How Kenchen Arjandas Bharwani Explains Off-Price Fashion, Surplus Inventory, and Waste Reduction

Author(s): Scott Douglas Jacobsen

Publication (Outlet/Website): The Good Men Project

Publication Date (yyyy/mm/dd): 2026/04/17

Kenchen Arjandas Bharwani is a fashion consultant specializing in the off-price apparel sector, with expertise in inventory distribution, excess stock recovery, and supply chain strategy. She is a professional in the fields of manufacturing and retail, helping factories recover losses from cancelled orders, delayed shipments, misplaced tags, and surplus garments while connecting retailers with quality products at value-driven price points. Bharwani began her career in Indonesia, where she helped build a garment export business into a trusted off-price vendor across multiple international markets. She later expanded menswear, ladieswear, and socks divisions through consulting and buying roles across major sourcing hubs in Asia.

In this interview, Scott Douglas Jacobsen speaks with Kenchen Arjandas Bharwani about the off-price fashion sector, where surplus garments, cancelled orders, tariff disruptions, and labeling problems create both waste and opportunity. Bharwani explains how factories overproduce structurally to manage defects and delivery risks, why tariffs now strand goods at ports, and how off-price buyers negotiate to recover value from abandoned inventory. She describes the commercial logic behind giving garments a second life rather than sending them to landfills, emphasizing trust, pricing, consumer demand, and regulatory compliance. The discussion highlights fashion’s hidden inefficiencies and practical routes toward more sustainable redistribution worldwide. 

Scott Douglas Jacobsen: How did your early experience in Indonesia, before being in New York, shape your understanding of excess inventory as an opportunity rather than a commercial loss?

Kenchen Arjandas Bharwani: In Indonesia, after I graduated, my first work experience was with a garment company that had strong connections with factories holding excess inventory but relatively few buyers. I helped look for buyers; essentially importers, who would be willing to purchase excess inventory from factories.

As I learned more about the business, I understood that this excess inventory often came from cancelled brand orders. Those cancellations could happen for relatively minor reasons, such as a pantone variation in black or a hang tag being placed incorrectly, details that end consumers often do not notice. From a consumer perspective, someone simply wants a black coat.

Another major reason was delayed delivery. Stores have their own timelines for when products need to reach the sales floor. If goods are not going to arrive on time, or if suppliers inform retailers of a delay, orders may be cancelled.

As a result, a great deal of this merchandise remained in pristine condition even though it had been cancelled. For me, that raised the question of why such good garments were being treated as losses. The company I started working with did not have much exposure to importers, so I helped build that side of the business from the ground up. First one client, then two, then three. As of now, the company is running very well on its own.

Jacobsen: Very cool. Why do garments get stranded in the supply chain even though they are wearable and marketable?

Bharwani: Mainly for those reasons, especially cancellations. More recently, tariffs have also been a factor. That has been affecting things since last year.

It is no longer just a matter of goods being stranded in factories. They are now also getting stranded at ports. When new rules took effect, such as changes in tariffs, they can apply to goods already in transit. Brands plan their margins in advance, but these sudden changes disrupt those calculations. As a result, companies may decide not to clear goods from ports because the additional costs make it unprofitable. They would have to pay significantly more than anticipated, and at that point, no one is making money. The goods become too expensive to sell.

More broadly, when goods are stranded in the supply chain, the main reasons include cancellations, tariffs, and situations where brands go bankrupt and no longer take delivery. In those cases, shipments may be abandoned at the port. That is where companies like ours step in, negotiating to purchase the goods through various channels.

Jacobsen: What kinds of blockages or hurdles arise in those negotiations over stranded garments?

Bharwani: Primarily, sellers try to recover their costs. For example, a license holder for a brand may have merchandise stranded at a port and will want to cover production costs such as fabric, stitching, logistics, tariffs, and duties.

However, we approach it differently. For us, stranded goods represent an opportunity. We negotiate aggressively on price so that we can acquire the goods at a level that allows us to supply off-price retailers. These retailers, in turn, aim to offer affordable products to consumers across income levels.

The main point of tension is that sellers expect cost recovery, while we do not operate with that mindset because we are not manufacturers. That creates a negotiation gap. Ultimately, both sides tend to move toward a practical resolution. The longer goods sit, the more they deteriorate and the higher the storage costs become, especially warehouse and port fees. Over time, that pressure encourages sellers to reach terms with buyers like us.

Jacobsen: Is fashion overproduction structural, or is it simply poor forecasting?

