Extending fashion’s life cycle
Interview with Krisztián Lakatos, Managing Director of Háda-1 Kereskedelmi és Szolgáltató Kft.
Across Europe, second-hand fashion is gaining new momentum as consumers look for more sustainable and affordable ways to buy clothing. Extending the life cycle of garments while preserving value, the sector has moved far beyond its former niche status. The key player in this market in Hungary is Háda-1 Kereskedelmi és Szolgáltató Kft. in Kisvárda.
Changing consumer attitudes, economic considerations and growing awareness of sustainability are increasing the relevance of the second-hand clothing market. Within this sector, Háda-1 Kereskedelmi és Szolgáltató Kft. has grown into Hungary’s largest second-hand retail network. Founded as a family initiative in the mid-1990s, the company has expanded alongside the emerging market for used clothing. Managing Director Krisztián Lakatos, who joined the business in 1995, has been part of its development from the start. Today the retail network comprises around 95 stores and employs close to 1.000 people within the group.
Business model
Háda imports pre-sorted clothing mainly from the UK and Switzerland, where the supply of used garments is far larger than in Central Europe. Only about 25% of the items are suitable for resale in Hungary and then selected by the company’s sorting teams. They are sold through three retail concepts: higher-quality pieces sold individually, classic second-hand clothing sold by weight, and a low-price format targeting highly price-sensitive customers. To expand activities along the value chain, Háda is investing in sorting and processing capacities and establishing international partnerships to secure supply and maintain quality. “In our best stores we are no longer competing with other second-hand shops,” explains the managing director. “We are competing with fast-fashion retailers. We depend on what people buy and later discard. As fast fashion spreads, the composition and quality of clothing entering the second-hand market are changing.”
Sustainability debate
For Krisztián Lakatos, this shift raises broader questions. Extremely low-cost clothing imports and ever faster fashion cycles are putting pressure on the entire textile ecosystem. Garments made for short lifespans quickly turn into waste, while their production consumes significant resources. “There must be a minimum quality and a realistic price level for new clothing,” he argues. Otherwise the processing and reuse of used textiles become increasingly difficult to finance. In his view, policymakers need to address both sides of the issue: limiting ultra-cheap imports while supporting recycling and reuse. Without structural solutions, millions of tons of textiles could become a growing environmental challenge.
Retail shift
To respond to changing retail patterns, Háda is adapting its store network. New stores are opened in retail parks, where operating costs are lower and customer traffic has shifted. Looking ahead, the company plans to further optimize its network, modernize selected locations and expand its online business. The web shop currently focuses on Hungary but is being tested in Romania, with additional European markets remaining a longer-term option.