Digital shopping platform Etsy has acquired one of the most well-known platforms for selling second-hand clothing and footwear – Depop – for $1.6 billion. According to the Financial Times, this acquisition is part of Etsy’s strategy to expand its portfolio to younger generations of consumers, particularly those interested in second-hand and sustainable fashion. Depop is, in fact, one of the pioneers of the ‘resale’ market, having recognized the potential of online resale of second-hand and vintage clothing and footwear a decade ago.
Expansion to Youth
The Depop app boasts millions of active users, over 90 percent of whom are under 26 years old, belonging to Generation Z. Etsy, on the other hand, attracts a slightly older demographic, with the average age of sellers using the platform to sell their handmade goods being 39 years.
As explained by Etsy CEO Josh Silverman in a statement, the resale market has enormous growth potential, primarily driven by younger generations. Specifically, it is expected that by 2023, this market will be worth $51 billion, with an anticipated annual growth rate of 39 percent in the United States alone.
Founded in 2011, the English Depop earns revenue through sales mediation, and last year their revenue amounted to $70 million, which is double what it was in 2019. Their network of four million buyers and two million sellers traded products worth a total of $650 million in 2020.
Depop has formed partnerships with brands such as Adidas, Benetton, and Ralph Lauren, which also want to participate in the lucrative resale market and show their customers how they care about sustainability.
– We share the same mission and values. We want to make shopping as humane as possible. We want to support creative entrepreneurs – concluded Silverman in the statement.
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