network required to route items efficiently to resale, repair, or donation channels. The result is unnecessary back-and-forth movement across borders, additional emissions, and preventable financial losses. ![Circular homeware](https://static.wixstatic.com/media/nsplsh_93e225c7fabc43e29fe90456daf7aa26~mv2.jpg/v1/fill/w_241,h_321,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_93e225c7fabc43e29fe90456daf7aa26~mv2.jpg) ## Designing circularity into the home category and what the market tells us The circular shift is not a future vision - it is already happening. The EU is pushing for durability labeling, repairability scoring, [digital product passports](https://www.deloitte.com/in/en/Industries/consumer/analysis/embracing-digital-product-passport-regulatory-requirement.html) (DPPs), and right-to-repair requirements for household items. Meanwhile, luxury and mid-market homeware brands are experimenting with refurbishing, second-life resale, and local repair hubs. The homeware resale market is projected to grow at **CAGR 15–19% through 2030**, with platforms like [Kaiyo](https://kaiyo.com/?srsltid=AfmBOopws-jQUxI_dQNSZOkL2rMUj7QX9lTiyEoO7oo4qNWlFEwEudxf), [AptDeco](https://www.aptdeco.com/), and [IKEA"](https://www.ikea.com/es/es/)s resale programs proving that pre-owned furniture can be a high-margin, sustainable vertical. Even high-end interiors brands are joining the movement, driven by customer demand: according to [Lyst & Vogue Business](https://www.voguebusiness.com/tag/lyst), **Gen Z buyers are 40% more likely** to buy refurbished home items compared to Gen X. Or, as _Sarah Kent_ summarises, _"Circularity is no longer an add-on feature in homeware , it is a strategic necessity."_ ![Sustainable home furniture](https://static.wixstatic.com/media/nsplsh_6f756a4b53615a6c4d4659~mv2_d_6000_4000_s_4_2.jpg/v1/fill/w_355,h_237,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_6f756a4b53615a6c4d4659~mv2_d_6000_4000_s_4_2.jpg) ## Where CIRQUEL Fits - AI -defect detection tech that reduces waste, carbon & cost in homeware returns while forecasting the best way of their repurposing This is exactly where CIRQUEL brings measurable, transformative value. Our **AI-powered anomaly detection**, **damage assessment**, and **quality forecasting** allow homeware and furniture retailers to evaluate returns _before they travel_, preventing unnecessary shipments and identifying the optimal next path- resale, buyback, refurbishment, donation, or local re-commerce. We eliminate long-haul reverse logistics, reduce carbon emissions, and help brands recover value from items that would otherwise be written off. In practice, this means: - fewer trucks on the road, - fewer damaged goods re-entering long supply loops, - fewer fraudulent claims, - and a significantly improved brand and customer experience. For the home category - where every centimetre of space, every kilogram of weight, and every return journey matters - CIRQUEL isn't simply a cost-saving [mechanism.It](http://mechanism.it/) is the infrastructure the next era of sustainable home retail requires. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL takes the stage at AI SUMMIT BARCELONA 2025 URL: https://cirquel.co/post/cirquel-takes-the-stage-at-ai-summit-barcelona-2025 Date: 2025-11-13 Author: Anna Warchalowska Tags: AI, Events, Barcelona, Innovation, Sustainability Barcelona once again proved that it stands at the heart of Europe's AI and tech revolution. Our Co-Founder and CEO Anna Warchalowska represented CIRQUEL at the AI SUMMIT BARCELONA 2025. **Empowering the Future of AI, Sustainability, and Circular Innovation** Barcelona once again proved that it stands at the heart of Europe's AI and tech revolution. Earlier this month, our Co-Founder and CEO [**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/) represented **CIRQUEL** at the [**AI SUMMIT BARCELONA 2025**](https://aisummitbarcelona.com/), joining an exceptional lineup of founders, investors, and innovators who are shaping the future of artificial intelligence, sustainability, and entrepreneurship across Europe and beyond. ![AI Summit Barcelona, Anna Warchalowska pitching CIRQUEL at the Tech Barcelona venue Pier 07.](https://assets.cirquel.co/website/aisummitlinkedin.png) AI Summit Barcelona, Anna Warchalowska pitching CIRQUEL at the Tech Barcelona venue Pier 07. Hosted at the vibrant hub of innovation that is [**La French Tech Barcelona**](https://www.frenchtechbarcelona.com/) and [**eWorks by Esade**](https://www.esade.edu/en/learning-innovation/rambla/eworks), the summit brought together a global community of AI pioneers, venture builders, and corporate leaders. The event featured dynamic keynotes, interactive panels, and startup pitches exploring how AI can drive more inclusive, responsible, and purpose-driven innovation. ## Where AI meets circularity At CIRQUEL, we believe that AI holds the key to building a truly circular economy. Our mission is leveraging **AI-powered computer vision, anomaly detection, and quality forecasting** directly aligns with the event's theme: using data and intelligence to unlock sustainability and operational excellence. As Anna shared on stage, CIRQUEL's technology is helping brands and logistics operators **reduce waste, recover value, and close the loop** on returns and surplus goods, demonstrating how artificial intelligence can drive measurable impact in both business performance and environmental responsibility. ![AI Summit Barcelona networking](https://assets.cirquel.co/website/processed-87C5880B-1623-40B5-89FA-F47B8478A761.jpeg) ## Collaboration and connections that inspire A heartfelt thank you goes to the incredible organizers and partners - **La French Tech Barcelona**, **eWorks by Esade**, and the inspiring community of investors and mentors including **Patrik Schulcz**, **Davide Rovera**, **Gül Cenkçiler Felix**, **Philippe Gelis**, **Oriol Juncosa**, **Jérémie Benhamou**, **Raphaël Tourenq**, **Rocío Alcocer Magirena**, **Kim Lea Gundermann**, **Edgar Vicente**, **Lily Joo**, **Dave Garcia**, and **Ksenia Snegireva** for sharing their expertise, insights, and energy during the sessions and networking moments. ![AI Summit Barcelona pitch](https://assets.cirquel.co/website/7A52119B-34A9-47A8-9951-705FCEAD2397.JPG) These exchanges reinforce what we at CIRQUEL believe deeply: innovation thrives through collaboration. Each conversation, pitch, and idea at the AI SUMMIT reflected a shared goal, to make technology not just smarter, but more **human, sustainable, and impactful**. ![Anna - presenting the environmental pain-points in the various industry verticals, and how CIRQUEL's solution is tackling these problems.](https://static.wixstatic.com/media/4b53c3_e999c3aa1c04436aab4b02558074703c~mv2.png/v1/fill/w_367,h_489,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_e999c3aa1c04436aab4b02558074703c~mv2.png) Anna - presenting the environmental pain-points in the various industry verticals, and how CIRQUEL's solution is tackling these problems. ## Barcelona: Europe's AI epicentre The event underscored why **Barcelona** continues to gain recognition as one of Europe's most dynamic ecosystems for **AI, deep tech, and purpose-driven entrepreneurship**. With its vibrant mix of academic excellence, international talent, and innovation-focused institutions, the city is fast becoming a destination for founders and investors shaping the next generation of technology solutions. We are proud to be part of this movement and to continue building meaningful collaborations with the region's forward-thinking partners, institutions, and venture networks. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Early October 2025 Milestones: CIRQUEL joins Europe's leading innovation conversations URL: https://cirquel.co/post/early-october-2025-milestones-cirquel-joins-europe-s-leading-innovation-conversations Date: 2025-10-23 Author: Anna Warchalowska Tags: Milestones, Recognition, Barcelona, Innovation, Sustainability CIRQUEL represented at the HearstLab Open Europe Summit in Barcelona, joins Meaningful Business community, and named one of Spain's Top FashionTech Companies by F6S. Early October marked an exciting chapter for CIRQUEL as our co-founder and CEO **[Anna Warchalowska](https://www.linkedin.com/in/anna-warchalowska-contact/)** represented the company at the **[HearstLab Open Europe Summit](https://luma.com/h39hlmgx?tk=Fwznuf&utm_source=ep-BrjJW9Mqon)** in **Barcelona** - an invite-only gathering celebrating visionary founders, investors, and changemakers shaping the future of European innovation. Hosted at **[Juno House](https://junohouseclub.com/)**, the summit was organised by **[HearstLab](https://www.hearstlab.com/)**, the venture arm of **Hearst Publications**, in collaboration with **[Unlock VC](https://unlock-vc.com/)**, **[Fund F](https://www.fund-f.com/)**, **[Impact Shakers](https://www.impactshakers.com/)**, **[Fitch Ratings Spain](https://www.fitchratings.com/entity/spain-80442206)**, and **[ELLE Spain](https://www.elle.com/es/)**. The event centred on how Europe can lead the next wave of entrepreneurship through sustainability, inclusivity, and forward-thinking regulation. Panels such as _"Europe's Competitive Edge: Leveraging Regulation, Sustainability & DEI for Global Leadership"_, _"Funding the Future: Europe's VC Revolution,"_ and _"The Barcelona Effect: Shaping the Future of European Innovation"_ explored how purpose-driven ventures can thrive in a changing economy. Among the distinguished speakers were **Susanne Schöneberg (Fund F)**, **Catarina Santos (Impact Shakers)**, **Rebecca Tibbott (Fitch Ratings)**, **[Inés Oliveira](https://www.linkedin.com/in/inesoliveiraribeiro/) (HearstLab)**, **Sana Al-Naimi ([Bloomberg Media](https://www.bloombergmedia.com/))**, **Hélène Hense (Unlock VC)**, **Alexandra Kory (Fitch Ratings)**, **Marta Lasierra (ELLE Spain)**, and **Niels Van Klaveren (HearstLab Europe)**. ![Anna Warchalowska networking at the HearstLab Open Europe Summit at Juno House in Barcelona](https://static.wixstatic.com/media/4b53c3_e4b1f48e61ba4e3897e2d3a9e6b27e83~mv2.png/v1/fill/w_1076,h_717,al_c,q_90,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_e4b1f48e61ba4e3897e2d3a9e6b27e83~mv2.png) As Anna noted after the event, _"Barcelona continues to stand out as one of Europe's most vibrant startup ecosystems - a place where technology, purpose, and sustainability naturally intersect."_ CIRQUEL was proud to take part in this dialogue, reaffirming its role in Europe's growing network of circular and impact-driven innovators. In parallel with the Summit, we are delighted to share that **Anna Warchalowska** (as a serial founder and CEO of CIRQUEL) joined the **[Meaningful Business](https://meaningful.business/home/)** community - a global network that connects over 1,000 leaders across 100 countries who are aligning business growth with social and environmental impact. Supported by partners including **[EY](https://www.ey.com/es_es)**, the **[UN Global Compact](https://unglobalcompact.org/)**, and **[Natura & Co](https://www.corporateexcellence.org/recurso/natura-co-la-mayor-b-corp-del-mundo/b25b6af7-263b-d90b-59b7-1e48771d2519)**, the initiative bridges entrepreneurship, academia, and investment to accelerate progress toward the **[UN Sustainable Development Goals](https://sdgs.un.org/goals).** For CIRQUEL, joining this network represents another step in integrating reverse logistics and AI-powered circular models into a broader framework of responsible innovation and global collaboration. October also brought industry recognition: **CIRQUEL** was named by **[F6S](https://www.f6s.com/companies/fashion-tech/spain/co)**, Europe's largest startup community, as one of **Spain's Top FashionTech Companies**. This acknowledgment highlights our team's pioneering work in **AI-driven logistics**, **computer vision**, **anomaly detection**, and **quality forecasting technology** - tools that help fashion and lifestyle brands recover value from returns, samples, and overstock while reducing waste. Together, these milestones reflect CIRQUEL's mission to bridge technology, sustainability, and entrepreneurship - turning innovation into measurable impact. From the stage of Barcelona's HearstLab Summit to global purpose-driven networks like Meaningful Business, and now to recognition by F6S, CIRQUEL continues to push forward the vision of a circular, intelligent, and resilient fashion economy. Read more here: - [HearstLab Open Europe Summit](https://luma.com/h39hlmgx?tk=Fwznuf&utm_source=ep-BrjJW9Mqon) - [Summit Speakers & Agenda](https://www.canva.com/design/DAG0Cvby0Qw/ZlhmMPF2HX7anqTcHB2Ncw/view) - [Meaningful Business Community](https://meaningful.business/home/) - [F6S Top FashionTech Startups in Spain](https://www.f6s.com/companies/fashion-tech/spain/co) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Rethinking deadstock - Afterthoughts on Vestiaire Collective's findings about resale and circular fashion URL: https://cirquel.co/post/rethinking-deadstock-afterthoughts-on-vestiaire-collective-s-findings-about-resale-and-circular-fa Date: 2025-10-10 Author: Anna Warchalowska Tags: Resale, Deadstock, Circular Economy, Market Analysis Analysis of the 2025 BCG and Vestiaire Collective report on resale growth and deadstock standards, plus strategic insights for fashion brands. ## Latest from Vestiaire Collective & BCG: Resale surges, deadstock standards rise The newly released **[2025 report by BCG and Vestiaire Collective](https://www.bcg.com/publications/2025/how-fashion-luxury-brands-can-win-secondhand-market)**, _Resale's Next Chapter_, lays bare how resale is becoming a strategic imperative for fashion and luxury brands. Based on a survey of **7,800 consumers** drawn from the [Vestiaire Collective](https://us.vestiairecollective.com/) community, the report finds that resale is growing at **10 % annually** - **three times faster** than the primary market - and is projected to reach **US$ 320 - 360 billion by 2030**, up from today's estimated **US$ 210 - 220 billion**. In the survey, **28 %** of respondents say that secondhand items already fill a portion of their wardrobes - rising to **30 % for clothing** and **40 % for handbags**. Over half (55 %) of them buy via digital resale platforms ([Vestiaire](https://us.vestiairecollective.com/), [The RealReal](https://www.therealreal.com/), [Vinted](https://www.vinted.es/)), and nearly **80 % cite affordability** as a primary motive. ![](https://static.wixstatic.com/media/nsplsh_fb84d3df21384c5c9fd850d2fa2826e2~mv2.jpg/v1/fill/w_260,h_341,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_fb84d3df21384c5c9fd850d2fa2826e2~mv2.jpg) As **[Fanny Moizant](https://www.linkedin.com/in/fanny-moizant-40665322/?originalSubdomain=fr)**, co-founder and President of Vestiaire Collective, puts it: > "Whether seeking desirable pre-loved fashion pieces at affordable prices … resale is now firmly embedded in how people shop and build their wardrobes." And from the BCG side, **[Felix Krueger](https://www.linkedin.com/in/felixmkrueger/)**, Managing Director and Partner, declares: > "With resale now growing three times faster than firsthand fashion and luxury, the market has gone from experimental to essential." ![](https://static.wixstatic.com/media/nsplsh_9d4676fe89a64cabb40b2ab45b943868~mv2.jpg/v1/fill/w_361,h_264,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_9d4676fe89a64cabb40b2ab45b943868~mv2.jpg) The report also stresses the rising importance of **digital product passports (DPPs)**. For consumers, **70 %** value authentication when buying and **67 %** when reselling; **68 %** want in-depth product specification. DPPs can mitigate trust friction, support transparency, and give brands control over downstream value flows. As **[Catharina Martinez-Pardo](https://www.linkedin.com/in/catharina-martinez-pardo/)**, BCG Managing Director and coauthor of the report, notes: > "Digital product passports go beyond ticking a compliance checkbox. They reduce friction … ensure authenticity … and create new ways for brands to capture value throughout a product's lifecycle." ![](https://static.wixstatic.com/media/nsplsh_6b373852306c4478643438~mv2_d_4608_3456_s_4_2.jpg/v1/fill/w_387,h_290,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_6b373852306c4478643438~mv2_d_4608_3456_s_4_2.jpg) ## The deadstock challenge & the foundstock standard While resale deals in used garments, the issue of **deadstock** - unused or unsold inventory - remains murky and rife with greenwashing risk ([Vogue Business](https://www.voguebusiness.com/story/sustainability/can-a-new-industry-standard-change-the-way-fashion-uses-deadstock)). According to the article, **[Stephanie Benedetto](https://www.linkedin.com/in/stephaniebenedetto/)**, cofounder and CEO of Aloqia, emphasizes the problem of definition: > "A big part of the problem is that deadstock doesn't have an official definition." **[Extended Producer Responsibility (EPR)](https://www.unep.org/ietc/what-we-do/extended-producer-responsibility)** laws in Europe will soon push brands to account for the afterlife of all textiles, having a credible, auditable definition of deadstock/foundstock becomes essential. The Foundstock Standard hopes to fill that gap-and ensure deadstock monetization is defensible and transparent. ![](https://static.wixstatic.com/media/11062b_4506ab52f9a541a3ae78b2d6eab79c0e~mv2.jpg/v1/fill/w_347,h_231,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_4506ab52f9a541a3ae78b2d6eab79c0e~mv2.jpg) ## Strategies to monetize loss & excess Here are strategic pathways brands can adopt: 1. **Internal resale / trade-in platforms** - Brands like [Gucci](https://www.gucci.com/) and others are piloting their own pre-loved channels, maintaining control over brand narrative and margins. 2. **Partnership with resale marketplaces** - Resale-as-service models allow brands to plug into established platforms and audiences without building from scratch (e.g. [Chloé](https://www.chloe.com/) × Vestiaire integration using DPPs). 3. **Certified deadstock / foundstock programs** - Using standards like Foundstock helps legitimize excess inventory reuse. The requirement to price below original cost helps align incentives away from overproduction. 4. **Digital product passports + data feedback loops** - With robust DPPs, brands can feed resale data, repair history, and condition back into their product design and forecasting systems, refining future collections. 5. **Discount or outlet channels for excess** - Rather than destroying or heavily marking down, brands can channel deadstock into lower-price arms or resale tiers. When these strategies are executed well, they can turn what would otherwise be sunk cost or waste into **revenue**, **loyalty**, and **sustainability differentiation**. ## Why returns & losses matter more than ever Returns - especially from e-commerce represent one of the richest sources of near-pristine inventory. Though this specific report doesn't provide return rates, industry benchmarks often place return rates at **~40 % (globally)**, or even higher in categories like footwear. Processing, grading, and routing returns quickly is key to capturing value before they degrade or are discarded. For deadstock, the Foundstock Standard aims to give brands a defensible framework; for returns, the opportunity lies in **fast, accurate assessment**, **predictive grading**, and **local resale orchestration**. At CIRQUEL, our approach uses **AI-powered anomaly detection, quality forecasting**, and a network of local resale/rental hubs to ensure brands recoup value from stock that might otherwise vanish. ## Final thoughts The 2025 BCG / Vestiaire report confirms that **resale is no longer optional; it's central to brand survival**. With innovations like DPPs and deadstock standards emerging, the infrastructure is forming to support circular, data-driven economies. 