The fashion industry accounts for 8-10% of global emissions, with production doubling since 2000. Circular business models (CBMs) like resale, repair, rental, and upcycling help reduce environmental impact by extending clothing lifespan. Displacement rates measure how often CBMs prevent new purchases—peer-to-peer resale displaces 64.6%, repairs 82.2%, rentals 48%, and upcycling 57%.

CBMs significantly cut emissions: buying second-hand jeans saves 30 kg CO₂e, while repairing a T-shirt saves 7.5 kg CO₂e. However, inconsistent measurement has hindered adoption, making standardised methodologies essential. WRAP’s study introduces a robust approach to track displacement rates reliably.

Research methods include consumer surveys assessing if a CBM transaction replaced a new purchase, wardrobe studies, and market data comparisons. Case studies from platforms like Depop, eBay, and Vestiaire Collective validate findings. A UK pilot study refined survey clarity, addressing impulse buying and consumer uncertainty.

To maximise CBM impact, industry-wide adoption of standardised measurement is critical. Accurate tracking enables brands to credibly report emissions reductions, helping the fashion sector transition to sustainability.