Hamburg-based startup smatch is addressing the significant problem of overstock in the fashion industry with a B2B fashion marketplace for international trading.
Excess inventory in the textile sector is a global problem resulting in major economic and ecological challenges. For brands and retailers, it often represents a critical financial and increasingly ESG regulatory issue. While the economic burden of excess inventory was estimated at €3 trillion annually before 2020, it has tripled during the Covid years. Given the decline in prices of stocked goods, this is a heavy liability on the balance sheet for many companies. Moreover, it poses ESG risks if improperly marketed or disposed of, with incalculable consequences for brand image and company valuation.
At the same time, overstock is a significant ecological issue. About 25% of all fashion items produced each year are never wor. These untouched products are responsible for nearly 7% of the world’s microplastics entering the oceans. “
In Europe alone, 5.8 million tons of textile products are discarded annually. This is where we want to make a relevant contribution with smatch.– Dr. Hans-Martin Vetter, cofounder, smatch
smatch B2B fashion marketplace trading proposition
Selling on smatch
The proposition for brands and retailers is to anonymously and discreetly offer their excess stock for sale on smatch. Along with details about the product, sellers also specify preferences about the type of sale, such as types of potential buyers the offer should appeal to or which regions and distribution channels to aim for. This enables them to actively manage their brand and margin.
Buying on smatch
Retailers, outlets or wholesalers, provide search preferences and are notified immediately when suitable goods are available and the buyer matches the seller’s marketing criteria. In addition, smatch offers technical solutions that facilitate transactions – e.g., payment terms of up to 90 days, data interfaces, and logistics planning. The marketplace is currently primarily active in the textile sector, with other commercial verticals to follow successively.
Our effective approach involves listening to brands and retailers. We connect them with potential global buyers, ensuring that we find the best possible customer for each product, securing both margin and brand equity– Dr. Max Groberg, cofounder, Smatch
smatch have attracted funding of €2.5 million to build the platform with investors including Commerce-Tech expert 42Cap, impact investor Green Generation Fund, Growth-Tech expert 10x Founders, as well as successful e-commerce founders and retail leaders.