NEWS

Otrium introduces made-to-measure packaging

The new packaging machine scans items to determine their size and creates a unique fitted packaging, limiting any unnecessary space.

22 DECEMBER 2023
Fashion's carbon footprint isn't a small thing. The fashion industry produces 5% of the world’s carbon emissions and is the world’s 3rd largest polluter. We're part of that, but we're striving to change that story. Here's what we're up to:
In 2023, we introduced a new packaging machine in our European warehouse to create tailor-made packaging. The new packaging machine scans items to determine their size and creates a unique fitted packaging, limiting any unnecessary space. We moved away from one-sized boxes to minimise material usage. 
Reducing our operational footprint: one package at a time Our new packaging machine is making a real difference—cutting emissions by over 50% per item shipped. To be exact 51.88%, the equivalent of 0.075 kg CO2-eq. It's a small win, but a win nonetheless. Reducing our operational footprint means innovating one step at a time. We move as smart and quick as possible as we are conscious of the urgency of climate change.
Using Less, Using Smart It's really just about using energy and materials smarter.This is our three-step approach:
  1. Thinner, unbleached materials that are recycled and FSC certified. Lower and recycled materials means less waste.
  2. By making the boxes to fit the items shipped, we reduce the box size. This impacts the whole supply chain down to customer delivery with less vehicles required to move the same amount of orders.
  3. Solar power for our warehouse and teaming up with couriers who care about the environment.
Our Footprint is Our Responsibility 
A carbon footprint measures the amount of carbon dioxide released into the atmosphere as a result of the activities a person, organisation or community does. A carbon footprint is measured in terms of tons of CO2 emissions. The smaller your carbon footprint, the smaller the impact on the environment and climate change. Find our latest climate report here
Our ambition is to reduce our carbon footprint to become Net Zero in 2030 in line with the Science Based Targets initiative.  Read more about our commitment here
If you have any questions, great ideas or feedback please reach out to our Sustainability team at conscious@otrium.com.

