Etsy To Buy Fashion Resale Platform Depop For $1.63B

Words by Luhar Singh

Etsy To Buy Fashion Resale Platform Depop For $1.63B
Etsy To Buy Fashion Resale Platform Depop For $1.63B

Etsy is planning to acquire fashion resale platform Depop for $1.63 billion in a bid to attract Gen Z consumers and expand its hold on the booming vintage clothing and streetwear market, the company announced today.

“We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale,” said Etsy’s CEO Josh Silverman in a statement.

“Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy’s DNA and mission of Keeping Commerce Human. We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct and very special, eCommerce brands,” he added.

The acquisition comes at a time when the vintage clothing market is on track to be worth $64 billion by 2024, with more consumers gravitating toward sustainable shopping. The move will also help Etsy sustain its pandemic-driven momentum, which more than doubled the company’s revenue to $1.73 billion in 2020. Silverman has, however, warned before that its growth will likely be impacted as consumers return back to physical stores and malls.

London-based Depop was founded in 2011 and the platform currently serves more than 26 million users from over 147 countries, Reuters reported. The majority (90 percent) of its customers are under the age of 26. The site has gained significant prominence over the past few years and it has reportedly become the 10th most visited eCommerce site among Gen Z consumers in the U.S.

As of late, Depop has also been making efforts to expand its reach beyond its core Gen Z customer base. Last year, the company partnered with fashion brands such as Anna Sui, Rodarte, Christopher Raeburn, and Richard Quinn to be featured on the app alongside individual sellers. 

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