pg. 53

"FINDING SOLUTIONS FOR UNSOLD ITEMS

Very tight, skillful inventory planning right from the design stage is a hallmark of the LVMH Maisons’ business model, putting it at the other end of the scale from mass production and minimizing the volume of unsold goods, the destruction of which was forbidden by the circular economy bill enacted in France at the beginning of 2020.

As well as managing waste and obsolete goods, the Maisons look for ways of handling unsold goods. One such solution is to have unsold clothing items taken apart and recycled by CEDRE. Other solutions include staff sales and donations to non-profits. Upcycling, which is encouraged by in-house hackathons, also offers new prospects. Louis Vuitton, for example, created a buzz in April 2019 when it launched “Be Mindful”, its first upcycled collection made from unsold silk scarves. This collection of fashion jewelry and textile accessories, each one-of-a-kind, is the result of a reverse creative process that starts with the available products and achieves a virtuous circle of creativity, sustainability and savoir-faire.

The Group also has a special policy for unsold food items. The food halls of La Grande Épicerie de Paris operate several fresh food kitchens. The Maison has developed a meticulous sales forecasting system that enables it to precisely adjust the quantities produced each day. It has also partnered with the French Red Cross, which arranges for daily collections of unsold produce. In 2018, it joined forces with Too Good To Go, the company that enables stores to offer their unsold food to users of the eponymous app. Both La Grande Épicerie Rive Droite and La Grande Épicerie Rive Gauche plan to sign more partnerships with food waste specialists and expand the range of produce they offer as part of these collaborations."