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B Corp Receiving B Corp status is a significant step, providing a clear framework for making further progress while being accountable to high social and environmental standards. Otrium was assessed on five pillars during the certification process, namely governance, the environment, employees, customers and community. A minimum of 80 points is required for a company to achieve B Corp status and the fact that Otrium scored 91.6 out of a possible 200 was a major milestone, especially for such a young company. These results serve as recognition of the impact of the work carried out in recent years, and the business operations in particular.To complete the certification process, companies must account for the impact of their decisions on all stakeholders in their governing documents. And certification is certainly not the end of the journey: companies are re-assessed every three years to ensure they still meet (the increasingly higher) standards for recertification. Together with key brand partners, supply chain partners and customers, Otrium strives for continuous improvement and works towards a future where all clothing produced is worn. For example, the company is actively working to further extend the lifecycle of fashion items, including by repairing damaged products. In addition to its core mission, Otrium is continuously improving its operational footprint by using less and recycled packaging materials and significantly enhancing last-mile delivery through DHL’s GoGreen Plus programme in the Netherlands. It remains committed to creating a better future for the fashion industry, by selling unsold inventory.Otrium reports annually on the impact of its business model—see the latest report here.Breaking even in Q4 2024At the end of 2023, Otrium announced its ambitious plans for 2024 and beyond, with a focus on breaking even by Q4 2024 and achieving profitable growth in 2025. CFO Frank van Valderen was appointed as CEO at the start of January 2024 to implement the new strategy, leveraging on his extensive relevant experience from previous leadership roles at well-known e-commerce retailers.Under Van Valderen’s management, Otrium in Europe has focused on selling more relevant and attractive brands such as Levi’s, New Balance, Axel Arigato, Rains, Moschino and The Kooples, all of which joined the Otrium range in 2024. In addition, Otrium has strong local brands such as Scotch & Soda, McGregor and Fabienne Chapot. Less relevant brands that were insufficiently appealing to consumers or resulted in losses have been phased out. Taken together, these measures have led to increased customer loyalty, a higher purchase frequency and improved margins per order.“We can clearly see that our customers appreciate the changes made,” says Van Valderen. “They are buying more designer and affordable luxury brands and we are offering the right brands at the right prices. We know that our customers welcome a good deal and our brands are pleased when we sell their products at a solid margin. In this case, 1 + 1 = 3 – happy brands and happy customers. We will be going much further in 2025.”At the end of 2023, Otrium’s United States operations were transferred to the Rue Gilt Groupe and sales activities in the United Kingdom were discontinued. The improved operational performance in Europe and the removal of losses in the US and UK significantly reduced Otrium’s burn rate in 2024 compared to the previous year. In Q4 2024, Otrium posted a profit for the first time in its history. The EBITDA loss for all of 2024 fell by approximately 70% compared to 2023. Van Valderen: “Achieving this turnaround wasn’t easy and the entire Otrium team worked incredibly hard. I am proud that we have accomplished such excellent results together and set a new springboard for profitable growth and the continued development of Otrium.”More and more brands believe in Otrium’s mission and are collaborating to build a new future for fashion. Otrium now offers over 300 fashion brands undefined. More information available below via the links:Custom-made packaging undefinedOtrium’s repair service undefinedeOtrium’s recycling service undefinedeFor more information and/or interview requests, please contact: Emelin Naudin ten Cate | PR Managerundefined or call +31 6 47 138 296About Otrium Founded in 2017, Otrium is a B Corp-certified fashion outlet with a clear mission: ‘all clothing should be worn’. The company provides a solution to a growing challenge within the fashion industry that while clothing production has doubled since 2000, one in six of these new items never even reach the consumer. Otrium’s mission is supported by increasing legislation related to sustainability in the fashion industry, such as the EU Ecodesign framework that includes a ban on destroying unsold clothing and shoes. Otrium is therefore an attractive solution not only for international fashion brands but also for consumers who benefit from the varied and high-quality offerings at attractive prices. Over 300 fashion brands are available at discounts of up to 75%.About B Lab B Lab transforms the economy to benefit all people, communities and the planet. As a leader in economic system change, its global network creates standards, policies and tools for businesses. It also certifies companies – known as B Corps – that are leading the way. To date, the global community includes over 9,400 B Corps spread across 92 countries and 161 industries, with more than 200,000 companies managing their impact using the B Impact Assessment.See also undefined
At Otrium, we're thrilled to share the progress we've made in 2023 and to reaffirm our commitment to creating a positive impact in the fashion world. This year, we assessed the development across four priorities of our impact strategy: extending the life cycle of fashion, climate & nature, inspiring better choices, and responsible leadership. While these achievements are a source of pride, we’re even more excited about our plans for continuous improvement.Curious about our success, ongoing efforts, challenges, and plans for the future? Read undefined!Here’s a summary of the must-know insights:undefined Otrium’s main goal is to fight textile waste by finding new homes for unsold fashion items. In 2023, we made great strides: - We resold 3,5 million past-season clothing items through our undefined and rerouted an additional 1,145,922 goods using the undefined.- We undefined 7,074 garments to local communities.- About 50% of the damaged items were repaired using the undefined.- We undefined 200,571 best-selling items for outlets, basing our decisions on data and using excess fabrics for smaller collections - though this reproduction is a small part of our business compared to the industry average (5.5% versus 25-60%). All in all, we exceeded our goal of expanding our services to save 25,000 pieces. While we chose to postpone the launch of the Environmental Recovery Value B2B platform, we did create an internal dashboard that showcases carbon emissions avoided and waste saved per item, as well as conducted our most extensive research on impacts with findings set for release in 2024.
As we all know, visuals are everything when it comes to fashion. We can see that consumers are more likely to choose clothing with clear images. At Otrium, we understand the important role that visuals play in presenting clothing at its best, so here’s what we did: We've initiated  our Photo Studio in 2020, to optimise the visual identity of the items on our platform. Our mission revolves around collaborating with brand partners to give a new life to their unsold stock through our platform. Our in-house Photo Studio captures these items on models using AI. Quick and effective From a seamless photo shoot to the final image, we manage it all, eliminating the need for third-party involvement and ensuring a swift and cost-effective workflow. A quick turnaround, with items going live within a week. The studio offers options between packshot and model images, with high-quality AI-driven modelling. This is how we workundefinedundefinedundefinedundefinedBest of both worlds Off-price items are mostly end of season, and for brands it is therefore less attractive to invest in such items. This is where Otrium comes in; for a small expense we deliver quality images of these fashion items if our brand partners do not have such imagery available themselves. These visuals help consumers with making an accurate purchase decision and therefore also reduce the likelihood that consumers will  return their order.Capacity Behind the scenes, our statistics reveal the scale of our operations. In 2023 alone, 15,000 items were shot, with 2,500 as model photography. Our editing partner handled retouching for 30,000 images, emphasising the magnitude of our commitment to visual excellence. Orders with at most 75 items can go live within four days. The Otrium Photo Studio isn't just about capturing images; it's a testament to our dedication to revolutionising how fashion is presented and experienced. With a commitment to efficiency, quality, and innovation, we're aiming to set new standards in the fashion industry.  Click undefined If you want to know more about Otrium’s services.

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