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What brands do with the deadstock?

by vimal srivastava
What brands do with the deadstock?

  • They sell through discounts and outlets.
    Three-thirds of apparel purchases are now made at discounted prices. Some traditional retailers now have more discount outlets than full-priced stores. But even the the thrill of discounted shopping can never ensure all products are sold.
  • Sell in bulk into non-competing markets.
    For example, European brands often re-label their deadstock and sell to Australia.
  • Donate to charities.
    This may sound good on paper, but in reality, donating and dumping unsold clothes to lower-income countries can have a negative impact on their local economies and communities. Besides, demand for such charities is falling, partly because the low quality of donated products from fast-fashion retailers.
  • Destroy (though almost never admit).
    Clothes are either shredded and recycled or incinerated. The public can only rely on rumours about how unsold or damaged clothes goods are destroyed.

 

The battle for brands to cope with unsold inventory isn't as straightforward as it seems. Large-scale recycling is not yet up to scratch and brands and retailers strive to protect their highly-prized intellectual property and brand image.

If you have something to add to this report, feel free to contact us.

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