Decarbonization actions starting with "renting." What new choices for consumers does the circulation of clothing create?

With extreme weather events occurring frequently worldwide and the global average temperature in 2024 rising by approximately 1.5°C compared to pre-industrial levels, the impacts of climate change are reaching unprecedented severity. In Japan, while the government and businesses are advancing various measures toward achieving a decarbonized society, overcoming this challenge cannot be done without behavioral change from each individual consumer.

Through its "Consumer Survey on Carbon Neutrality" targeting 50,000 people nationwide, Dentsu Inc. continuously uncovers the actual state of consumer awareness and behavior regarding climate change. The 14th survey revealed disparities in interest and the diversity of how information reaches people, showing that changing behavior requires multiple projects and communications tailored to individual interests.

This series features companies and organizations participating in the Ministry of the Environment's "Deco-Katsu" (a national movement to create new, fulfilling lifestyles that contribute to decarbonization) and actively supporting behavioral change. We will discuss these topics with our guests, incorporating survey findings.

This time, Dentsu Inc.'s Takeshi Araki spoke with Tatsuya Tabata and Akiko Noya, who operate the fashion rental service "AnotherADdress" launched by Daimaru Matsuzakaya Department Stores. They discussed the background behind launching the service, their efforts within Deco-Katsu, and insights on encouraging behavioral change among consumers.

Find the latest Carbon Neutral Consumer Survey results here

 

Creating a sustainable future from the joy of "borrowing" fashion

Araki: First, could you introduce the AnotherADdress initiative?

Tabata: We operate AnotherADdress, a monthly subscription fashion service. The background lies in the history of our department store industry, which grew by mass-purchasing and selling goods. In the past, when goods were scarce, providing new products was a means to enrich people's lives. However, today goods are abundant, and the environmental burden they create has become a significant concern.

In this context, we sought a business model suited to the present era while leveraging our accumulated assets and expertise. This led us to a new option: "renting." We launched AnotherADdress as a new venture, driven by the desire to realize a "praiseworthy business" that allows people to enjoy fashion more freely while also being environmentally conscious.

Araki: Could you tell us why you decided to launch this new venture as a department store?

Tabata: From a business perspective, the department store industry has seen sales halve over the past 30 years since the peak of the bubble economy, facing an extremely challenging environment. Since our origins as a kimono shop – the foundation of retail – we have adapted our business model at each turning point in the times. I believe we are now facing the need for another significant change.

We particularly feel we missed the wave of e-commerce. We were too focused on in-person customer service and failed to adapt sufficiently to the shift toward online shopping. Reflecting on this, when considering how to prepare for the next shift in consumer behavior, we thought an era might come where people seamlessly switch between "renting" and "buying." Subscription services are one way to respond to that change.

We drew inspiration from pioneering fashion-subscription models in the US. Companies like Rent the Runway, Stitch Fix, and Le Tote were gaining significant traction in this space, providing valuable insights. Initially, we explored business development by investing in them and considering joint ventures.

That said, internally, there were many concerns like, "Isn't it difficult for a retailer to handle a rental business?" so we couldn't launch the service immediately. However, driven by the mission to create a sustainable new revenue stream for the future, we steadily laid the groundwork. The result of that effort is AnotherADdress.

Araki: So you spent a long time sowing the seeds before commercialization. I imagine the service is actually contributing to reducing environmental impact. Do you have any concrete figures?

Noya: Data shows that using AnotherADdress helps suppress clothing purchases equivalent to about 13 garments per person annually. The greenhouse gas reduction effect is also clear, contributing to a reduction of approximately 250kg of CO2 per person per year. This is equivalent to the amount of carbon dioxide absorbed by 18 cedar trees in one year, or the CO2 emissions generated from sourcing materials to producing seven garments. Furthermore, calculations show that for clothing items produced through upcycling within AnotherADdress's circulation, CO2 emissions across production, logistics, and use can be reduced to one-twenty-fifth of those required for manufacturing new garments. Seeing this data, I feel AnotherADdress represents a meaningful challenge—enabling people to enjoy fashion while contributing to the environment.

Spreading a system that prevents clothing waste throughout society. AnotherADdress's roop project

Araki: Could you tell us more specifically about the behavior change project undertaken as part of the Ministry of the Environment's Deco-Katsu initiative?

Tabata: As mentioned earlier, through AnotherADdress, we created a system where people enjoy fashion as an experience rather than through purchase. We thoroughly manage product storage, cleaning, and repairs in-house. When items deteriorate, we re-dye them, remake them, or connect them to designer upcycling. Items that cannot be reused are ultimately recycled. In fact, over the past four years, we have operated without discarding a single piece of clothing, which gives us a strong sense of accomplishment.

