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Emmy - Invest in a future always in fashion

Up to 60% of our clothing ends up gathering dust in the wardrobe. Reselling them reduces the need for producing new, reducing textile waste and pollution. This is where Emmy, Finland’s largest online store for second-hand brand clothing, comes in.

Our story

Our wardrobes are full of garments that are never worn. Up to 60% of clothing bought new ends up gathering dust. By recycling such items, we can reduce the need to make new ones, while helping to protect the environment. This is where Emmy, Finland’s largest online store for second-hand brand clothing, comes in.

As Finland’s largest online store for used brand clothing, Emmy is much more than an online flea market. The company, which started out as a living-room storage space, now inspects and handles more than 1,500 products a day and aims to double this number in 2019. Shopping at Emmy’s online store is fun, inspiring and sustainable. For sellers, it is an intuitive turnkey service that helps to realise the sleeping cash hanging in their closets – sellers get up to 80 % of sales.

Emmy is aimed at ordinary people who prefer high-quality, durable clothing, think economically and care about the environment, but lack the time or energy to sell themselves. Through Emmy, shopping fans who value responsible spending can find great brands at a great price. 

With Emmy, you can enjoy fashion without burdening the planet. Emmy is set out to make buying second-hand clothes more fun than buying them new. Carbon-neutral shopping reduces the need to buy new and is environmentally friendly. For both nature and consumers, the best way to recycle is to reuse a product in its original form.

One of Emmy’s aims is to steer consumption patterns towards high-quality, sustainable products that retain their resale value. This is reflected in the collections stocked by partners such as Stockmann, Reima, Papu, Polarn O. Pyret and Kaubamaja. These partners benefit from the resale market created by Emmy, which raises the value of high-quality, durable brands, making them more attractive buys, whether new or second-hand, because of their resale value.

Emmy stocks over 80,000 products. To offer an unbeatable user experience, Emmy has developed powerful tools for browsing its product range and has launched innovations such as picture browsing, to make scanning large numbers of products easy for the buyer. This has resulted in the tripling of Emmy’s sales each year since its establishment. Emmy delivers everywhere in the EU and serves their customers in Finnish, Estonian and English.

Emmy’s competitive edge

Compared to many actors and platforms, one of Emmy’s clearest competitive advantages is that it does all the work on the seller’s behalf – a sharp difference to most platforms. This makes Emmy ideal for people who lack the time or inclination to sell for themselves – i.e. a very high number of us.

Emmy exclusively focuses on clothing, footwear, bags and accessories. When all products can be handled and stored in the same way, operations remain efficient, regardless of volumes. This strong specialisation also yileds benefits in Emmy’s skills: Emmy’s staff can process, describe, evaluate, price and inspect clothing quickly and efficiently. It also benefits customer service: Emmy’s staff are experts on the products they sell.

Emmy’s focus on fashion has also guided its marketing, which has been shaped to suit the fashion and clothing sectors. Emmy’s marketing is targeted, conveying just the right message to the right target groups.

Emmy engages in unique cooperation with several retail chains on the placement of its drop-off boxes, and a wide selection of gift cards for receiving sales earnings with extra benefits. Developed by Emmy, the unique dorp-off box network enables unbeatably easy and convenient one-step delivery of items for sale while visiting shopping malls and department stores on other business.

Emmy also has a proprietary product and inventory management system that has been developed since founding. This combines seamlessly with the work done by staff, providing a head start of several years on new market entrants.

Emmy has a recognisable brand and a loyal customer base. Among our sellers and buyers are users who fall in love with Emmy ‘at first sight’, with as many as three out of every four using the service again.

Our achievements to date

  • Over 400,000 products processed for sale
  • Circa 80,000 products for sale right now
  • Circa 300,000 products sold in almost 60,000 orders
  • More than 50,000 products donated to charity
  • Over 50 drop-off boxes in Finland and Estonia
  • Circa 150,000 unique website visitors per month right now

The potential of pre-owned clothing

People’s closets are full of clothing that is worn seldom, if at all. Studies show that over 60% of clothing owned by Finns has not been worn in the last 12 months [1]. With clothing sales worth €4 billion a year [2], this means roughly €2 billion a year of unneeded garments left languishing in closets in Finland alone. The sum is a hundred times greater at European level [3]. This is not just a question of money, since the clothing industry is a major environmental burden [4] [5], polluting more than aircraft and vessel traffic combined. By recycling unused clothes, we can reduce the need to make new ones and help to protect the environment.

