exceso stock moda

Major fashion brands seek measures to solve excess inventory issues

While the fashion industry was previously struggling with issues of low inventory as a result of the pandemic, new economic strains in Europe spurred by the war and rising inflation are now creating inverse issues of excess inventory. In an article published in Fashion United, guest contributor Marguerite Le Rolland (Industry Manager at Euromonitor International) outlines various alternatives the fashion industry could pursue to solve issues of excess supply for this 2022 AW campaigns.

While traditional discounting methods will most likely be adopted as a primary solution, Le Rolland notes that customers are not just looking for lower prices, but also “value” that might extend to comfort, quality, experience and versatility. In order to create more targeted and effective sales campaigns, fashion brands need to become more intune with the selective needs of customers and can more effectively reach consumers through creative channels, both physical and virtual.

Rolland notes one possibly effective measure is to partner with outlet villages and off-price channels to boost sales, as these locations offer luxury shopping experiences at attractive price points. Flash sales of old stock on membership-only online platforms might also be a solution to create a sense of urgency among buyers keen to secure a bargain, while the enclosed platform still allows companies to maintain original prices on other distribution channels. Holiday pop-up stores are also viewed as a solution to increase sales during high shopping seasons. Given the pandemic’s negative impact on commercial real estate leases, fashion brands could gain an additional physical presence at a substantially lower cost, resulting in additional avenues to reach customers during busy seasons of gift-giving.

While these are just a few of many strategies that can be adopted by the industry, Tekstila works with international fashion brands to provide solutions for excess inventory based on its circular economy model for stocks. It’s a solution at the scale of stocks generated by Fast Fashion giants, a secure way to liquidate old season stocks through private sale on authorized markets. The countries of destination have discounted European fashion recreating the shopping experience of any european city, and the brands have a solution in compliance with the new EU Green Deal regulations.


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