glossary
Residues or ‘leftovers’
Residues or Leftovers are leftover materials. Leftover materials can come from brands that ordered too much fabric, or from manufacturers – wrong colors, errors or canceled orders. Normally this material is thrown away and ends up in the trash. Residues are sometimes also referred to as Remaining stocks designated.
Remaining stocks
The term Remaining stocks usually refers to unsold clothing or other products that could not be sold and thus remain in inventory and have no further use. Leftover inventory can arise for a variety of reasons, such as overproduction, changing demand, changing seasonal trends, or simply poor planning.
Overstock
Overstock is sometimes used as a synonym for remaining stock, but it actually means something different. Overstock is clothing or products that are surplus but are still actively available for sale. They often arise from incorrect forecasts or because too much was purchased.
The “race to the bottom” in the fashion industry and the curse of the three-euro shirt
Race to the bottom
In the fashion industry this refers Race down to the phenomenon of clothing manufacturers producing their clothes as cheaply as possible and always trying to make further savings in order to remain competitive, as the fashion industry is a saturated and competitive market.
Price competition has been around for decades and this is how it is our clothes have become cheaper and cheaper. Much clothing production has shifted to countries with extremely low production costs such as Bangladesh. Additionally, fashion companies have started making more clothing from cheaper materials such as polyester. With the increase of Fast fashion providers where a T-shirt is available for the low price of five or sometimes even just three euros, price competition in the industry has become even more intense.
For clothing companies, the lowest possible cost price is interesting. The production price is often fixed. The cheaper a product can be made, the cheaper a clothing brand can bring it to market – and the more money it can make. Price often takes precedence over the impact on people and the environment, often at the expense of fair compensation for the people who produce the garments.
The English phrase “Race to the bottom” is also used to describe the spiral of overproduction, overconsumption and the grievances in the fashion industry to describe.
The curse of the three euro shirt
The Curse of the three euro shirt refers to the phenomenon that customers extremely cheap prices for clothes now seen as normal. As a result, apparel manufacturers are looking for ways to further reduce production costs to meet these expectations. The cheaper they can produce their products, the cheaper they can be marketed and the more profit they can make.
Sources:
– Contribution from FashionUnited.nl ‘Van its contents and its new maken is ‘in’: this is upcycling‘, September 5, 2023
– Contribution from FashionUnited.nl‘What’s fast fashion? (Met de term kan quick productie of quick consumptie bedoeld)’August 28, 2023
– Contribution from FashionUnited.nl ‘This is greenwashing (the latest version of the article)’July 10, 2023
– Parts of this text were created and then edited using an AI tool.
This translated article previously appeared on FashionUnited.nl.