Emmy is helping to create a future that we’d prefer our children to inherit. Despite the fact that our planet cannot even cope with our current consumption levels [6] [7], the consumption of water and raw materials, and carbon dioxide emissions, are expected to double by 2050 [8] [9] [10]. It is therefore crucial that we reduce the one-off usage of products including clothing. Emmy aims to create a functional secondary market for high-quality, durable clothes, encouraging people to buy at least some garments second-hand. Buying a used product reduces textile waste, which amounts to 70 million kilogrammes per year in Finland alone [11]. Used products are often durable and of reliable quality. 

Emmy has so far helped to save [12] [13]:

  • Over 280 tonnes of CO2 emissions
  • Over 550 million litres of water
  • Over 100 tonnes of textile waste 
  • In addition, over 50,000 garments have been donated to charity

A transition in consumption and retail

The future of retail is tied to the future of the planet. We need highly functional, high-quality circular economy services that reduce environmental damage. Clothing is a key area in which one-off use can be reduced by recycling more and lengthening the service life of garments, particularly quality products. Large-scale sales of recycled brand clothing will reduce the industry’s footprint and incentivise the manufacture of durable products.

Retail is undergoing a major transition. Previously, the rise of e-commerce was thought to pose the greatest threat to brick-and-mortar stores, but an even greater change is emerging – environmentally-aware consumers. People simply no longer want to buy everything new. They understand that, to reduce environmental damage and halt climate change, we must switch to more durable and environmentally friendly materials. This can already be seen in consumption habits and the strong rise of Emmy, Tori.fi and other circular economy actors. The textile industry aims to respond by finding alternatives to environmentally burdensome cotton and plastics.

Emmy is a reliable company, growing rapidly in a changing sector where buying second-hand clothing will become commonplace and even fashionable [14]. People will only buy new for big occasions, or when they cannot find the right second-hand product. The age of disposable fashion is over.

Five reasons to invest in Emmy

1) Emmy is the future
Emmy is the future of the planet, climate and environment. It is also the future of consumption and the enjoyment of fashion. Retailers must change in step with the world. A secondary market for high-quality clothes benefits all parties.

2) Emmy's concept works
Customers love Emmy and continually give positive feedback. Satisfied customers – both sellers and buyers – return to Emmy more often than other online stores. Both the environment and customer’s wallets benefit from shopping with a good conscience.

3) A large and growing market
Finnish consumers spend over €4 billion a year on clothing; for Europe, the figure is overa hundred times greater. Studies show that over 60% of the clothing in our closets has remained unworn for over 12 months, a source of vast, hidden sales potential.

4) Emmy is an attractive investment
Emmy has an excellent track record in growth and international expansion, as well as responsibility. It continues to expand in Europe and invites investors to become part of its growth story.

5) Act now
Consumption of the planet’s resourcesis expected to double by 2050. Because current consumption is beyond the planet’s carrying capacity, we need to take prompt action in reducing new production and move towards more sustainable solutions.

What our customers say

“The bag I ordered matched the description and stated condition 100%. The service has been fabulous, and I want to say thanks for the excellent customer service and really fast delivery.”

“I got just what I expected: the clothes smelt fresh and were very clean, despite some being sold in ‘satisfactory’ condition.”

“Super-fast delivery and the clothes were in great condition! A wonderful concept – thank you ♥”

“A wonderful store! I fell in love with it at first sight and ordered right away!”

“Fast service, clothes in good condition and the sizes given were a perfect match, based on my understanding of the size chart! THANK YOU – in many ways, much better than many stores selling new clothing :)”

“Thank you! You’re doing amazing work. Thankfully, there are people in the world who think about consumption the way you do.”

“It really is brilliant when someone does the selling for you!”

“Wonderful to be able to shop ecologically online, what’s more, for high-quality brands at reasonable prices! I will definitely order again and recommend you to my friends.”

Our business & market situation

Market situation

Emmy estimates that several billion euros’ worth of unused clothing is lying in Finnish closets. Since 60% of clothing has remained unworn for over 12 months, why not return it to circulation and active use? The second-hand fashion market is growing rapidly [15]. If sales of second-hand clothing rose by just 10% of total clothing consumption, the Finnish market alone would be worth more than €400 million. 

