ELI5: What do clothing companies do with stock that didn’t sell by the end of the season? How do high end brands (Gucci, Chanel) do this differently from ‘industrial fashion’ brands (Michael Kors, Zara)?

Surely there’s stock left for all these companies and this problem is obviously also present in other industries. But when it comes to clothing, clothes essentially become obsolete after the season has passed (2010 clothes would sell considerably less if put up for sale currently), differently from, say, electronics, where Apple or Sony can keep selling their products from 5 years ago (iPhone 7, PlayStation 4).
Also how does a Zara deal with stock differently than Gucci? Gucci has a strong reputation where if they sell their products 90% off, their brand gets damaged, whereas Zara doesn’t have that problem.


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