Summary of “Burberry, H&M, and Nike destroy unsold merch. An expert explains why.”

The British luxury brand Burberry brought in $3.6 billion in revenue last year – and destroyed $36.8 million worth of its own merchandise.
The outrage worked: Burberry announced two weeks ago it would no longer destroy its excess product, effective immediately.
Brands destroy product as a way to maintain exclusivity through scarcity, but the precise details of who is doing it and why are not commonly publicized.
In May 2018, Richemont, the owner of the jewelry and watch brands Cartier, Piaget, and Baume & Mercier, admitted that in an effort to keep its products out of the hands of unauthorized sellers, it had destroyed about $563 million worth of watches over the past two years.
Chavie Lieber Why do brands have to destroy perfectly good merchandise?
With any kind of waste management like this, there’s a cost attached to it, and it’s often cheaper just to destroy it.
Chavie Lieber What is the theory for luxury brands destroying their extra merch?
Chavie Lieber Do you think companies will follow in Burberry’s footsteps and stop destroying their merch?

The orginal article.