The Hamburg-based startup smatch is addressing the significant problem of overstock in the fashion industry with a B2B platform for international trading. The company’s founders and managing directors are former About You Director of Revenue & Growth Dr. Max Groberg and former McKinsey manager Dr. Hans-Martin Vetter. Both combine successful retail experience with technical expertise in the operation of B2B marketplaces.
Sellers, e.g., brands and retailers, can 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. Buyers, e.g., 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.
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 percent of all fashion items produced each year are never worn. These untouched products are responsible for nearly 7 percent 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,” says Dr. Hans-Martin Vetter.
smatch has quickly established itself in the market and since launch already managed a mid three-digit million Euro amount. “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,” adds Dr. Max Groberg.
smatch’s innovative approach has already caught the attention of the industry. The team was able to attract funding of €2.5 million to build the platform shortly after its start. The investor team includes Commerce-Tech expert 42Cap, impact investor Green Generation Fund, Growth-Tech expert 10x Founders, as well as successful e-commerce founders and retail leaders.
“The retail industry has long been aware of the global excess inventory crisis. We are excited to support smatch in paving the way to reduce excess inventory and driving sustainable change in the industry,” said Janna Ensthaler, general partner at Green Generation Fund alongside Dr. Manon Sarah Littek.
