Circular Economy of Pakistan – Where it will go
What is Circular Economy
In the linear economy, raw natural resources are taken, transformed into products and get disposed of. On the opposite, a circular economy model aims to close the gap between the production and the natural ecosystems’ cycles – on which humans ultimately depend upon.
This means, on one hand, eliminating waste – composting biodegradable waste or, if it’s a transformed and non-biodegradable waste, reusing, remanufacturing and finally recycling it. On the other hand, it also means cutting off the use of chemical substances (a way to help regenerate natural systems) and betting on renewable energy.
Fashion Industry Example
With the fashion industry being subjected to criticism due to its environmentally harmful practices in the world, retailers have responded swiftly by introducing a new era of ’fashion re-commerce.
World big Retailers such as H&M, REI and Patagonia and several new online players such as Thread Up and De Pop are allowing consumers to donate, rent or re-sell their clothes instead of discarding them to landfill sites.
Recent studies suggest that the secondhand fashion market is growing 11 times faster than traditional retail and is likely to be worth US$84 billion by 2030 (according to Deloitte)-The circular economy is also becoming a key imperative for growth among hardline retailers such as Ikea and Decathlon. Ikea, for instance, has launched secondhand furniture outlets and has committed to using renewable and recycled materials in its products.
In Pakistan you will find used designer stuff for sale on internet for the middle class. – In the same way Landa Bazar for the poor is attracting more traffic. in the used cloth market . The practices are quite old & getting speed with reducing buying power. Karim Block market in Lahore & Tower in Karachi are the big example. In the similar pattern we can find used computer & furniture markets.
We don’t have statistics of circular economy in Pakistan. But from the world trends we can well imagine what is going in the future in Pakistan. I am waiting when big retailers will be jumping in to it. This business will reshape our retail business & profits with different non food categories.