Did you know that 10% of all shoes produced each year—around 2.4 billion pairs—are never worn? This isn’t just inefficiency; it’s a significant issue caused by the Make-to-Stock (MTS) model that many shoe companies rely on.
HOW THE MADE-TO-STOCK MODEL WORKS.
The MTS model is based on predicting what people will want rather than making what they actually need. Here’s why this leads to waste:
-Guessing Demand: Brands attempt to forecast shoe preferences, but fashion trends can be unpredictable. Even the best data leads to forecasts that are only 60-70% accurate.
-Overproduction: To avoid stock shortages, companies produce large quantities of shoes in various colors and sizes. Unfortunately, 20-30% of these shoes remain unsold after each season.
-Storage Costs: Unsold shoes accumulate in warehouses, costing around €2.10 per pair each month. For a brand with 100,000 unsold pairs, that adds up to €210,000 per month in storage fees.
-Financial Strain: Unsold shoes also incur additional costs. A €75 shoe can accrue another €2.63 in interest every three months it remains unsold.
-Marketing and Discounts: To clear leftover stock, brands often spend more on marketing and provide discounts of 30-50%, which impacts profits, and many shoes still go unsold.
THE OPTIONS: DISCOUNT, DONATE OR DESTROY.
To maintain their brand image, companies typically face three choices: discounting, donating, or destroying unsold shoes. While discounting can hurt exclusivity, donating is often avoided to keep products “luxurious.” This leads to destruction as a common practice. It’s a troubling reality: it’s deemed better to destroy perfectly good shoes than to let them go to those who can’t pay full price. This is not only wasteful—it’s also unfair.
THE HIDDEN COST OF MADE-TO-STOCK.
Let’s look at the numbers. Here’s how a €75 shoe can end up costing much more due to waste:
Production Cost: €75
Overproduction Costs (20%): €15
Storage (3 months): €6.30
Financing (3.5% for 3 months): €2.63
Marketing/Discounts: €15
Waste from Destroyed Stock: €7.50
Total Cost Before Retail Markup: €121.43
After retail markup, this shoe may sell for €220 or more, concealing all the waste and inefficiency involved.
THE ENVIRONMENTAL TOLL: GLOBAL WASTE.
The environmental impact is considerable. Each year, enough shoes are wasted to fill multiple football stadiums. Producing these shoes generates around 32.6 million metric tons of CO2 and consumes about 15 billion liters of water. To put this in perspective, we would need to plant 1.2 billion trees to absorb the CO2 produced, and the wasted water could provide clean drinking water for 6.4 million people for a year.
THE NOOCH COMMUNITY-ACTIVATED MODEL.
At Nooch, we’re redefining the traditional approach with our Mother Earth CEO principle, transforming the wasteful make-sell-destroy cycle into a sustainable buy-make model. Here’s how our Community-Activated model works:
-You Order, We Make: Instead of predicting trends and overproducing, we create shoes only when you place an order. This ensures that every pair has a purpose before it’s even crafted.
-Balanced Production: We produce only what’s ordered, plus a small buffer (about 10%) for returns. Our unique measuring process guarantees the right sizing, minimizing waste and enhancing comfort.
-Direct Delivery: Your shoes ship straight from our factory to your doorstep, eliminating middlemen and reducing storage and transportation costs.
By choosing Nooch, you support a brand that prioritizes integrity, community, and sustainability. Our approach eliminates the waste associated with overproduction, allowing us to offer Noochies at €159 instead of €220+.
JOIN OUR INNER CIRCLE.
You are part of the journey from order to delivery. We will keep you informed throughout the production process, creating a connection that goes beyond a simple transaction. You’ll also receive a free invitation to our pick-up parties—your first drink is on us.
THE CHANGE WE NEED FROM YOU.
We ask you to plan ahead with your shoe purchases. Our research shows that 87% of consumers believe their current shoes will last another 3-4 months—perfect timing since our production process takes that long.
By planning your purchase, you help us create a sustainable alternative to the traditional make-to-stock approach that often results in overproduction and unsold inventory.
When you choose Nooch, you’re not just buying shoes; you’re making a statement. You’re supporting a brand that values integrity, community, and the environment.
SOURCES
https://www.eerstekamer.nl/overig/20231221/verkenning_schoenketen/document
https://www.worldfootwear.com/news/the-footwear-industry-and-the-circular-economy/5957.html
https://www.mdpi.com/2071-1050/16/14/6094
https://staging-xpollo.plunic.com/unsold-shoes-the-hidden-consequences-of-overstocked-inventories/
