Why Are Venture Capitalists Investing Millions in Clothing Repair Services?
Retailers are working with clothing aftercare platforms, addressing consumer sustainability concerns.
A new crop of tech platforms aimed at helping brands and consumers bring old clothes and handbags back to life have popped onto the retail scene. Whatsmore, these platforms have attracted millions of dollars in investment within the last year or so. They make the case for sustainability by improving customer fit and extending the life of a product as well as helping companies solve a segment of their expensive returns problem.
However, there are pitfalls in this new sustainability market play. Firstly, the skilled labor required for these repairs is very hard to come by. “I actually think the biggest challenge in this space is realizing that there is a finite number of individuals who have the skill set,” says Josephine Philips, founder and chief executive of Sojo, a platform that connects users with local tailors — the app raised $2.4 million in pre-seed funding in April. Secondly, the logistics of moving product from end-to-end through the repair process is something technology can only bring so far; much of the work will remain physical, further hindering scalability.
Investment funds seem to be flowing into the clothing aftercare market. In June, clothing care app Save Your Wardrobe closed a $3 million seed round. Then, high-end repair platform The Restory has raised about $5.1 million to date, having closed another funding round in September.
Companies have long struggled with the costly logistics of returns. The rise of these new platforms providing services that improve fit in addition to affording consumers the possibility of keeping their clothes longer offers businesses a compelling value proposition according to Janneke Niessen, co-founder of venture capital firm CapitalT, a lead investor in Sojo’s most recent funding round. “I think a lot of the brands will start paying for that because returns are extremely costly for them,” says Niessen.
Clothing Aftercare Apps & Websites
Repair, alter, and restore shoes, bags, and clothing
The Restory - restore your shoes, bags, and clothing. Book a courier to collect from your home internationally.
Sojo - clothing alterations & repairs app working with brands to help make fashion circular
Save Your Wardrobe - mission is to help you embrace Sustainable Living through a digital wardrobe platform.
The Seam - get clothes tailored to fit perfectly and repaired. Book a service with expert Makers in your local neighborhood.
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