The fashion industry has been battling the issue of discount-culture, excess inventory and the incredibly fast 'season' cycle. It's no question that there needs to be a solution, and Otrium seems to be hopeful that they are the solution.
Otrium is a start-up online designer outlet and has announced a 24 million euro Series B investment round, led by Eight Road Ventures.
Eight Road Ventures has investments in Alibaba, Treatwell and Made.com, just to name a few.
This new investment round is aimed to help fuel international expansion of the brand. This investment round was introduced before the COVID-19 crisis hit, however, because of the pandemic, many retailers are looking into e-commerce opportunities. As a result, Otrium has seen an acceleration of interest in its online platform.
Founder of Otrium, Milan Daniels, says, "on average, 12 percent of product remains unsold during normal economic times and now this has doubled".
Thus, Otrium hopes to be that solution for unsold stock and inventory for retailers and brands. Brands who join Otrium will have access to tools that help with making precise pricing decisions that help them sell "old" stock faster. The pricing tool takes in style, the number of units/sizes available and overall interest of the Otrium consumer into consideration when giving back a price to set on items.
Otrium gives the consumer the outlet experience, online. This gives smaller brands access to the outlet environment without having to bear the costs of having a physical retail space.
"All tools [on Otrium] are based out of one mission, and that is getting more value for every item produced."