End-of-season fashion marketplace Otrium has announced its expansion into the US.
The marketplace, which specialises in selling excess inventory, will launch in the US with brands including Adam Lippes, Belstaff, Cynthia Rowley, Faherty and Reiss. Many of the brands on its European platform, including Karl Lagerfeld and Asics, will arrive later.
Otrium intends to help brands avoid the economic and environmental consequences of excess inventory, enabling them to set up their own store through its marketplace. It gives the brands full control over pricing, merchandising, visibility and placement, meaning that the brands can sell their excess products without being degraded by third party retailers.
In order to launch into the US, Otrium completed Series C funding of 120 million dollars via Bond Capital, Index Ventures and Eight Roads. Kering Group is an early stage investor.
Senior technology executive, Zuhairah Scott Washington, formerly with Uber and Expedia Group, is leading this expansion as President.
“Fashion is the world’s largest art form and the way many choose to express themselves daily. Unfortunately, the industry has been trapped in a broken cycle of inefficiency, leaving brands with few viable ways to efficiently sell excess inventory in an economical and environmentally favourable way,” said Washington.
“Otrium has developed a tech and data led approach that gives the industry greater control and insight over this inventory, and access to data which will eventually lead to a more sustainable way for fashion to be produced and sold.”
According to Otrium, 70 percent of the world’s clothing ends up in landfills. In using the marketplace, excess stock is sold within weeks, avoiding resellers, stock buyers and eventually, landfills.
“Our long term goal at Otrium is to help brands produce clothing that ends up being worn resulting in less waste,” said Washington. “Otrium’s brand partners access our large audience of fashion-lovers using our platform. Our technology enables us to reach our members, in a discreet and highly targeted way - something that isn’t possible in the traditional outlet.”
With over 300 fashion brands on its app globally, the marketplace has around 3 million registered members. Otrium has seen its revenue double in 2021, and is available in over 20 markets across Europe and now the US.