Here’s What Luxury Brands Do To Their Unsold Products (2024)

In a world full of luxury, we often fail to see the other side of it. For a long time now, luxury brands, are following their age-old tradition to destroy unsold products.

But the fact that – the fashion industry is one of the world’s worst polluters is why we need to talk about it.

Here’s What Luxury Brands Do To Their Unsold Products (1)

Things You Didn’t Know About Luxury Brands.

Luxury products never go on sale, as they will dilute the heritage of luxury brands. In order to protect their brand identity, many choose to destroy the products.

Over theyears,brands like Burberry, Louis Vuitton, Urban Outfitters, H&M, Nike, JCPenney, Michael Kors, Eddie Bauer,Louis Vuitton, & Victoria’s Secret have been accused of destroying their products.

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As Victoria’s Secret is caught allegedly dumping “hundreds of bras” at closing stores, a look at fashion’s obsession with discarding or destroying unsold goods. https://t.co/Zy2USzGb8d pic.twitter.com/2h4Pq2DMeB

— The Fashion Law (@TheFashionLaw) February 17, 2020

your favorite luxury brands burn clothes & other things instead of discounting items that haven’t sold because they feel it will devalue the brand. pic.twitter.com/q0u7y4rjqE

— artistic guide (@iamshanbae) June 12, 2021

The justificationbrandsgive to destroy or burn their products is to maintain the scarcity of their goods and the exclusivity of their brands. They don’t want it to sell at a lower price as it may harm their brand image. It is also a major reason why they never go on sale.

According to a report inBusiness Insider, “the fashion industry makes up “10% of humanity’s carbon emissions, dries up water sources, and pollutes river streams.”

It is not only limited to clothing. EvenAmazonwas being called out in Germany for destroying tons of returned items, like mattresses, washing machines, dishwashers, and cellphones.

Here’s What Luxury Brands Do To Their Unsold Products (2)

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A lot of these luxury brands burn their sh*t anyways and still collect insurance from it.

— Yaa Dela, MBA 🌈 (@jonelle_roxx) May 30, 2020

In 2018, Burberry came clean about burning clothes and said it “used specialist incinerators that harness energy from the process.” The destroyed goods totaled about $37 million, compared to Burberry’s revenue of $3.8 billion that year.

Here’s What Is Changing

This practice is highly criticized by many & it’s time brands take accountability for the waste they are creating.

France in an effort to mitigate thispracticebanned the burning of unsold luxury items.Burberry Group Plc said it would stop destroying products. Louis Vuitton and Dior announced a partnership with UNESCO on protecting key ecosystems for supporting the luxury industry.

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France wants to stop fashion labels from destroying their unsold clothing, handbags and shoes.

Luxury brands sometimes burn or bury their goods in order to stay out of the discount bin and protect their image.

https://t.co/lr7gUVJIUJ

pic.twitter.com/X9HndQiAjD

— Kim Bhasin (@KimBhasin) May 15, 2019

Though many brands are now adopting to recycle their products, the cost of recycling is hefty.

Timo Rissanenan, an associate dean at Parsons School of Design and a professor of fashion design and sustainability, talked about recycling the products &said.

“One way to recycle clothing is to shred it and to turn it into insulation, and there are fabrics that are quite good at being turning into the new fiber, spun into yarn, and then woven into clothes.”

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Many luxury brands burn their surplus clothes instead of donating them to protect the brand and price, and to ensure that poor people don’t wear them. pic.twitter.com/VCYgkjviQt

— teleSUR English (@telesurenglish) July 22, 2018

But the minute you start mixing fibers, like polyester with cotton, the options for recycling become more limited. Then there are the obstacles of buttons and zippers. Before a garment can be put through a shredder, all the buttons and zippers must be removed, and that takes manual labor. With any kind of waste management like this, there’s a cost attached to it, and it’s often cheaper just to destroy it.

Here’s What Luxury Brands Do To Their Unsold Products (3)

Furthermore, many brands are trying to adopt Modern luxury, which means to besocially & environmentally responsible.

Experts suggest this whole system change may take time but, we need to start calling out such brands.

Here’s What Luxury Brands Do To Their Unsold Products (4)

A lot of this destruction happens in Panipat, in India that specializes in shredding. There is a short film made on how it’s done.

You can watch it here.

We must all limit ourselves from impulsive buying & try to buy secondhand stuff if possible.

It’s high time luxury brands get done with this tradition.