👉 Read the full BCG + Vestiaire report here: [_Resale's Next Chapter_](https://www.bcg.com/publications/2025/how-fashion-luxury-brands-can-win-secondhand-market) 👉 Learn more about the Foundstock Standard via [Vogue Business coverage](https://www.voguebusiness.com/story/sustainability/can-a-new-industry-standard-change-the-way-fashion-uses-deadstock) CIRQUEL stands ready to bridge the gap - helping brands turn returns, deadstock, and excess into sustainable revenue streams, while aligning with a circular, accountable future. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Weight of Excess: What the 2025 materials market report reveals about overproduction in textiles URL: https://cirquel.co/post/the-weight-of-excess-what-the-2025-materials-market-report-reveals-about-overproduction-in-textiles Date: 2025-10-02 Author: Anna Warchalowska Tags: overproduction, textiles, sustainability, circular economy, materials The global textile industry continues to grow at a staggering pace, but so too does its environmental cost. The global textile industry continues to grow at a staggering pace, but so too does its environmental cost. The [_Textile Exchange Materials Market Report 2025_](https://2d73cea0.delivery.rocketcdn.me/app/uploads/2025/09/Materials-Market-Report-2025.pdf) provides the latest insight into the sheer scale of production, overconsumption, and the growing challenge of textile waste. Its findings highlight not only the urgency for systemic change but also the opportunities for circular models to mitigate damage. ![Textile overproduction](https://static.wixstatic.com/media/nsplsh_6817a5cf4bb347ccb4beb99809ccf2ee~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_6817a5cf4bb347ccb4beb99809ccf2ee~mv2.jpg) ## A snapshot of the market According to [_Textile Exchange_](https://2d73cea0.delivery.rocketcdn.me/app/uploads/2025/09/Materials-Market-Report-2025.pdf) (2025), **global fibre production reached 124 million tonnes in 2024**, marking a **4% increase from 2023**. This follows a steady upward trajectory since 2000, when production was closer to 60 million tonnes - effectively **doubling in just over two decades**. The fibre mix is also revealing: - **Polyester now dominates with 63%** of the total fibre market, primarily virgin polyester derived from fossil fuels. - **Cotton accounts for 23%**, with organic cotton remaining under 2% of global share. - Alternative fibres (such as lyocell, hemp, or bio-based innovations) together represent **less than 5%** of the global market. As [_La Rhea Pepper_](https://www.linkedin.com/in/larhea-pepper/), CEO of Textile Exchange, stresses in the report: > "The challenge is not only to innovate in materials but to **right-size production and address demand-side excess**. We cannot continue to double fibre output every 20 years without devastating environmental consequences." ![Rolled stock of fabrics](https://static.wixstatic.com/media/11062b_56a1f85cfc3d45dfa9c086c6eabce16a~mv2.jpeg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_56a1f85cfc3d45dfa9c086c6eabce16a~mv2.jpeg) ## The overproduction dilemma The report highlights that **nearly 40% of produced garments are never sold at full price**, with much entering discount channels or liquidation. At the same time, **92 million tonnes of textiles are discarded annually**, much of it landfilled or incinerated ([_Ellen MacArthur Foundation_](https://www.ellenmacarthurfoundation.org/topics/circular-design/overview), _2023_). This excess is fuelled by overproduction - an industry strategy designed to saturate shelves, drive down unit costs, and feed fast-changing consumer demand. Yet, as _Textile Exchange_ points out, this creates a system where **supply consistently outstrips realistic demand**, leaving mountains of unsold inventory. ## Overconsumption: A social reflex The report connects production excess with shifting consumer behaviours. In Europe, the **average citizen buys 15 kg of new textiles per year** and discards around **12 kg**, according to the [_European Environment Agency (2024)_](https://www.eea.europa.eu/en/analysis/publications/trends-and-projections-in-europe-2024). In the US, per-capita consumption is even higher, exceeding **19 kg per year**. ![Textile consumption](https://assets.cirquel.co/website/philip-myrtorp-4ZOQ1hdpYEw-unsplash.jpg) Generational differences are also emerging: - **Gen Z and Millennials** show higher adoption of resale, rental, and secondhand purchases (ThredUp Resale Report 2024 notes **a 95% increase in new buyers** year-over-year). - However, they are also the most exposed to fast fashion micro-trends, making their consumption patterns paradoxical: more circular, but also more volume-driven. As the _Textile Exchange 2025_ report warns, "Without demand-side reduction and mindful consumption, material innovations will only partially offset fashion's footprint." ## Why returns matter in the equation? One under-discussed factor in overproduction and waste is **returns**. In fashion e-commerce, [**20–30% of items are returned**](https://www.4sustainability.it/en/e-commerce-and-environmental-impact-managing-returns/) (McKinsey, 2024). Footwear is especially problematic, with return rates as high as **40%**, often due to sizing issues. Each return adds not only to logistics emissions but also risks rendering garments "unsellable" if damaged, improperly processed, or late to restock. At CIRQUEL, we see returns as a crucial leverage point in tackling overproduction. Every returned garment represents both a **cost and an opportunity**: - Cost, if mishandled, leading to landfill or incineration. - Opportunity, if properly assessed, repurposed, and channelled into resale, rental, or secondary markets. By combining **AI-driven quality forecasting, anomaly detection, and (local) resale orchestration**, CIRQUEL helps brands **reclaim value from what would otherwise be waste**. ## A call for reflection: For readers, the report is not just a wake-up call for brands but also for consumers. Every purchasing decision has a footprint: the fibre chosen, the production methods behind it, and the likelihood of that item being worn regularly - or quickly discarded. Polyester, cotton, wool, or lyocell - each comes with trade-offs. But the real challenge lies in **volume**. Buying fewer, longer-lasting, and repairable garments is the most immediate way to reduce textile waste. ## Conclusion The _Textile Exchange Materials Market Report 2025_ paints a sobering picture: fibre production doubling in two decades, polyester locking in fossil dependence, and a widening gap between what is produced and what is truly needed. But it also outlines clear pathways for improvement: scaling lower-impact fibres, adopting zero-waste design, and implementing effective EPR (extended producer responsibility) schemes across Europe. At CIRQUEL, we believe tackling returns and extending product lifecycles are critical pieces of this puzzle. Overproduction may be systemic, but with innovation, responsibility, and consumer awareness, the tide can turn. 📖 Full report available here: [Textile Exchange - Materials Market Report 2025](https://2d73cea0.delivery.rocketcdn.me/app/uploads/2025/09/Materials-Market-Report-2025.pdf) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL joins Startup Boost Zaragoza: A new chapter of growth & collaboration URL: https://cirquel.co/post/cirquel-joins-startup-boost-zaragoza-a-new-chapter-of-growth-collaboration Date: 2025-09-18 Author: Anna Warchalowska Tags: startup, acceleration, Zaragoza, Startup Boost, growth, collaboration Yesterday on 17th of September 2025 - marked the official kickoff of Startup Boost Zaragoza, the acceleration programme in which CIRQUEL is proud to participate. ![Inauguration event of the program at Mobility City venue in Zaragoza.](https://assets.cirquel.co/website/Screenshot 2025-09-18 at 14.59.06.png) Inauguration event of the program at Mobility City venue in Zaragoza. Yesterday on 17th of September 2025 - marked the official kickoff of [**Startup Boost Zaragoza**](https://incibeemprende.sherpa-tribe.com/wp-content/uploads/2025/09/Startup-Boost-Fundacion-Ibercaja-9.pdf), the acceleration programme in which CIRQUEL is proud to participate. Organised by [**Sherpa Tribe**](https://incibeemprende.sherpa-tribe.com/startup-boost-programa-de-aceleracion-incibe-emprende-by-sherpa-tribe-fundacion-ibercaja/) under the [**INCIBE Emprende**](https://www.incibe.es/emprendimiento) initiative of the Spanish government, in collaboration with [**Fundación Ibercaja**](https://www.fundacionibercaja.es/) and the [**Ayuntamiento de Zaragoza**](https://www.zaragoza.es/sede/), this four-month hybrid programme is designed to propel tech startups ( **BIDFACTORY**, **Biopareja**, **Mettis AI**, **Bugcle**, **SCAI Engineering**, **Pulpop**, **Ostirion**, **FenixX**,**)** working in mobility, sustainability and cybersecurity. ![Anna Warchalowska the Co-Founder & CEO of CIRQUEL presenting our venture at the Inauguration ceremony.](https://assets.cirquel.co/website/Screenshot 2025-09-18 at 14.59.18.png) **Anna Warchalowska** the Co-Founder & CEO of CIRQUEL presenting our venture at the Inauguration ceremony. ## A venue built for innovation The opening took place at **Mobility City**, a flagship hub in Zaragoza dedicated to sustainable mobility and smart city innovation, located inside the emblematic Bridge Pavilion designed by Zaha Hadid. Hosting Startup Boost at this venue highlights the programme's strong connection with future-driven industries - not only mobility, but also sustainability, logistics, and urban transformation. It was the perfect stage to bring together entrepreneurs, policymakers, and investors aligned around Europe's green and digital transition. ![Mobility City Zaragoza](https://assets.cirquel.co/website/IMG_1684.jpg.png) ## Sherpa Tribe, INCIBE & EU Support Behind Startup Boost stands **Sherpa Tribe**, a venture builder and innovation consultancy with deep expertise in supporting early-stage startups. Together with **INCIBE Emprende**, part of Spain's National Cybersecurity Institute, and backed by **NextGenerationEU** recovery funds, the programme ensures that startups are not only accelerating their growth but also contributing to Europe's twin goals of digitalisation and sustainability. This combination of local infrastructure, national strategy, and EU funding creates a unique ecosystem where startups like CIRQUEL can thrive. ![The future of innovation - part of the Mobility City exposition.](https://assets.cirquel.co/website/IMG_1705.jpg.png) The future of innovation - part of the Mobility City exposition. ## Why this matters? For CIRQUEL, being part of Startup Boost Zaragoza means more than access to mentoring and training. It's an opportunity to: - Strengthen our capabilities in areas like **cybersecurity, compliance, and resilience** - crucial as regulations tighten across sectors. - Deepen our network with fellow **innovators in the mobility, sustainability and tech** ecosystem. - Gain **visibility through the Investor Day** and by being part of a regional initiative supported by **public and private partners**. ![Inauguration speech at Mobility City centre in Zaragoza](https://assets.cirquel.co/website/Screenshot 2025-09-18 at 14.58.54.png) Inauguration speech at Mobility City centre in Zaragoza Moreover, the structure of Startup Boost - combining practical legal/financial advice, technical support, and pitch readiness - aligns well with our goal to scale CIRQUEL's offering responsibly and robustly. ## Looking ahead We are excited to embark on this journey. CIRQUEL will be actively engaging in all the programme's phases: from mentorship to Investor Day. As we move forward, we aim to bring back learning and improvements to our operations - particularly in reverse logistics, product lifecycle management, and sustainable returns handling. A special thanks to Sherpa Tribe, INCIBE Emprende, Fundación Ibercaja, and the Ayuntamiento de Zaragoza for organizing this programme. We look forward to contributing to and growing with this vibrant community of startups. **Read more about the event here:** [LinkedIn post](https://www.linkedin.com/feed/update/urn:li:activity:7374419136417796096/) ![Start of the event](https://assets.cirquel.co/website/IMG_1693.jpg.png) Start of the event ![Round table and Q&A discussions](https://assets.cirquel.co/website/IMG_1698.jpg.png) Round table and Q&A discussions ![Workshop sessions with fellow startup co-founders](https://assets.cirquel.co/website/IMG_5281.JPG) Workshop sessions with fellow startup co-founders --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # EPR-Extended Producer Responsibility: What the EU's New Law Means for Fashion and Beyond URL: https://cirquel.co/post/epr-extended-producer-responsibility-what-the-eu-s-new-law-means-for-fashion-and-beyond Date: 2025-09-12 Author: Anna Warchalowska Tags: The European Union has just taken a historic step toward tackling textile waste. The European Union has just taken a historic step toward tackling textile waste. On **9 September 2025**, the European Parliament voted to amend the **Waste Framework Directive (WFD)**, officially introducing **Extended Producer Responsibility (EPR)** for textiles. This means that fashion brands, retailers, and even e-commerce operators will now be legally obliged to cover the costs of **collecting, sorting, and recycling textile waste**- a shift that will fundamentally reshape the industry. ![EPR - new regulations from 9th September 2025](https://assets.cirquel.co/website/epr.jpg) EPR - new regulations from 9th September 2025 ### What the legislation says According to the new directive, **Member States have 20 months to transpose the rules into national law**, and EPR schemes must be fully operational by **April 2028**. The scope is wide: **clothing, footwear, accessories, hats, bedding, curtains, kitchen textiles, and even mattresses or fabrics used in furniture** will be included. - **Producers will contribute financially** based on the eco-design features of their products. - **Producer registers** will be introduced across the EU, increasing transparency by tracking how many garments each brand places on the market. - **Microenterprises** will have one additional year to comply. - Stronger mechanisms will be in place to **prevent illegal exports** of textile waste through traceability and documentation. As the European Parliament notes, the law also aligns with broader efforts to cut waste streams, as textile consumption in the EU is already the **fourth-highest pressure category on the environment and climate change** (after food, housing, and mobility). ![Textile waste - mixed with other materials](https://static.wixstatic.com/media/nsplsh_e0bd67a2005541d1995834e5e0780ad4~mv2.jpg/v1/fill/w_740,h_493,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_e0bd67a2005541d1995834e5e0780ad4~mv2.jpg) Textile waste - mixed with other materials ### Spain: already one step ahead Spain has been a frontrunner in this area. Since **April 2022**, the country has had its own **Law on Waste and Contaminated Soils**, which already paved the way for EPR. In **June 2025**, the Spanish government published a Royal Decree specifically regulating textile EPR. This decree has been under public consultation and will now align with the EU's broader directive - meaning Spanish brands may need to move even faster to comply. ![Textile used in home, decor and furniture also will be covered by the legislation.](https://static.wixstatic.com/media/nsplsh_7a4e4e4355474858745a59~mv2_d_3024_4032_s_4_2.jpg/v1/fill/w_740,h_987,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_7a4e4e4355474858745a59~mv2_d_3024_4032_s_4_2.jpg) Textile used in home, decor and furniture also will be covered by the legislation. ### Why this matters for brands This new law is not only about compliance. It is a **wake-up call for the fashion, footwear, and home textiles and partially automotive industries**. With **transparency requirements** and **eco-modulated fees** on the horizon, brands will have strong financial incentives to design products that are easier to reuse, repair, and recycle. According to the European Environment Agency, the average EU citizen discards **12.6 kg of textiles per year**, with most of it ending in landfills or incinerators. This law directly addresses that unsustainable trajectory. ### Where CIRQUEL comes in At CIRQUEL, we see these regulations as more than obligations - they are opportunities. By leveraging **AI-powered anomaly detection, quality forecasting, and localized resale and rental networks**, we help brands **minimize waste, recover value from returns, and prepare for EPR requirements**. Reverse logistics is no longer just an operational concern; it is becoming a compliance and revenue strategy. The EU has made it clear: waste is no longer someone else's problem. For brands, the time to adapt is now - and CIRQUEL is here to make that journey not just possible, but profitable. Source: [Read the full EU Parliament announcement here](https://www.europarl.europa.eu/news/en/press-room/20250905IPR30172/parliament-adopts-new-eu-rules-to-reduce-textile-and-food-waste) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Zero-Waste Design is having a moment: Why textile pattern choices matter as much as materials? URL: https://cirquel.co/post/zero-waste-design-is-having-a-moment-why-textile-pattern-choices-matter-as-much-as-materials Date: 2025-09-04 Author: Anna Warchalowska Tags: From pre-consumer cutting scraps to post-consumer landfill, fashion's waste problem is finally being tackled at the design table. From pre-consumer cutting scraps to post-consumer landfill, fashion's waste problem is finally being tackled at the design table. Zero-waste design-once seen as niche-is now central to sustainability strategies, circular economy models, and slow fashion. According to **[Vogue Business](https://www.voguebusiness.com/sustainability)** **(2024)**, textile waste accounts for up to **15% of all fabric used in garment production**-wasted before a single garment reaches consumers. Scaled across an industry that produces over **100 billion items annually**, this is a silent, invisible crisis. Zero-waste design practices, from modular, aim to shrink this loss to near zero while boosting efficiency and reducing costs. ![Zero-waste design in fashion](https://static.wixstatic.com/media/nsplsh_081194afc0454a758a6f1f897aa676dc~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_081194afc0454a758a6f1f897aa676dc~mv2.jpg) ## The waste reality (and why design matters) EU citizens consume **19 kg of textiles per person each year** while discarding **12.6 kg**, according to the **[European Environment Agency](https://www.eea.europa.eu/en/topics/in-depth/textiles)** **(2025)**. Most of that is not reused