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AI, Outlets, Recycling: Can Luxury Solve Its Billion-Dollar Excess Inventory Problem?

LVMH and Kering wrote down billions of dollars of unsold inventory last year. What to do with it has become an increasingly complex challenge.
A sea of red clothes against a yellow background.
Luxury's biggest players held billions of dollars in excess inventory at the end of last year. (Business of Fashion)

On an industrial site near the French-Belgian border, high-end sneakers, handbags and ready-to-wear garments are routinely dismantled, shredded and granulated in preparation for recycling.

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Further Reading

The Future of Luxury Discounting

With outlets and online discounters set to grow five times faster than full-price channels, luxury brands are hoping to tap the momentum in off-price — ideally without being seen doing so.

About the author
Sarah Kent
Sarah Kent

Sarah Kent is Chief Sustainability Correspondent at The Business of Fashion. She is based in London and drives BoF's coverage of critical environmental and labour issues.

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