Among the key tenets of circularity is keeping products in use for longer. To accomplish this, some brands are looking beyond conventional retail outlets.
Nonprofit Soles4Souls is facilitating merchandise’s second lives through social enterprise, finding channels for new and used clothing and shoes that will generate the most value. In a panel at Sourcing Journal’s Sustainability Summit moderated by senior news and features editor Kate Nishimura, executives from Soles4Souls and Kearney broke down the business case for social impact initiatives. “We think about ourselves as a business partner not a charitable partner, because it has to make business sense,” said Buddy Teaster, president and CEO of Soles4Souls.
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This year, Soles4Souls will collect 5.5 million pairs of shoes, 4.5 million pieces of clothing and 1 million accessories from a combination of individuals, retailers and brands. Some of these articles will be sold to parties in low-income nations, enabling locals to create businesses and economic opportunity selling them. Others will be donated to those affected by natural disasters, conflict—such as the war in Ukraine—and those in need, such as the homeless. “There is this lane of maybe it’s not good enough for resale, but it’s way before it needs to be recycled, and we can repurpose that and get it into the hands and on the feet of people who really need it,” said Teaster.
Teaster explained that Soles4Souls’ move to sell goods to low-income nations not only provides additional financial support for its charitable work, but also ensures that there is a market for the merchandise. Some regions have been inundated with unwanted secondhand clothing, with the results visible in places such as Chile’s Atacama Desert and Africa. “We believe in markets and capitalism as a way to create opportunity for the end user, the entrepreneur, but it also makes sure that we are providing what people want, so that we’re not dumping things where it’s not needed,” he said.
Consumers often don’t know what to do with used goods. Brand-led donation drives are not only “convenient” for shoppers, but they can also be a win-win for the partner retailers. “The mere act of having a box at a retail location not only provides product that can then go to good use and in a positive way, but it also drives traffic into your stores,” said Brian Ehrig, partner at Kearney.