Funded project – Kathmandu apparel life extension pilot
Kathman-REDU is a pilot program for product renewal. Kathmandu is intercepting used, damaged or faulty products that would normally be destined for landfill. Instead, the pilot will focus on repurposing items by repairing, washing and relabelling them to be resold under the Kathman-REDU label at Kathmandu retail stores in Victoria.
Background
Kathmandu, a renowned global outdoor brand, is dedicated to crafting top-quality outdoor gear that enhances outdoor experiences. In 2019, as part of their mission to leverage their business for positive impact, Kathmandu achieved a B Corporation (B Corp) certification, becoming the largest outdoor retailer in Australia with this distinction. As a certified B Corp, Kathmandu prioritises the well-being of workers, customers, suppliers, community, and the environment in their decision-making processes.
To address the issue of textile waste, Kathmandu has launched Kathman-REDU, an innovative project aimed at repairing and repurposing used, damaged, or faulty products. By adopting this circular approach, Kathmandu is tackling the industry-wide challenge of unsellable faulty and returned items. Kathman-REDU exemplifies Kathmandu's commitment to responsible practices and their dedication to finding effective solutions for waste reduction.
The problem
Textile waste poses a significant challenge not only on a global scale but also within the apparel sector. The volume of discarded textiles continues to escalate, contributing to environmental degradation and resource depletion. Kathmandu, as a responsible player in the industry, acknowledges the gravity of this issue and has taken proactive steps to address it.
Kathmandu has embraced the practice of donating their excess stock to charitable organisations. By partnering with charities, they ensure that their unused garments and textiles reach those in need, providing essential clothing to individuals or communities who may not have access to such resources.
The project
The Kathman-REDU project introduces a fresh concept for consumers, complementing Kathmandu's existing methods of repurposing excess stock through clearance, charity donations, and staff sales. The core idea behind Kathman-REDU is to redirect used, damaged, or faulty products that would typically be destined for recycling, down-cycling, or landfill.
Instead, these items undergo a thorough process of repair, washing, and meticulous labelling as 'Kathman-REDU'. The project aims to extend the life of their product range to ensure that they continue to be valued and enjoyed by consumers.
The project aligns with Kathmandu's commitment to minimising waste and promoting sustainable consumption practices. It serves as a pilot initiative within Kathmandu’s broader circular approach by exploring viable solutions to tackle the industry-wide challenge of unsellable faulty products and returned items that cannot be resold.
Through the project, Kathmandu intends to demonstrate viable alternative options, showcasing textile waste reductions through diverse initiatives. It reflects Kathmandu’s dedication to a circular economy and ongoing efforts to address waste challenges within the apparel industry.
Project progress
| Key deliverables | Status |
|---|---|
| Kathmandu product feedstock for renewal, which includes quantifying and processing the number of units that will undergo the renewal stage. | Complete |
| Renewal production process: Batch 1 includes cleaning garments and repairing items that are faulty or damaged as part of the first iteration of this process. | Complete |
| Renewal production process: Batch 2, is the second iteration of processing garments and assessing the items for progressing to the retail stage. | In progress |
| Sales, marketing, and project evaluation includes developing a marketing and merchandising campaign to launch sales of Kathman-REDU items. Prepare final report by undertaking project evaluation to determine how targets and outcomes have been achieved. |
Challenges
Scale and systems
Shifting the mindset of internal staff to adapt and reverse engineer regular processes to deliver a circular business model, which is challenging for well perfected linear business model. Transitioning to a circular model requires many micro innovations and creative thinking to adapt tried and tested processes.
Creating unique tracking numbers for products while also categorising them for retail. The project team developed a limited range of Stock Keeping Units (SKUs) and explored an expansion. Retaining the repair history beyond the repair stage is also being investigated.
Valuing renewed products and market pricing
Transforming faulty or worn products into valued items has been a significant component of the project. Accurately pricing renewed products in the market requires retail expertise and trial and error. It's an ongoing process, where returning products to the market prevents them from being wasted or recycled.
Insights
In March 2023, Kathman-REDU was launched as a pilot program in one store in Richmond, Melbourne. The store served as a testing ground to enhance the customer experience before expanding the program to 3 additional stores in Melbourne: South Wharf, Frankston, and Galleria. Alongside the expansion, a social campaign will be launched to inform customers about Kathman-REDU's process and value.
Communication plays a vital role in highlighting the benefits of Kathman-REDU. Continuous learning and reflection are driving the improvement of the pilot project as Kathmandu aims to make the program a sustainable contributor to adopt circular economy initiatives and enhance their product and service offerings.
A comprehensive analysis of the pilot project's outcomes will guide future planning to ensure the lasting success of Kathman-REDU.
From the grantee
“Kathmandu and our parent company KMD Brands, are honoured to have been awarded a grant from the Circular Economy Business Innovation Centre (CEBIC) for the Kathman-REDU project. It's a huge win for our team and a significant step forward in our mission to be a more sustainable company, by introducing more circular initiatives.
"Receiving this grant is more than just a financial boost, it’s also an acknowledgement of the hard work and dedication our team has put into creating a more circular future. The recognition from CEBIC is a validation of our efforts and will inspire us to continue pushing the boundaries of what is possible in our industry.
"We believe that the circular initiatives we are exploring (including Kathman-REDU), have the potential to make a real difference, by reducing waste and minimising the impact of our operations on the environment. With this grant, we have expanded our existing impact, and demonstrated the benefits of how this could work for our business in the long term.
"As certified B Corporations, Kathmandu and KMD Brands are committed to minimising our impact on planet and people. The support from CEBIC is a powerful reminder that we are not alone in our mission, and that our efforts are valued and appreciated. We are proud to be part of a global community of organisations and individuals who are working towards a more sustainable future. We look forward to continuing to make a positive impact in the years to come.”
