POST-LOCKDOWN INVENTORY PROBLEM: SUSTAINABLE SOLUTIONS
FASHION HAD A WASTE PROBLEM BEFORE COVID-19, AND IT HAS ONLY BEEN EXACERBATED BY THE PANDEMIC. WeAr LOOKS INTO POTENTIAL SOLUTIONS
REPORT
According to research undertaken by the Ellen MacArthur Foundation in 2017, disposed excess inventory had been causing almost 1.2 billion tons of greenhouse gas emissions annually. In the years since, increased press coverage on burning and other forms of clothing disposal has spurred efforts to re-channel this excess stock. But the pandemic is testing these sustainable options. With consumer spending on non-essentials down and many stores around the world still closed, the fashion industry is facing an unprecedented oversupply of goods, from S/S 2020 in particular.
Some companies including Ralph Lauren, Next, adidas and Gap are putting aside a portion of their Spring inventory to sell off next year. Any items that fall within non-seasonal or trendy categories may also be re-sellable for later periods. There are many shoppers who – after months of staying at home – are now eager for goods, and for finding deals. Currently, we are seeing re-opened off-price stores reaping the benefits of this market. Brands and retailers should consider selling through these channels.
Don’t want to simply sell at a loss? There are companies who work with clients to manage excess inventory and customer returns in ways that generate profit and brand value. One good option is the UK-based company Parker Lane Group.
With a global reach, they help retailers find resale markets for unsold garments and recycle the rest. They recently launched the Coronavirus Support Service to deal primarily with unsellable S/S 2020 inventory, lack of warehouse space, and accumulating unmanaged returns. The US company Optoro offers similar services. They use AI and machine-learning software to generate real-time brand analytics, which helps them organize garments into recommerce (to Optoro’s resale site Blinq, or elsewhere) or donation options. Both companies primarily work with activewear and high street brands, but also accommodate image-sensitive luxury brands who don’t want to sell in discount markets. The re-sale marketplace Tradesy opened a business unit in April 2020 to cater to brands who have excess stock due to cancellations.
There are also companies that can help with charitable donations specifically. Gifting Brands works with retailers to resell their private label and upscale brands, and donates the profits to charity. Soles4Souls also accepts inventory donations, and has a portfolio of brand partnerships. It is now connecting essential workers with donations: an action and message that resonates loudly during these unsettling times.