Deadstock in fashion refers to finished goods that are produced but not sold at full price, often resulting in markdowns, liquidation, or disposal. From an economic perspective, deadstock is not an operational mistake but a structural outcome of long lead times, forecast-driven production, and large upfront inventory commitments.
At its core, deadstock is a forecasting and commitment problem.
Deadstock carries costs beyond unsold units. It distorts pricing, compresses margins, and increases capital risk.
Many fashion brands evaluate inventory decisions using unit economics or landed cost, rather than probability-weighted sell-through. As a result, the downside risk of unsold inventory is underestimated at the time production commitments are made.
Patchwork reduces deadstock by enabling pull-based production and replenishing factory-level inventory to approximately one month of demand. By shortening production timelines to a 6-week apparel calendar and shipping directly from manufacturer to consumer, Patchwork allows brands to align production more closely with real demand.