Excess Inventory

✺ In 2023, LVMH held €3.2 billion of stock that had been written down because of “obsolescence” or lack of sales prospects (The Business of Fashion).

╰┈➤ British Fashion Council estimated that there are enough clothes on the planet to last 6 generations. Overproduction depletes resources and energy in the process. "Excess is built into the economics of the industry at every step of the value chain"- Ken Pucker.

╰┈➤  The luxury industry has the ability to create pre-order collections and put out limited collections of exclusive items that people get excited about purchasing. Luxury is also not fast-fashion and people should be more prepared to wait for their purchases. The fact that luxury resale is booming tells you how much excess people also have in their wardrobes.

╰┈➤  In 2018, Burberry were reported to have burnt inventory worth £28.6 million over a 5 year period (BBC). In 2021, Coach said they would no longer destroy inventory after a TikTok video showed them destroying damaged and unsaleable goods (CNN). Surprisingly not much has been written about other brands. Brands rationalise this by saying they are protecting their brand.

╰┈➤  A lot of brands say they send items to charity, upcycle or recycle. The EU Ecodesign for Sustainable Products Regulation (ESPR) will introduce a ban on the destruction of unsold textiles and footwear. This indicates that brands would not voluntarily do this. Look out for the poll later.

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