Reformation:

An Analysis of the Brand Whose Business Model

is Built on Sustainability.

By: Kelsie Lichtcsien

Reformation was launched in 2009 by founder Yael Aflalo after several events drove her

desire to make a difference. She was learning about the environment and looking at the traditional

apparel business model and knew there had to be a way to innovate with sustainability at the

forefront. Reformation uses both sustainable and vintage fabrics to create chic and feminine

products that have garnered a following of fashion-savvy, eco-friendly consumers. It is said that,

“the brand’s ethos is to combine ethical clothes, really great value and dramatic improvement with

regards to sustainability” (Kaplan, 2015). Reformation could also be described as the brand of

today for its implementation of emerging retailing and market place trends at the root of the

business model. Sustainability, body inclusivity, digital customer experience, and omni-channel

are key trends which can be exhibited at Reformation. This paper will assess Reformation’s

sustainability practices, analyze their business model, (specifically: branding, communications,

and retailing), in accordance to current research and retailing trends.

Sustainability- The Ethos of Reformation Reformation was founded with the unique purpose of

bringing sustainable fashion to everyone. In fact, they

claim to put suitability at the center of everything they

do (Sustainability at Reformation, n.d). The fashion

industry is a major contributor to problems regarding

both social and environmental sustainability.

Challenges exist throughout the entire life cycle of a

product with negative impacts being exacerbated by the

ever-increasing demand and consumption of clothing

(Pedersen and Andersen, 2015). While the trend of

sustainability has been growing in popularity within the

fashion industry, few brands keep this mission at their

core. At Reformation, sustainability actions can be

observed in every aspect of the business model and

though they admit to not having all of the answers, they

strategically focus their efforts (Sustainability at Reformation, n.d)

Fields of Focus With sustainability at the center of their business model, it is important to first audit their

sustainability practices in order to further assess Reformation’s business model. Their

sustainability efforts are meant to impact four main areas: product, people, planet, and progress. I

will further develop these focus areas below in conjunction with sustainability research. However,

to view Reformation’s complete 2019 Sustainability report please see Appendix A. For their 2019-

2023 sustainability framework see Appendix B.

Product

When it comes to the manufacturing process, or, product as Reformation says, the Natural

Resource Defense Council has said that textile production is one of the most polluting industries

in the world (Pederson et.al, 2015). Emphasizing the need for more environmentally conscious

sourcing and production of textiles and fashion goods. Beginning with sourcing of materials,

Reformation partners with suppliers who share their vision of sustainability and meet their

standards for social responsibility and safe, non-toxic, and better materials. At Reformation, all

product resources tie back to the Earth and they try to source as sustainably as possible. For

example, as outlined on their website, Tencel™ Lyocell, Tencel™ x Refibra™, Organically grown

cotton, and Conventional linen made up 70% of their textile resources in 2019. They also source

locally as often as possible. During production, 65% of the cutting and sewing is done locally in

Los Angeles with the majority of products manufactured in their own factory and the remaining

products manufactured by partners who share the same sustainability standards. During the dyeing

and finishing stage, which is characterized by Pederson et.al, (2015), as being one of the most

environmentally harmful stages of textile production, Reformation tests all of the inks and

pigments against a restricted substance list to ensure there are no hazardous substances in their

products. Furthermore, their solid silk and velvet production is Bluesign certified meaning they

only use safe input chemicals, monitor their air and water emissions, and ensure worker safety.

The product cycle concludes with the product packaging. Reformation uses 100% recycled paper

and compostable bio-based film packaging, paper hangers in-store, and reusable garment bags.

Finally, Reformation is piloting traceability programs in the supply chain process allowing

customers to track their integrity and understand the impacts of fashion production. (Sustainable

practices, n.d.)

People

Regarding social aspects, or, people as Reformation says, the fashion industry is notorious

for having poor working conditions specifically in developing nations with tragic events such as

the collapse of Rana Plaza reminding us of the voices and human lives behind our consumption

choices (Pederson et.al, 2015). To begin, Reformation strives to maintain social responsibility and

accountability regarding their employees and partners. They vet potential suppliers and partners

per the Sustainable Partners Guide and are leading a living wage initiative to enhance working

conditions in their main facilities. They also provide health benefits to all full time employees and

encourage the use of public transportation by supplying metro passes to all HQ employees. As of

2019, Reformation is working to become an affiliate of the Fair Labor Association in order to

communicate their commitment to transparency and accountability. They also offer monthly paid

days off for employees to volunteer and provide on-the-job training. They are currently undergoing

unconscious bias training to further diversify and become more inclusive. Currently, over three-

quarters of their management team is comprised of women and people from underrepresented

populations. (Sustainable practices, n.d.)

