The global fashion industry produces between 80 billion and 150 billion garments annually yet up to 40% remains unsold, frequently ending up in landfill, incineration, or markdown bins.
So in its “landmark” report, ‘Fashion’s Hidden Crisis’, responsible sourcing show Source Fashion tackles one of the industry’s “most pressing but least addressed issues: overproduction”.
Claiming that just 1% of fashion brands are actively working to reduce production volumes, the report presents actionable models already being piloted by leading brands and retailers.
These include on-demand production, “producing only what is needed, when it’s needed, to eliminate excess stock”; circular design, “creating garments designed to be reused, repaired, or recycled, thereby extending their lifecycle”; retail-as-a-service “shifting from ownership to access models such as rental, resale, and subscription; and collaborative creation, “co-designing with consumers to ensure relevancy and reduce waste”.
“Brands can reduce production without reducing profit. In fact, in many cases, it increases margins and strengthens consumer trust.” The publication includes case studies from brands already implementing these approaches, demonstrating commercial viability alongside sustainability gains”, the report says.
The report says it “arrives at a pivotal moment for fashion, as the industry faces shifting consumer expectations, economic uncertainty, and growing pressure from both regulators and investors”.
Suzanne Ellingham, sourcing director at Source, said the report “highlights the uncomfortable truth behind retails success — that excess production is built into the model with volume is the only way to increase profits.
“As we approach 2025, companies must question not only how they produce, but how much, and how they deal with . There are real over production and excess. Opportunities for those willing to embrace a leaner, smarter, more circular future.”
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