Why fashion is doubling down on sustainability even as value-seeking shoppers ignore the pitch

Key points

• In this article KER-FR PNDRY HMRZF BC-IT Follow your favorite stocks CREATE FREE ACCOUNT Fashion recycling startup Circ separates cotton and polyester from clothing that can't be repaired or resold and sells it back to the clothing supply chain.
• Courtesy: Circ COPENHAGEN, Denmark — As the retail world navigates the first half of 2026, a strange paradox has taken hold of the global fashion industry.
• On the one hand, the runways of Paris and the digital storefronts of fashion giants are flooded with "green" messaging.
• Danish jeweler Pandora is focusing on lab-grown diamonds, Kering 's Gucci is touting "circular" polyester, and major retail apps are rolling out resale platforms.
• But despite the marketing blitz, fashion executives admit that most consumers, battered by a persistent cost-of-living crisis, aren't willing to pay more for an ethically produced product, or "sustainability premium." Instead, shoppers have become increasingly selective and price-sensitive, looking for value...