However, this alone has limited impact on the industry as a whole. That's why we've launched a new initiative: "roop," a clothing circulation and upcycling project. This is a new form of fashion experience where consumers donate cherished garments, designers reconstruct them, and they circulate again through AnotherADdress. With the themes of reducing clothing waste, extending lifespans, and preserving craftsmanship, we aim for a society where your treasured clothes continue to circulate and connect to the future.

For the project selected by Deco-Katsu, approximately 2,000 garments were collected in 2024 from department store locations and AnotherADdress users. Over 120 designers entered between September and October. Following material selection sessions in Tokyo and Osaka, about 100 designers created upcycled pieces.

The culminating event, "roop Award 2024-2025," was held within the lifestyle exhibition "NEW ENERGY TOKYO 2024." Featuring a fashion show by the 20 designer teams who passed the initial screening, along with an upcycled collection exhibition, panel discussions, talk sessions, children's workshops, and live upcycling demonstrations by student designers, we felt we successfully shared the importance of "using clothes to their fullest potential" and "experiencing the value of upcycling" with many attendees.

Araki: This must have been a very large project. Were there any particularly challenging aspects during planning and execution?

Noya: Since it was our first attempt, gaining internal understanding took time. We held collection events at seven Daimaru Matsuzakaya department store locations, but enthusiasm varied by store. Initially, there were skeptical voices wondering, "Will customers really donate?" However, the fact that many customers resonated with this initiative and actually came out to participate was a major achievement. It gave us the conviction that if we refine how we communicate, the message will definitely reach people.

Araki: Regarding refining the message, what specific approaches did you consciously focus on?

Tabata: We focused all our energy on getting the word out first. We made every effort to deliver information in advance through every channel available: the department store app, website, email newsletters, and more. We knew customers likely wouldn't have clothes ready to donate when they first learned about it in-store, so the key was raising awareness beforehand.

Noya: Also, since many customers who visited the first venue were drawn by the upcycling work of students and young designers, we had students actually staff the counters at subsequent locations. Since department store customers often include an older demographic, many seemed moved by the message that the next generation is involved in creating the future of fashion.

Araki: I'm also curious about the reactions from within the company and from customers. What kind of feedback did you receive after the event?

Tabata: Our company president participated as a judge for the fashion show and told us, "Please continue this next year." We also invited customers who donated clothes to the venue, and after the event, we received heartening messages like, "I hope more people learn about this initiative." The fact that customers resonated with it is the most significant feedback we could receive.

Araki: Through this real-world event, you must have gained insights that online couldn't provide, right?

Tabata: Exactly. Hearing users who visited our booth directly say, "I use your service," was truly gratifying. Seeing and touching the clothes in person increases reassurance and satisfaction. With over 440 brands available, we reaffirmed how crucial the real-world experience is for customers to find pieces that suit them.

Currently, 70% of AnotherADdress users are in the greater Tokyo area, mostly women within the 23 wards. However, awareness among upper-middle-class women in Tokyo is still only around 9%. To reach more people with our service's appeal, establishing a flagship-like space in the city center feels like a key challenge and direction we should pursue.

Sustainable fashion spreads through enjoyment. Insights from survey results reveal consumers' realities

Araki: I'd also like to touch on the findings from our "Consumer Survey on Carbon Neutrality." This is an ongoing, fixed-point observation conducted roughly every three months, tracking how consumers currently perceive climate change.

For the 14th survey, we collected free comments from 50,000 people nationwide regarding the fact that global average temperatures reached approximately 1.5°C above pre-industrial levels in 2024. The results showed that nearly half of respondents expressed little concern about this temperature rise. On the other hand, a significant number felt anxious about their children's future or held skeptical views about climate change itself, clearly demonstrating the truly diverse perspectives among consumers.

Among the questions were those concerning sustainable fashion. For instance, while many respondents cited "thinking it would be economically beneficial or advantageous" as their reason for adopting a decarbonized lifestyle, the response rate for "thinking it would help people in need" was notably higher specifically for sustainable fashion. This suggests that beyond mere cost savings, many feel a "social value" – the idea that their worn-out clothes could be useful to someone else. This emotional connection unique to the fashion realm may be influencing behavioral change.

