Deadstock in the fashion industry

: is the on-demand business model a viable and sustainable solution?

Abstract

The fashion industry is a significant contributor to environmental degradation and waste, withthe fast fashion business model exacerbating these issues. Deadstock, or unsold inventory, is amajor challenge faced by the industry, leading to financial loss and negative environmentalimpacts. This thesis investigates whether the on-demand or made-to-order business model canserve as a viable and sustainable solution to the problem of deadstock in the fashion industry.Through an extensive literature review and qualitative research, including case studies and anexpert interview, this study evaluates the effectiveness and sustainability of the on-demandmodel in addressing deadstock. Findings suggest that the on-demand model reduces waste andexcess stock while optimizing resources and fostering sustainable practices. However,challenges such as extended lead times, fabric management, and returns management persist.A hybrid approach combining on-demand and traditional manufacturing methods is proposedas an alternative solution. As technology and implementation continue to evolve, the marketmay become more prepared to embrace the on-demand model, revolutionizing the fashionindustry by aligning production with demand, reducing waste, fostering sustainability, andpromoting customization and a customer-centric pull model.

Date of Award	28 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Valérie Moatti (Supervisor)