Otto International - Leading through Innovation and Responsibility

In 1966, an office opened in Hong Kong with just five employees. Almost 60 years later, that sourcing office is the headquarters of Otto International, which has expanded to 24 offices worldwide with more than 1,000 employees. The company boasts an extensive and diverse supplier network, working across the clothing, lingerie, accessories, footwear, home, living, furniture, and general merchandise sectors.

Otto International is focused on procurement and everything that goes with it: merchandising, product development, quality assurance, production, quality control, testing, material regulations, shipping, and much more. Over the years, the company’s push for productivity has resulted in the creation of in-house platforms as well as joint ventures with Scan-Thor, headquartered in Denmark, and Otto-AGN, in India, which have established new product divisions within the company’s portfolio. The subsidiaries featuring and Astra Supply Chain Services have enabled Otto International to expand the services offered to include virtual product development, 3D design solutions, and supply chain management.

“When things are going well, it’s easy to stick with the same processes and strategies, but that can lead to stagnation and have a negative impact in an industry where change is a constant,” says Heidi Stevens, CEO, Otto International. “Trends change, and so do customer preferences. It’s imperative to embrace change and see it as an opportunity. This approach has also informed our strategy, mission, and vision – to stay agile while working towards becoming the most responsible partner for tailor-made, smart, and simple solutions.”

Otto International is part of the Otto Group, a globally operating e-commerce and service group that is among the world’s largest online retailers. The Otto Group sets standards for responsible commerce, combining sustainable and value-led business activities with continued economic success. Otto International places the same emphasis on innovation, performance, and responsibility, providing high-quality procurement solutions that support their partners and protect our planet.

Harnessing the Power of Digitization
Procurement and sourcing are fast-paced and continuously evolving markets. New technologies have resulted in shorter lead times and enhanced productivity tools, such as 3D fashion technology. But with technology comes a new set of challenges, including how to best use it.

When Heidi Stevens took on the role of CEO in 2022, investing into digitization was a key part of her strategy, implemented in three phases. Building a strong database and documenting order management and inspection processes were part of phase one. Phase two focuses on digital product development, while phase three includes the integration of AI solutions.

“We have moved and are continuing to move repetitive manual processes into digital solutions, as they enable our customers to have faster access to the information they need,” says Sven Jasper, Chief Digital Officer, Otto International. However, “Introducing technology just for technology’s sake doesn’t work. Successful digitization requires a balanced approach, combining technological solutions with human expertise and judgment to optimize the benefits of the digital transformation.” says Heidi.

Otto International provides IT-based solutions that ensure efficiency and transparency for customers across the whole operation. The Product Lifecycle Management platform enables collaborative product and quality development, while the platform teams in Hong Kong, Shanghai, Dongguan, and Hamburg provide consulting and support services.

Cultural Diversity and Change Management
With more than 1,000 employees working in locations across 24 countries, Otto International has a flat hierarchy and lean organization that ensures communication, change, and innovation happen quickly. Working on such a global level, both internally and with external partners, is a challenge, but the company sees this as a competitive advantage, as it helps employees develop their skills and opens the doors to new business pathways and partnerships. Otto International is continuing to diversify the company’s portfolio to be more balanced across countries and product categories.