Every fast consumer-focused company has to produce products to be able to manage the demand of the consumers at a very fast tempo in their supply chains.
When companies keep growing, their supply chains start getting complex, which means that we lose track of products, and where they are, creating a field of 'black markets'. Also, financially, companies need to keep growing, which means, they come up with new products, revenue streams to keep on showing growth. At the same time, we can't estimate the actual need of us consumers anymore.
So, logically, the companies start producing 130% every year, whilst knowing that they have a sell-through rate of 25%. It's a snowball effect, starting from the manufacturing phase. It's cheaper if we buy 1 million instead of the 100K we actually need. Result? Overproduction, over pushing products into the supply chains, forcing retailers to buy more due to scale of economies, and what we can't sell we destroy. Why? It doesn't make sense for them to spend the marketing budget on slow-movers.
Where do we start?