alt Hacker NewsApparel firms exist not to clothe people as common sense would suggest but to make a profit, and this practice of erring on the side of overproduction is more profitable than under production. The perfect solution would be to produce exactly the number of goods they will sell, but forecasts aren't perfect so they overproduce. Firms are already incentivised by profit to not waste, so this adds another incentive and removes the pollution externality they have been enjoying. So now either they err closer to under-production and risk missing out on sales or secondary market supply of their goods increases leading to possible brand dilution. So in the end the value of these companies ends up lower than before, less pollution, and apparel is cheaper. I'd like to know more about the equity and carbon effects of the process they will need to now follow. So they trade destruction with shipping a crate to Africa. What is the difference? Firms will be less profitable, manufacturing is reduced, who is impacted by that?
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How will apparel be cheaper? When they lower production runs, it'll be less available, which will mean prices will go up.
more market economics framing of life, as if numerous very smart people haven't already tried to make this paradigm work for society, and failed.
Overproduction is not an issue. The issue is that they damage unsold things instead selling them for a market price dictated by supply and demand.
This is not only clothing and apparel, also sporting goods and many other items.
This should be forbidden across all industries. Unsold stock should be delivered to non-profits at no cost for further distribution.
If you can't prove that you either sold or transfer to non-profit an item you manufactured then you should be fined for each unaccounted item proportionally to their market price.
If they ship unused crates to Africa then they get cheap clothes. Win win all around.
> Firms are already incentivised by profit to not waste
Anecdotal but my perception is that clothing has become so extremely low quality, and I assume dirt cheap to produce, that they have less of an incentive to let it go to waste. When I buy socks they get holes after wearing them 7 times, and then they go in the bin too.