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It’s really surprising to know that these big brands, H&M, Zara, Burberry London, and Urban Outfitters burn their unsold products, but why?
The unsold merchandise could even be sold at discounted prices. It could be recycled to curate something out of the mess. But why do these brands burn out all of their unsold merchandise?
Last year’s reports state that Burberry’s revenue from sales in the gear 2018 was $3.6 billion and shockingly it burnt out its merchandise worth $36.8 million.
The Fashion industry produces more than our thinking capacity. They produce in excess quantities. With fast fashion being the trend today, the speed of production has increased rapidly. Fast production is the entire motive, and what about the quantity?
- Fashion is produced in abundance, sold in limited quantities, and burnt in unimaginable aggregate. But what is the reason behind destroying the stuff where it could be used in another way or could be donated as well to the needy?
Let’s dig in deeper in the context to take in consideration the entire process.
Which Brands are involved in this destruction?
From luxury brands like Burberry, and Louis Vuitton to fast fashion brands like Zara, H&M, and Nike, all these have been actively taking a part in the destruction process of unsold goods.
Burberry has been suffering a boycott by people when the brand admitted in its fiscal report that it has been involve in flattening of its goods in order to maintain the exclusivity and uniqueness of its products.
The British Government therefore decided to take strict action against the brand. Hence, it was cited by the CEO of the brand that it would no longer demolish its unsold goods. Rather will find any other way to maintain the brand’s uniqueness.
Not just Burberry, but other luxury brands like Louis Vuitton has been found guilty due to the same act. Even though brands like Nike have admitted that they too damaged their unsold products.
What is the Reason behind it?
Firstly, the sole reason why brands are demolishing their products is to maintain exclusivity. Things that are limited, ultimately are valued enough.
In 2017, H&M, the fast fashion brand, revealed that they have been burning almost 12 tonnes of unsold clothing every year since 2013.
Brands find burning these clothes a better option rather than selling them at a discount. Discount, according to such luxurious brands, deteriorates the status and brand image. So, demolishing is preferred so as to maintain the classy image and value in the marketplace.
Every season, 30% of the merchandise remains unsold. Whereas the newly made trends of the upcoming month have to be displayed on the front wall. In order to empty the space and locate the latest articles over there, there has to be some excellent strategy. This excellent strategy according to the brands is burning the existing unused stock.
Secondly, the option of demolishing opted by the brands rather than any other way out is the fear of unauthorized vendors. Mont Blanc and Cartier have reportedly burnt watches worth €400 million due to this cause.
Suppose, these brands opted for a discount scheme rather, then local vendors would buy at discounted prices and later sell that merchandise at higher prices to their customers. The product is genuinely authentic and is getting used in a relevantly effective way but the only problem that arises here is unauthorized dealers.
Lastly, the most crucial aspect of this act is the financial inducement that these brands receive against destroying unsold products. Brands pay a certain amount of taxes and charges to import goods into the United States.
But if the part of the products remains unsold and is exported back by the brand or demolished under the U.S. Custom provisions, then the companies are eligible for a 99% claim of the taxes and charges paid by them in the process named “drawback”.
So it is relevantly much cheaper for the brands to burn the excess unsold products rather than finding a technique of recycling or reusing them.
Is Flaming of products environmentally safe?
When brands were asked about whether the process was deteriorating for the environment, they claim that the energy that was produced while burning the stock was captured. The entire process was therefore environment-friendly.
What a befooling statement it is !!
We all know that when burning takes place, there are a lot of emissions that are harmful to the environment which in turn disturb the ecological balance of the surroundings.
The fashion industry is known to be the biggest polluter of the environment, destroying unused clothes and thereafter emitting harmful emissions.
According to a report on the sustainability and the fashion industry from the United Kingdom’s parliament in 2019, there is some energy that could be captivated from burning unsold inventory, but double the impacts on the climatic conditions.
We all are aware that higher quantities of carbon dioxide is released while burning, which therefore is the reason behind global warming ultimately affecting human health.
Will brands stop this?
After certain cases on these big brands, where they have been accused of burning unsold stock, some brands like Burberry and H&M have taken certain measures to reduce the waste and take effective measures.
Many brands in the marketplace are working towards being sustainable and friendly towards the environment. Therefore, every company should be concerned with finding a possible solution for the unsold stock rather than demolishing it in such a way.
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