Circle Closet, an Amsterdam-based fashion rental community, is closing. Florentine Gillis, the company’s founder and CEO, announced this in a LinkedIn post.
Circle Closet is a fashion rental platform to rent and lend designer clothing for occasions.
The company was founded with a mission to make the fashion industry sustainable.
“My first startup “failed.” Yet it doesn’t feel like a failure. Research shows that, on average, you don’t achieve success until your third startup. I have learned a tremendous amount from this adventure and would like to share it with you,” says Gillis.
According to Gillis, the company faced tough competition, particularly from Vinted, which affected their pricing. Additionally, the erratic investment climate of 2023 presented significant challenges.
Lesson shared during Circle Closet journey
Consequently, Florentine Gillis shared valuable lessons learned from this entrepreneurial journey:
- Listening to feedback: While involving customers in product development was beneficial, some key feedback points were ignored, including the scaling down of the fitting location in favour of online scaling.
- Alternate tech solutions: Initially, the Dutch company used creative solutions, but later opted to build its tech, which was costly. However, Gillis recommends considering no-code solutions like Bubble to save time and money.
- Collaboration with competitors: Gillis emphasised that collaborating with competitors can lead to a more powerful overall impact.
- Exploring alternative financing options: Florentine emphasised the availability of grants for sustainable initiatives and the willingness of investors to support businesses with long-term returns, especially those with a focus on sustainability.
“What next? My circular mission is far from finished. I am eager to see what the future holds and see plenty of problems in the fashion industry that I still want to address,” she concludes.
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