or recycled. By 2025, EU rules will mandate the separate collection of textile waste, alongside **[Extended Producer Responsibility](https://www.unep.org/ietc/what-we-do/extended-producer-responsibility)** **(EPR)** schemes that will hold brands accountable for end-of-life management (**[Financial Times, 2024](https://www.ft.com/content/02d6d242-5a1a-4628-a861-a5e880b52575)**). Pre-consumer waste is equally daunting: conventional marker making leaves **10–20% of fabric wasted**, depending on fabric type and garment complexity (**[Vogue, 2024](https://www.vogue.com/article/6-ways-the-fashion-industry-can-become-more-sustainable)**). [Zero-waste pattern cutting](https://www.seamwork.com/seamwork-radio-podcast/how-to-get-started-with-zero-waste-patterns) designs tessellating shapes, reuses offcuts as functional elements, or redirects remnants into secondary SKUs. As the **[Ellen MacArthur Foundation](https://www.ellenmacarthurfoundation.org/topics/circular-design/overview)** stresses, design is the single biggest lever for circularity. Globally, oversupply and unsold stock compound the issue. Both the EU and US are exploring bans on the destruction of unsold goods, accelerating the urgency for circular strategies and zero-waste adoption (**[Vogue, 2024](https://www.voguebusiness.com/sustainability/an-essential-guide-to-the-eu-overhaul-of-fashion-regulation)**). ![Fabric and textile patterns](https://static.wixstatic.com/media/nsplsh_31eb7868e99e478d9990497b645da9c9~mv2.jpg/v1/fill/w_740,h_493,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_31eb7868e99e478d9990497b645da9c9~mv2.jpg) ## What Zero-Waste looks like in practice **Pre-consumer design strategies**: - Zero-waste cutting patterns: rectangles, modular panels, and curves that leave no gaps. - Smarter markers: digital nesting simulations boost yield and reduce fabric purchasing. - Mono-materials: easier to recycle and disassemble than complex blends. **Post-consumer reuse strategies**: - Design for disassembly and repair: standardized trims and accessible stitching. - Route to reuse: take-back programs paired with sorting and refurbishment partners. As **Vogue Business (2024)** noted, these design choices don't just cut waste-they unlock new revenue models like resale and rental, and future-proof brands against stricter regulation. ## Beyond fashion: Cross-Industry impacts Zero-waste thinking is expanding into other industries. **Automotive interiors** rely heavily on polyester blends, while **furniture and home décor** are exploring modular, recyclable upholstery. Pressure is mounting on these sectors to cut microplastic shedding and improve durability (**[Financial Times, 2024](https://www.ft.com/content/02d6d242-5a1a-4628-a861-a5e880b52575)**). ![Car seat fabric from up-cycled materials](https://static.wixstatic.com/media/nsplsh_1f31b6bb7fbb485f9702dd423f7192bb~mv2.jpg/v1/fill/w_740,h_985,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_1f31b6bb7fbb485f9702dd423f7192bb~mv2.jpg) Car seat fabric from up-cycled materials The global sustainable textiles market is projected to grow at a **12.5% CAGR through 2030** (**[Allied Market Research, 2024](https://www.globenewswire.com/news-release/2023/05/02/2659434/0/en/Sustainable-Fabrics-Market-to-Expand-at-a-CAGR-of-12-50-By-2030-Report-by-Market-Research-Future-MRFR.html)**). This includes not only apparel, but also furniture, automotive, and home fabrics-showing that the shift toward circular design has wide-reaching implications. ![Natural fabrics and textiles used in home&decor and furniture sector.](https://static.wixstatic.com/media/nsplsh_640f0660812149e69a3276a4406449c7~mv2.jpg/v1/fill/w_740,h_1316,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_640f0660812149e69a3276a4406449c7~mv2.jpg) Natural fabrics and textiles used in home&decor and furniture sector. ## Why it matters now? According to **[McKinsey's State of Fashion 2025](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion)**, resale, repair, and rental are among the few growth bright spots in a slowing industry. These business models depend on **durable, repairable, and efficiently produced goods**-all enabled by zero-waste design. At the same time, regulatory frameworks such as the **[EU's ESPR and CSRD](https://commission.europa.eu/energy-climate-change-environment/standards-tools-and-labels/products-labelling-rules-and-requirements/ecodesign-sustainable-products-regulation_en)** are putting teeth into sustainability requirements, demanding traceability, durability, and waste accountability (**[Financial Times, 2024](https://www.ft.com/content/02d6d242-5a1a-4628-a861-a5e880b52575)** and **[EU Commission legislation](https://environment.ec.europa.eu/strategy/textiles-strategy_en)**). EPR will soon make textile waste a direct P&L cost, pushing design teams to eliminate waste from the outset. In production hubs like Bangladesh, **hundreds of thousands of tonnes of textile offcuts** are generated annually. These are now attracting investment in textile-to-textile recycling, but only if brands design and sort for it (**[SAGE Journals, 2024](https://journals.sagepub.com/doi/10.1177/00405175241247806)**). ![Textile waste recycling and sorting](https://static.wixstatic.com/media/nsplsh_f069c41af41d46b7a0cbeca3b6a31fe4~mv2.jpg/v1/fill/w_740,h_416,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_f069c41af41d46b7a0cbeca3b6a31fe4~mv2.jpg) Textile waste recycling and sorting ## Bottom Line Zero-waste design is no longer optional-it's a blueprint for resilient, profitable, and compliant fashion. It saves fabric costs, reduces carbon, and creates circular value streams in resale, rental, and refurbishment. As **Vogue Business (2024)** aptly put it: _"Zero-waste design is no longer a quirky sustainability add-on; it is becoming a prerequisite for credibility."_ ## CIRQUEL's mission At CIRQUEL, we see the next step: ensuring that **no return, sample, or leftover textile is discarded without first being assessed**. Our work in **AI-powered anomaly detection, quality forecasting, and localized repurposing via (branded) resale and/or rental orchestration** ensures that textiles always get a second chance-whether monetized by brands or responsibly upcycled. ### Sources: - Vogue Business (2024) – _How zero-waste design is moving mainstream_ - Financial Times (2024) – _EU regulatory shifts in textiles_ - European Environment Agency (2025) – Textile waste per capita data - Vogue (2024) – _Circular design practices in fashion_ - Ellen MacArthur Foundation – Circular economy reports - McKinsey & Company (2023) – _State of Fashion: Climate and Waste Outlook 2030_ - SAGE Journals (2024) – _Textile recycling opportunities in Asia_ - Allied Market Research (2024) – _Global sustainable textiles market forecast_ - Zalando White Paper (2025) – _Consumer sustainability expectations_ --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Off the beaten path: Tackling footwear returns for a greener supply chain URL: https://cirquel.co/post/off-the-beaten-path-tackling-footwear-returns-for-a-greener-supply-chain Date: 2025-08-26 Author: Anna Warchalowska Tags: footwear, returns, sustainability, circular fashion, reverse logistics, supply chain Returns in footwear are driven by a potent mix of fit issues, hygiene concerns, and brand variance-some retailers estimate as much as 40% of online clothing and footwear purchases are returned. ### The Footwear Return Challenge: Fit, Fashion, and Footfall Returns in footwear are driven by a potent mix of fit issues, hygiene concerns, and brand variance-some retailers estimate as much as **[40% of online clothing and footwear purchases](http://getredo.com/)** are returned. In the U.S., the average return rate for online apparel (which includes shoes) stands at **24.4%**, totaling **$38 billion in returned goods** and **$25.1 billion in processing costs** for 2023. These numbers have only climbed during post-holiday surges, where over **[850,000 items](https://www.voguebusiness.com/)** were returned-costing retailers **[$114 million](https://www.voguebusiness.com/)** between Boxing Day and mid-January. ![Footwear returns](https://static.wixstatic.com/media/nsplsh_4336184f4cd042b09f8fd51457fa3023~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_4336184f4cd042b09f8fd51457fa3023~mv2.jpg) A major driver? Poor fit and sizing ambiguity. McKinsey reports that **70% of returns stem from size or style mismatches**, highlighting the need for better fitting tools and customer guidance ([McKinsey](https://www.mckinsey.com/industries/retail/our-insights/returning-to-order-improving-returns-management-for-apparel-companies)). ### Circularity Kicks Off: Is the Shoe Truly Circular? Footwear complexity complicates recycling. Many shoes comprise multiple bonded materials, making circular design a challenge ([Vogue Business](https://www.voguebusiness.com/sustainability/the-circular-shoe-an-impossible-challenge)). Attempts at fully recyclable shoes by brands like Adidas' Futurecraft.Loop and Salomon's Index.01 show promise-but are still early-stage experiments. Adidas shared only **10% of material reclaimed** in early prototypes, while start-up Thousand Fell managed to recycle **80% of returned shoe material**, yet only **30%** of a new pair comes from old ones. This underscores that even circular innovations must evolve further to be scalable and impactful. ### Returns as a Roadblock-or a Gateway-to Circularity The challenge is that **returns themselves are a hidden barrier to circularity**: every unnecessary shipment and restock means higher emissions, wasted packaging, and lost value. According to Statista, footwear accounts for **over 20% of fashion's total returns**, much of which ends up discarded or downcycled rather than reused. Here, technology makes the difference. On-the-spot condition checking, powered by **AI-driven anomaly detection and quality forecasting**, can immediately determine whether a returned shoe should be resold, refurbished, or recycled. By routing items faster and more accurately, brands stand to save **millions annually in logistics costs**, while also reducing waste streams and emissions. ![Greener supply chain](https://static.wixstatic.com/media/nsplsh_4e705f6e7652756870556f~mv2_d_4240_2832_s_4_2.jpg/v1/fill/w_740,h_493,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_4e705f6e7652756870556f~mv2_d_4240_2832_s_4_2.jpg) ### 4. Resale and Recycling: A Second Life for Sneakers Allbirds' Rerun platform is one practical example of resale in action: gently used sneakers are traded in for $20 in-store credit and resold at **about two-thirds of the original price** ([Vogue Business](https://www.voguebusiness.com/sustainability/allbirds-to-offer-shoe-resale-with-rerun-platform)). These models help extend product life, reduce waste, and form valuable local loops-critical for circular economies. ### Smarter Size, Smarter Supply Chain Technology offers hope in taming high return rates. Some retailers report a **10% reduction** in size-related returns by leveraging virtual sizing tools and customer feedback loops [Vogue Business](https://www.voguebusiness.com/consumers/after-reconsidering-free-returns-fashion-brands-get-creative). Academic research ([at Cornell University](http://arxiv.org/)) points to advanced AI-driven fit recommender systems, such as Bayesian models and deep learning that use customer reviews and other rich inputs to optimize fit prediction-reducing mismatches and returns in several markets. ![Smarter supply chain](https://static.wixstatic.com/media/nsplsh_9d4676fe89a64cabb40b2ab45b943868~mv2.jpg/v1/fill/w_740,h_493,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_9d4676fe89a64cabb40b2ab45b943868~mv2.jpg) ## Key Insights at a Glance: - **24–40%** of online footwear returns are due to poor fit and style ambiguity. - Footwear represents **20%+ of fashion's total returns**, often disrupting circularity. - Circular shoes are emerging, but only **10–30%** of a new pair is reclaimed material today. - AI-powered condition checks can turn returns into resale, refurbishment, or recycling streams-cutting costs and emissions. - Virtual fitting tools reduce returns by **10%+**, building customer trust and loyalty. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Which fabrics are truly eco-friendly – and why it matters beyond fashion industry? URL: https://cirquel.co/post/which-fabrics-are-truly-eco-friendly-and-why-it-matters-beyond-fashion-industry Date: 2025-08-07 Author: Anna Warchalowska Tags: sustainability, fabrics, eco-friendly, textiles, circular economy When talking about sustainability and fabrics, the conversation often starts (and ends) with fashion. ### **From Thread to Footprint** When talking about sustainability and fabrics, the conversation often starts (and ends) with fashion. But the impact of textiles goes much deeper. From car interiors to home upholstery, the fabrics we choose play a major role in the planet's health. The latest guide from **[Good On You](https://goodonyou.eco/)**, _["Better Sustainability for Small Fashion Brands"](https://goodonyou.eco/better-sustainability-for-small-fashion-brands)_, offers critical insight into how fabric choices can drive-or derail-our journey to a lower-impact future. ![Eco-friendly fabrics](https://static.wixstatic.com/media/nsplsh_2f29060e57ae40c19ad5110da435166f~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_2f29060e57ae40c19ad5110da435166f~mv2.jpg) Informed by over 6,000 brand evaluations and more than a decade of sustainability data, this guide doesn't just highlight problems. It offers clear, practical guidance on what brands (especially small and medium-sized ones) can do to create real, measurable change. ### **Let's Talk Fabrics: The Good, the Better, and the Not-So-Sustainable** Not all fabrics are created equal-and some materials come with a hidden environmental cost. For instance, conventional cotton, though natural, consumes high levels of water and pesticides. In contrast: - **Tier 1 (Lowest Impact Materials)** - _Recycled cotton_, _recycled wool_, _organic hemp_, and _organic linen_ - These options reduce pressure on raw resources and significantly cut down on emissions and water use. Hemp and linen are particularly resilient crops requiring less irrigation and fewer chemicals. - According to various LCA (life cycle assessment) databases, **recycled cotton uses 98% less water** than conventional cotton, while **organic hemp yields 2x more fiber per hectare** than cotton. - **Tier 2 and 3 (Moderately Lower Impact)** - _TENCEL™ Lyocell_, _recycled nylon_, _organic cotton_, _recycled polyester_ - These offer improvements in energy use and circularity-especially when backed by strong supplier certifications like GOTS or OEKO-TEX. - **Tier 4 (Lower Impact, Yet Mixed)** - _BCI cotton_ or _Cotton Made in Africa_ are better than conventional methods but still lag behind recycled or organic options. ![Sustainable fabric alternatives](https://static.wixstatic.com/media/nsplsh_861f01b8dc0b400b8375a17c8bdcdf34~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_861f01b8dc0b400b8375a17c8bdcdf34~mv2.jpg) > "It's not enough to just say 'we use sustainable materials.' Brands need to be specific, transparent, and data-driven," the Good On You team emphasizes. While detailed cross-industry data is limited, estimates from EU Circular Economy Reports suggest: - Over **70% of all textile use in Europe** is still non-sustainable (2023). - **Furniture and automotive upholstery** make up over **15% of the global textile market**, with growing interest in recycled leather, biodegradable fibers, and bio-based foams. - In **home decor**, synthetic blends still dominate due to cost and durability, but a shift is visible-**25% of new brands in the EU** reported using certified eco-materials in 2024. ![Textiles beyond fashion](https://static.wixstatic.com/media/nsplsh_e01ccd5014b74fa7bcf938cd7213e04f~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_e01ccd5014b74fa7bcf938cd7213e04f~mv2.jpg) ### **Beyond Fashion: Why These Choices Matter Everywhere** While fashion gets the spotlight, industries like **automotive, furniture, and home décor** are massive textile consumers. Choosing low-impact fabrics for car interiors or sofas can reduce environmental footprints across product lifecycles. And these sectors are taking note: brands like **[Volvo Cars](https://www.volvocars.com/es/)** have committed to using only sustainable materials in their interiors by 2030. > "What's exciting is the crossover," says the Good On You editorial team. "Fashion isn't alone anymore. Upholstery, interiors, industrial design-they're all reconsidering fabric impact." ![Automotive and home textile sustainability](https://static.wixstatic.com/media/nsplsh_ed8a2d8cd7204a97b7c16054a57d6b71~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_ed8a2d8cd7204a97b7c16054a57d6b71~mv2.jpg) As consumers increasingly ask "what's this made of?" across all categories, circularity-through **recycling**, **rental**, or **refurbishment**-is fast becoming the standard, not the exception. ### **Greenwashing? No Thanks. Transparency Is the Trend.** Small brands often fear being accused of greenwashing. But staying silent is no longer acceptable. The Good On You guide urges brands to: - Avoid vague claims like "we use sustainable materials wherever possible" - Instead, say: "40% of our products use **[GOTS-certified](https://global-standard.org/)** organic cotton and 30% use recycled polyester" - Report on full supply chain practices, including chemical usage, microplastics risk, and living wages > "Sustainability is about showing your work," the report reminds us. And that doesn't only apply to apparel. Whether you're designing a lounge chair, a car seat, or a pair of sneakers-what you say about your sourcing, labor, and impact matters just as much as what you sell. ### Key Takeaways (for all industries): **Recycled cotton, hemp, and linen** top the eco-list **98% less water** used in recycled cotton compared to virgin cotton Textile-heavy sectors like **furniture and auto** are under pressure to pivot (Newest EU regulations) Transparency matters more than perfection-say what you're doing clearly > "It's about getting better, not being perfect," says **Good On You**-a message we all can stand behind. Full article by Good On You: [Better Sustainability for Small Fashion Brands](https://goodonyou.eco/better-sustainability-for-small-fashion-brands) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL at IESE Business School & Ignite Bootcamp URL: https://cirquel.co/post/igniting-the-future-cirquel-at-iese-business-school-ignite-bootcamp Date: 2025-08-01 Author: Anna Warchalowska Tags: events, sustainability, entrepreneurship, circularity How our Co-Founder Anna Warchalowska shared her entrepreneurial journey to inspire the next generation of sustainability leaders. **How our Co-Founder** **Anna Warchalowska** **shared her entrepreneurial journey to inspire the next generation of sustainability leaders.