Hakio is bringing clarity to fashion’s biggest blind spot. The fashion industry is confronting an unprecedented waste crisis, generating 92 million tonnes of textile waste annually—equivalent to a garbage truck of clothing being landfilled every second. This staggering volume not only strains global waste management systems but also exacerbates environmental degradation, contributing significantly to carbon emissions and resource depletion.
In response, Danish startup Hakio, based in Aarhus, Denmark, is pioneering an AI-powered solution that aims to transform inventory management and minimize environmental impact across the sector. By leveraging advanced machine learning, Hakio’s platform analyzes vast datasets—including historical sales, market trends, and consumer behavior—to deliver highly accurate demand forecasts. This allows brands such as Jack & Jones and Bestseller to achieve 60% improved forecasting accuracy and 25% higher product availability, while dramatically reducing overproduction and associated waste.
AI-Powered Platform Optimizes Inventory and Reduces Fashion Waste
Hakio, headquartered in Aarhus, has engineered a dynamic forecasting system that seamlessly integrates with retailers’ existing digital infrastructure. The platform processes more than 150 variables, ranging from macroeconomic indicators and seasonal trends to marketing campaign data, to provide real-time, actionable insights. This technological agility enables retailers to respond swiftly to shifts in consumer demand, minimizing both stockouts and excess inventory. The ability to remove human bias from baseline forecasts is a key advantage for brands, as it enables them to reallocate working capital more strategically. This capability is especially crucial in the fashion industry, where poor planning frequently leads to an estimated €1 trillion annual loss, largely due to overproduction and misaligned inventory.
Simon Kristensen, CPO and Co-founder, said:
“From my work with global supply chains, I know how important accurate forecasts are as a means to drive operational efficiency. Companies have a lot of unused data that we can use to improve supply planning and tackle the global waste issue in the fashion industry.”
Sophisticated Technology Driving Sustainability
The environmental benefits of Hakio’s technology are profound. Overproduction is a root cause of the fashion industry’s waste problem, and Hakio’s predictive models help brands align production with actual demand, significantly reducing surplus inventory and unsold stock. Clients have reported 17% reductions in working capital and 25% fewer missed sales opportunities, demonstrating both financial and operational improvements. If widely adopted, solutions like Hakio’s could help reduce the 92 million tonnes of textile waste generated annually by the global fashion industry, making a substantial contribution to global sustainability goals.
Beyond waste reduction, Hakio’s platform supports a more circular fashion economy by enabling brands to optimize their supply chains and reduce reliance on raw materials. This not only lessens environmental impact but also positions companies to meet evolving consumer expectations for sustainable and responsible business practices.
Industry-Wide Transformation Underway
Hakio’s success highlights a broader shift toward AI-driven innovation in the fashion sector. The company’s technology is gaining traction among both fast-fashion retailers and luxury brands, reflecting a growing recognition of the need for smarter inventory management.
With 4 million in seed funding from leading investors such as People Ventures and Dreamcraft Ventures, Hakio is well-positioned to expand its reach and impact.
Early adopters of Hakio’s platform report not only significant cost savings but also enhanced customer satisfaction, thanks to improved product availability and fewer stockouts. As more brands embrace AI-driven forecasting, the industry is moving toward a future where data-driven decision-making becomes the norm, rather than the exception.
A Blueprint for Sustainable Commerce
Hakio’s innovation demonstrates how advanced technology can reconcile profitability with planetary stewardship. By addressing overproduction, which is the primary driver of fashion’s waste crisis, Hakio’s platform offers a scalable model for industries facing similar sustainability challenges, said Malte Bjerg Vittrup, CEO and Co-founder.
“I am passionate about how we can help companies make smarter decisions to become more profitable and reduce waste. With state-of-the-art algorithms, we can significantly optimise inventory levels in fashion companies. That’s why we started Hakio.”
With textile waste projected to reach 134 million tonnes by 2030, solutions like Hakio’s are no longer optional but essential for a viable and sustainable future in fashion.
As brands increasingly prioritize sustainability and operational efficiency, AI-powered forecasting is set to become a cornerstone of modern retail strategy, helping companies thrive in a rapidly changing global marketplace.
