French luxury houses give unsold goods a second chance

French luxury houses give unsold goods a second chance

PARIS: In the extravagant world of the French luxury industry, brands used to prefer destroying their unsold goods rather than offering their high-priced products at a discount. But gone are the days of binning the coats, handbags and shoes pooh-poohed by shoppers after a new anti-waste law came into force at the start of the year. Now luxury houses are managing their stocks more carefully, offering deals to staff, making donations and recycling goods. “It’s a subject that has become important today,” said Julie El Ghouzzi, a luxury goods expert at the Cultz consulting agency.

She pointed to the scandal that engulfed Burberry in 2018 after the British luxury brand disclosed that it had destroyed 28 million pounds ($38 million, 34 million euros at current exchange rates) of unsold goods in 2017 — the equivalent of 20,000 of its trench coats.

Following the firestorm the revelation triggered, Burberry announced it would halt the practice from the following year. Markdowns to move goods are not an option in the luxury business as lower prices can undermine the attractiveness of their labels, which thrive on their elite status. “In the luxury sector, if the price tag is lower, so is the desire to buy