but brand dilution
I don't care. If you over produce then you made a bad economic decision, tough luck. Destroying goods for accounting reasons is an abhorrent policy driven by greed.
After all, the company could have arguably instead produced fewer product, sold what they have already sold for the same price, paid their workers the same amount of money to do less work, they wouldn't have to pay for the destroyed goods, and wouldn't have had to pay for the wasted input materials...
All in the name of profit FOMO.
the western ordered cheap quality overproduction solution of swamping developing countries with it, where much also ends in a trash heap, means they can continue the exploitive and environmentally destructive mass production.
Smaller local industries would be economically better for the countries, supply more aligned so less waste, and there’d be less of the bad factories in Bangladesh.
The US and I assume Europe have laws against "dumping" - selling a product for below cost - because it drives local competitors out of business. That is exactly what shipping containers full of clothes to Africa does.