Bharwani: I think it is structural. Apparel factories employ thousands of people, and, naturally, people make mistakes. Even with templates and systems in place, some garments will have issues such as stitching errors, misplaced elements, or other defects. That is simply part of day-to-day production.

Because of that, factories build a tolerance for overproduction into their planning. They purchase enough materials to allow for a certain buffer so they can make up for damaged or defective items. A garment may be stained, dirty due to accidentally dropped on the floor, have skip-stitches or otherwise compromised in other ways during production. Factories still have to fulfill the purchase orders placed by brands. If a brand orders 100,000 units, the factory must be able to deliver 100,000 acceptable units. So they plan for the risks that come with production.

In that sense, overproduction is structural. It is built into the manufacturing process. Factories anticipate that some items will not be usable, and they produce accordingly. Then, if excess goods remain in good condition, they may sell them to buyers like us. Some factories do not have much excess because they end up using most of that buffer. Others operate efficiently enough that good surplus inventory remains available, which creates opportunities for buyers like our company.

Jacobsen: The major garment-producing countries are probably China, India, Bangladesh, Vietnam, and Cambodia. Since each country has its own rules, do you adjust your negotiations to each one, or do you find common principles that work regardless of which country controls that stranded inventory?

Bharwani: I would say the negotiations are guided by common principles. In the end, when suppliers are stuck with this kind of inventory, their goal is to recover as much cost as possible. My goal is also consistent across markets: to secure the best deal we can wherever we buy from.

So yes, the principles are broadly the same. Trust is very important. They need to be able to trust us, and it is my job as a fashion consultant to show them that the arrangement can be a win-win for both sides. Payment terms also matter. Sellers often want very quick payment, and we try to accommodate that when possible because we understand that, if we want the deal to happen, we need to bring something attractive to the table, especially quick cash recovery.

Jacobsen: What about mislabeling or misplaced labeling affecting resale potential? Does that become an issue for finished garments?

Bharwani: This is particularly important in the United States because there are specific regulations enforced by customs. For garments sold in the U.S., certain information must be immediately visible to the consumer. For example, on tops, the brand name, size, and country of origin must be clearly displayed and easy to see at first glance. That is why these details are typically placed in a central, visible location.

The same applies to other garments, such as pants. The brand, size, and country of origin must be clearly indicated. For children’s clothing, the requirements are even more stringent. These garments must meet specific safety standards, including testing for flammability and harmful substances such as lead. They also require additional labeling, such as tracking information, to ensure safety and accountability.

Labeling also extends to care instructions and fabric composition. This is important because consumers may have sensitivities or allergies to certain materials. If fabric content or washing instructions are not properly disclosed, it can lead to customer complaints. Retailers that purchase in bulk will notice patterns of issues over time, which ultimately creates problems across the supply chain.

Jacobsen: How does off-price retail give garments a second life? Otherwise, many of them would likely end up in landfills, especially since many are made from polyester and do not decompose easily.

Bharwani: Off-price retail creates a second life for garments because of how brand agreements with factories are structured. In many cases, especially with large brands, contracts include clauses stating that if an order is cancelled due to factory-related issues, even minor ones, the factory is not permitted to resell those goods elsewhere. In some instances, brands explicitly require that the garments be destroyed.

Off-price retailers provide an alternative pathway. Because they are established players with wide distribution, they can approach brands directly and request permission to purchase and redistribute cancelled or excess goods. In many cases, brands will allow this, depending on the retailer, as it avoids the need to destroy usable merchandise.

However, this often comes with conditions. For example, labels may need to be altered, such as being marked through or partially removed, so that the goods are distinguishable from those sold in full-price retail environments. This helps brands maintain their pricing structure and market positioning, even if the underlying product is of comparable quality.

Jacobsen: This next question may be more relevant for someone with your level of experience. How do you determine whether a product rejected by one retail channel could succeed in another? It seems more like an art than a science.

Bharwani: Yes, I would agree with that. It comes down to understanding the customer. In my current role, we interact closely with buyers and know what they are looking for. From past experience, I have also learned what tends to work and what does not.

When I evaluate cancelled or excess inventory, I consider whether it aligns with our customer base. Some retailers focus on basic items, while others look for more fashion-forward or higher-quality pieces. I assess what our customers currently want, whether the product fits that demand, and whether the pricing makes sense.

Profitability is also critical. Even if a product is appealing, it must still be viable from a business perspective. All of these factors, customer demand, product fit, and pricing, have to be balanced. If the numbers do not work, it does not make sense to pursue the opportunity.

Jacobsen: That is all I have time for today. Thank you very much.

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