Tabata: I do feel that simply saying "Let's do it because it's good for the environment" is insufficient to change consumer behavior. That's precisely why I believe the sequence is crucial: first, customers need to see benefits like "this seems fun" or "I want to try this," and only then realize it's also good for the environment. This has been a core principle for us since AnotherADdress's inception, and I deeply resonate with Deco-Katsu's approach.

Araki: In fashion, enjoyment is often the initial hook, right?

Tabata: I agree. It shouldn't start with sacrificing comfort for the environment, but rather with the desire to wear something new. However, many people face barriers like lack of money, time, or knowledge, preventing them from trying.

But if we can lower those barriers—like someone who never wears skirts trying one, or someone who only wears black daring to wear red—that creates change. And when people around them say, "That looks great on you," or "You look stylish," those small experiences accumulate. I believe that's how the joy of fashion spreads.

If, within that process, we can also contribute to the environment, that would be ideal. For us, rather than emphasizing environmental benefits upfront, we prioritize the inherent joy of fashion itself, valuing an approach that naturally leads to sustainable contributions.

That said, looking at this survey, awareness of sustainable fashion is still quite low, ranking sixth from the bottom. Even awareness of fashion subscriptions themselves is low, with over half of people unaware. Expanding this awareness is a major challenge for us.

Araki: Indeed, that high initial barrier is probably a common challenge across all fields. Once people learn about it and try it, many will likely enjoy continuing. The key is creating that initial opportunity. The idea you mentioned earlier about establishing a flagship physical location feels very effective for raising awareness. Just having a place where people can actually experience it makes it feel much more accessible.

Noya: That's right. Since roop is still in its first year, we've been feeling our way. But based on the reflections and lessons learned during this first year, we want to approach the second year in a better way. Many people actually say, "If it's happening next year, I'd like to participate," so I believe continuing will help spread understanding and interest.

To spread circular fashion

Araki: Finally, could you share AnotherADdress's future outlook?

Tabata: What we constantly think about at AnotherADdress is creating a society where people can more freely choose between "buying" and "borrowing" as consumption behaviors. Currently, we focus mainly on fashion and some art, but in the future, we see potential to expand into all genres—furniture, appliances, outdoor gear, sports equipment, and more. It's not about rejecting buying, but creating a society where buying and borrowing coexist, enabling better choices. This would improve the quality of consumption and, as a result, reduce environmental impact. That's the future we aim for.

At the same time, we also place great importance on supporting self-realization through the medium of fashion. We want to be a service that allows people to express their individuality while operating an environmentally commendable business model. We believe this will help spread a culture of using good things for a long time, ultimately enhancing the value of the entire retail market.

In the future, we aspire to become a one-stop solution handling everything from collecting unused items and connecting them to their next owner, to offering repair and cleaning support, and ultimately enabling resource circulation through recycling. To achieve this, we must establish a sustainable system that is also economically viable.

Our biggest challenge right now is the industry's limited understanding of "sustainable fashion" and "fashion subscription" models. That's precisely why we want to communicate our value to more people through physical store expansion and collaborations with experts and influencers from other industries.

Noya: Regarding roop, we plan to deepen discussions within the team based on our first year's activities. To naturally present upcycling as an option to our customers, we intend to continue our careful, deliberate efforts. Until now, options for unwanted clothing primarily centered around recycling or donations aimed at earning coupons. We believe it was significant to introduce a new path: "upcycling by designers." However, the reality is that many people have yet to encounter upcycled items, and a certain number still feel hesitant.

The experience at AnotherADdress should serve as a catalyst to overcome this hurdle. By actually trying on the garments, customers can appreciate the value of upcycling, ultimately expanding the cycle of clothing. Aiming for this future, we intend to focus on higher-quality design and operations in the coming year.

Tabata: Japan's fashion industry once produced world-renowned designers like Yohji Yamamoto and Rei Kawakubo, but we've since lost some of that momentum to other countries. This stems from a situation where both retailers and consumers lack purchasing power, meaning only marketable items can reach the market. Consequently, there is an overwhelming lack of "takeoff opportunities" for talented young designers to break into the industry. This is precisely why we believe creating platforms for young designers to debut, through opportunities like the roop Award, is a crucial role. Doing so nurtures new talent and maintains diversity across the entire industry. We aim to continue our efforts, striving to build a system that supports the future of Japanese fashion, one that goes beyond being just a show.

Araki: AnotherADdress's initiatives were rich with implications that go beyond the fashion industry, prompting us to rethink the very nature of future consumption. I look forward to following their further developments. Thank you for today.

Latest Carbon Neutral Consumer Survey Results Here