Tamara Sender is a Senior Trend Retail Analyst at Mintel. She researches and writes for Mintel’s UK Trend Stories.
Etsy, the American e-commerce market, is to purchase second-hand clothes app and platform Depop in a deal value $1.6 billion, topic to regulatory approval within the US and UK.
The proposed deal is Etsy’s largest acquisition thus far. Depop has been one of many COVID-19 pandemic’s few success tales, having fun with over 100% development in each gross merchandise gross sales and revenues topping $650 million and $70 million respectively.
Sustainability turns into a precedence
The COVID-19 pandemic has drastically modified folks’s priorities and their garments procuring behaviour. Younger folks, particularly Era Z, who’ve beforehand pushed gross sales of trend, have develop into a lot much less all for following the most recent developments and extra involved in regards to the atmosphere. This has led to the rising attraction of the preloved trend market.
Gen Z: a core client
There are clear similarities between Depop and Etsy, with each their market fashions counting on sellers to retailer and ship stock fairly than the platform, and this has given it a bonus over rivals akin to Thredup and The RealReal which have larger value bases.
Each companies’ buyer base skews youthful, however that is notably true for Depop, as its core viewers is these aged 16 to 19.
Depop describes itself as “the style market app the place the following era come to find distinctive gadgets.”
This larger degree of engagement amongst youthful consumers owes a lot to Depop’s app format, which echoes that of a social media community with an influencer-based strategy to promoting trend, which has made it highly regarded amongst younger shoppers, with a robust following on TikTok and Snapchat.
Gen Z is changing into an more and more necessary viewers for companies and advertisers as its constituents proceed to emerge into maturity and Etsy’s buy of Depop will present the enterprise with extra knowledge and perception into this influential younger client.
What we predict
Etsy buying Depop is a really important transfer in trend resale. Whereas client spending on shopping for new garments has declined over the past 12 months, the second-hand clothes market is booming and Etsy’s acquisition of Depop highlights the rising potential for the style resale market. Alongside this, there was a increase in market platforms and this can be a clear transfer from one of many conventional market leaders to consolidate its place by buying a specialist platform, which speaks to a special viewers.