Sustainability LIVE Dubai: Chalhoub Group CSO Keynote
In an industry responsible for 10% of global CO₂ emissions, the fashion sector has become a major contributor to climate change.
Florence Bulte, Chief Sustainability Officer at Chalhoub Group, opened the session by outlining the scale of the challenge, noting that fashion is the second-largest consumer of the world’s water supply and that 85% of textiles end up in landfills.
Less than 1% of materials are currently recycled.
The talk explored how luxury brands are responding to these pressures by embracing circularity. For retailers and distributors like Chalhoub Group, although direct influence over manufacturing is limited, there are significant opportunities in extending product life cycles.
“[We] produce a very interesting model for us because we have much more influence on extending the product life cycle,” explained Florence Bulte, Chief Sustainability Officer at Chalhoub Group.
Circular fashion models, such as resale, repair, rental and recycling, offer a means to reduce waste and maximise product value.
Distribution-led approaches like e-commerce and pre-owned resale platforms are already gaining traction.
“[Circularity] is about reinventing and reducing waste, innovating and modelling to make repurposing possible,” said Florence.
Resale market trends across the DCC
Zooming in on the DCC region, Florence noted that while global ecommerce is booming, the market share in the DCC remains small, under 3% globally and just 5% of the luxury segment compared to 31% in the US and 28% in Japan.
Nevertheless, signs of change are emerging.
Gen Z consumers are leading this shift, drawn by affordability, sustainability and the thrill of rotating their wardrobe more frequently.
In 2022, the luxury ecommerce market in the DCC was valued between US$480m and US$700m, expected to grow by 10–15% to US$780m by 2026.
Bags (20%) and watches (18%) lead the category breakdown, with jewellery, apparel and footwear following close behind.
Cultural stigma and higher purchasing power among older generations remain significant barriers, but the growth potential is clear.
One third of DCC consumers have already bought pre-loved luxury items, and another third intend to do so, primarily driven by availability and financial motivations.
Overcoming resale barriers and driving circular innovation
Authenticity remains a primary concern.
“The fear of counterfeit products is the most significant barrier to buying pre-loved items,” said Florence. To build trust, platforms must invest in authentication technologies and transparent resale processes, such as blockchain tracking and certificates of authenticity.
Improving item condition and providing clear product descriptions are also vital, along with addressing emotional resistance to pre-owned goods.
“We need to focus on storytelling the unique history of a vintage item, or its sustainability,” the speaker explained.
Beyond consumer perceptions, several platform-led initiatives have emerged.
Level Shoes, for example, now offers a pre-loved service for bags, shoes and accessories, alongside a buyback programme and cobbler repair service – the only premium shoe repair service in the Middle East.
The group also launched SoMade, a sneaker brand built on just-in-time production with limited edition drops to reduce overproduction.
In another example, the January 2024 launch of Lonyuno – a jewellery rental model in the UAE – allows customers to rent items for 20 days at 20% of their retail value.
This initiative has been particularly popular with customers seeking short-term luxury without the environmental impact of overproduction.
The presentation concluded with a call to build seamless omnichannel experiences where new and second-hand markets coexist.
“[We must] encourage customers to return used products, keep them in the loop, reduce waste and foster a culture of reuse,” concluded Florence.
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