Here is a fascinating story from the New York Times about the problems of mass oversupply in the fashion industry. (Open in a new browser if you are past your limit.) Even before the pandemic, many clothing companies were having trouble. “We’ve done everything to such excess that there is no consumer for all of it,” For example, in 2018 Burberry burned $18m of unsold products. The pandemic and the resulting retail apocalypse are accelerating the crash.
Difficult times also bring opportunities. Last week, I wrote about a couple that built a 7 figure business reselling discount clothing on Amazon. There will be a lot of liquidations with so many retailers going out of business. I bet there are truckloads of Tokyo 2020 Olympic goods that are going to be collector’s items in the future. What opportunities do you see?