Here’s What Luxury Brands Do To Their Unsold Products (2024)

FAQs

What do luxury brands do with unsold items? ›

Burning stock is said to be the most cost-effective way for luxury brands to protect exclusivity and avoid devaluing their image. Luxury fashion is a status symbol, so burning excess inventory—as opposed to selling it at a discount—maintains the brand's value and sense of exclusivity.

What do luxury brands do with returned items? ›

infamous for its destruction of returned garments. Big brands like H&M and Burberry have admitted to burning hundreds of millions of dollars worth of their products. Many brands—especially luxury ones—would rather toss out their products than resell them at a lower price at the risk of tarnishing their image.

What happens to unsold products? ›

Some companies hold yard sales of excess inventory and donate the proceeds to charity. This will give you a tax write off that can actually save you more money than you would have made by holding a discount sale or making a deal with an inventory liquidator.

What does Burberry do with unsold inventory? ›

"The growing amount of overstock points to overproduction, and instead of slowing down their production, they incinerate perfectly good clothes and products. "It's a dirty secret of the fashion industry. Burberry is just the tip of the iceberg," she said.

Does Louis Vuitton destroy unsold bags? ›

Louis Vuitton Destroys Unsold merchandise? The main reason Louis Vuitton destroys unsold merchandise every year is to prevent price reductions and theft. LV is adamant that all their customers pay full price for their products and you will never find authentic, new Louis Vuitton merchandise on sale.

What does Zara do with their unsold clothes? ›

If Items Don't Sell Well, They Get Shipped To Other Zara Stores. If items don't seem to be selling well, they're shipped out to a warehouse in New Jersey, sorted, and then rerouted to new Zara locations, in hopes that they do better there.

Where do designer clothes go when they don't sell? ›

Luxury fashion brands employ teams to ensure that unsold or flawed products don't find their way to unauthorized retailers. Brands first try to sell them to employees, and then friends and family. What goes unsold after that is often incinerated.

Which famous company destroys its unsold products? ›

In fact, Amazon also had to face the backlash in Germany for the tons of returned items destroyed by it that including mattresses, washing machines, cellphones, etc.

What do fast fashion brands do with unsold clothes? ›

A wide range of clothing brands have been caught throwing out unsold clothing over the years. Often this clothing is destroyed before it is tossed so that it cannot be salvaged by dumpster divers. Photo by thinkretail / Flickr. Viewers often express shock about the waste in the comments.

What does Urban Outfitters do with unsold items? ›

As part of our corporate recycling program, our European operations send unsaleable product from stores to a charity organisation.

Why do companies like Burberry burn their products after not selling? ›

In revealing that it burns unsold clothes and cosmetics to prevent the brand from entering the "grey market" – where items are sold at knockdown prices from unofficial retailers – Burberry does offer a caveat.

Is Burberry still burning clothes? ›

Burberry said it already reused, repaired, donated or recycled unsold products, but it would continue to increase these efforts. Environmental campaigning group Greenpeace told the BBC: "Burberry's decision to stop incinerating its overstock is a much-needed sign of a change of mind in the fashion industry.

Does LV burn unsold merchandise? ›

Does LV burn unsold merchandise? Every year, Louis Vuitton burns every unsold product to maintain exclusivity and high prices. Even though there are three main reasons for this practice, it still seems odd to destroy so many products. Louis Vuitton products must continue to be rare and desired.

What designer bag does not lose value? ›

Hermès bags

The French luxury brand has an average value retention of 103%. The Birkin and Kelly bags — named after Jane Birkin and Grace Kelly — do especially well at resale because they are two of Hermès' marquee items. Birkins have an average value retention of 96%, while the Kelly averages 108%.

What happens to Louis Vuitton that doesn't sell? ›

So, instead of offering discounts, the brand disposes of unsold pieces by burning them. To prevent stock malpractices, Louis Vuitton destroys unsold merchandise. Would-be fashion thieves would be deterred if they had a warehouse full of unsold and legacy merchandise.

What does Walmart do with unsold merchandise? ›

Walmart Liquidation Auctions allows resellers to bid on excess inventory, store returns, and refurbished bulk lots directly from Walmart. Lots range in size from single pallets up to truckloads of excess inventory, and typically sell at a fraction of retail MSRP.

What happens to unsold furniture? ›

So many companies choose to shred, incinerate or simply throw away the stuff they can't sell.

What happens to clothes not sold at Target? ›

If it's still unsold, Target may donate it or sell it to a discount store such as T.J. Maxx or Marshalls. Other companies may shred, burn or simply throw away the stuff they can't sell. Nearly 21 billion pounds of textiles end up in landfills each year.

