Reverse logistics in the clothing industry: A case study based on Nudie Jeans’s return policy for their webshop.

Abstract: Reverse logistics is a popular topic for retailers, especially when it comes to clothing retailers and their webshops. Reverse logistics has been given much attention in recent years due to the cost it brings for companies. There are not many studies made on reverse logistics, especially since it is regarded as a new field of research. The few studies that have been made all have different definitions, which prove the challenge it brings for companies facing the cost problem. However, companies that find a way to operate its reverse logistics activities in an efficient way can gain major competitive advantages, thus the reverse flow is much more complicated than forward logistics. The research is based on a case study of Nudie Jeans and investigates how their reverse logistics activities are structured as well as the return policy. In order to gather relevant data interviews mainly with representatives from Nudie Jeans‘s headquarter and their warehouse Korallen were carried out. Also, their competitors and the purchasing conditions were investigated in order to make a comparison to see how Nudie Jeans competed in the fierce clothing market. The main result from this study is that Nudie Jeans needs to change the price for returns, so that customers can buy products without feeling any anxiety of choosing the wrong size or colour. By doing so they can compete with other clothing retailers, who offer free returns.