Etsy is buying Depop, a UK-based second-hand fashion app, in a bid to target younger Gen-Z shoppers.<\/p>\n\n\n\n
The $1.62bn (\u00a31.14bn) deal was announced on Wednesday and is expected to go through later this year.<\/p>\n\n\n\n
Etsy boss Josh Silverman described Depop as “the resale home for Gen-Z consumers”.<\/p>\n\n\n\n
About 90% of Depop’s users are under the age of 26, with younger shoppers placing importance on shopping in a more sustainable way.<\/p>\n\n\n\n
The app, which was founded in London in 2011, lets users buy and sell used clothes through its online marketplace.<\/p>\n\n\n\n
Depop combines its shopping element with Instagram-style direct messages, so buyers and sellers can negotiate on prices and postage.<\/p>\n\n\n\n
It now counts about 30 million registered users in total across 150 countries.<\/p>\n\n\n\n
Etsy, however, tends to skew towards older customers, with craft goods and vintage items on offer from sellers.<\/p>\n\n\n\n
Depop says train seat crop top violates its terms
\u2018I felt so violated when my Depop was hacked\u2019
Etsy’s chief executive Mr Silverman added in a statement: “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.”<\/p>\n\n\n\n
It added that the deal would allow Depop to expand further, although it will still be based in London and run by its existing team.<\/p>\n\n\n\n
Depop chief executive Maria Raga said: “We’re on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop.<\/p>\n\n\n\n
“They come to Depop for the clothes, but stay for the culture.”<\/p>\n\n\n\n
After the deal is completed, Etsy will be home to three brands – Etsy, Depop, and also Reverb, an online marketplace for new and used musical instruments.<\/p>\n\n\n\n
Resale firms such as Depop, Ebay and Vinted have benefitted from consumers being stuck at home during lockdown, with sales and listings of items spiking.<\/p>\n\n\n\n
According to analytics firm GlobalData, that trend is set to continue with the resale clothing market set to reach $64bn in the next five years.<\/p>\n\n\n\n
Neil Saunders, managing director of GlobalData, said: “Over the next ten years it will become larger still, fuelled by an interest in sustainability, a desire for uniqueness, and the rise of the participatory consumer who wants to trade as well as buy.”<\/p>\n\n\n\n
He pointed out that the market is, however, becoming more crowded with apps forced to fight for customers’ attention.<\/p>\n\n\n\n
Depop has also faced questions in the past over the security of its app, as well as the sale of stolen goods, such as one crop top made out of a Chiltern Railways seat cover.<\/p>\n","protected":false},"excerpt":{"rendered":"
Etsy is buying Depop, a UK-based second-hand fashion app, in a bid to target younger Gen-Z shoppers. The $1.62bn (\u00a31.14bn) deal was announced on Wednesday and is expected to go through later this year. Etsy boss Josh Silverman described Depop as “the resale home for Gen-Z consumers”. About 90% of Depop’s users are under the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-386","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n