Planet

The focus of environmental sustainability is, indeed, the planet. As stated previously, the

textile industry is one of the most polluting industries in the world and Reformation strives to keep

their environmental impact at a minimum. To begin, they invest in green building infrastructure in

order to minimize waste, water, and energy footprints. Though they limit their footprint, they offset

when necessary and have been 100% carbon neutral since 2015. On top of being carbon neutral as

a business, they encourage customers to offset their carbon emissions by selling carbon offsets

directly through the Reformation website in an easy to understand, tangible way. As of 2019,

Reformation has worked with Canopy to ensure that all forest products are sourced from forests

that are conserved, protected, and restored. The planet is

thought of in the design process because they design for

product longevity. As discussed by Pederson et.al, (2015),

the use and care stage of the product lifecycle comes with

environmental impacts. Laundering alone has been shown

to have the greatest impact on society; being responsible for

upwards of 82% of energy use during the life cycle of an

item (Pederson et.al, 2015). Reformation recognizes this

and designs for durability and quality to extend wears

between washing and has a goal of offering 60%+ of their

products hand or machine wash safe. (Sustainable

practices, n.d.)

Progress

The progress area of focus basically refers to Reformation’s commitment to constantly

improving, leading, and inspiring with a sustainable way to be fashionable. They are constantly

investing in the future in order to push sustainability forward. Their progress stems from circularity

goals and actions, improved sustainable sourcing practices, and continuing to engage and educate

the public. The key ways they educate are: producing an annual sustainability report, curating ref

action programs to promote customer activism, and leading within openness and transparency

about the effects of fashion production, where they are, and what they can improve. They have

also developed guidance materials for suppliers and retail teams to reduce energy, water, and waste

generation. (Sustainable practices, n.d.)

Circularity Evaluation

When it comes to circularity, Reformation has taken

many actions working towards a closed loop.

Though, is not there yet. As previously mentioned,

Reformation designs for longevity through product

durability and quality. Which is a good approach to

lessen the amount of clothing development.

Furthermore, “life cycle assessment has found that

extending garments' active life via design,

maintenance and re-use of clothing is an effective

method of reducing the environmental sustainability

impacts of the clothing industry” (Goworek, et.al.,

2018). Lack of convenience is a typical reason for

not recycling lesser quality textiles and results in

unsustainable landfill disposal. However, by

focusing on using quality materials that can be

conveniently repurposed, Reformation products are more likely to be recycled therefore,

contributing to the circular economy (Goworek, et.al, 2018). Reformation has also thought about

the circularity of each specific fabric used. Their favorite fabric, Tencel™, has a closed loop

production process meaning, “over 99% of the non-toxic solvent is recycled and pushed back into

the system instead of being flushed out as wastewater” (2019: Year in review, n.d). In 2019, 24%

of their material usage was from Tencel™ or Tencel™ blends (2019: Year in review, n.d).

Beyond their focus on quality design, Reformation also has specific goals to increase

circularity through recycling. They recycle through the following channels: RefRecycling,

RefVintage, vintage fairs, Rent-The-Runway, and thredUP. In 2019, Reformation was able to

recirculate 484,751 garments (2019: Year in review, n.d). Through the partnership with thredUP,

Reformation customers are able to directly sell old items to thredUP. Customers earn a

consignment payout and credit to Reformation and the clothes have a second chance to be loved.

RefRecycling is a program that allows customers to easily send in any clothing, (not just

Reformation branded items), to be easily reused or recycled. They also encourage vintage shopping

by curating an annual collection of vintage items, RefVintage, that have been reworked by their

seamstresses to feel like new. Finally, through a partnership with Rent-The-Runway, Reformation

extends the life cycle of garments by allowing them to be rented by many consumers. (2019: Year

in review, n.d.) Though, these circularity initiatives do create a positive impact, it is worth noting

that Reformation still lacks complete control over the final disposal (Turunen, 2020; Ellen

MacArthur Foundation, 2018).

Reformation has education programs in place to aims to train their product developers and

design teams to design for circularity. Furthermore, they have joined the Jeans Redesign project

by the Ellen MacArthur Foundation’s Make Fashion Circular Initiative. This initiative means that

the team is designing with circularity in mind in terms of durability, material health, recyclability,

and traceability. Currently, about 15% of their production is made out of deadstock fabric and 2-

5% is made of repurposed vintage clothing. They are also looking into offering repair programs to

extend the use of garments. Finally, Reformation has a goal, which they have far surpassed, to

reuse or recycle 100,000 garments each year and they are building a program to reduce, recycle,

and upcycle fabric scraps. (2019-2023 framework.)