** At **CIRQUEL**, we believe innovation begins with shared knowledge, collective inspiration, and real-world experience. That's why we were deeply honoured to be represented by our Co-Founder and CEO, **Anna Warchalowska**, at the [**Ignite Bootcamp**](https://euroteq.eurotech-universities.eu/initiatives/the-euroteq-collider/euroteqathon-and-beyond/ignite-bootcamp/) held at [**IESE Business School in Barcelona**](https://www.iese.edu/about/campuses/barcelona/) - an initiative dedicated to shaping the next wave of tech-driven sustainability ventures. ![Anna Warchalowska presenting CIRQUEL's and her entrepreneurial journey](https://assets.cirquel.co/website/27be0ff9-d4c5-4c31-8751-8ac6a348f262.jpeg) Anna Warchalowska presenting CIRQUEL's and her entrepreneurial journey ### **About the Ignite Bootcamp** The Ignite Bootcamp is an intensive 4-day programme hosted by **IESE Business School** in collaboration with **EuroTeQ Engineering University**, bringing together 23 engineering students from 8 top European institutions. Divided into eight project teams, participants were tasked with transforming bold sustainability innovations into real-world business solutions. Throughout the bootcamp, the students engaged with expert mentors, startup founders, and professors to refine their concepts, gain feedback, and prepare pitches for final presentation. The goal? To accelerate student-led innovation in sustainability and equip aspiring founders with the mindset, tools, and networks to bring their ideas to market. This year's jury and speaker lineup featured over 20 leading experts and entrepreneurs, including: **Mauricio Prieto, Mª Julia Prats, Mathieu Carenzo, Alejandro Martí, PhD, Susan Hunt Stevens,** and **Carlos Homedes**, among others. ![IESE Business School, Barcelona Campus](https://assets.cirquel.co/website/IMG_0099.jpeg) IESE Business School, Barcelona Campus ### **Anna's Journey: From Academia to Building CIRQUEL** Anna was invited to participate as one of the bootcamp's speakers and panelists, where she delivered a powerful personal/motivational talk on the nonlinear path that led her to co-found CIRQUEL. Framing her journey with a guiding idea borrowed from **Steve Jobs** - _"We can only connect the dots looking backwards"_ - Anna shared how diverse chapters of her career organically built the foundation for CIRQUEL today - Lecturing at Birkbeck University of London and mentoring students across the UK, Germany, and Spain, curating film festivals and chairing international jurie panels at research conferences and film festivals in Europe and Asia, launching her first startup - a global resale platform for vintage film and collectible vinyl, scaling to 12 people across 4 continents over 8 years. Later on building a sustainable yoga brand, offering eco accessories and B2B services for holistic studios across the EU, USA, UK, and Australia - born in the height of COVID. And finally transitioning to tech, Anna joined [**Beam**](https://beamberlin.com/) - venture building studio in Berlin under patronage of [**BEUMER Group**](https://www.beumergroup.com/) as an Entrepreneur in Residence. It was during her time at Beam that CIRQUEL took shape. - **Phase 1**: Testing a travel-focused rental concept - eventually pivoted due to regulation challenges. - **Phase 2**: Helping to co-create a founder bootcamp at Beam, where Anna's focus shifted from idea execution to ecosystem design. - **Phase 3**: CIRQUEL was born during this very bootcamp, where she met **June Arrieta** (now COO) and connected serendipitously later on with [**Carlos Blanco**](https://www.linkedin.com/in/blancoc/) (now CTO) at a Barcelona startup - investor meetup. Anna emphasized that CIRQUEL did not emerge from a single idea - it was the culmination of years of cross-disciplinary experience, strategic decisions, and authentic connections as well as enormous inspiration from Beam and of course her team - June and Carlos. ![CIRQUEL team: June, Carlos and Anna](https://assets.cirquel.co/website/66027c7f-a237-4298-b8ee-5210f62dcc7a.jpg) CIRQUEL team: June, Carlos and Anna ### **Presenting CIRQUEL's Mission at the IESE Bootcamp** During the Ignite Bootcamp, Anna also introduced the work we're doing at CIRQUEL - where **AI-driven technology meets reverse logistics** to support a more sustainable, efficient future for fashion. CIRQUEL's platform leverages **AI-powered computer vision and anomaly detection**, as well as **quality forecasting systems**, to help brands minimize the risks and costs associated with returns. Our tools identify fraudulent or inauthentic returns, reduce manual processing time, and enable intelligent decision-making around next steps for each item. Whether dealing with **unwanted returns, overstock, samples, or slightly damaged goods**, our model allows brands to **recapture value** by seamlessly redirecting inventory to restock as fast as possible (if in the perfect state) or vetted resale and rental channels through a **network of local partners**. For brands in need of full operational support, we also offer logistics orchestration via our network of **outsourced warehouses and 4PL providers**, ensuring streamlined, localized handling that aligns with both sustainability and customer satisfaction goals, saving time and money for brands. By marrying deep tech with circular business models, CIRQUEL empowers fashion brands to not only reduce waste but also build resilience and value in the post-sale ecosystem. ![Auditorium at IESE - Q&A session with Anna](https://assets.cirquel.co/website/354303ae-92fd-4da6-a937-fc226f4573c7.jpeg) Auditorium at IESE - Q&A session with Anna ### **A Special Thanks** We'd like to extend our sincere gratitude to the **Entrepreneurship and Innovation Center at IESE**, and especially to **Phuong Pham**, **Roger Singleton Escofet, PhD**, and **Mar Martinez, PhD** for the invitation and flawless coordination. We also thank our incredible co-founders **June Arrieta** and **Carlos Blanco**, as well as our innovation partners at [**Beam**](https://beamberlin.com/), [**BIC GIPUZKOA**](https://www.bicgipuzkoa.eus/), and the [**Consorci de la Zona Franca de Barcelona**](https://zfbarcelona.es/) and their **Logistics 4.0 Incubator**, for supporting our mission every step of the way. ![Brunch and networking session at IESE Business School in Barcelona Campus](https://assets.cirquel.co/website/processed-674A67D2-77EF-4D0F-B1E9-B4E97CAF0BA0.jpeg) Brunch and networking session at IESE Business School in Barcelona Campus We were proud to take part in this inspiring initiative and look forward to continuing to empower future sustainability leaders! --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The data behind a new consumer mindset - Zalando's case study. URL: https://cirquel.co/post/the-data-behind-a-new-consumer-mindset-zalando-s-case-study Date: 2025-07-24 Author: Anna Warchalowska Tags: consumer trends, resale, circularity, sustainability, fashion, data How shifting consumer behaviours are driving the future of circular fashion. ### How shifting consumer behaviours are driving the future of circular fashion The fashion industry is undergoing a profound transformation-driven not just by regulations or innovation, but by customers themselves. Consumers are changing how they shop, what they value, and how they expect brands to behave. A deep dive into [Zalando's 2025 white paper](https://corporate.zalando.com/en/people-planet/new-sustainability-behaviour-report-zalando-calls-collective-action), _["It Takes Many"](https://corporate.zalando.com/en/people-planet/new-sustainability-behaviour-report-zalando-calls-collective-action)_, reveals compelling insights into the priorities of modern shoppers, particularly when it comes to sustainability, resale, and circularity. This shift is also echoed across multiple global reports-from [McKinsey's](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion) _[State of Fashion](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion)_ series to Business of Fashion's resale coverage. The key takeaway? A growing majority of fashion customers now care deeply about how their clothes are made, used, reused, and discarded. ![](https://static.wixstatic.com/media/nsplsh_f2aced8096d3498994dfbf4447138e38~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_f2aced8096d3498994dfbf4447138e38~mv2.jpg) ### Who are today's conscious shoppers? **Zalando's white paper, based on a Europe-wide study**, shows that 83% of surveyed consumers consider sustainability important when purchasing fashion. This is not a niche-this is a majority. - Among Gen Z and Millennials, **over 70%** have already engaged in some form of second-hand shopping. - **63% of customers** expect brands to offer more transparency and information about their sustainability efforts. - According to Zalando's SVP of Sustainability, **[Laura Coppen](https://www.linkedin.com/in/laura-coppen/?originalSubdomain=de)**, "Sustainability is no longer an afterthought-it's a core decision-making factor." This behavior isn't limited to resale. Consumers are also exploring clothing rental, upcycling, and local repurposing. Zalando's platform itself has seen a **400% increase in traffic to its Pre-owned section** since its launch, underscoring how fast demand is growing. ### Beyond Preaching: Circularity Must Be Practical While customers care about circular fashion, convenience and price still dominate decision-making. That's why **72% of consumers in Zalando's study said they would buy pre-owned if it were easier to return, clean, or authenticate** the garments. This echoes findings from a recent Business of Fashion analysis, where resale platform ThredUp reported a **95% surge in new users** in Q1 2025 alone-largely due to economic pressure and easier-to-use interfaces. As stated by **[Maxine Bédat](https://www.linkedin.com/in/maxinebedat/)**, founder of the New Standard Institute, "The idea of resale has gone from fringe to foundational. It is now central to the way forward for retail." Meanwhile, brick-and-mortar resale is also booming: retailers from [Levi's](https://www.levi.com/ES/es_ES/) to [COS](https://hmgroup.com/brands/) are opening up their own resale sections in stores to meet customers where they are. It's estimated that **by 2030, the second-hand apparel market will outpace fast fashion by 1.5x**, according to [ThredUp](https://www.thredup.com/)'s annual Resale Report. ![](https://static.wixstatic.com/media/nsplsh_58bc1ee4b5ee438ba586ef5feee27f8a~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_58bc1ee4b5ee438ba586ef5feee27f8a~mv2.jpg) ### What Does This Mean for Brands in 2025 and Beyond? The data paints a clear picture: - Brands need to offer **easy, transparent, and tech-enabled ways** to engage in resale and circularity. - Customers expect **sustainable services to be seamless** - from return logistics to cleaning, repurposing, or reselling. - **Circularity is not a luxury feature-it's the cost of entry for future relevance**. Fashion brands are now navigating a new landscape where transparency, accountability, and circular innovation are being directly driven by end-users. And that shift is only accelerating. ### In Summary - some numbers to remember: - **83% of Zalando's surveyed users** value sustainability when shopping. - **72%** demand more convenience in buying pre-owned fashion. - **400% growth** in Zalando's Pre-owned section traffic. - Platforms like [ThredUp](https://www.thredup.com/) and [The RealReal](https://www.therealreal.com/) are seeing **record user increases in 2025**. - Gen Z and Millennials are leading the charge toward rental, resale, and repurposing. - Physical stores are joining the movement with branded second-hand sections. As the European Commission sharpens its sustainability and transparency frameworks, and consumers grow louder in their demands, the brands that align with this momentum will thrive. We're already seeing this future unfold. **Sources:** - Zalando White Paper 2025: _It Takes Many_ - Business of Fashion: "Tariffs Push Resale Into the Spotlight" (2025) - McKinsey & Co: _State of Fashion 2024_ - ThredUp Resale Report (2025) Let's make fashion truly circular-together! --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Resale as a Revenue Engine: Unlocking Value and Sustainability in Fashion URL: https://cirquel.co/post/resale-as-a-revenue-engine-unlocking-value-and-sustainability-in-fashion Date: 2025-07-17 Author: Anna Warchalowska Tags: resale, circular economy, sustainability, fashion, secondhand In early 2025, U.S. apparel tariffs spiked-up to 145% on certain imports-triggering an average 18% surge in downloads of thrifting apps like Depop (+68%), Poshmark (+28%) and eBay (+15%) in Q1. **Tariff-driven momentum:** In early 2025, [U.S. apparel tariffs spiked](https://www.washingtonpost.com/technology/2025/04/23/tariffs-thrifting-used-clothes-prices/)-up to 145% on certain imports-triggering an average 18% surge in downloads of thrifting apps like Depop (+68%), Poshmark (+28%) and eBay (+15%) in Q1. According to Yale University's Budget Lab, tariffs boosted clothing prices by an estimated 65%, making secondhand options increasingly attractive. Lei Takanashi of _[BoF](https://www.businessoffashion.com/search/)_ confirms resale platforms are seeing the biggest influx of new buyers in their history, with ThredUp reporting a whopping 95% increase in Q1 new-user growth and revenue rising 10% year-over-year to $71.3 million. Clearly, economic pressure has accelerated demand for affordable, sustainable fashion. **Brick-and-Mortar's Resurgence & Omnichannel:** [Physical resale shops](https://www.businessoffashion.com/articles/retail/brick-and-mortar-resale-boom/) in the U.S. have grown by 7% in two years, driven by Gen-Z's affinity for in-store curation and experience. Mark Boutilier, a New York thrift enthusiast, notes that local stores often surprise customers with luxury-grade finds, reinforcing the importance of tangible browsing [The Business of Fashion](https://www.businessoffashion.com/articles/retail/brick-and-mortar-resale-boom/). Meanwhile ThredUp's 2025 report shows the U.S. secondhand apparel market grew 14% in 2024-five times faster than the broader clothing sector-and is projected to reach $74 billion by 2029. This aligns with McKinsey's finding that resale now represents roughly 9–10% of global apparel sales. ![Resale fashion](https://static.wixstatic.com/media/11062b_8a906f9e222e43c19cf8e150550eab17~mv2.jpg/v1/fill/w_740,h_763,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_8a906f9e222e43c19cf8e150550eab17~mv2.jpg) **Impact & Opportunity for Brands:** Resale isn't just consumer-driven-it's smart business. Data reveals 94% of retail executives believe their customers already engage in resale-up 4 points from 2023-and [32%](https://newsroom.thredup.com/news/thredup-13th-resale-report) of resale shoppers bought directly from brands in 2024. Moreover, 44% of executives now aim to reduce reliance on imports, with 54% recognizing resale as a more reliable supply amid trade uncertainty. ThredUp CEO James Reinhart notes, "As consumers think secondhand first, resale is seeing accelerated growth" and brands are increasingly using trade-ins and social media. The message is clear: integrating resale can unlock new revenue, enhance brand loyalty, and buffer against tariffs and supply chain shocks. ![Secondhand fashion market](https://static.wixstatic.com/media/nsplsh_7745415341794e56756930~mv2_d_7169_4782_s_4_2.jpg/v1/fill/w_740,h_494,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_7745415341794e56756930~mv2_d_7169_4782_s_4_2.jpg) **Why Circular Logistics Matter:** Consumers are shifting behaviours under economic and environmental pressures-but brands need infrastructure to respond effectively. A decentralized, regional reverse-logistics model enables faster restocking, localized resale or rental, reduced emissions, and cost savings. With inventory already in circulation, tariffs are sidestepped, supply chains shorten, and environmental impact shrinks. As the resale market advances professionally-with both online and offline layers-the strategic opportunity for fashion brands lies in streamlining returns and reuse. That's where CIRQUEL's circular orchestration and technology plays a pivotal role: helping brands reclaim value from unsold and returned garments while bolstering sustainability and profitability. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Turning the Tide on Fashion Waste: Why Circular Models Matter Now URL: https://cirquel.co/post/turning-the-tide-on-fashion-waste-why-circular-models-matter-now Date: 2025-06-12 Author: Anna Warchalowska Tags: circular fashion, sustainability, reverse logistics, waste, circularity Today's fashion industry confronts two intertwined crises: mountains of waste and soaring carbon emissions. Today's fashion industry confronts two intertwined crises: mountains of waste and soaring carbon emissions. A recent [**Business of Fashion**](https://www.businessoffashion.com/opinions/sustainability/fashion-ceos-lobbying-undermining-climate-action/) report, _Fashion's Plastic Addiction_, highlighted how **two-thirds of global textiles are now polyester**, a fossil-fuel-based plastic that alone emits CO₂ equivalent to nearly [**200 coal-fired power plants**](https://www.maersk.com/insights/resilience/2024/09/05/why-the-future-of-fashion-must-include-reverse-logistics) annually. Meanwhile, another Business of Fashion column by Maxine Bédat (_Dear Fashion CEOs…_), warns that despite lofty goals, many brands still greenwash-while causing destructive waste-unless they truly embrace circularity. But the facts are clear: reusing just [**1 kg of clothing saves 25 kg of CO₂**](http://thomasnet.com/). Life-cycle assessments show second-hand use can cut climate impact by up to **42%** per garment use. As **Kaisa Tikk**, Maersk's head of sustainability, notes: ["Logistics is an integral part of any successful circular system"](http://globalfashionagenda.org/). ![Turning the tide on fashion waste](https://static.wixstatic.com/media/11062b_8eba6b1e297c4b4fad7cac39bee7f4b9~mv2.jpeg/v1/fill/w_740,h_545,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_8eba6b1e297c4b4fad7cac39bee7f4b9~mv2.jpeg) ### Why Reverse Logistics is a Game-changer Reverse logistics-the systems that reclaim, inspect, recondition, and reintroduce returned or surplus garments-unlock real sustainability: - It reduces waste and landfill reliance. - Generates new revenue streams through resale, rental, repair. - Cuts carbon emissions by extending product life. Global Fashion Agenda and Maersk estimate that circular models can unlock up to [**US $560 billion**](https://www.voguebusiness.com/sustainability/the-fashion-execs-guide-to-circularity) in value and prevent 347 million tonnes of CO₂ by 2030. ### How CIRQUEL Brings It Together At **CIRQUEL**, we power this transformation with our AI‑driven reverse logistics platform: 1. **Fast processing**-we aim to make returned or unsold garments fresh and re‑issuable in just a few days. 2. **Smart inspection**-using AI and our app we prepare cleaning or repairs before stock arrival. 