Textile Challenges
Systemic gaps in data and logistics hindering Brazil's fashion circularity.
Based on the BVRio "Sustainable Textile and Clothing Industry" report (Dec 2023).
Core Challenge: The Data Gap
A primary finding is the critical lack of official data regarding textile waste generation in Brazil. Unlike e-waste or packaging, textiles lack a specific "Reverse Logistics Sectoral Agreement" at the national level, leading to invisible waste streams.
Infrastructure Bottlenecks
1. Reverse Logistics
- Current State: Fragmented and voluntary.
- Impact: High cost for brands to recapture garments.
- Result: Most "recycling" is actually downcycling (rags, insulation) rather than fiber-to-fiber recovery.
2. Scalability of New Models
- Resale & Rent: Tested by major retailers but often shuttered due to low profitability.
- The Missing Link: Without tax incentives (like VAT reduction for second-hand goods), operational costs of cleaning/sorting eat margins.
Required Investments
The report calls for a dual-investment strategy:
- Production Chain: Technologies for mixed-fiber separation.
- Recycling Chain: Industrial-scale mechanical and chemical recycling facilities.
Policy Recommendations
To make circularity viable, the sector advocates for:
- Tax Incentives: Reduction of ICMS/ISS for circular services (repair, resale).
- Extended Producer Responsibility (EPR): Formalizing targets for textile recovery.
Relevance to Cüte
Cüte fills the "financial viability" gap by decentralized logistics. By keeping items in the peer-to-peer loop, we bypass the heavy industrial cost of sorting/warehousing that makes brand-led take-back programs expensive. We essentially act as a distributed sorting mechanism.