Cutting waste in the apparel industry
Otrium, an Amsterdam-based startup that helps clothing brands sell their excess inventory, is experiencing strong growth and has now expanded into the UK. Currently, the company operates in France, Germany and the Netherlands, where it was founded in 2016.
Through an e-commerce platform, Otrium helps brands offer unsold clothing to consumers at discounted prices. The company uses analytics and a pricing engine to determine what items should cost and then sells merchandise from different brands to more than one million registered users, preventing goods from being thrown away.
Helping fashion brands in the wake of COVID-19
Recently, Otrium raised €24 million in a Series B funding round that aimed to support its international expansion. The company has also reported that interest from potential partners has doubled, as the coronavirus (COVID-19) outbreak has negatively impacted retail sales. Clothing companies in Europe alone are believed to have €45 to €60 billion worth of unsold apparel due to the outbreak, according to the consultancy McKinsey.
The situation has created a unique opportunity for industry interrupting businesses like Otrium, which is part of Amsterdam’s sustainable fashion sector. Other players in this growing scene include The Renewal Workshop, which works directly with brands to repair and refurbish unsellable clothing to a like-new state. The city is also home to Fashion for Good, the world’s first museum dedicated to sustainable style, as well as the eco-focused Amsterdam Fashion Institute, which trains students to turn the industry green.Read more startup news from around Amsterdam or learn about the city’s fashion sector.