Unsold Luxury Products Destruction Ban Could Benefit Türkiye

The European Union will ban large companies from destroying unsold products starting July 19, 2026. As companies are expected to shift toward lower-volume production, faster delivery, resale, and recycling-focused models, the decision is anticipated to have positive effects for Türkiye.

The European Union will prohibit large companies operating in the EU from destroying unsold clothing, accessories, and footwear products as of July 19, 2026. While luxury and fast-fashion brands previously criticized for destroying excess inventory are expected to be most affected by the regulation, the decision could also trigger a new transformation within Türkiye’s textile and ready-to-wear export supply chain. Order models based on smaller production batches, more frequent deliveries, and rapid manufacturing may become more prominent. Industry representatives state that Türkiye could stand out thanks to its flexible production capabilities, fast lead times, and geographical proximity. According to information previously disclosed in their own reports, brands that have resorted to destroying unsold products include Burberry, H&M, Nike, Louis Vuitton, Coach, and Victoria’s Secret, among many others.

Initially Applies to Large Companies

The European Union is ending the long-debated practice of destroying unsold products in the fashion and retail industry. According to Brussels’ decision, from July 19, 2026 onward, large companies operating in the EU will no longer be allowed to burn, discard, or deliberately damage unsold clothing, accessories, and footwear products.

The regulation will come into force under the EU’s Ecodesign for Sustainable Products Regulation (ESPR). The decision aims to reduce the environmental pressure caused by high-volume production in the textile and footwear sectors, prevent waste, and encourage companies to adopt circular economy models. Under the regulation, the compliance process for medium-sized companies will begin in 2030, while small businesses will initially remain outside the scope.

Strategies Will Need to Be Redefined

The companies expected to be most affected are global fashion brands that have previously been reported to destroy excess inventory or that operate under high-volume production models. In the luxury segment, brands such as Burberry, Louis Vuitton, and Coach attracted attention in past years due to reports of destroying surplus products. In the new era, these companies may need to reshape their brand value protection strategies.

On the fast-fashion side, brands such as H&M, Nike, Urban Outfitters, and Victoria’s Secret—whose suppliers include companies in Türkiye—stand out due to their frequently renewed collections. Experts say these companies may face stronger operational pressure because their business models rely on rapid seasonal transitions and intensive campaign cycles. Under the new rules, inaccurate demand forecasting or overproduction could become a direct cost burden.

For e-commerce giants such as Amazon, managing returned products will become increasingly important. Warehousing, resale, and reverse logistics operations may need to be restructured.

Reporting Will Also Become Mandatory

The new rules are not limited to banning destruction. Companies will also be required to report the quantity of unsold products and explain why they were disposed of. As a result, problems such as weak inventory planning, overproduction, or insufficient recycling capacity will become more visible.

Within this framework, companies are expected to strengthen demand forecasting systems, shift toward lower-volume and flexible production, expand outlet sales channels, develop second-hand sales models, establish donation partnerships, and increase recycling investments.

The impact on Türkiye is expected to be directly felt within trade and supply chains. Since Türkiye is one of Europe’s major textile and ready-to-wear suppliers, European brands’ new inventory management approaches are likely to affect Turkish manufacturers as well. Order models based on smaller batches, more frequent deliveries, and fast production may become more common. This could create advantages for companies with strong flexible manufacturing capabilities.

“It Could Positively Affect Türkiye”

Şeref Fayat, Chairman of the TOBB Ready-to-Wear and Apparel Industry Council, stated that the current global economic environment is more influential than such decisions alone:

“Because of the European Union’s Green Deal, Made in Europe initiatives, and many other regulations, sustainability has become a very important concept. This decision is also a result of that. Brands are now focusing more on sustainable products and production processes rather than fast fashion. On the other hand, due to the current global situation, demand conditions remain weak. However, this decision could positively affect Türkiye because of its production advantages and may encourage brands to shift toward Türkiye. Still, we do not expect a massive impact.”

Burberry Destroyed Millions of Pounds Worth of Products in 2018

With the EU’s new regulation, attention has once again turned to global brands that were previously reported to burn, destroy, or deliberately damage unsold products.

According to public reports and media coverage, many companies from the fashion, luxury goods, and e-commerce sectors have been highlighted. Burberry became one of the most well-known examples after it was revealed in 2018 that the company had destroyed unsold products worth millions of pounds sterling. Following public backlash, the company announced it had ended the practice.

H&M faced criticism over reports that it destroyed unsold or returned products, while Nike was also mentioned in reports regarding the destruction of excess inventory and unused products. In the luxury segment, Louis Vuitton was cited among brands preferring stock destruction over discounted sales. Coach announced policy changes after criticism that it had cut up handbags and accessories before disposal. Urban Outfitters and Victoria’s Secret were likewise associated with inventory destruction practices.

Companies in the sector have justified such practices by citing the protection of brand value, prevention of prestige loss through discounted sales, anti-counterfeiting measures, avoidance of storage costs, and concerns about reselling defective or returned products. However, increasing environmental pressure and new regulations in recent years have pushed many brands toward recycling, donations, outlet sales, reuse, and second-hand business models.