Since 1 January 2022, Article 35 of the French AGEC law has obliged producers, importers and distributors to reuse, re-use or recycle unsold non-food products. They can no longer destroy them. Faced with this new challenge, how can fashion retailers act upstream to manage their production and reduce unsold products?
In the fashion sector, an average of 10% of a season’s collection remains unsold after the regulatory sale period. In 2022, for the men’s clothing brand Faguo (2022 turnover of €21 million, +30% vs. 2021), 15% of the total production remains unsold after the sales season. These unsold items, which are marked down, sold off and given away, represent a significant loss of margin for the brands.
An economic and image issue
As retailers seek to optimise their margins, it has become necessary to make the most of these unsold items without tarnishing the brand’s image. This was not the case a few years ago. In 2013, Abercrombie & Fitch suffered the consequences when it preferred to burn its unsold goods rather than donate them to associations.
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