Etsy revealed its plan to acquire a fashion secondhand marketplace Depop. The strategy is a part of Etsy’s plan to reach younger shoppers from Generation Z.
Chief Executive Officer Josh Silverman said to view Depop as “the resale home for Gen-Z consumers”, Reuters quotes. Silverman also revealed to be seeking to offset consumer’s return to the traditional mall and retail stores in the upcoming year. Upon commencing with the strategy, Silverman believes Depop could play a significant role in scaling up Etsy’s business.
Depop is expected to help Etsy’s footprint in apparel. The category had been slowly raising as workplaces and schools have started to go offline. Noted from Reuters, Etsy reported around $1 billion in sales in apparel gross merchandise. Additionally, overall revenue for Etsy also grew twice bigger.
Retail research firm GlobalData’s managing director, Neil Saunders, supported Etsy’s decision upon the deal. The deal should allow Etsy to reach a new growth avenue following the pandemic-led high, Saunders said.
Following the report, shares for Etsy in early trading grew by about 3%.
Etsy and Depop: keeping up with the vintage trend
Depop is a London-based secondhand marketplace. Founded by entrepreneur Simon Beckerman, the site’s trademark lies in its vintage and street-wear collections. According to Reuters, Depop records over 26 million users from more than 147 countries.
Being the 10th most visited shopping site among Gen-Z in the United States, around 90% of Depop’s users are still under 26. Through acquiring Depop, Etsy hopes to attract and build a connection with Gen-Z.
Through a call with analysts to discuss the deal, Silverman said, “This (Gen-Z) is an enormous demographic and it’s the trendsetter demographic”.
Etsy itself stands as one of the world-renowned e-commerce platforms for handmade goods and vintage items. Last year, the company recorded a notable surge in sales driven by the pandemic. Etsy’s future bet is currently on the vintage, second-hand clothing market, expecting the market to reach $64 billion by 2024.
Not only Etsy, other fashion apparels have also started to eye the resale marketplace. Among them are Gap Inc and Vera Bradley. Both companies have signed partnership deals with Poshmark and ThredUp respectively.
The resale boom has prompted companies including Gap Inc and Vera Bradley to partner with sector players Poshmark and ThredUp.
Read also: China Boycotts Several Fashion Apparels for Supporting Xinjiang
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