The round human business: free clothes with millionaire benefits

In Europe alone, six million tons of clothing are generated each year. Given these data, the need to give these garments a second life to help the environment is clear. However, there are those who benefit from it. This is the case of Humana, the most famous second-hand clothing store in Madrid.

Humana Fundación Pueblo para Pueblo is an NGO that has been operating since 1987. As they explain, they have more than 1,200 development actions implemented in 45 countries. But the bulk of its cooperation program is carried out in Africa, Latin America and Asia. All these actions can be carried out thanks to the income obtained from the management of used clothing.

However, the profitability of your business is more than remarkable. As they publish on their website, Humana billed more than 25 million euros in 2019. The vast majority of this money is from income from the sale of clothing in Spain and abroad.

But how does Humana work? Through a network of more than 5,000 containers that are distributed throughout Spain thanks to agreements that it has with the various municipalities. People deposit their used clothes in them. All these garments are taken to the preparation plants for the reuse of textile waste that they have in l'Ametlla del Vallès and Leganés, where they are classified. 14% of them are sold in their stores in Spain and 39% outside our borders.

However, this selection of garments for one country or another is not fortuitous either. "The widely used shirts are destined for Africa because they are not sold here," says one of the managers of these El Mundo centers. Also, if these garments are branded, they also stay in Spain since the price is higher. Although much of the clothing sold in Humana stores is priced at 1, 2 and 3 euros, other times it depends on demand. Without a doubt, his business is round.

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HUMANA DOES NOT DONATE ANY OF ITS GARMENTS

According to the foundation, the money collected from the sale of these clothes belonging to other people is used for social purposes both in Spain and, fundamentally, in Africa. However, it is curious that, not even in these African countries, clothes are delivered at zero cost.

“Clothing is sold at very affordable prices to wholesalers or retailers in the destination countries. The profits obtained are reverted to development projects. By selling clothes at low prices we achieve greater dignity for people, the creation of stable jobs in the destination countries, the generation of economic flow and the elimination of possible mafias that arise if the clothes are given away”, they expose on their website. In addition, they reaffirm their position alleging that "there are studies in which the fact of the sale of used clothing in African countries is valued positively."

This statement is in contrast to the reality lived by the citizens of the African countries where they operate and which Humana itself denounces. "In most of the countries where we work in the South, the vast majority of the inhabitants cannot afford to buy new clothes, neither locally produced nor imported." Perhaps that is why his practice is so questioned.

From Humana they allege that, although the clothes are free, their treatment has a cost. However, looking at their decalogue, they themselves affirm that there are processes such as washing or sanitizing clothes that are not done since "the cost that it would entail would be reflected in the final price and the activity would probably cease to be profitable."

As it happens in any donation container, not all the clothes deposited can have a second life. That's no problem for Humana either. The foundation also makes a profit from this clothing by selling it to textile recycling companies to make blankets or rags for the automotive industry.

It is clear that the business that Humana has set up is perfect. They receive huge tons of clothes to sell practically for free, since they only take care of the cost of collecting, distributing and treating the clothes. Only during the first months of this year they have collected 2,173 tons of used textiles. Of this amount, more than half is put up for sale here and in Africa, making a profit from it. From the part that they have to throw away, they also make money by selling it to other textile companies. The cost-benefit ratio is optimal.