In Europe, consumer spending on clothing is over a hundred times that of Finland [3]. Emmy aims to become a major player in Europe, which is already the company’s home market. Our entire range is available from our international, English-language e-store (emmystore.com). In addition to Finland, Emmy collects clothing in Estonia through ca. 15 drop-off boxes, and the entire web store range is available from the Estonian-language Emmy e-store (emmystore.ee). This is solid proof that the concept can be exported outside Finland.

Emmy’s growth is supported by a range of emerging trends, from the vogue for second-hand products [14] to climate change and responsibility. Emmy is in the right place at the right time – and we invite investors to join us there.

Revenue logic

Emmy’s earnings are based on the products it sells on it's web store. Sellers earn between ca. 18-73 % of the final sale price of an item, depending on the price level (on gift cards, 20-80 %).

In Emmy's business, VAT is based on so called marginal taxation, i.e. a sale transaction doesn't include VAT. However, Emmy is liable for paying a marginal VAT which is calculated after deducting discounts, returns and sellers' earnings from gross sales. What remains after these deductions, incl. VAT, is used to cover operational costs such as logistics, personnel, warehousing and offices, materials, marketing, customer service and development work.

Because the sellers’ proceeds and other costs are paid in arrears, almost no capital is tied up in warehoused products, aside from the labour needed to process clothing.

Emmy’s sales have ca. tripled every year since the company began operating in early 2015. Right now the gross margin is around 20–25% of turnover, having risen consistently throughout the past – the figure was close to zero just two of years ago. We aim for a gross profit margin 30% this year, and then even higher with the help of process streamlining, automation, various productivity tools and artificial intelligence.

Growth and internationalization

Emmy aims to grow as quickly as possible, however prioritizing achieving profitability and break-even in the near future. We believe we have merely scratched the surface of the market potential of pre-owned fashion in our home country, not to speak of Europe-wide or worldwide. Emmy's operational model -- including logistics, processes, software and inventory system -- has been designed for rapid scalability and also to minimize the amount of capital tied in the business. Additionally, Emmy's brand has been designed for international operations in mind, and indeed Emmy has already been able to successfully enter into international markets. Emmy's objective is to be one of the leading players in the industry, at least on the European level.

Towards profitability

Until now, Emmy’s expenditure has exceeded its earnings. This is the result of pursuing sufficiently large volumes, as well as strong growth. Emmy is consistently pursuing a range of development measures to enable growth and achieve profitability. We also continuously invest in marketing, to strengthen the company’s recognition and brand while increasing volumes and sales.

Growth is critical to Emmy’s profitability, as the company will benefit from economies of scale. The more products the company puts into circulation, the more profitable it will become. There are several reasons for this: the ratio of fixed costs to gross margin, greater efficiency due to volumes, and performance improvements through the accumulation of skills – visible at every phase of our work.

The company forecasts a positive EBITDA in Finland, its home market, this year, provided that sales grow as forecasted. In this way, the process will begin generating more money than it consumes, which will provide the company with much more scope for operational development. Business earnings can then be gradually reinvested in areas such as growth, development and international expansion. The need for external funding will decrease as the company’s business is able to generate profits in itself.

Mature, continuously evolving processes and scalable business operations will make market entry even more difficult for new players, once the existing players achieve profitability.

Competitive environment

The diversity of the competition and high number of entrants are signs of rapid market growth and untapped potential. Emmy’s competitors include traditional second-hand stores, Facebook groups, listings marketplaces such as Tori.fi, and a variety of commercial platforms and online stores.

Against this competition, our clear differentiating factor lies in the effort required from customers to sell their items. Emmy’s operations are based on the seller not needing to do essentially anything. Emmy handles all sales work for the client, who only needs to package the products and send them to us. The company then does the rest: transport, sorting, authenticity control, photography, feature description, pricing, warehousing, delivery of orders to customers, returns and customer service. The seller gets up to 80% of the sales earnings. Unlike many other marketplaces, we do not charge the seller for shipping the products to the buyer, and even for the buyer its mostly free of charge (orders above 49 €). The range of benefits for buyers includes a broad selection, a quality user experience, a quality guarantee, the option of buying several sellers’ products at once, free delivery and returns, and active customer service. Emmy’s convenience-based model has made many products available which are rarely sold through alternative channels. 