3. **Local orchestration**-minimizing transport distances and CO₂ to keep returns within 150 km. By optimizing inspection, cleaning, repair, resale or rental-all within a streamlined circular loop-we help brands slash waste, recover value, and reduce emissions. ### A Call to Action The **EU's Sustainable Textiles Strategy** and rising US state-level regulations mean the pressure isn't going away. CIRQUEL aligns perfectly with [**UN SDGs 12 (Responsible Consumption), 13 (Climate Action), and 9 (Industry Innovation)**](https://sdgs.un.org/goals), helping brands comply and lead. Let's move beyond greenwashing. Circular fashion isn't just buzz-it's essential. Reusing garments saves emissions, conserves resources, and delivers financial return: - [**25 kg CO₂**](http://circulareconomyjournal.org/) saved per kg of reclaimed clothing - **42% reduced climate impact** per use of re-worn items - [**US $560 billion opportunity**](https://www.voguebusiness.com/sustainability/the-fashion-execs-guide-to-circularity) unlocked via circular systems ![Circular fashion opportunity](https://static.wixstatic.com/media/11062b_e0e85ebb1a2b4c8abc79276abc63d16b~mv2.jpg/v1/fill/w_740,h_493,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_e0e85ebb1a2b4c8abc79276abc63d16b~mv2.jpg) **CIRQUEL** stands ready to help brands pivot from disposal to value, from linear to circular-and rewrite the future of fashion together. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Circular Fashion: The Urgent Business Case Emerging From Copenhagen Summit 2025 URL: https://cirquel.co/post/circular-fashion-the-urgent-business-case-emerging-from-copenhagen-summit-2025 Date: 2025-06-06 Author: Anna Warchalowska Tags: Circular Fashion, Sustainability, Copenhagen, SDGs, Fashion Tech The 2025 Global Fashion Summit in Copenhagen made one thing clear: circular models are not a side project - they are a fundamental pillar of the future fashion economy. The [_2025 Global Fashion Summit_](https://globalfashionsummit.com/), held in Copenhagen from June 3rd, came at a critical time for the fashion industry - one caught between climate urgency and political headwinds. This year's theme, **"Barriers and Bridges"**, captured the moment perfectly. As [_Brian Baskin_](https://www.businessoffashion.com/authors/brian-baskin/) (Business of Fashion, June 1, 2025) reported, the sustainable fashion movement finds itself on the defensive after a decade of big promises but insufficient action. **Voluntary corporate commitments** have not delivered at scale, as [_Maxine Bédat_](https://www.linkedin.com/in/maxinebedat/), founder of _New Standard Institute_, outlined in her June 4 BoF article: too many brands are stuck in "climate blah blah" - making pledges without followthrough. The result? A widening gap between the fashion industry's environmental rhetoric and reality. ![Global Fashion Summit](https://assets.cirquel.co/website/summit_edited.jpg) ### Circularity: a necessary bridge - not an optional one Amid this stalled momentum, one clear pathway emerged from the Summit discussions: **circular models** are not a side project - they are a fundamental pillar of the future fashion economy. At CIRQUEL, we strongly believe that **reverse logistics**, **repurposing**, **resale**, and **rental** will be essential for fashion's sustainable transformation. Brands that adopt these models today will be better prepared to: - Comply with incoming EU and US regulations (Fashion Acts, EU CSRD, ESPR, etc.) - Reduce their carbon and water footprint - Meet shifting consumer expectations for **slow**, **eco-minded** fashion - Move away from wasteful **linear production models** that drive environmental harm **As [McKinsey data](https://www.mckinsey.com/) shows**, coordinated industry-wide decarbonization is not only achievable - it's affordable. Circularity is one of the fastest ways to move the needle here, by extending product life, reducing new production, and minimizing textile waste. ### CIRQUEL's mission and alignment with SDGs The urgency outlined at Copenhagen resonates deeply with our mission at CIRQUEL. Our **AI-powered orchestration**, **local reverse logistics hubs**, and **quality-first repurposing models** directly support several key Sustainable Development Goals (SDGs): - [**SDG 12: Responsible Consumption and Production**](https://www.globalgoals.org/goals/12-responsible-consumption-and-production/) - Reducing overproduction and enabling circular fashion flows. - [**SDG 13: Climate Action**](https://sdgs.un.org/goals/goal13) - Lowering emissions linked to production and reverse logistics. - [**SDG 8: Decent Work and Economic Growth**](https://www.globalgoals.org/goals/8-decent-work-and-economic-growth/) - Supporting new value streams (repair, resale, rental) that create local jobs. By helping brands **integrate circular logistics into their core operations**, CIRQUEL enables them to move beyond pilot projects and toward real climate leadership - the kind urgently called for at the Summit. ### The moment to lead As _Maxine Bédat_ so aptly put it: > "Leadership isn't about waiting for clarity. It's about showing up in the storm." For brands serious about sustainability, now is the time to embrace the **full circular model** - not as a marketing add-on, but as the structural shift that will define the next decade of fashion. At CIRQUEL, we are ready to partner with forward-thinking brands to build this future - through **better reverse logistics**, **faster repurposing**, and **higher value product flows** that protect both the planet and business resilience. 👉 **Join us. The bridge to circular fashion starts today.** --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Clean fashion, contaminated cotton, and the path to a healthier circular industry URL: https://cirquel.co/post/clean-fashion-contaminated-cotton-and-the-path-to-a-healthier-circular-industry Date: 2025-05-08 Author: Anna Warchalowska Tags: Clean Fashion, Sustainability, Cotton, Circular Economy, Textiles As the fashion industry continues its journey toward sustainability, a growing focus has emerged on the hidden impact of materials and chemicals in our clothing. As the fashion industry continues its journey toward sustainability, a growing focus has emerged on the **hidden impact of materials and chemicals in our clothing**. From consumers increasingly concerned about what touches their skin, to brands investing in more responsible materials, the momentum behind _clean fashion_ is growing. At CIRQUEL, we're proud to support this shift- throughout an extension on the **entire lifecycle** of a garment. ![Cotton field](https://static.wixstatic.com/media/11062b_84fd4f3425564c84818db9f6c5a1f071~mv2_d_5616_3744_s_4_2.jpg/v1/fill/w_350,h_233,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/11062b_84fd4f3425564c84818db9f6c5a1f071~mv2_d_5616_3744_s_4_2.jpg) ## 1. The Rise of Clean Fashion - and the Chemicals We Wear In her article _["Is 'Clean' Fashion About to Have a Moment?"](https://www.businessoffashion.com/articles/sustainability/clean-fashion-rise-chemicals/)_, journalist **Allison Prang** highlights a growing group of brands focused on producing clothing without harsh chemical finishes or toxic synthetics. These companies, including **Cottonique** and designers like **Don Kaka**, are responding to health-conscious consumers seeking breathable, skin-kind fabrics. This isn't just about comfort-concerns around **PFAS**, **BPA**, and other "forever chemicals" commonly found in fashion are mounting. These substances have been linked to serious health risks like endocrine disruption and cancer. Author and advocate **Alden Wicker** calls for greater transparency, noting that fashion shares many of the same chemical concerns as the food and beauty industries. As brands begin to focus on cleaner inputs, CIRQUEL steps in to **maintain that integrity during reverse logistics**. When handling returns or preparing garments for resale and rental, **cleaning protocols** are crucial. We work to ensure that items re-entering the market are **clean, fresh, and safe** for their next owner-supporting both **brand trust** and **customer well-being**. ![Clean cotton garment](https://static.wixstatic.com/media/nsplsh_38504c6b50426f495f5455~mv2_d_3300_4950_s_4_2.jpg/v1/fill/w_350,h_525,al_c,q_80,usm_0.66_1.00_0.01,enc_avif,quality_auto/nsplsh_38504c6b50426f495f5455~mv2_d_3300_4950_s_4_2.jpg) Clean cotton garment ## 2. Cotton's Complex Footprint - Is Organic the Answer? Cotton remains a foundational fibre in fashion, especially in basics like T-shirts and jeans. But as journalist **Sarah Kent** details in _["The Brewing Controversy Over the Cotton in Your T-Shirt"](https://www.businessoffashion.com/articles/sustainability/inditex-zara-better-cotton-t-shirt-controversy/)_, the methods used to grow and certify cotton can vary dramatically in impact. Some of the world's largest fashion companies have re-evaluated their use of widely adopted certification schemes after investigations uncovered links to environmental damage and social harm. In response, many brands are **shifting to organic and recycled cotton**, which are seen as more environmentally sound-though their sourcing remains limited and complex. Experts like **Crispin Argento** and **Marzia Lanfranchi** warn that **traceability remains a major challenge**, and sudden spikes in "organic" cotton usage should prompt scrutiny. At CIRQUEL, we recognize how critical it is to **preserve the value of responsibly sourced materials** through the full product lifecycle. That's why our infrastructure is designed to **extend garment life locally and transparently**, avoiding unnecessary waste and maintaining consumer trust. ## 3. CIRQUEL: Clean Logistics for a Cleaner Fashion Future Clean fashion doesn't stop at the point of sale-it requires a **circular system** where clothing can be returned, refreshed, and re-loved responsibly. At CIRQUEL, we enable brands to close the loop with **AI-supported quality forecasting**, a **smart inspection app**, and a **locally rooted logistics network** that allows for efficient **repurposing, resale, and rental**. We work with brands to process returns **in just a few days**, rather than the weeks-long industry average. This isn't just about speed-it's about **maintaining the value of garments made from cleaner, better materials**, and ensuring that each product can find its next owner in the best possible condition. Together with forward-thinking fashion companies, **CIRQUEL is building a future where sustainability and circularity go hand in hand-from first wear to next life.** 📣 Interested in sustainable solutions for fashion logistics? 🌿 Discover more at [www.cirquel.co](http://www.cirquel.co/) 👉 Original sources: - [Is 'Clean' Fashion About to Have a Moment?](https://www.businessoffashion.com/articles/sustainability/clean-fashion-rise-chemicals/) by **Allison Prang** - [The Brewing Controversy Over the Cotton in Your T-Shirt](https://www.businessoffashion.com/articles/sustainability/inditex-zara-better-cotton-t-shirt-controversy/) by **Sarah Kent** --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL featured in Diario del Puerto: Shaping the future of reverse logistics in fashion URL: https://cirquel.co/post/cirquel-featured-in-diario-del-puerto-shaping-the-future-of-reverse-logistics-in-fashion Date: 2025-05-07 Author: Anna Warchalowska Tags: Media, Logistics, Spain, Press We're proud to share that CIRQUEL has been featured in Diario del Puerto, one of Spain's leading logistics publications, both online and in their print edition. We're proud to share that CIRQUEL has been featured in _Diario del Puerto_, one of Spain's leading logistics publications, both online and in their print edition. The article highlights our mission to revolutionize reverse logistics in the fashion industry through a full-service, circular approach designed for fashion brands. ![Anna Warchalowska - Co-Founder @ CIRQUEL](https://assets.cirquel.co/website/Screenshot 2025-05-07 at 13.52.44.png) Earlier this week, our co-founder [**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/) sat down with journalist [**Jaume Mas**](https://www.linkedin.com/in/jmasroma/) for an in-depth conversation on the pressing challenges facing fashion logistics - particularly in the age of fast-changing trends, slow fashion movements, and increasing sustainability demands. In the article, Anna explains how CIRQUEL is addressing these challenges head-on with an **end-to-end solution**: from returns white label app and post-return management software to localized warehousing, garment inspection, cleaning, repair, and repurposing. Our proprietary **quality forecasting technology** and **inspection platform** help us streamline operations and reactivate returned garments for **restock**, **resale, rental** within just 2–4 weeks - compared to the industry average of 3 to 13 weeks. We're deeply grateful to the support we've received along this journey: - A heartfelt thank-you to [**Beam**](https://beamberlin.com/company/cirquel/), Berlin-based venture studio - where our story begins, for their unwavering belief in our mission and their strategic support from day one. - And to the [**Logistics 4.0 Incubator**](https://zfbarcelona.es/en/innovation/logistics-4-0-incubator/) by the _Consorci de la Zona Franca de Barcelona_ - your resources and ecosystem have been critical as we scale up operations in one of Europe's leading hubs for logistics innovation - Barcelona. - Special thanks to [**Jaume Mas**](https://www.linkedin.com/in/jmasroma/) for the meaningful discussion and beautifully capturing the essence of what we're building. - And to [**Helena Gutierrez**](https://www.linkedin.com/in/helena-guti%C3%A9rrez-b1b69363/), for her continued support behind the scenes - we appreciate your guidance every step of the way. As CIRQUEL continues to grow and pilot with forward-thinking fashion brands across Spain, features like this help spotlight the transformation underway in the logistics space - making circular fashion not just possible, but scalable. You can read the full article on [Diario del Puerto's website](https://www.diariodelpuerto.com/logistica/cirquel-apuesta-por-una-solucion-integral-para-la-logistica-inversa-en-la-industria-de-la-moda-DB23884263) or in their print edition. Stay tuned as we continue to reshape reverse logistics - faster, smarter, and more sustainably. ![CIRQUEL featured in Diario del Puerto](https://assets.cirquel.co/website/Screenshot 2025-05-07 at 13.49.05.png) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Scaling sustainable fashion with AI: What we learned from Europe's Top Tech conferences URL: https://cirquel.co/post/scaling-sustainable-fashion-with-ai-what-we-learned-from-europe-s-top-tech-conferences Date: 2025-05-05 Author: Anna Warchalowska Tags: AI, Technology, Conferences, Sustainability, Circular Fashion As the fashion industry evolves, so must the technologies that support it. Our CTO recently attended AI and architecture conferences across Europe to bring key insights back to CIRQUEL. As the fashion industry evolves, so must the technologies that support it. That's why our CTO, **Carlos**, recently embarked on a European conference tour to deepen our understanding of **AI's role in building responsible, circular, and scalable fashion systems**. From **Agile Meets Architecture** in Berlin to **QCon London** and the **GEN AI Summit Valencia**, Carlos met with experts at the intersection of **AI, systems architecture, and product management** - asking one key question: **How can emerging AI tools help us solve the critical reverse logistics and sustainability challenges in fashion?** ![Carlos at European Tech Conferences](https://assets.cirquel.co/website/IMG_1474.jpeg) ## From Tech Talks to Fashion Impact Carlos didn't just attend - he shared CIRQUEL's vision with global audiences. In his lightning talk at QCon, he explained how we use a lean MVP stack - **Astro + Cloudflare Pages + Supabase** - to prototype and iterate rapidly on **sustainability-first digital solutions** for circular fashion brands. At each stop, the message was clear: technology has the power to transform industries - but only if we build with **intention**, **integrity**, and **eco-consciousness**. ### 🧠 AI That Works in the Real World From **Clara Matos**' talk at QCon, we gained valuable strategies for building **production-ready AI systems**. Grading AI outputs with hybrid evaluation techniques and developing **eval-driven workflows** helps ensure reliability - a mindset we're adopting as CIRQUEL scales. ### 🌱 Greener Code = Greener Planet From **Bjorna Kalaja** at Agile Meets Architecture, the discussion on **refactoring for environmental impact** was a wake-up call. Sustainable software isn't just nice to have - it's **a necessity**. ### 🤖 The AI Adoption Roadmap Dr. **Milos Borenovic**'s vision of **agentic AI** - where entire business functions could soon be powered by autonomous systems - is the future we're preparing for. CIRQUEL is already planting the seeds as a **true AI-native startup**, exploring both bottom-up (team-level tools) and top-down (strategic automation) use cases. ## What This Means for CIRQUEL This tour wasn't just about tech; it was about making sure that **our tech aligns with our ethics**. At CIRQUEL, we're working to reshape how fashion brands sell and recover clothing through **AI-powered circular systems and forecasting tools**. From helping brands extend product life to optimizing take-back and resale models, everything we build supports our mission: **Make clean, circular, and conscious fashion accessible - for people and planet.** ### 💬 Join Us Are you a fashion brand, tech innovator, or systems thinker committed to sustainability? Let's connect. The future of fashion isn't fast - it's **smart, clean, and circular**. 