Definition of Ownership
The concept of ownership is thought to have originated in early human societies as a means of ensuring basic survival and security. As societies became more complex and established systems of trade and commerce, the notion of private property became more widely recognized and codified in law. And as a result, it allowed individuals and families to access a broader range of resources and further improved their chances of survival.
At present, we see the gravitation towards a new era where the concept of ownership developed for the industrial era or in the early human societies is becoming outdated and dysfunctional. Individuals are increasingly shifting towards and embracing access-based ownership through participation in the so-called sharing economy. This gravitation towards access-based ownership has led to many business models driven by the desire for convenience, flexibility, and sustainability, and it is reshaping our relationship with stuff.
Origins of Access-Based Ownership
While researching the origin of ownership, I was schooled by legal scholars who explained the triad of full and complete ownership rights—usus (to manage or use), fructus (to benefit from), abusus (to dispose of), when the property is collectively held. The access-based ownership echoes the usufructory (usufruct) ownership. A concept with roots in Roman law, usufruct denotes a legal relationship in which someone may be granted temporary access to a thing while it remains owned by someone else. What grows (can be reaped, derived, enjoyed, or can yield interest) out of such temporary access may be held in possession by the user, even as another retains ownership. Usufruct allows someone to use and enjoy the property of another as long as they do not damage or alter it.
The Sharing Economy
The concept has been applied to the business world and has given rise to the Sharing Economy, where consumers can access products and services without the need for full ownership. However, consumers are reluctant to adopt this ownership model in other aspects of lifestyle.
One of the main benefits of this access-based model is the increased convenience it offers consumers. For instance, services like Uber and Airbnb eliminate the need for consumers to own a car or a second home, respectively. Instead, consumers can access these products on an as-needed basis, reducing the financial burden of ownership and increasing flexibility.
Benefits of Access-Based Ownership
This shift in consumer behaviour is beneficial for both individual consumers and businesses and the planet. Businesses that offer access-based services have a more flexible business model, with lower overhead costs and the ability to scale up or down as needed. This model also benefits the planet by reducing waste and promoting sustainable consumption patterns, the core tenant of the Circular Economy. For instance, Zipcar and car-sharing services reduce the number of cars on the road, reducing carbon emissions and improving air quality. Similarly, clothing rental services like Loanhood promote sustainable fashion by reducing the need for consumers to buy new clothes constantly. Loanhood and similar businesses like that pique my interest because of my interest in sustainable fashion and circular Economy.
Consumers’ Relationship with Fashion
With all the benefits to the environment, including individuals and businesses, one wonders why access-based ownership or rental service is not yet prevalent in the fashion industry, especially considering the fashion industry is responsible for up to 8% of the world’s greenhouse gas emissions, according to the UN.
In a recent survey by WRAP, the UK’s wardrobes hold 1.6 billion unworn garments, around a quarter of clothes found in an average closet. Even though secondhand or preloved clothing sales are gaining mainstream adoption through the proliferation of resale marketplaces like Depop, Vinted, Fillip Shop Live, and Vestiaire Collective, unworn clothes in our wardrobes continue to rise. According to Catherine David, director of collaboration and change at WRAP, “many people are already buying and selling preloved clothing, the huge financial and environmental opportunity remains the unworn clothing in all our wardrobes”.
What Consumers Must Do
As consumers desire drastic changes to the environmental impact of fashion consumption, they must consider adopting access-based ownership in their arsenal to combat fast fashion, overconsumption and waste. Instead of unworn clothing hanging idly in the wardrobe, circulating them with other consumers via an access-based marketplace or rental services, will significantly reduce the production of virgin materials. It will equally reduce the Greenhouse Gas GHG emissions attributed to textile manufacturing, distribution, consumption and disposal.
The access-based business model is a win-win for consumers, businesses, and the planet. It offers consumers increased convenience, flexibility, and sustainability, while businesses benefit from lower overhead costs and the ability to scale up or down as needed. The environment benefits hugely from the reduction of waste and GHG emissions associated with manufacturing and distributing virgin materials. As this shift continues to gain momentum, we expect to see more and more individuals rent their clothes and businesses embrace the usufruct principle and offer access-based products and services to fashion consumers.