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  "documentTitle": "Solving fashion’s product returns",
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  "authorName": "Roland Berger",
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  "notes": "Includes quotes from industry experts highlighting the misalignment of KPIs and the environmental impact of current return practices.",
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      "text": "At big fashion houses, only like-for-like sales are discussed but profit and waste are often neglected. Until you change the metric, brands and retailers will continue to grow at any cost and overproduce. EBIT needs to be the main focus.",
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      "text": "Commercial incentive is to save money and not prioritise receiving returns, unpacking, checking, ticketing, folding, returning to logistics etc. However, the environment impact of just disposing it is terrible, as these returns are either dumped or burnt.",
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      "text": "Different departments have different goals and objectives, and if they are working in silos with different KPIs, their incentives are likely to be misaligned. This often creates a hurdle to reducing overall return rates especially as growing revenue often takes priority.",
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      "kind": "callout",
      "text": "Different departments have different goals and objectives, and if they are working in silos with different KPIs, their incentives are likely to be misaligned.",
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      "text": "In the long-term, however, brands know that there needs to be greater alignment within fashion organisations on their strategy on how to balance revenues and the cost of returns.",
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      "text": "Participants expressed that because business departments were measured with different KPIs, they tended to have different objectives and work in silos towards the topic of returns.",
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      "text": "Historically, due to the cost of returns handling and the need to prioritise other issues, the topic of reducing returns did not tend to rank highly in retailers' agendas.",
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      "text": "Commercial incentive is to save money and not prioritise receiving returns, unpacking, checking, ticketing, folding, returning to logistics etc. However, the environment impact of just disposing it is terrible, as these returns are either dumped or burnt. — Hans-Peter Hiemer, Managing Director, Assyst",
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      "text": "4. Fashion businesses need to rethink their strategies and have a unified approach on returns",
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