🌀 Learn more at https://cirquel.co 📩 Contact us to explore partnerships 🔗 Follow us for updates on LinkedIn, Instagram, and beyond --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL & BEAM: A year of growth, innovation, and strategic investment URL: https://cirquel.co/post/cirquel-beam-a-year-of-growth-innovation-and-strategic-investment Date: 2025-05-02 Author: Anna Warchalowska Tags: Investment, Partnership, Growth, Climate Tech CIRQUEL has been part of the BEAM venture studio ecosystem for over a year, and as of January 2025, BEAM has joined us as an investor. We're excited to share a significant milestone in our journey: [**CIRQUEL**](https://www.cirquel.co/blog) has been part of the [**BEAM**](https://beamberlin.com/logistics-startups-companies/) venture studio ecosystem for over a year, and as of January 2025, BEAM has joined us as an investor. ![Cirquel is one of the Beam's portfolio startups](https://assets.cirquel.co/website/4b53c3_f4a48141ba1f4a1cbad098e57861dce4~mv2.png) ## 🚀 From Concept to Pilot with BEAM Since joining BEAM in early 2024, we've benefited from their robust support system, which includes pre-seed funding, access to industry experts, and validated business opportunities. This collaboration enabled us to launch our [first pilot in Madrid](https://www.youtube.com/watch?v=o1QRYUWK1PA) during the summer of 2024, focusing on revolutionizing reverse logistics in the fashion industry. ![Beam's portfolio companies](https://assets.cirquel.co/website/Screenshot 2025-05-02 at 16.48.52.png) ## 🤝 About BEAM [**BEAM**](https://beamberlin.com/) is a Berlin-based venture studio specializing in logistics innovation. Supported by the [**BEUMER Group**](https://www.beumergroup.com/), BEAM co-founds startups that address significant logistics challenges. Their portfolio includes: - [**Codept**](https://en.codept.de/): Connecting retailers with logistics service providers. - [**Sparrow**](https://www.sparrow.parts/): Building the Internet of spare parts. - **Airsiders**: Creating software for seamless travel around virtual interlining. - [**Elara**](https://getelara.de/): Offering all asset-related know-how and to-dos in one app. - [**Liquisto**](https://www.liquisto.com/): Transforming excess inventory and freeing up working capital. - [**Countercheck**](https://www.countercheck.com/): Stopping parcels with illegal and counterfeit products. - **Circleback**: Working on the supply of recyclates for CPG brands. - [**Holocene**](https://www.holocene.eu/): Automating trade compliance checks in cross-border logistics. - **Kuchera**: Reducing CO₂ emissions and costs in mining operations. - [**Visiocue**](https://visiocue.com/): Detecting human errors to increase operational efficiency. BEAM seeks entrepreneurs in residence who are ready to tackle complex logistics problems with innovative solutions. ![](https://assets.cirquel.co/website/Screenshot 2025-05-02 at 16.48.34.png) ## 🌍 Backed by BEUMER Group BEAM is supported by the [**BEUMER Group**](https://www.beumergroup.com/), a global leader in intralogistics solutions. Founded in 1935 and headquartered in Beckum, Germany, BEUMER Group employs over 5,600 people across more than 70 countries. They specialize in conveying, loading, palletizing, packaging, sortation, and baggage handling systems, serving industries such as airports, e-commerce, and manufacturing. ![CIRQUEL team at the HQ of BEUMER Group in Beckum, Germany](https://assets.cirquel.co/website/66027c7f-a237-4298-b8ee-5210f62dcc7a.jpg) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # CIRQUEL joins Barcelona's Logistics 4.0 Incubator – A step forward in circular fashion tech URL: https://cirquel.co/post/cirquel-joins-barcelona-s-logistics-4-0-incubator-a-step-forward-in-circular-fashion-tech Date: 2025-04-10 Author: Anna Warchalowska Tags: Barcelona, Logistics, Incubator, Urban Logistics We're excited to share that CIRQUEL has officially joined the Logistics 4.0 Incubator, a high-tech startup hub led by El Consorci de la Zona Franca de Barcelona. ![Logistics 4.0 Incubator Barcelona](https://assets.cirquel.co/website/IMG_6607_edited.jpg) We're excited to share that **CIRQUEL** has officially joined the [**Logistics 4.0 Incubator**](https://zfbarcelona.es/en/innovation/logistics-4-0-incubator/), a high-tech startup hub led by **El Consorci de la Zona Franca de Barcelona (CZFB)** with the support of **Fundación INCYDE** and co-financed by the **European Regional Development Fund (FEDER)**. The incubator, based in **Barcelona's Zona Franca**, welcomed **14 innovative startups** in its latest intake, announced during an official inauguration ceremony led by [**Pere Navarro**](https://www.linkedin.com/in/pere-navarro-morera-82b544ab/), Special State Delegate at CZFB, and [**Blanca Sorigué**](https://www.linkedin.com/in/blanca-sorigu%C3%A9-borell/), General Director of CZFB. This cohort marks a milestone, bringing the total number of startups incubated to **60** in under two years. At CIRQUEL, we are proud and privileged to be selected among such a forward-thinking group of startups including: - **Project ADR** (autonomous last-mile delivery robots) - **Asequis** (ERP for logistics companies) - **Packengers** (digital freight matching platform) - **Copailot** (AI-powered global expansion tools) - **Placenet** (place-based digital services platform) - **Pulpop** (B2B marketplace with blockchain and fintech integration) - **GreenPath Logistics** (circular urban logistics) - **Cadenity AI** (AI and blockchain supply chain solutions) - **Full & Fast** (off-grid energy solutions) - **Convenit** (cross-border parcel shipping platform) - **SCAI Engineering** (5G communication solutions for mobility/logistics) - [**Locally.Farm**](http://locally.farm/) (digital platform for local food logistics) - **YK-Robotics** (automation and robotics for logistics) Our selection reaffirms CIRQUEL's commitment to **innovating at the intersection of sustainability, reverse logistics, and AI-driven technology**, as we redefine how fashion returns are managed - from drop-off to resale, rental, or recycling. ![Anna Warchalowska - Co-Founder and Managing Director presenting CIRQUEL](https://assets.cirquel.co/website/Screenshot 2025-04-04 at 22.56_edited.jpg) > "The Logistics 4.0 Incubator is an ideal platform to turn ideas into future-ready companies," said Pere Navarro during the launch event. "We are creating spaces where new forms of economy grow and create jobs." ![](https://assets.cirquel.co/website/IMG_6605_edited.png) ### Featured in the Press The launch of the new cohort - including CIRQUEL - was covered by a variety of **Spanish, Catalan, and European media outlets**, highlighting the impact of the incubator on the future of logistics and innovation in Europe. 📣 We encourage you to explore these stories to learn more about this vibrant ecosystem and CIRQUEL's role within it. 👉 [**La Vanguardia**](https://www.lavanguardia.com/economia/20250402/10544960/czfb-incorpora-14-nuevos-proyectos-incubadora-logistica-4-0-ep-agenciaslv20250402.html), [**La Razon**](https://www.larazon.es/actualidad/zona-franca-barcelona-impulsa-innovacion-logistica-14-nuevas-startups_2025040267ed4beffd547000010fa70d.html), [**El Nacional**](https://www.elnacional.cat/oneconomia/ca/empreses/consorci-zona-franca-incorpora-14-nous-projectes-incubadora-logistica-40_1392168_102.html), [**EuropaPress**](https://www.europapress.es/catalunya/noticia-czfb-incorpora-14-nuevos-proyectos-incubadora-logistica-40-20250402145407.html), [**La Ciutat**](https://laciutat.cat/laciutatdebarcelona/zona-franca-incorpora-14-projectes-incubadora-logistica), [**ViaEmpresa**](https://www.viaempresa.cat/es/empresa/incubadora-logistica-40-zona-franca-presenta-14-nuevas-startups-programa_2212116_102.html), [**Cataluna Press**](https://www.catalunyapress.cat/article/economia/2025-04-02/5240672-pas-gegant-consorci-zona-franca-incorpora-14-startups-especialitzades-logistica), [**El Mercantil**](https://elmercantil.com/2025/04/02/catorce-nuevos-proyectos-se-suman-a-la-incubadora-de-la-zona-franca-de-barcelona/), [**El Canal**](https://www.diarioelcanal.com/nuevas-startups-barcelona/), [**Logistica profesional**](https://www.logisticaprofesional.com/texto-diario/mostrar/5241803/logistics-40-incubator-suma-14-nuevos-proyectos), [**Gente**](http://www.gentedigital.es/catalunya/noticia/4039090/el-czfb-incorpora-14-nuevos-proyectos-a-su-incubadora-de-logistica-40/), [**Noticiasde**](https://www.noticiasde.es/catalunya/barcelona/el-czfb-anade-14-nuevos-proyectos-a-su-incubadora-de-logistica-4-0-2/), [**Naucher**](https://www.naucher.com/la-zona-franca-de-barcelona-incorpora-14-proyectos-a-su-incubadora-de-logistica-4-0/), [**Ejecutivos**](https://ejecutivos.es/noticias/la-zona-franca-de-barcelona-incorpora-14-nuevos-proyectos-a-su-incubadora-de-logistica-4-0/), [**Empresa Exterior**](https://en.empresaexterior.com/art/96829/zona-franca-de-barcelona-impulsa-la-logistica-del-futuro-con-14-nuevas-startups-en-su-incubadora-40), and more. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The hidden cost of fashion: Kantamanto and the global secondhand clothing crisis URL: https://cirquel.co/post/the-hidden-cost-of-fashion-kantamanto-and-the-global-secondhand-clothing-crisis Date: 2025-02-24 Author: Anna Warchalowska Tags: Sustainability, Global Impact, Fast Fashion, Textile Waste On January 1, 2025, a devastating fire swept through Ghana's Kantamanto market, one of the world's largest hubs for secondhand clothing - exposing a system in crisis. ### A Fire That Exposed a System in Crisis On January 1, 2025, a devastating fire swept through [Ghana's Kantamanto market](https://www.businessoffashion.com/news/sustainability/used-clothes-pile-up-as-ghanas-kantamanto-market-struggles-to-rebuild-after-fire/), one of the world's largest hubs for secondhand clothing. The blaze killed two people, destroyed two-thirds of the market, and wiped out the livelihoods of tens of thousands of traders who depend on selling secondhand garments to survive (Sarah Johnson, [The Guardian](https://www.theguardian.com/europe), 2025). The destruction laid bare a growing crisis: **the unchecked influx of discarded fast fashion from the Global North into Ghana and other developing nations, leaving them drowning in textile waste.** ![Kantamanto market](https://assets.cirquel.co/website/alejo-reinoso--IlmDnJg5cg-unsplash.jpg) ### [Kantamanto: The World's Dumping Ground for Fast Fashion Waste](https://www.businessoffashion.com/news/global-markets/kantamanto-fire-secondhand-clothing-trade-ghana/) Ghana imported $121 million worth of used clothing in 2023 alone, making it the eighth-largest importer globally (Giz Ghana, 2023-24). Fashion brands contribute to the thousands of bales arriving weekly, mostly from the UK, US, and China. However, as **fast fashion accelerates, so does the proportion of unsellable (returned items, overstock and samples) clothing flooding the market.** Despite the efforts of traders who wash, repair, and repurpose garments, **26.5 tonnes of clothing waste leave Kantamanto every week**, much of it ending up in unsanctioned dumps or washing up on Ghana's beaches (Giz Ghana, 2023-24). The [**Or Foundation**](https://theor.org/), an NGO advocating against textile waste, estimates that **40% of the secondhand clothes arriving in Ghana are discarded as waste.** The problem is exacerbated by a drop in quality: items that were once resold are now deemed worthless due to poor durability, synthetic materials, and stains. ### From Market to Dump: The Lifecycle of Discarded Clothes The failure of the secondhand clothing market to absorb these garments has dire consequences. - **Mountains of textile waste** accumulate in sites like Old Fadama, where cows graze on discarded clothes, and Korle Lagoon, which transports textile waste into the ocean. - **Accra's beaches are covered in fabric waste**, entangling marine life and polluting coastal ecosystems. - **City authorities can only handle 30% of the total clothing waste**, with the remaining 70% clogging drainage systems, exacerbating flooding, and degrading the environment (The Or Foundation, 2022). ### A Call for Responsibility: Demanding Change from Fashion Brands In May 2023, a delegation of Kantamanto traders traveled to Brussels to lobby for stronger Extended Producer Responsibility (EPR) laws that ensure the fashion industry funds waste management in recipient countries (The Guardian, 2023). **Currently, France is the only European country with an EPR policy covering textiles**, and even that policy charges brands just €0.06 per item - **a fraction of what is needed to address the crisis.** The traders' demands include: - Increasing the EPR fee to **€0.50 per item**, ensuring funds reach affected countries. - Directing at least **10% of EPR revenues** toward environmental cleanup efforts. - Holding brands accountable for the sheer volume of waste they produce, with **commitments to reduce production by 40%.** The Or Foundation has also called on brands to **disclose the number of garments they produce annually** - a transparency measure that has yet to be implemented on a meaningful scale. ### A Broken System in Need of Circular Solutions Kantamanto's crisis is not unique. Similar stories unfold in **Chile's Atacama Desert**, where an estimated **39,000 tonnes of clothing waste** is illegally dumped each year, creating toxic mountains of fast fashion waste. **These are not sustainable "solutions" for excess inventory, returns, and discarded clothing.** ### CIRQUEL: Keeping Fashion Circular, Locally At [CIRQUEL](https://www.cirquel.co/), we believe the answer is **not exporting waste - it's preventing it at the source.** Our **reverse logistics and AI-powered forecasting & resale solutions** ensure that unwanted garments **stay within the country of origin of the return**, reintegrating them into local resale, rental, or upcycling markets. - **Localized Orchestration:** Prevents unnecessary shipping of returns overseas, reducing CO2 emissions. - **AI-Driven Quality Control:** Identifies garments suitable for resale, reducing textile waste. - **Recommerce & Rental Solutions:** Keeps garments in use longer, decreasing landfill reliance. By providing **a sustainable alternative to landfill dumping and secondhand exportation**, CIRQUEL helps brands meet **EU and newest US regulatory requirements** while creating a circular economy that benefits businesses, consumers, and the planet. It's time to rethink fashion's waste problem - not just where it ends up, but how we prevent it in the first place. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # 🌟 Welcoming 2025 with CIRQUEL 🌟 URL: https://cirquel.co/post/welcoming-2025-with-cirquel Date: 2025-01-02 Author: Anna Warchalowska Tags: Team, New Year, Circular Fashion, Sustainability As we step into a new year, meet the CIRQUEL co-founders and join us in shaping a circular and eco-friendly future for fashion. As we step into a new year, we at **CIRQUEL** wish you a wonderful 2025-one filled with mindful decisions, meaningful connections, and conscious choices for a more sustainable future. 🌍 We're thrilled to finally introduce ourselves-[**Anna Warchalowska**](https://www.linkedin.com/in/anna-warchalowska-contact/) and [**June Arrieta**](https://www.linkedin.com/in/june-arrieta/), the co-founders of CIRQUEL. Here (on the picture) we are at the **Berlin headquarters of [Beam](https://www.linkedin.com/company/beamberlin/posts/?feedView=all)**, the venture builder backed by [**BEUMER Group**](https://www.linkedin.com/company/beumer-group-/posts/?feedView=all), where our incredible journey began. ![CIRQUEL Co-founders at Beam headquarters](https://assets.cirquel.co/website/team1.png) Our journey in 2024 has been nothing short of amazing, thanks to the unwavering support from **Beam** and **BEUMER Group**, and all the incredible individuals we've met along the way. Whether you've shared your time, insights, or collaboration with us, we couldn't have come this far without you! As we look ahead, we invite you to join us in shaping a circular and eco-friendly future. Let's make 2025 the year of **conscious fashion**, where sustainability and innovation go hand in hand. Thank you for being part of this mission with us! 💚 --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Cirquel Featured in Pleb Magazine: Driving Circularity in Fashion Returns URL: https://cirquel.co/post/cirquel-featured-in-pleb-magazine-driving-circularity-in-fashion-returns Date: 2024-12-06 Author: Anna Warchalowska Tags: Interview, Media, Fashion Tech, Founders We are proud to share that Cirquel has been featured in PLEB Magazine, a renowned platform dedicated to celebrating sustainability, creativity, and cultural appreciation. We are proud to share that **Cirquel** has been featured in [**PLEB Magazine**](https://pleblit.com/revolutionising-fashion-returns-with-cirquels/), a renowned platform dedicated to celebrating sustainability, creativity, and cultural appreciation. As part of their mission to spotlight initiatives shaping the future, **PLEB's Founder & Editor-in-Chief, [Naomi Little](https://www.linkedin.com/in/naomilittle1/)**, conducted an insightful interview with Cirquel's co-founder, **[Anna Warchalowska](https://www.linkedin.com/in/anna-warchalowska-contact/)**, to explore how our innovative CIRQUEL platform is redefining circularity in the fashion industry and what was our way to build the venture as well as mission and vision we (co-founders: Anna Warchalowska and [June Arrieta](https://www.linkedin.com/in/june-arrieta/)) share about circularity in fashion. ![PLEB Magazine feature](https://assets.cirquel.co/website/blogcir6.png) Here are the key takeaways from the interview: - **Cirquel's Mission and Vision**: Cirquel aims to tackle the environmental and financial challenges of fashion returns, deadstock, and overstock by providing **AI-powered technology and localized logistics solutions**. Our platform helps brands transition toward a **circular economy**, ensuring garments are repurposed through resale, rental, or eco-friendly recycling while significantly reducing CO2 emissions. - **A Holistic and Sustainable Approach**: By focusing on **localized orchestration**, Cirquel optimizes reverse logistics, ensuring items are processed locally, which reduces carbon footprints and promotes sustainability. - **Innovative Technology**: Our platform integrates cutting-edge AI-driven inspection tools to assess returned items quickly and accurately, creating new revenue streams for brands by transforming unwanted garments into opportunities. - **Collaboration at the Core**: Collaboration is a cornerstone of Cirquel's approach. We partner with local warehouses, resale platforms, and recycling facilities to build a sustainable ecosystem that benefits brands, consumers, and the environment alike. - **Support from Beam and Beumer Group**: The backing of [**Beam**](https://beamberlin.com/), a Berlin-based venture studio, and [**Beumer Group**](https://www.beumergroup.com/press/beumer-group-introduces-its-new-pouch-technology-to-meet-massive-demand-from-omnichannel-operators/), global leaders in intralogistics, has been instrumental in Cirquel's success. Their support has enabled us to scale our solutions and create a meaningful impact within the fashion industry. Cirquel's inclusion in **PLEB Magazine** is a testament to the importance of building sustainable solutions in the ever-evolving fashion landscape. We are incredibly grateful for this opportunity to share our story and vision with PLEB's audience and to contribute to the dialogue on circularity and innovation. For a more in-depth look into the interview and Cirquel's journey, visit [**PLEB Magazine's website**](https://pleblit.com/revolutionising-fashion-returns-with-cirquels/) or reach out to us to learn how we can help your brand transition toward a more sustainable future. