In 2013, Netherlands-natives and recent grads Milan Daniels and Max Klijnstra launched a somewhat successful sweater brand in Amsterdam. The two were selling thousands of sweaters in over 20 countries, and doing 4-6 collections per year. What they eventually noticed, however, was that their warehouse was filled with a vast amount of items from previous collections, even after they’d already done their sale.Daniels and Klijnstra decided to look into solutions for these end-of-season clothes, so they talked to stock buyers, e-commerce sites that offered flash sales, physical outlet centers, and large outlet malls.They eventually  learned that every brand had the problem of unsold inventory, that stock buyers and flash sales took very high margins, and that it was difficult for many brands to break the barrier to market entry at physical outlets.  So, in 2015 they launched undefined, an online marketplace for end-of-season clothes that allows brands to sell their unsold inventory at cheaper prices.In late May of 2020, Otrium announced that it had raised €24 million in Series B funding, in a round led by Eight Roads Ventures, with existing investors Index Ventures and Hans Veldhuizen participating.“We are trying to change the perception that clothing that is usually 3 months or 6 months at full price and after it’s seen as worthless” Milan Daniels, cofounder and co-CEO says. “We wanted to build a platform where these items get a chance at being bought at a price that is cheaper but still values all the resources that went to the product.” 

Washington will lead global expansion of the brand into the U.S. Andrew Robb, the Farfetch’s former COO, to join boardAmsterdam, 15 June, 2021 - Otrium, the premier online outlet shopping experience, today announces the appointment of Zuhairah Scott Washington as President. Joining from Expedia Group, she brings her experience in navigating digital transformation and business model disruption to Otrium’s rapidly expanding end-to-end marketplace for fashion.

When we started Otrium, we didn’t just want to create a company, we wanted to start a movement. We wanted every item of clothing produced to be worn.Before Otrium we’d never given much thought to unsold inventory in the fashion industry, why would we? Even now, with a drive towards greater sustainability, it’s still an uncomfortable topic in fashion circles because around 1 in 10 items made are never sold. We think that’s such a waste – of all the creative energy, the hard work and the investment that goes into producing great fashion.Max and I started to ask ourselves what happens to unsold inventory. We were already on an entrepreneurial path, building ecomms tools, web apps, with a side hustle - a cool (though we say it ourselves!) sweater brand. Although the brand was doing well, we were stuck with unsold inventory. We realised if we had this problem, we weren’t the only ones. For our little business, this was a cash issue, never mind the waste.We did some research to find out how we could shift our own stock. We learned that every fashion brand struggles with unsold inventory and that all the current solutions were legacy players with flawed models.There are stock buyers who buy in bulk at usually less than the price of production. Then there are flash sales, where customers are pushed into a sub-optimal ecommerce experience, often having to wait for their orders. And finally, there are physical outlet centres, often out of town with a high level of investment required so out of the reach for smaller brands. Max and I realised the market was ripe for disruption.The industry needed a better solution that offered better margins and more control for brands, one that could be solved with technology. Brands can get more value out of their previous collections and customers can have a really good experience. There’s where Otrium comes in.We are a managed marketplace where brands can open an online outlet store. They have full control over pricing, merchandising, visibility and placement. This is especially important in the fashion industry where the relationship brands have with their customers is so important. Fashion is a reflection of who you are and personal style is intrinsically linked to the brands you wear. We respect that dynamic.Otrium tech-enables brands so they get the most value from their unsold inventory by smartly connecting every item of clothing to customers in our community. Meanwhile our dynamic pricing engine optimises conversion while refurbishment stations ensures tired, crumpled or unlabeled items are saleable.As for our customers, they get a fantastic deal. On our app they can discover fashion-gems they might have missed, at really great prices but without compromising on the experience. Otrium is the online equivalent of a physical outlet store which has been superpowered with technical capabilities. We have well over 200 brands on our app, from mid price to luxury, from contemporary to sportswear, from local heroes to global names. In every market we take the global names then we add local hero brands to create an authentic, relevant experience for our customers.We’re on a journey to make fashion smarter, giving fashion-lovers the best possible online retail experience and making sure every item of clothing is worn.Words by Milan Daniels, Co-Founder