alt Hacker NewsSeems bizarre. It's not like companies didn't want to sell it--they'd prefer to have the revenue. This is just kicking them then while they're down. I wonder if it will reduce risk-taking since it increases the downside of launching an unpopular product.
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It's the nature of high fashion brands. a $2000 item may cost $200 to create. The high margin is based on exclusitivity. They would rather destroy it than sell it at $300.
Most likely these clothes will be just dumped to poorer parts of Africa and Asia, where they're finally sold for peanuts, or in worst case dumped into a landfill. That's what already happens for a lot of used clothes that people give away.
IMO selling the clothes to people that otherwise couldn't afford them is always better than destroying them, so EU is doing the right thing here.
> I wonder if it will reduce risk-taking since it increases the downside of launching an unpopular product.
That is a feature, not a bug. Risk-taking in "apparel, clothing, accessories and footwear" which results in wasted resources is not something to incentivise.
No, it's not just Zara and other fast fashion.
Premium brands really don't want to seel it UNLESS it's to the right people for the high price: https://fashionlawjournal.com/deadstock-destruction-why-fash...
> I wonder if it will reduce risk-taking
I understand this argument in engineering and medical fields, but in clothing industry, does incentivising risk and innovation really matter that much?
It costs a company nothing to donate an unsold coat to a homeless shelter.
Oh no, poor fast fashion companies won't be able to continue maximizing their profits by using slave labor to manufacture ginormous amounts of garbage that goes out of fashion in a week. Guess they'll have to reduce their garbage output or switch to manufacturing quality stuff that can hang out on a store's shelf for a bit longer. The fucking horror. Fuck them.
> Seems bizarre. It's not like companies didn't want to sell it--they'd prefer to have the revenue. This is just kicking them then while they're down. I wonder if it will reduce risk-taking since it increases the downside of launching an unpopular product.
Companies (Burberry is mentioned, but it goes unsaid that others engage in it) routinely burn stock to preserve exclusivity[1]. It's a pretty serious issue.
[1] https://www.vogue.com/article/fashion-waste-problem-fabrics-...