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Digital Product Passports: A Game-Changer for Fashion Sustainability URL: https://cirquel.co/post/digital-product-passports-a-game-changer-for-fashion-sustainability Date: 2024-12-03 Author: Anna Warchalowska Tags: sustainability, digital product passports, circularity, regulation, fashion As the fashion industry faces mounting challenges of overproduction, waste, and increasing consumer demand for transparency, Digital Product Passports (DPPs) are emerging as a revolutionary solution. ![](https://static.wixstatic.com/media/4b53c3_5e955f92f5ca4a3587c4c91ceef5fedf~mv2.jpg/v1/fill/w_740,h_493,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_5e955f92f5ca4a3587c4c91ceef5fedf~mv2.jpg) As the fashion industry faces mounting challenges of overproduction, waste, and increasing consumer demand for transparency, Digital Product Passports (DPPs) are emerging as a revolutionary solution. This innovative technology, mandated by the European Union to roll out by 2026, is reshaping the way brands and consumers interact with fashion items throughout their lifecycle. ###### DPPs serve as a digital record for each product, accessible via QR codes or NFC tags, and provide detailed insights into the materials used, manufacturing processes, and environmental impact. They also outline options for repair, resale, or recycling, offering a blueprint for a truly circular approach to fashion. For a sector plagued by overproduction-estimated at **2.5 to 5 billion excess items annually**, worth between **$70 and $140 billion**-the adoption of DPPs couldn't be more timely. This isn't just about compliance with new regulations. The shift is driven by consumer expectations and the need to address pressing environmental concerns. Apparel consumption is projected to rise by **63% to 102 million tonnes by 2030**, and without a dramatic shift, the industry could consume over **25% of the world's carbon budget by 2050**. Meanwhile, brands are struggling, with **63% falling behind on their decarbonization goals for 2030**. DPPs offer a lifeline to navigate these challenges. Beyond sustainability, DPPs also tackle counterfeiting, a growing problem in the digital age. Counterfeit goods are valued at **$3 trillion globally**, and with **50% of Gen-Z consumers admitting to purchasing fakes**, trust in the authenticity of items is critical. By embedding authentication tools into every garment, DPPs not only protect brand identity but also foster trust in the resale and second-hand markets, where **66% of Gen-Z shoppers favour pre-loved over new**. DPPs also unlock opportunities to engage with customers in new ways. Imagine a jacket reminding its owner to schedule a repair or a pair of sneakers signalling it's time to resell them back to the brand. These features not only extend the product's lifecycle but also create a deeper connection between the consumer and the brand. Some even envision DPPs offering entertainment experiences or exclusive digital content, opening new dimensions of customer engagement. At Cirquel, we see DPPs as an integral part of the fashion revolution. While these passports promise accountability and innovation, they align perfectly with our mission to redefine reverse logistics and circularity. Through our AI-powered tools, we already enable brands to repurpose returns into resale or recycling opportunities, transforming waste into value while fostering sustainability. DPPs provide the transparency and traceability that are critical to advancing these efforts. By integrating DPP technology with our solutions, brands can gain deeper insights into their supply chains, enhance product lifecycle management, and create new revenue streams while addressing environmental concerns. The future of fashion lies in creating value at every stage of a product's lifecycle, and DPPs offer a powerful framework to make that a reality. At Cirquel, we are proud to be at the forefront of this transformation, helping brands not just comply with regulations but truly innovate for a sustainable future. How will your brand adapt to this shift? Let's connect and explore how we can drive the future of circular fashion together. Read more also here: [BoF](https://www.businessoffashion.com/articles/technology/unlocking-commercial-opportunities-with-digital-product-passports/), [State of Fashion 2025](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#/) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Rethinking Black Friday & Cyber Monday: The Costs of Overconsumption and the Road to Circularity URL: https://cirquel.co/post/rethinking-black-friday-cyber-monday-the-costs-of-overconsumption-and-the-road-to-circularity Date: 2024-12-03 Author: Anna Warchalowska Tags: Black Friday, Sustainability, Circular Economy, Overconsumption As Black Friday and Cyber Monday pass each year, the staggering environmental and social costs of overproduction and overconsumption become increasingly evident. As Black Friday and Cyber Monday pass each year, the staggering environmental and social costs of overproduction and overconsumption become increasingly evident. Reports from [**Business of Fashion (BoF)**](https://www.businessoffashion.com/articles/retail/black-friday-cyber-week-sales-2024/), [**UNEP**](https://www.unep.org/news-and-stories/story/black-friday-looms-some-fashion-industry-take-aim-overconsumption), and [**Vogue Business**](https://www.voguebusiness.com/story/sustainability/5-ways-to-do-black-friday-more-sustainably) reveal a stark truth: the retail industry's current trajectory is unsustainable. At [**CIRQUEL**](https://www.cirquel.io/blog), we aim to tackle these challenges head-on by helping brands transform waste into opportunity. ## The Black Friday Paradox: Record Sales, Growing Waste Black Friday remains a retail juggernaut, with **Adobe Analytics reporting $22 billion spent online in the US over Black Friday weekend**, and **$9 billion more on Cyber Monday**. However, these numbers come with significant costs. According to UNEP, the fashion industry is responsible for: - **2% to 8% of global greenhouse gas emissions.** - The consumption of **215 trillion liters of water annually** - equivalent to **86 million Olympic-sized swimming pools**. - **9% of annual microplastic pollution** in oceans. This waste and overproduction are magnified by consumer habits during peak shopping seasons. The **Textile Exchange** estimates that global textile production has skyrocketed to **15.5 kilograms per person in 2023**, with projections reaching **18.8 kilograms by 2030**. Meanwhile, up to **40% of fabric in factories becomes waste**, much of which ends up in landfills in developing countries. ![Black Friday Shopping](https://assets.cirquel.co/website/hennie-stander-E1tdvtFXi_M-unsplash_edited.jpg) ## Turning Awareness into Action Despite these grim statistics, inspiring initiatives across the globe are offering a glimpse of what's possible when circularity takes center stage: - **Eco Fashion Week Africa** in Nairobi celebrated reuse and upcycling, featuring garments crafted from curtains, tablecloths, and other discarded materials. - [**Vestiaire Collective**](https://us.vestiairecollective.com/) partnered with Ghana's Kantamanto Market to launch a collection of upcycled pieces, demonstrating the ingenuity and creativity of secondhand fashion. Proceeds from the collection supported local designers and communities. - French sneaker brand [**Veja**](https://www.veja-store.com/es_es/) held a **Repair Friday event**, repairing worn-out shoes, clothes, and electronics to inspire customers to extend the life of their belongings instead of replacing them. These efforts reflect a growing movement toward sustainable practices like repair, resale, and rental models. As **Liz Ricketts of [The Or Foundation](https://theor.org/)** noted in her comments about Vestiaire's Black Friday campaign: > "Black Friday is just one day a year, but the overconsumption habits that drive it are pervasive year-round." ## Generational Shifts: The Rise of Mindful Consumption Younger generations are leading the charge toward more sustainable consumption patterns: - **66% of Gen Z prefer secondhand shopping** over buying new items. - Social media trends like TikTok's "underconsumption core" encourage consumers to buy less and invest in quality. - **Vestiaire Collective's resale collection** and **Veja's repair workshops** resonate with younger consumers' desire for transparency, sustainability, and meaningful engagement. ## CIRQUEL's Mission: Transforming Overproduction into Opportunity At CIRQUEL, we understand the urgency of addressing the challenges posed by overproduction and returns, especially during high-impact shopping seasons. Our solution bridges the gap between waste and opportunity: 1. **Localized Circularity**: We partner with warehouses, recycling facilities, and resale platforms to repurpose returned and excess stock sustainably, minimizing waste and maximizing value. 2. **Technology-Driven Optimization**: CIRQUEL leverages advanced analytics to determine the most efficient and sustainable pathways for returns and surplus inventory, including resale, refurbishment, and recycling. 3. **Compliance and Growth**: As brands face increasing pressure to meet sustainability regulations, our platform provides a pathway to compliance while creating new revenue streams from previously discarded items. ## The Path Forward As we reflect on the insights shared by [**Malique Morris (BoF)**](https://www.linkedin.com/in/malique-morris-9b3b7841/), [**Bella Webb (Vogue Business)**](https://www.linkedin.com/in/bella-webb-b02ab810a/?originalSubdomain=uk), and UNEP, it's clear that the fashion industry must embrace a circular model to address the mounting challenges of overproduction and overconsumption. Initiatives like **Ecoalf's Atacama Desert documentary**, which highlights the true cost of overproduction, and **Vestiaire Collective's upcycled collections**, show that change is not only necessary but possible. At CIRQUEL, we are proud to be part of this journey. By turning waste into opportunity and promoting circular practices, we're helping brands align with new consumer expectations and regulatory demands while driving meaningful change in the fashion industry. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # SUSTAIN20™: Pioneering Circular Fashion Solutions and Showcasing CIRQUEL URL: https://cirquel.co/post/sustain20-pioneering-circular-fashion-solutions-and-showcasing-cirquel Date: 2024-12-03 Author: Anna Warchalowska Tags: As the fashion industry faces increasing pressure to embrace sustainability, platforms like SUSTAIN20™ have emerged as vital tools for driving change. ![SUSTAIN20 and CIRQUEL](https://assets.cirquel.co/website/cirware_edited.jpg) As the fashion industry faces increasing pressure to embrace sustainability, platforms like [**SUSTAIN20™**](https://www.sustain20.com/listing/cirquel/) have emerged as vital tools for driving change. Recently, we at CIRQUEL were honored to be showcased on SUSTAIN20™, an innovative digital platform connecting brands, partners, and individuals with circular fashion solutions. ### What Is SUSTAIN20™? Founded by [Ana](https://www.linkedin.com/in/anakristiansson/) and [Klas Kristiansson](https://www.linkedin.com/in/klas-kristiansson/), veterans with over 25 years of experience in the fashion industry, **SUSTAIN20™** is a one-stop hub designed to support fashion brands in their journey towards circularity. Frustrated by the lack of accessible, reliable circularity tools, the Kristianssons launched this platform to fill the gap and provide solutions for an industry grappling with growing sustainability demands. SUSTAIN20™ operates as a directory, offering brands access to collaborators and resources needed to build transparent, traceable supply chains. Its **SUSTAIN20™ Framework** is a standout feature, with 20 actionable building blocks guiding brands through their transition to circular business models. From sourcing and manufacturing to end-of-life solutions, the framework serves as both a roadmap and toolkit for brands aiming to reduce waste and enhance value. ### CIRQUEL's Role in the Circularity Movement Being featured on **SUSTAIN20™** is a significant milestone for CIRQUEL. At CIRQUEL, we are committed to tackling one of the fashion industry's most pressing challenges: returns, overproduction, and waste. Our solution is an **end-to-end SaaS platform** that enables brands and warehouses to repurpose returned garments through localized services like cleaning, refurbishment, and resale. By focusing on reverse logistics and sustainability, CIRQUEL empowers brands to transform potential losses into new revenue streams while reducing environmental impact. ### Why Platforms Like SUSTAIN20™ Are Essential The challenges of achieving circularity in fashion are immense. Over 30% of fashion products go unsold annually, contributing to massive waste and overproduction. The industry also faces upcoming regulations mandating traceability and transparency, such as the EU's requirement for **Digital Product Passports (DPPs)** by 2026. Platforms like SUSTAIN20™ address these issues by providing a centralized, accessible space for brands to discover sustainable solutions. Whether it's finding new collaborators or adopting innovative technologies, SUSTAIN20™ helps fashion businesses evolve responsibly in a world that increasingly values circular economy principles. ### A Heartfelt Thank You We owe special thanks to [**Lydia Brearley**](https://www.linkedin.com/in/lydia-brearley-enkel-0a127737/), founder of [**Enkel and Sustainable Fashion School**](https://www.linkedin.com/company/sustainable-fashion-school/posts/?feedView=all), for connecting us with Ana and Klas. Lydia's efforts to foster connections within the sustainability community have been instrumental in helping CIRQUEL take its mission to new heights. ### Looking Ahead The inclusion of CIRQUEL in the **SUSTAIN20™ directory** highlights the growing importance of circular fashion solutions and the recognition of our work in reverse logistics and sustainability. We are proud to be part of a community that is driving meaningful change in the fashion industry. We invite you to learn more about our mission and how CIRQUEL is redefining the lifecycle of fashion returns by visiting our website. Together, we can turn challenges into opportunities and create a more sustainable future for fashion. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # The Climate Crisis, Fashion Circularity, and CIRQUEL: Redefining the Future of Fashion URL: https://cirquel.co/post/the-climate-crisis-fashion-circularity-and-cirquel-redefining-the-future-of-fashion Date: 2024-12-03 Author: Anna Warchalowska Tags: climate crisis, circular fashion, sustainability, EU strategy, COP29, reverse logistics The world is at a critical juncture, and the fashion industry must act swiftly to address its environmental footprint and align with the demands of a rapidly evolving market. The world is at a critical juncture. The recent **COP29 climate summit in Baku**, insights shared by **Sarah Kent** of the **Business of Fashion**, and the **EU's Strategy for Sustainable and Circular Textiles** have spotlighted the urgent need for transformative change in the fashion industry. At CIRQUEL, we are proud to be at the forefront of addressing these challenges with innovative solutions aimed at reshaping the industry towards sustainability, profitability, and circularity. ![Climate crisis and fashion circularity](https://assets.cirquel.co/website/ethan-bodnar-kgC99X3WH1w-unsplash.jpg) 1. ### **The Challenges at Hand: Fashion and the Climate Crisis** The fashion industry is a significant contributor to climate change and environmental degradation. It is also one of the sectors most vulnerable to the impacts of the accelerating climate crisis. This year is already set to become the hottest on record, with disastrous consequences for people, ecosystems, and industries worldwide. The fashion sector, particularly its supply chain hubs in countries like **Bangladesh**, **Vietnam**, and **Pakistan**, faces escalating threats from extreme weather events such as floods, heatwaves, and storms. #### **Key Issues:** * **Rising Temperatures:** Global warming is projected to hit nearly **3°C above pre-industrial levels** by the end of this century if urgent action isn't taken. For fashion, this means disrupted supply chains, labor shortages due to extreme heat, and unpredictable consumer behavior. * **Overproduction and Waste:** The industry overproduced an estimated **2.5 to 5 billion garments** in 2023 alone, valued at **$70–140 billion**, with **30% of these garments never sold**. This excessive production feeds landfills and informal waste streams, particularly in countries with limited recycling capacity. * **Consumer Dynamics:** As **Gen-Z** and Millennials increasingly demand sustainable practices, **66% of Gen-Z** prefer second-hand shopping. Yet the rise of ultra-fast fashion undermines these aspirations, contributing to overconsumption and short product lifecycles. ### **The Role of Circularity in Transforming Fashion** The **EU's Circular Textiles Strategy** offers a vision for the future, focusing on reducing waste and overproduction, enhancing recyclability, and holding brands accountable for their products' full lifecycle. Key measures include: * **Digital Product Passports (DPPs):** Mandatory by 2026, these will provide traceability and transparency across the supply chain. * **Bans on Wasteful Practices:** The destruction of unsold and returned textiles will be prohibited, incentivizing brands to adopt sustainable practices. * **Durable Design:** New design requirements will ensure textiles are repairable, reusable, and recyclable. These regulations reflect the growing demand for brands to embrace a circular model, aligning business practices with environmental goals while catering to an increasingly conscious consumer base. ### **CIRQUEL: Pioneering Solutions for a Circular Fashion Economy** At CIRQUEL, we recognize the scale of these challenges and have developed innovative solutions to address them. Our vision aligns with global sustainability goals and offers a clear pathway for brands to embrace circularity, compliance, and profitability. #### **How CIRQUEL Makes a Difference:** 1. **Turning Returns into Revenue:** CIRQUEL provides an **end-to-end SaaS platform** for brands, enabling them to **repurpose, resell, or recycle** returned and unsold garments. This approach not only reduces waste but also creates new revenue streams. 2. **Localized Services for Sustainability:** By collaborating with **cleaning, refurbishment, and recycling partners** across Europe, CIRQUEL ensures that garments are repurposed locally, minimizing the carbon footprint associated with logistics. 3. **Reverse Logistics Optimization:** Our platform offers seamless management of returns, integrating processes like **quality checks**, **grading**, and **resale preparation** to streamline operations and improve efficiency. 4. **Consumer Engagement and Education:** CIRQUEL empowers brands to connect with their customers through transparency, helping consumers make informed, sustainable choices. This includes options for renting, repairing, and reselling products directly through the platform. 5. **Regulatory Compliance Made Simple:** CIRQUEL ensures brands are prepared for new regulations, providing tools to adapt to policies like the **EU Strategy for Sustainable Textiles**, which mandates accountability across the product lifecycle. 6. **Sustainability Without Compromise:** While navigating the complex demands of sustainability, CIRQUEL ensures brands can remain competitive, turning climate-conscious practices into a market advantage. ### **A Shared Vision for the Future** The fashion industry must act swiftly to address its environmental footprint and align with the demands of a rapidly evolving market. At CIRQUEL, we are proud to play a pivotal role in this transformation by offering solutions that balance **profitability** with **planet-positive practices**. We extend our heartfelt thanks to **BEAM** and the **BEUMER Group** for their steadfast support in helping us realize this vision. Their resources and expertise have been instrumental in driving our mission forward, empowering us to redefine fashion's lifecycle and create meaningful change. ### **Join the Movement** The time to act is now. Visit our website to learn more about how CIRQUEL is shaping the future of circular fashion and schedule a call with our team to explore how we can help your brand turn sustainability into opportunity. Together, let's create a fashion industry that respects both people and the planet. #CircularEconomy #SustainableFashion #ClimateAction #ReverseLogistics #Innovation #ImpactDriven #GreenLogistics #StartupJourney #FashionForGood --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Bridging the Gap: Tackling Fashion's "Green Premium" and "Brown Discount" URL: https://cirquel.co/post/bridging-the-gap-tackling-fashion-s-green-premium-and-brown-discount Date: 2024-11-17 Author: Anna Warchalowska Tags: In his recent article for BoF, Kenneth P. Pucker, a professor at the Tufts Fletcher School and former COO of Timberland, addresses two stark realities shaping the future of fashion: the green premium and the brown discount. In his recent article for BoF, **Kenneth P. Pucker**, a professor at the Tufts Fletcher School and former COO of Timberland, addresses two stark realities shaping the future of fashion: **the green premium** and **the brown discount.