Do designers give celebrities free clothes? ›

Stars are rarely paying for their designer duds themselves. As SheFinds explains, celebrities are often gifted free luxury goods by designers' public relations teams, knowing that if people see an A-lister wearing the brand's clothes, they are more likely to buy them.

What does Target do with unsold merchandise? ›

Instead of Target marking down items 70% – 90% off in store, they now “salvage” the items and send them to a Target salvage store. Your local Target salvage store might be a Goodwill or a liquidation store.

What do grocery stores do with unsold merchandise? ›

A portion of it is inevitably thrown into the garbage and ends up in landfills. But a surprisingly amount of it finds a second home. Some is given away to food banks, some sold to salvage stores, and the rest taken by people who scrounge outside supermarkets.

What are some brands that died out? ›

  • Pan Am (1927 – 1991) Pan American World Airways (aka Pan Am), founded in 1927, was the largest international air carrier in the United States. ...
  • Borders (1971 – 2011) ...
  • Pets[dot]com (1998 – 2000) ...
  • Tower Records (1960 – 2004) ...
  • Compaq (1982 – 2002) ...
  • General Motors (1908 – 2009) ...
  • Kodak (1889-2012)'

Where is Burberry cheapest in the world? ›

As Burberry is a British brand, it's cheaper to buy direct from Burberry stores in the UK than in the US or other countries where import and sales taxes are added.

Did Zara burn their clothes? ›

Arab Israelis filmed themselves burning clothing sold by Zara and called for a boycott of the fashion chain after its local franchisee hosted a campaign event for far-right lawmaker Itamar Ben Gvir.

Why is H&M burning new clothes? ›

H&M does not burn usable clothes

For H&M to send our products for incineration is very rare, it's only done when they do not fulfill our safety regulations; if they are mould infested or do not fulfill our strict chemical requirements.

What does Hermès do with unsold bags? ›

Godefroy de Virieu, Petit H's creative director, points out that the studio has developed a process for deconstructing unsold items and turning them into new products. Some items are sold in Hermès stores, while larger, rarer ones are sold at auctions in art exhibits that pop up around the world.

What happens to unsold fast fashion? ›

A wide range of clothing brands have been caught throwing out unsold clothing over the years. Often this clothing is destroyed before it is tossed so that it cannot be salvaged by dumpster divers. Photo by thinkretail / Flickr. Viewers often express shock about the waste in the comments.

Why do the poor buy luxury items? ›

In some cases, low self-esteem can be a factor that influences whether or not a consumer purchases luxury goods, especially if they can not easily afford the cost of luxury items. For some consumers, a luxury good can go a long way in increasing self-esteem or providing a sense of belonging.

What happens to unsold Louis Vuitton? ›

Louis Vuitton works with a strict business model and any unsold products are burned to pieces every year. This is a practice that many luxury brands have adopted as it ensures exclusiveness, prevents theft, and avoids having to discount items.

Who is the biggest Hermès reseller? ›

Lilac Blue London is Europe's largest provider of Hermes handbags and is one of the most trusted resellers, trading for over ten years. We sell only genuine Hermes and all our products carry verifiable proof of authenticity.

Can you just buy a bag from Hermès? ›

Where can you buy an Hermès bag? Obviously, you can buy most Hermès bags straight from Hermès. It may take you a while, but you can buy a Birkin straight from the boutique. You just can't walk into an Hermès boutique and buy a Birkin immediately.

Are there any fast fashion brands that you never buy? ›

Here are 22 examples of fast fashion brands you should avoid if you want to have an ethical and sustainable wardrobe!
  • 1) Shein. ...
  • 2) Mango. ...
  • 3) H&M. ...
  • 4) Boohoo. ...
  • 5) Forever 21. ...
  • 6) Urban Outfitters (also Anthropologie & Free People) ...
  • 7) Primark. ...
  • 8) Missguided.
Aug 11, 2022

Why do rich people always buy expensive stuff and not cheap stuff? ›

Quality. Usually, the rich purchase fancy clothing because they value quality over cost. You can own a masterpiece lasting hundreds of years and even be bequeathed to your children.

Who waste money on luxury? ›

The word closest in meaning to what you want is spendthrift. Spendthrift is a noun that means "a person who spends money in a careless or wasteful way."

Why do rich people not buy expensive clothes? ›

Surely the top billionaires and millionaires of the world could easily spend money on expensive clothes, but they don't. Because they recognize it as a needless expense. After all, wearing designer labels isn't going to add to their success or enhance their work.

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