Funded project – Kathmandu apparel life extension pilot
Kathman-REDU was a pilot program for product renewal. In the pilot Kathmandu is intercepted used, damaged or faulty product that would normally be destined for landfill, and instead repurposed it by repairing, washing and/or relabelling it so it can 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 certification as a B Corporation (B Corp), 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.
The problem
About 200,000 tonnes of textile waste ends up in Australian landfills each year. 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.
The project
The Kathman-REDU project introduced 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 of following that path, these items undergo a thorough process of repair, washing, and labelling as 'Kathman-REDU'. This project aimed to extend the life of their product range to ensure that they continue to be valued and enjoyed by consumers.
This 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 this project, Kathmandu intended on demonstrating viable alternative options and the project will showcase textile waste reductions through diverse initiatives.
Project progress
| Key deliverables | Status |
|---|---|
| Kathmandu product feedstock for renewal, this includes quantifying and processing the number of units that will undergo the renewal stage. | Complete |
| Renewal production process: Batch 1 – This 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 – second iteration of processing garments and assessing the items for progressing to the retail stage. | Complete |
| Sales, marketing, and project evaluation. This 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. | Complete |
Challenges
Scale and systems
Transitioning to the circular requires many micro innovations and creative thinking to adapt tried and tested processes for this new model. Creating unique tracking numbers for products while also categorising them for retail. The project team developed a limited range of Stock Keeping Units (SKUs). 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 this project. Accurately pricing renewed products in the market requires retail expertise and trial and error.
Outcomes
In March 2023, Kathman-REDU was launched as a pilot program in one store in Richmond, Melbourne. This store served as a testing ground to enhance the customer experience before expanding the program to an additional store in Melbourne: Galleria.
The Kathman-REDU pilot provided the opportunity to demonstrate viability for an innovative circular solutions business model that extends the lifecycle of finished garments, avoids textile waste, and provides profitable outcomes for local large apparel businesses like Kathmandu.
Over the project pilot:
- Restored 4,220 units that would have originally been destined for landfill
- Diverted 2.1 tonnes of textile waste from landfill
- Project allowed evaluation of viability and consumer appetite for renewed products
Personal statement
“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, and we look forward to continuing to make a positive impact in the years to come”.
