At Source Fashion 2026, Products of Change CEO, Helena, and Cat Salvidge from WRAP hosted a candid discussion, asking: can circularity and sustainability genuinely drive profitability – at scale? The answer emerging from the room was a clear “yes” – but only if policy, data, design, and people are better connected.
Helena opened by naming the tension everyone feels: sustainability is expected, circularity is widely talked about, but margin and profit rarely sit at the centre of those conversations. Cat framed the challenge from WRAP’s vantage point: ambition is not the problem; implementation at scale is. Their goal for the session was to move beyond theory and unpack what’s working – and what’s blocking progress – across the value chain.
Regulation: catalyst or constraint?
With acronyms like ESPR, EPR, DPP and CSRD swirling around, many in the room – especially startups and SMEs – described a landscape that feels confusing, costly, and overwhelming. Cat urged businesses to use emerging European regulation as a practical design framework, particularly around durability, recyclability and digital product passports, rather than waiting for perfect clarity.
Helena stressed that data is the bridge: much of what’s needed for compliance already exists somewhere in the business, just fragmented in spreadsheets, invoicing systems, or with suppliers. The first step is simply to locate, organise and standardise that information so it’s ready when regulation bites.
The business case
Cat pointed to evidence that circular products and services are growing twice as fast as conventional models, with brands using resale, rental and repair to extend customer lifetime value and attract new audiences. Examples ranged from IKEA’s resale models to fashion upcycling of deadstock into higher-priced, unique pieces by Universal Music Group.
What is needed is a shift from a narrow view of margin to a more holistic business case that includes regulatory risk, brand equity, customer acquisition and retention, and the value locked in existing products and materials.
Designers in the room commented that they are ready to solve for durability and circularity, but need the rest of the organisation aligned. Embedding durability, repairability and second-life potential at the design stage is essential if resale, take-back and rental models are to work commercially.
Digital product passports were highlighted as a future enabler – not only for compliance, but as a living channel to guide customers on care, repair, take-back and resale options throughout the product’s life.
Finally, the discussion returned to something very human: stores and frontline teams. Physical retail was framed as an underused lever – a place to build community, explain why products cost what they do, host repair and resale services, and turn sustainability into a tangible experience.
Helena closed with a challenge and an invitation: “We’re at an opportunity in industry where we get to write how we operate for the future. So yes, it’s really hard, and yes, it’s really overwhelming. But what an opportunity that in 10 years’ time, in 20 years’ time, we can look back at how industry operates, the thing that you and your business navigated through, and how the industry really pushed a new way of working. And I think that, to me, that’s really exciting.”
