Source: Bloomberg
Summary
Chanel’s Hong Kong trial has revealed a secret practice of destroying unsold products in the city, with estimates suggesting 10,000 to 20,000 items are destroyed every six months. The luxury brand has been accused of deliberately destroying products to maintain exclusivity and scarcity. The trial sheds light on a little-discussed system in the fashion industry. Chanel has not commented on the allegations.
Our Reading
The trend returns with a new name. Chanel’s selective scarcity is a familiar strategy in luxury fashion, echoing the likes of Hermès and Louis Vuitton. The practice of destroying unsold products to maintain exclusivity is a cycle that repeats itself in the industry. The timing of this revelation feels particularly apt, given the current focus on sustainability in fashion. The real question is, what’s old is new again, and what’s next in the cycle of luxury destruction?
Author: Evan Null
