Putting more unsold products into outlets, donation networks or secondary markets risks increasing discounting or feeding grey-market sales while repair, storage and material recovery could add to costs, they say.
As much as 40 per cent of luxury goods were sold at a discount in 2025, according to figures released by Bain and Italian industry association Altagamma as weaker demand and excess inventory increased brands’ reliance on outlets and markdowns.
There are also questions over whether brands could circumvent the ban should unsold goods they sell to overseas distributors end up being destroyed outside the EU, insiders say.
“The new rules will lead companies to pay even closer attention to planning and inventory management,” said Luca Solca at Bernstein.
“That said, no one can work miracles: apparel brands in particular will inevitably be left with some end-of-season stock. This is unavoidable . . . so I also expect companies to make a greater effort to manage off-price sales in a way that preserves quality.”
He argued this would create an opportunity for companies such as UK-based luxury outlet operator Value Retail, creator of The Bicester Collection of shopping villages in Europe, China and New York.
The rules could also accelerate the adoption of artificial intelligence to monitor inventories in real time, forecast demand and better co-ordinate stock across stores and warehouses, according to industry executives and analysts.
Giulia Iuticone, a Milan-based partner at executive search firm Heidrick & Struggles, said the rules would “redefine how companies make decisions . . . if unsold stock can no longer serve as a safety valve, the quality of planning becomes a competitive advantage.”
By Silvia Sciorilli Borrelli and Adrienne Klasa © 2026 The Financial Times.
This article originally appeared in The Financial Times.
