Fashion Merchandisers’ Slash and Burn Dilemma: A Consequence of Over Production and Excessive Waste?

16 Pages Posted: 27 Nov 2018

See all articles by Elizabeth Napier

Elizabeth Napier

Georgia State University

Francesca Sanguineti

Università degli Studi di Pavia - Department of Economics and Management

Date Written: November 1, 2018

Abstract

Luxury merchandisers are burning unsold merchandise valued over $600 million each year. Destroying clothing is a common practice amongst fashion merchandisers in order to keep the price of goods high and the availability of products low. We examine the improper disposal of deadstock when luxury and fast-fashion marketers slash and burn their unsold goods. First, we describe what fashion merchandisers are doing and why they are destroying goods. Second, we provide brief case studies of fashion firms. Third, we present a conceptualization of social irresponsibility and responsibility. Finally, we offer a set of recommendations for managers to i) better respond to stakeholder demands, ii) enhance forecasting through technology, iii) implement a circular economy model, and iv) improve reporting practices.

Keywords: luxury brands, CSR, corporate social responsibility

Suggested Citation

Napier, Elizabeth and Sanguineti, Francesca, Fashion Merchandisers’ Slash and Burn Dilemma: A Consequence of Over Production and Excessive Waste? (November 1, 2018). Rutgers Business Review, Vol. 3, No. 2, 2018. Available at SSRN: https://ssrn.com/abstract=3289411

Elizabeth Napier (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Francesca Sanguineti

Università degli Studi di Pavia - Department of Economics and Management ( email )

Via San Felice, 5
27100 Pavia, 27100
Italy

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