** These dynamics underscore the cost imbalances that sustainable brands face when competing with fast fashion and less eco-conscious players. At **CIRQUEL**, we resonate deeply with Pucker's insights, as we work to tackle these systemic challenges by creating scalable, sustainable, and localized solutions that align profitability with environmental responsibility. Let's dive into the heart of Pucker's argument and how CIRQUEL is contributing to rewriting the rules of fashion's reverse logistics. #### **The "Green Premium" vs. the "Brown Discount"** Pucker draws on insights from **Bill Gates' Breakthrough Energy Ventures**, highlighting the "green premium" - the added cost of adopting low-carbon solutions. In fashion, this means higher costs for materials like organic cotton, bio-based fabrics, or innovative recycling processes. For example: - Producing lower-impact textiles or adopting decarbonized processes often costs significantly more than conventional methods. - This premium creates a disadvantage for sustainable brands, who must charge higher prices to cover these costs. On the flip side, the "brown discount" refers to the savings enjoyed by brands using **cheaper, polluting materials like plastic polyester** or embracing ultra-fast fashion practices. The dominance of players like Shein, where the **average top costs $10.07** compared to **$22.55 at H&M**, demonstrates how cost-cutting at the expense of the planet creates unfair competition for brands trying to do the right thing. #### **Why Rules Matter** While voluntary initiatives and industry innovation are essential, Pucker argues that they are insufficient to level the playing field. **Canadian Senator Rosa Galvez**, for instance, champions legislative action such as her proposed **Climate-Aligned Finance Act**, which would mandate climate alignment for financial institutions under national law. Pucker emphasizes that similar **mandatory green practices are essential for the fashion industry**, where voluntary action often leaves responsible brands at a disadvantage. #### **How CIRQUEL Is Tackling These Challenges** At CIRQUEL, we understand that systemic issues like the green premium and brown discount extend into **reverse logistics**, where returns and unsold inventory often result in waste and lost revenue. Here's how we're bridging the gap: 1. **Localized Reverse Logistics** Unlike globalized systems that increase costs and carbon footprints, CIRQUEL leverages **regional networks for refurbishment, resale, rental, and recycling.** This localized approach not only reduces costs but also aligns with upcoming regulations like the **EU's Ecodesign Regulation** and Digital Product Passport requirements. 2. **Technology-Driven Efficiency** Our **AI-powered platform** assesses returned and unsold items, determining whether they can be resold, rented, or recycled. This tech-forward solution minimizes waste while maximizing profitability for brands struggling to manage returns sustainably. 3. **Creating a Circular Revenue Stream** We believe that **revenue and sustainability** are not mutually exclusive. By repurposing returns and unsold inventory into profitable resale or rental opportunities, CIRQUEL turns waste into **new revenue streams** while reducing environmental impact. 4. **Advocating for Regulation and Action** At CIRQUEL, we champion the importance of upcoming legislation. By enabling brands to stay ahead of regulations, such as the EU's **ban on textile waste**, we help them maintain compliance while driving their sustainability agendas. #### **A Call to Action for the Industry** As **Kenneth Pucker** aptly points out, the path to a sustainable fashion future requires more than good intentions. **New rules, accountability, and innovative solutions** are critical to balancing the scales between responsible brands and those that cut corners. At CIRQUEL, we're not waiting for change - we're building it. By combining **technology, localized networks, and a commitment to circularity**, we're paving the way for brands to profit sustainably. ### Ready to Redefine Returns? Join us in **reshaping the lifecycle of fashion** and turning challenges like returns into opportunities for growth. Connect with us via our website to explore how CIRQUEL can help your brand thrive in the age of circularity. ![Bridging the Gap](https://static.wixstatic.com/media/4b53c3_12fe99e6e2e54e2eabc2251913980cd3~mv2.jpg/v1/fill/w_740,h_869,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/4b53c3_12fe99e6e2e54e2eabc2251913980cd3~mv2.jpg) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Shaping a Circular Future in Fashion: Industry Innovations and CIRQUEL's Vision URL: https://cirquel.co/post/shaping-a-circular-future-in-fashion-industry-innovations-and-cirquel-s-vision Date: 2024-11-14 Author: Anna Warchalowska Tags: sustainability, circularity, fashion, circular economy, innovation The fashion industry's growing waste crisis has prompted a wave of innovative efforts toward sustainability. The fashion industry's growing waste crisis has prompted a wave of innovative efforts toward sustainability. [**Fashion for Good**](https://fashionforgood.com/our_news/fashion-for-good-maps-global-waste-hotspots-with-a-new-digital-tool-world-of-waste-2/), along with partners like [**Laudes Foundation**](https://www.laudesfoundation.org/), **Global Fashion Agenda**, [**Circle Economy**](https://www.circle-economy.com/), and **IDH**, recently introduced the [**World of Waste**](https://www.worldofwaste.co/) platform. This groundbreaking tool sheds light on textile waste "hotspots" worldwide, offering valuable insights into waste management in regions such as Bangladesh, India, and Vietnam. By aggregating data on waste composition, volumes, and recyclability, this initiative aims to empower recyclers, policymakers, and industry stakeholders with the knowledge they need to drive circularity and reduce environmental impact. According to the [**State of Fashion 2025**](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#/) report, there's a strong push toward circular economy models, with consumers and governments increasingly expecting brands to embrace recycling and sustainable practices. The industry's excessive production and waste-estimated at up to 5 billion items annually-are key drivers of this shift. Initiatives like textile-to-textile recycling offer a critical pathway to mitigate environmental harm by reducing virgin resource consumption and encouraging a regenerative approach to fashion. At **CIRQUEL**, we're dedicated to being part of this transformation. Our **SaaS solution** for reverse logistics helps brands repurpose, reroute, and monetize returned and unsold items, tackling overstock and extending the lifecycle of garments. Our approach aligns with industry shifts toward circularity and sustainability, offering brands a practical solution to manage their environmental impact and meet evolving regulatory standards. Interested in driving change? Reach out via _Contact_ or schedule a call via [**_Linkedin_**](https://www.linkedin.com/company/cirquel/) to explore how CIRQUEL's solutions can support your circularity goals. ![](https://assets.cirquel.co/website/Qblog2.png) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Fashion's Consumption Crisis URL: https://cirquel.co/post/fashion-consumption-crisis Date: 2024-11-13 Author: Anna Warchalowska Tags: fashion, sustainability, overconsumption, circular economy, documentaries At CIRQUEL, we're passionate about driving sustainable change in fashion logistics, tackling critical issues like overproduction, overconsumption, and reverse logistics. ![Fashion's Consumption Crisis](https://assets.cirquel.co/website/Qblog1.png) At CIRQUEL, we're passionate about driving sustainable change in fashion logistics, tackling critical issues like overproduction, overconsumption, and reverse logistics. Today, we're excited to shine a light on three recent documentaries that offer powerful insights into the state of the fashion industry and the urgent need for change. These films-**Netflix's "Buy Now! The Shopping Conspiracy," Patagonia's "The Shittropocene,"** and **Blue Banana's latest film on sustainable fashion**-provide a window into the complex challenges and opportunities within the fashion world, especially as brands navigate the era of sustainability and circularity. ### 1. "Buy Now! The Shopping Conspiracy" (Netflix) Set to premiere on November 20th, Netflix's "Buy Now! The Shopping Conspiracy" takes a hard look behind the scenes of fashion's biggest brands, exposing how modern marketing strategies encourage excessive consumption. The film raises vital questions about the relentless "buy now" culture, especially relevant as Black Friday and the holiday shopping season approach. This documentary resonates deeply with our mission at CIRQUEL, where we aim to transform the industry by helping brands rethink their approach to overstock and returns. With stats from McKinsey's **State of Fashion 2025 Report** indicating up to 5 billion excess items produced yearly, it's clear that new solutions are needed to help brands move beyond linear models and embrace sustainable, circular practices. ### 2. "The Shittropocene" (Patagonia) Earlier this year, **Patagonia** released "The Shittropocene," a bold documentary that explores the environmental impact of the "throwaway culture" ingrained in our everyday lives. Known for their strong advocacy for environmental sustainability, Patagonia doesn't hold back, showing the direct effects of excessive consumption and waste on our planet. The themes in "The Shittropocene" align closely with CIRQUEL's values and the solutions we're developing to promote a circular economy. By focusing on reverse logistics and repurposing returned and unsold items, we help brands reduce their carbon footprint and extend the life of garments, supporting Patagonia's vision of mindful consumption. ### 3. Blue Banana's Sustainable Fashion Film The latest film by **Blue Banana** focuses on the challenges and steps involved in creating sustainable apparel. Blue Banana highlights the significant efforts required to shift towards greener processes, showcasing real-world stories of brands attempting to make sustainable fashion viable. This documentary is particularly relevant as we see consumer demand for sustainable options on the rise, with resale and rental models gaining traction. The film's emphasis on transparent and eco-friendly processes resonates with our work at CIRQUEL, where we aim to empower brands to embrace sustainable practices through advanced reverse logistics, analytics, and resource optimization. ### CIRQUEL's Perspective: Addressing the Crisis Head-On These documentaries underscore the urgency of change within the fashion industry. At CIRQUEL, we're committed to being part of this transformation by helping brands implement circular models and sustainable logistics practices. With upcoming regulations like the **EU Ecodesign Regulation**, which mandates circular design and bans the destruction of unsold textiles, there is a clear push towards accountability and sustainability. By rethinking reverse logistics, we offer solutions that allow brands to: - **Reduce waste:** Optimize inventory management to cut down on overproduction and minimize waste. - **Streamline returns:** Use technology to manage and repurpose returns efficiently, keeping items in circulation. - **Boost sustainability:** Align operations with the new circular economy expectations and the evolving consumer mindset. ### Let's Keep the Conversation Going As these films remind us, the journey to a sustainable fashion industry is complex but necessary. What actions can brands take to truly embrace circularity? How can we, as consumers and industry players, support and demand more sustainable practices? At CIRQUEL, we're excited to be a part of the solution and to help drive this much-needed shift. We invite you to join us on this journey to build a greener, more sustainable fashion ecosystem. Visit our website to learn more about our work and how we're changing the status quo in fashion logistics. --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ --- # Transforming Fashion Returns: Key Trends in Reverse Logistics and Sustainability from the State of Fashion 2025 URL: https://cirquel.co/post/transforming-fashion-returns-key-trends-in-reverse-logistics-and-sustainability-from-the-state-of-f Date: 2024-11-12 Author: Anna Warchalowska Tags: fashion returns, reverse logistics, sustainability, McKinsey, circular economy, EU legislation The fashion industry is undergoing a transformative shift, driven by economic uncertainties, changing consumer values, and increasingly stringent sustainability regulations. The fashion industry is undergoing a transformative shift, driven by economic uncertainties, changing consumer values, and increasingly stringent sustainability regulations. The newly released **State of Fashion 2025 Report** by McKinsey sheds light on the current challenges and emerging trends that will shape the future of fashion. At **CIRQUEL**, where we're committed to building solutions that address issues like overproduction, reverse logistics, and sustainability, these insights resonate deeply. Below, we break down the report's key points and their implications for the industry. ![State of Fashion 2025](https://assets.cirquel.co/website/4b53c3_abec813c012141d6b9f22e50de969680~mv2.jpg) ### Global Market Landscape The fashion industry faces a challenging landscape marked by economic instability, fluctuating consumer confidence, and heightened sustainability regulations. Growth remains modest, with a clear shift in demand toward the Asian market, particularly in India and Japan. Meanwhile, regulatory bodies in Europe and beyond are setting stricter standards, pushing the industry toward circular models and sustainable practices. ### Key Areas of Focus for 2025 #### 1. **Overproduction and Overstock** The report highlights a staggering amount of excess inventory: > "The industry produced 2.5-5 billion items of excess inventory in 2023, valued at $70-$140 billion." - McKinsey Overproduction has long plagued the fashion industry, resulting in financial strain and contributing to waste. As regulatory bodies enforce stricter mandates, brands are increasingly pressured to streamline their supply chains, improve forecasting, and adopt inventory management practices that prevent overstock. Companies are now focusing on end-to-end supply chain visibility, aiming to better align production with demand and reduce surplus. #### 2. **Reverse Logistics and Returns** High return rates continue to challenge the industry, particularly in the U.S., where **16.5% of retail items** were returned in 2022. This return process not only creates logistical complexities but also has a significant environmental footprint. Innovations such as ROPIS (reserve online, pick up in-store) aim to provide a solution, enabling customers to examine items in-store and reducing the need for returns. At CIRQUEL, we believe reverse logistics should not only optimize returns but also play a key role in creating circular, sustainable solutions for managing returned inventory. #### 3. **Circularity and New EU Legislation** With the recent adoption of the **EU Ecodesign Regulation** on May 28, 2024, the industry faces new rules that require sustainable product design, durability, and reparability. Notably, this regulation bans the destruction of unsold textiles and empowers the European Commission to impose similar restrictions on other product categories in the future. Extended Producer Responsibility (EPR) policies are also gaining traction, requiring brands to manage the entire lifecycle of their products, including recycling and disposal. The regulation aligns with the EU's broader sustainability goals, encouraging brands to incorporate circular practices from the initial design phase. #### 4. **The Rise of the Resale, Rental, and Recycling Markets** The report confirms that circular business models, particularly **resale** and **rental services**, are on the rise as consumers gravitate towards more sustainable fashion options. The resale market has experienced explosive growth, offering consumers a way to access luxury and quality items at lower prices. Brands are responding by partnering with resale platforms or establishing their own channels for pre-owned products. **Rental services** are similarly expanding, particularly in high-cost markets, offering consumers affordable access to fashion while promoting the circular economy. Recycling, too, is seeing significant investment as brands and organizations look for ways to manage end-of-life items sustainably. #### 5. **Technology's Role in Circularity and Sustainability** The report highlights the crucial role of technology in achieving circularity goals. AI-driven demand forecasting, data analytics, and computer vision are increasingly used to improve inventory accuracy and reduce waste. The new **Digital Product Passport** requirements in the EU underscore the need for traceability and transparency, allowing consumers and brands to track products throughout their lifecycle. ### Moving Towards a Circular Future The findings of the State of Fashion 2025 report emphasize that a truly circular and sustainable future for fashion requires a comprehensive approach. From tighter inventory controls and streamlined returns processes to active engagement with resale, rental, and recycling platforms, the industry has a long journey ahead. ##### At CIRQUEL, we are building solutions that enable brands, warehouses, and other stakeholders to meet these demands, empowering the fashion industry to become more sustainable and resilient. Our platform focuses on optimizing returns, repurposing overstock, and creating streamlined reverse logistics pathways that align with the new sustainability mandates. ##### As we embrace the shift toward a circular economy, we invite you to join us in exploring innovative solutions that can transform the way fashion functions. ##### Let's work together to build a future where sustainability and profitability go hand in hand. More info here: ##### [State of Fashion 2025 - McKinsey](https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#/) --- _Anna Warchalowska is CEO and co-founder of Cirquel. If you are a brand, investor or partner interested in circular fashion, sustainable returns, or commercial partnerships, we would love to connect at [cirquel.co](https://cirquel.co)._ ---