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Mastering fashion’s inventory dilemma

Discover how fashion brands can conquer the challenges of excess inventory and unlock new levels of profitability. Explore innovative strategies that prioritize sustainability while transforming inventory management. 

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The fashion industry’s inventory crisis

In 2023 alone, the fashion industry produced an estimated 2.5 billion to 5 billion items of excess stock, leading to potential financial losses of $70 billion to $140 billion in sales. On top of that, inaccurate stock buying across sizes has resulted in an average loss of 20% in monthly profits.

Environmental regulations and unpredictability

In addition to economic pressures, brands are also facing stricter environmental regulations. 

Starting in 2025, the European Union requires brands to report unsold textiles, and California's recycling initiative is set for 2030. Climate change adds another layer of complexity, disrupting demand forecasting and creating unpredictable inventory challenges. Retailers are torn between deep discounting to move excess stock or risking costly stockouts, while lengthy supply chains further exacerbate supply-demand mismatches.

Rethinking inventory management in fashion

Technologies such as Neteven and Retviews provide brands with critical real-time visibility into their inventory, enabling them to implement dynamic management models that optimize stock levels and drive customer satisfaction.

In our latest article, explore: 

  • Inventory management strategies: Find out how a data-driven approach enables you to reduce losses from excess stock while responding to market fluctuations
  • Sustainability and compliance: Understand the impact of new regulations and how to implement more sustainable solutions
  • Sales optimization: Identify the best ways to manage pricing and promotions for maximized margins and satisfied customers

The path to sustainable profitability

Success in 2025 demands smarter inventory management. Solutions like Neteven and Retviews empower brands to align their stock with real-time demand, minimizing waste, preventing stockouts, and maximizing profitability. 

By leveraging AI and automation, fashion brands can enhance efficiency, adapt swiftly to market shifts, and meet growing expectations for sustainability. Brands that invest in these innovations today will set the standard for profitability, sustainability and success in the future. 

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InDepth

Dive into strategies that empower fashion companies to tackle excess inventory challenges head-on, boost profits, and embrace sustainability.

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