Although there is some local and international competition between such full-service providers, there are also major differences between them. Many international players focus either on luxury or extremely cheap products. Emmy, however, primarily sells premium-price but mainstream brands.

Emmy is also differentiated by its retail cooperation model, which includes the drop-off box network, partner gift cards, and marketing cooperation. Cooperation with key retail players is also crucial as the company expands into new markets. A good example of this is Emmy’s main Estonian partner, Kaubamaja Group, and cooperation with stores such as Stockmann in Finland.

Emmy also has its own software platform and a process and warehouse fully optimised for garments. It has a unique brand and has attracted international interest.

Our team

Our team

Emmy already has a diverse group of over 30 employees, ranging from young people on gap years to seasoned professionals. Our work may be guided, eased and expedited by software, but we are proud that the work of real people is an integral part of the value we generate for our customers – both sellers and buyers. Every garment passes through several pairs of hands before going on sale and finding a new home.

In addition to its experienced Management Team and Board of Directors, Emmy has a six-member Advisory Board with experts from sectors such as clothing, e-commerce and logistics. See below for more details on the skills, backgrounds and roles of these key people.

Advisory Board 

  • Matti Copeland, Executive Director at EY; strategy and finance expert
  • Nella Ginman-Tjeder, CEO of the private Eira Hospital, formerly held roles such as CEO of Ifolor; digital business expert
  • Tiina Hänninen, Consultant; formerly held CEO and director positions at Bestseller Finland, Vila, Stockmann/OneWay; fashion retail expert
  • Johannes Schulman, Chairman of the Board and partner at Miltton Markets; past experience includes CEO of FIM; finance and communications expert
  • Juha Valvanne, founder and director of Nosto; e-commerce and digital marketing expert

Hanna Autio

Chief Operations Officer, member of the board, co-founder

Hanna is the mother of the Emmy concept. She is also the power behind all operations and a valued team leader. Hanna is responsible for Emmy’s entire handling process, ensuring that the selection and prices are just right and that sellers and buyers have a better-than-expected service experience. Hanna was named Entrepreneur of the Year in Lohja in 2018.

https://www.linkedin.com/in/hanna-autio-13b05750/

Juha Mattsson

Chief Executive Officer, shareholder

Juha is an experienced and inspiring growth leader, whose areas of expertise are marketing, sales and strategy. In addition to regular CEO duties, he is responsible for leading Emmy’s marketing, financing, product vision and strategy, and naturally accelerating growth and international expansion. Juha has over 15 years’ experience of entrepreneurship and CEO positions.

https://www.linkedin.com/in/juhamattsson/

Eino-Antti Kuuskoski

Chief Technology Officer

Eino-Antti is Emmy’s guiding light in technical development and someone who makes things happen. He has extensive experience of software and product development,technology leadership and entrepreneurship.

https://www.linkedin.com/in/einoantti/

Michael Lutzeier

Chief Financial Officer (part time)

Michael has a wealth of experience in financial leadership and controller roles in several companies. He currently divides his know-how between two growth companies and is responsible for Emmy’s financial management and reporting.

https://www.linkedin.com/in/michaellutzeier/

Pekka Koskinen

Chairman of the Board, shareholder

Pekka is a manager at Tieto, working with large clients. He is also involved in several smaller companies, as both an investor and a board member. Pekka has been an investor in, and board member of, Emmy since 2015.

https://www.linkedin.com/in/pekka-koskinen-6b1382/

Markus Rautopuro

Member of the board, co-founder

Markus is the other Emmy founder. He is a serial entrepreneur and played a key role in creating the technical platform, processes and the Emmy concept, particularly in the early years. 

https://www.linkedin.com/in/markusrautopuro/

Niklas Geust

Member of the board, shareholder

Niklas is an active angel investor and one of Emmy’s biggest shareholders. He has been an investor in Emmy since 2015. He has previously held several leadership positions, including CFO at the asset management company FIM.

Risto Valtakari

Member of the board, shareholder

Risto is an active angel investor and board member. He has been an investor in Emmy since 2015. His previous experience has included roles such as Managing Partner at Accenture.

https://www.linkedin.com/in/ristovaltakari/