Luxury brands destroy unsold stock to preserve exclusivity. That may soon change

Republished by Newlife - Flexstone. All rights belong to the original publisher; see Source below.

Luxury brands destroy unsold stock to preserve exclusivity. That may soon change European laws will soon force labels to report how much stock they have destroyed amid efforts to reduce the industry’s environmental impact

Earlier this month, shoppers on Yoox could snap up suede Brunello Cucinelli trainers for €617 (USUSD 700), around half the price on the brand’s official website. If they felt like pairing them with a beige Gucci miniskirt, that was available for €800, close to 50 per cent off as well. A Burberry T-shirt? The e-commerce website sold one for less than €200, or 60 per cent off its original price. Overall, some 2,500 products from the three labels were available, heavily discounted.

It is a sign of the challenges that the luxury market faces, as even wealthy customers cut back on spending.

High-end fashion and leather goods makers try to avoid slashing prices or selling excess stock because it damages the aura of exclusivity that they build around their products. That is why at times, they have preferred to burn or shred their unsold goods: a controversial policy that is now banned in the European Union, home to some of the industry’s largest brands.

Source

- South China Morning Post (2026-10-25) - Original article: Luxury brands destroy unsold stock to preserve exclusivity. That may soon change - https://www.scmp.com/lifestyle/fashion-beauty/article/3371640/luxury-brands-destroy-unsold-stock-preserve-exclusivity-may-soon-change