The most important factors behind Odd Molly’s success and future development are creative design and innovative, long-term branding, which are supported by a simple business model that, by design, facilitates further expansion with limited capital requirements and minimal risk of obsolete inventory. The business model also allows Odd Molly to better plan its resources, since it knows in all likelihood how high its sales will be a half year before it ships the merchandise.

The business model is based on Odd Molly selling its products primarily through outside retailers. To reach as many high-quality retailers as possible – and the right retailers whenever possible – Odd Molly works with local agents, or in rare cases distributors, in its various markets. Each agent has a showroom where Odd Molly’s collections are shown to buyers and where the agent takes orders for each collection. The agent has the right to sell Odd Molly’s merchandise in a geographically defined market. In this way, Odd Molly has a partner in each country where it is represented who understands the local business culture, language and fashion business. Odd Molly currently has 15 agents and 3 distributors together covering 24 countries.

To represent the brand and sell each collection in the best way possible, each agent is allowed to borrow a collection from Odd Molly to show retailers. When it has received all the orders from its agents, Odd Molly tallies them and orders the right quantities from selected manufacturers. As a result, Odd Molly produces only enough of each item to meet binding orders, thereby minimizing inventory risk.

Merchandise is delivered to a warehouse in Stockholm, except for products destined for the U.S., and then repackaged for shipment to each retailer. Odd Molly maintains only a small inventory, so the risk that the merchandise will become obsolete is low. Odd Molly does not have any distribution operations of its own, relying instead on third-party logistics providers for warehousing and distribution. Once Odd Molly has sold the products to retailers, they may be returned to Odd Molly only in exceptional cases.

In some markets – Australia, New Zealand, Japan, Poland, the Middle East, Canada and North Africa – Odd Molly has chosen to partner with distributors instead of agents. The distributor assumes a greater responsibility than an agent, including buying the sales collection from Odd Molly, local marketing, shipping to retailers and invoicing them. While agents receive a commission based on retailer invoices, the distributor buys Odd Molly’s products at a discounted price. Odd Molly’s contractual party is the distributor, which also assumes the risk for selling to retailers.

For its own stores, Odd Molly places orders with suppliers based on budgeted sales, which means that these quantities, unlike other sales, do not have the same binding order status as orders from outside retailers.

Eyewear and skincare are designed in cooperation with licensees. Odd Molly’s agents sell these products to current retailers using the same business model as the other products. Licensees sell the products to specialized retailers such as opticians and cosmetics stores, and Odd Molly receives a royalty.

The long lead time between order and delivery means that sales in a particular financial year can be predicted with a relatively high degree of accuracy. It also means that Odd Molly is able to adapt its staffing and resources to order bookings to ensure high quality in everything from purchasing to delivery.