France is working to ban the destruction of unsold luxury goods for the benefit of recycling



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Row of clothes on a hanger in a closet.

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The French government has announced the end of the destruction of stocks of non-food items unsold earlier this week, recalling a common practice in the retail sector of luxury goods. More than $ 730 million of unsold inventories and returns are routinely thrown away or destroyed by retailers of consumer goods in France, and this practice is widespread in the luxury sector in order to maintain the exclusivity of the labels. . The present value of property thrown away or destroyed is five times greater than that of donated property.

"A shocking practice"

In a statement Tuesday, French Prime Minister Edouard Philippe presented a draft ban that would come into force by 2023 banning the destruction of non-food items, including clothing, accessories and cosmetics, pillars of the luxury industry. Once in effect, the plan would require manufacturers to return the stock for reuse or recycling, although there are "concessions" for luxury players, designed to protect intellectual property.

This operation is the first of its kind in the world at the national level and should end a practice that the Prime Minister described as "shocking", as he announced in a CDiscount store in Paris. "We can find a viable business model, ensure that everything that is not sold is given … or … broken down for reuse. We can avoid the destruction of products that are perfectly good and this outrageous waste, "he said, before the presentation in July of a broader law on the anti-waste and pro-circular economy .

Gold and gold plated watch elements.

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The guilty secret of luxury

In luxury, intellectual property is king and the fight against counterfeiting is an important issue, which means that labels will make every effort to protect their products from the hands of unauthorized sellers and copiers. While many big houses do not want to say where their unsold stocks end up, some have.

On the other side of the cbad, the British Burberry House lifted the veil on this practice in July 2018, announcing that it would stop burning – in a "responsible" way, channeling the created energy in the manufacturing process – tens of millions of dollars a year clothes, handbags and unsold cosmetics and look for alternatives more environmentally friendly. In recent years, The New York Times has announced that Nike sneakers have been thrown into stores in the United States and that JC Penney has been ordered to destroy Ralph Lauren's oversized merchandise in order to "protect " the brand.

Richemont, the Swiss luxury umbrella, also announced Friday that it has bought and destroyed $ 560 million worth of high-end watches from Cartier, Piaget and Vacheron Constantin in two years, instead of making them appear on the resale market. While some are destroyed, many unsold watches are dismantled and recycled, gemstones being removed for reuse and metals melted for new parts. It is this kind of practice that French law wishes to encourage.

Recycling symbol shape from leftover fabric, old clothing and textiles.

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Towards zero waste?

As social and environmental responsibility becomes more and more difficult to avoid, the green parties in the region in last month's European elections have seen an increase in support that puts sustainability even more on the political agenda. In anticipation of the green vote, the Macron government had already pledged to toughen waste laws in January, following voter outcry in response to a television documentary showing Amazon's online retailer destroying products returned by consumers in the name of the company. sellers who can not afford to store their stock.

Until now, many brands have borne the environmental and ethical cost of incinerating or grinding unsold stock, often abroad, rather than going to discount stores or the "gray market". However, with elections in several European countries and an election wave for more responsible policies, the French ban could herald the beginning of a change in attitude imposed in a region that represents the heart of the luxury industry.

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Row of clothes on a hanger in a closet.

Getty

The French government has announced the end of the destruction of stocks of non-food items unsold earlier this week, recalling a common practice in the retail sector of luxury goods. More than $ 730 million of unsold inventories and returns are routinely thrown away or destroyed by retailers of consumer goods in France, and this practice is widespread in the luxury sector in order to maintain the exclusivity of the labels. . The present value of property thrown away or destroyed is five times greater than that of donated property.

"A shocking practice"

In a statement Tuesday, French Prime Minister Edouard Philippe presented a draft ban that would come into force by 2023 banning the destruction of non-food items, including clothing, accessories and cosmetics, pillars of the luxury industry. Once in effect, the plan would require manufacturers to return the stock for reuse or recycling, although there are "concessions" for luxury players, designed to protect intellectual property.

This operation is the first of its kind in the world at the national level and should end a practice that the Prime Minister described as "shocking", as he announced in a CDiscount store in Paris. "We can find a viable business model, ensure that everything that is not sold is given … or … broken down for reuse. We can avoid the destruction of products that are perfectly good and this outrageous waste, "he said, before the presentation in July of a broader law on the anti-waste and pro-circular economy .

Gold and gold plated watch elements.

Getty

The guilty secret of luxury

In luxury, intellectual property is king and the fight against counterfeiting is an important issue, which means that labels will make every effort to protect their products from the hands of unauthorized sellers and copiers. While many big houses do not want to say where their unsold stocks end up, some have.

On the other side of the cbad, the British Burberry House lifted the veil on this practice in July 2018, announcing that it would stop burning – in a "responsible" way, channeling the created energy in the manufacturing process – tens of millions of dollars a year clothes, handbags and unsold cosmetics and look for alternatives more environmentally friendly. In recent years, The New York Times has announced that Nike sneakers have been thrown into stores in the United States and that JC Penney has been ordered to destroy Ralph Lauren's oversized merchandise in order to "protect " the brand.

Richemont, the Swiss luxury umbrella, also announced Friday that it has bought and destroyed $ 560 million worth of high-end watches from Cartier, Piaget and Vacheron Constantin in two years, instead of making them appear on the resale market. While some are destroyed, many unsold watches are dismantled and recycled, gemstones being removed for reuse and metals melted for new parts. It is this kind of practice that French law wishes to encourage.

Recycling symbol shape from leftover fabric, old clothing and textiles.

Getty

Towards zero waste?

As social and environmental responsibility becomes more and more difficult to avoid, the green parties in the region in last month's European elections have seen an increase in support that puts sustainability even more on the political agenda. In anticipation of the green vote, the Macron government had already pledged to toughen waste laws in January, following voter outcry in response to a television documentary showing Amazon's online retailer destroying products returned by consumers in the name of the company. sellers who can not afford to store their stock.

Until now, many brands have borne the environmental and ethical cost of incinerating or grinding unsold stock, often abroad, rather than going to discount stores or the "gray market". However, with elections in several European countries and an election wave for more responsible policies, the French ban could herald the beginning of a change in attitude imposed in a region that represents the heart of the luxury industry.

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