Business Model Within this section, I will explain Reformation’s business model in accordance to the business

model canvas proposed by Pedersen & Netter, (2015). As the goal of this essay is to analyze

Reformation’s branding, communication, retailing, and implementation of market trends, I will

focus on the following categories: customer segments, relationships and marketing

communications, value proposition and branding, and retailing: channels and revenue streams.

Customer Segments

This component of the business model concerns the

characteristics of a company’s targeted customers

(Osterwalder and Pigneur, 2010). Typically,

sustainable brands tend to build brands on

sustainability initiatives, targeting the ‘ethical’

consumer (Pedersen & Netter, 2015). While

Reformation does target the ethically conscious they

don’t focus all of their efforts on this psychographic.

Instead, their target market can be described as eco-

friendly and chic Millennials ranging in age from

27-32 (Kaplan, 2015). Their target market aligns

well with research that shows Millennials and

younger are more concerned with climate change

than older generations (WGSN, 2018). Specifically, a 2018 Gallup analysis found that 70% of

Americans aged 18-34 were concerned about climate change whereas only 56% of Americans 55

and older shared the concern (Reinhart, 2019). A study by WGSN of 18-25 year olds revealed that

94% believe in climate crisis and 95% are willing to change their habits to fight global warming

(Gen Z: Climate Engagement). Though the WGSN study focused on results of a younger

demographic, these highly concerned consumers will soon be the age Reformation targets and

have the financial means to shop the brand.

Reformation’s mission is to bring sustainable fashion to everyone. That said, extended

sizes are another customer segment for the brand. It is estimated that 67% of American women

wear a size 14 or larger (Lamare, 2018). A separate study found that 57% of plus-size consumers

have difficulty finding stores that are inclusive to their size, 84% felt there was a smaller selection

in their size than others (Scaraboto and Fischer, 2012). Targeting the plus-size market creates huge

growth potential because in recent years, plus-size women have increased fashion spending at a

faster pace than their straight-size counterparts (Gunn, T). It is commonly believed that plus-size

women lack interest in fashion. However, according to a study by ModCloth, 81% of plus-size

consumers say they would spend more on clothing if they had more options (Reagan, C). So, in

their path to bringing sustainable fashion to everyone and becoming size inclusive, Reformation

is serving a customer segment that has been overlooked for far too long. Size inclusivity has been

a rising trend in the fashion industry alongside the body positivity movement being led by

Millennials and Gen Z (WGSN, 2018). In recent years there has been a huge push for fashion to

become inclusive. However, despite visible efforts, the industry still has a long way to go and it is

apparent that many actions have been more cosmetic, branding ploys rather than driving real

change (Kent, 2019). Because Reformation’s extended sizes are a permanent offering, it would

seem that they are truly aiming to make a difference. However, the selection of extended-size

clothing is still just a fraction of that offered in the main selection. Meaning they are inclusive but

still have some distance to embedding size inclusivity at the root of the brand.

In regards to targeting chic millennials, this focus fits nicely with the knowledge that

millennials are playful and more willing to experiment with fashion than older consumers (WGSN,

2018). Finally, we also know that millennials and younger enjoy the online shopping experience

and expect some level of omni-channel (WGSN, 2018). Therefore, it is concluded that

Reformation’s choice to target millennials is supported through their retailing.

Relationships and Marketing Communications

Companies develop and maintain customer

relationships in an excess of ways (Pedersen &

Netter, 2015). In the age of digitalization,

maintaining emotionally driven customer

relationships now requires more strategy than

ever before. Each communication channel must

be truly engaging and valuable to the customer

(Straker and Wrigley, 2016). Essentially, brands

should use these platforms to amplify the brand

image and translate it into a set of experiences.

Reformation’s main communication channels

are their stores, website, and social media

(primarily: Instagram, Facebook, and Pinterest).

A communication strategy that focuses on

digital mediums is appropriate for Reformation

because their target audience is Millennials who

are very digital in their daily lives (Straker and Wrigley, 2016). In terms of their website acting as

a communicative space, Reformation provides a plethora of information to consumers meaning

that the website provides many purposes far beyond the primary service of sales. Information

ranges from general knowledge on sustainability in the fashion industry, to detailed information

about their personal sustainability actions and goals. Customers can also easily sign up for the

email list and access garment care information.

According to Straker and Wrigley, (2016), “the ability to form relationships with customers

is critical for customer retention” and Reformation seems to rely heavily on Instagram to form

these relationships. Their Instagram account has about 1.6 million followers and posts receive an

average of 14,558 likes and 48 comments (Engagement Calculator). The profile includes

information on the company’s sustainability actions, eco-friendly tips, styling advice, behind the

scenes content, activism, project and collection information, and reposting of user-generated

content. Incorporating the customer as a driver to create and deliver value by re-sharing user-

generated content can be a very lucrative way to retain relationships (Straker and Wrigley, 2016).

Furthermore, “millennials are more influenced by peers than by anything that a brand may have to

say” (Straker and Wrigley, 2016). Research has also found that, “implementing customer emotions

at the center of a company’s business strategy can strengthen relationships and provide innovative

digital channel experiences” (Straker and Wrigley, 2016). In the case of Reformation, activism

posts can reach the emotions of the audience and bolster the relationships.

In terms of non-digital communications, Reformation also hosts and partners with a range

of activism events and hosts vintage sales for consumers. Specifically, they have organized a

beach clean-up at Playa Del Rey and spent a day volunteering with Kiss the Ground, a non-

profit organization that focuses on regenerative

agriculture (Sustainable practices, n.d.). In the digital

era, where direct human interaction is often

underestimated, event marketing is becoming an

important form of communication (Targosz, 2018).

Well targeted events bring together like minded

consumers and provide them with a tangible brand

experience. Relationship building can be very strong at

events as customers appreciate memorable experiences

and are likely to spread their positive experience to their

peers (Targosz, 2018).

Overall, Reformation successfully implements customer engagement strategies to

communicate their brand image as fashionable and sustainable. They educate consumers

about the harmful effects of the fashion industry in a simple and inspirational way while

keeping fashion at the forefront. For the most part, their posts have nothing to do with

sustainability and are product focused. Thus, establishing the brand image and not relying

on sustainability as a marketing tactic. Their communications exude the brand’s aesthetics,

provide value, and invoke positive responses towards the company that in turn form loyal

customers (Straker and Wrigley, 2016). Through Reformation’s various channels, customers

are brought together to be part of Reformation’s mission.

Value Proposition and Branding

A value proposition refers to the unique benefits a company offers to customers through

their products and services (Pedersen & Netter, 2015). In the case of Reformation, the key value

proposition is the ability to purchase fashionable products that also happen to be sustainable. With

this value proposition in mind, a brand strategy is then engineered to enter the marketing mix.

According to Holt, (2003), the brand is the product as it is valued in daily life and the action of

branding refers to the activities that shape customer perceptions. Though established with the goal

of combating climate change, Reformation strives to shape their brand image around their designs

with sustainability as a bonus. With the rise of sustainability as a market-place trend, greenwashing

has become popular amongst brands wishing to be seen as sustainable while still engaging in

unsustainable practices (Watson, 2016). Rather than greenwashing and using sustainability as a

marketing ploy such as some of their competitors, sustainability is a core tenet of Reformation.

That said, their design must set them apart.

As shown on the website, Reformation’s design mission it to produce effortless silhouettes

that celebrate the feminine figure. Furthermore, rather than basing designs around fleeting trends,

the designers think about what women really want to wear. Then, the team sources the most

beautiful and sustainable fabrics possible in order to bring their designs to life (Our stuff –

Company, n.d). This notion of establishing a unique identity rather than only focusing on

sustainability is especially important to fashion businesses because style, rather than sustainability,

is the key driver for fashion purchases (Pedersen & Netter, 2015). Furthermore, Businesses cannot

rely on sustainability as a competitive advantage as, ideally, all brands will be sustainable in the

future. For that reason, Reformation has carefully constructed a branding strategy and brand

culture that established competitive advantage beyond the fact that they run a sustainable business

model (Holt, 2003). They have created a culture that emphasizes style.

Another value proposition is Reformation’s claim that perfect fit is the most important

aspect of clothes. They offer a wide range of sizing including: a main range, extended sizes going

up to size 22, a petites collection for ladies under 5’2 and a collection specifically designed for

women with a full C-DD cup size. They are striving to make sure women of all shapes and size

can wear and look fabulous in Reformation. In terms of branding, Reformation acknowledges

sustainability at the core of everything they do. However, they competitively brand themselves as

the place to buy perfect fitting, timeless, and fashionable clothing. (Our stuff – Company, n.d).

Retailing: Channels and Revenue Streams

Channels refer to where a company’s products and services are distributed and revenue

streams refer to the various methods by which companies generate revenue (Pedersen &

Netter, 2015). Reformation is a direct-to-consumer brand, exclusively distributing new inventory

through their e-commerce and 19 brick-and-mortar locations. They also partner with thredUP as a

second hand market place and Rent-The-Runway to circulate

clothing to multiple consumers. Social media is also a channel

for reformation to provide services such as educating customers

and promoting e-commerce sales. Their revenue streams align

with these channels. They encourage consumers to shop via e-

commerce, even offering free worldwide shipping, because it

uses 30% less energy that traditional retail and the majority of

customers use the online platforms (Our stuff – Company, n.d).

Though, no specific information is given as to how the shipping

methods are sustainable other than using 100% recyclable

packaging.

Reformation’s instore experience is not one to be missed. The retail shopping experience

has been heavily studied in the era of rapid technological advancement. WGSN, (2018), found that

Millennials and Gen Z shoppers expect shopping to be an experience offering benefits they

wouldn’t receive at home. We also know from Arnould and Dion, (2011), that the idea of magic

is omnipresent in fashion consumption. For luxury brands, this magic is in their charismatic artistic

director. Arnould and Dion, (2011), proposed that a flagship store is where a brand’s charismatic

power becomes tangible. For Reformation, this meant exciting customers with a magic wardrobe,

thus, making the retail store a charismatic display of the brand and a magical experience in itself.

To best explain this magic, I will summarize the ethnographic experience of journalist,

Emilia Petarca, (2017). Upon entering the store, she was greeted with a large television screen

which read, “I like to be touched,” prompting her to shop via the screen and blending the online

and brick-and-mortar shopping experiences. Basically, Reformation stores act as a showroom

where customers can view the collections and then head to a tablet, select which items they want

to try, and head to a fitting room where the items will be waiting. This removes the burden of

carrying around a handful of items and allows for the showroom to be uncluttered as only one

piece of each item is needed on the floor. Once in the fitting room, a customer can plug her phone

in to charge and play her own music. If personalized music isn’t enough to set the mood, customers

can also select their preferred lighting. Then, customers can say goodbye to the awkward hailing

of a saleswoman to find a different size. The Reformation fitting room comes fully equipped with

a touch screen letting customers select new styles and sizes that will be delivered directly to the

room. According to Emilia, “the new tech features… got me in the door; made me want to stay;

and gave me an experience I couldn’t get online — all while still allowing me to browse everything

with the same ease. They also coaxed me out of my comfort zone in a way that wasn’t forced”

(Petrarca, 2017). Reformation has gone above and beyond to offer an innovative, engaging, and

enjoyable shopping experience for their customers.

With the introduction of mobile channels, tablets, social media, and the integration of these

channels both online and offline, a noticeable shift from multi-channel to omni-channel retailing

is entering the fashion retail landscape (Verhoef, et. al., 2015). Previously, offline channels, online

channels, and direct marketing channels, such as catalogs, were viewed as separate entities within

a business. However, in omnichannel retailing the borders between channels become blurred;

breaking down old competitive barriers such as geography and consumer ignorance (Verhoef, et.

al., 2015). Today’s consumers are no longer restricted by location and are highly educated

consumers with the ability to research each purchase both instore and online. A common

omnichannel practice to support customer research is to implement mobile devices in the

showroom (Verhoef, et. al., 2015). Reformation has successfully done this with their tablets and

fitting room design. Another omnichannel development is that the traditional division of two-way

communication and one-way communication channels becomes less obvious and a broad range of

customer touchpoints are available which can include peer-to-peer communication as well as

brand-led communication (Verhoef, et. al., 2015). Reformation has a strong social media presence

where customers can easily communicate with one another and the brand. Along with the

communicative advantage of social media, Reformation also optimizes their Instagram to be

shoppable by linking each post to their website. As a direct-to-consumer brand, Reformation’s

omnichannel strategy aims to provide a unique and complete brand experience across all channels.

Conclusion

Reformation is a brand whose ethos aligns with the popular market trend of sustainability.

However, unlike many competitors who greenwash, Reformation’s sustainability actions can be

seen in every aspect of their business model. Reformation also strives for inclusivity with the

mission of providing every woman with fashionable, sustainable clothing. A relatively young

company, Reformation has been able to build their business in conjunction with today’s retailing

trends. Specifically, Reformation is a direct-to-consumer brand using an omnichannel retail

strategy. From their communication to retailing, Reformation has a cohesive brand image that

highlights that chic fashion can also be sustainable.

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Appendix A

Reformation 2019 Sustainability Report: VIEW HERE

Appendix B

Reformation 2019-2023 Sustainability Framework: VIEW HERE