depot, the fashion resale marketplace beloved by Generation Z, is to be acquired by Etsy for $1.6 billion, the two companies announced Wednesday.
The cash deal, which is expected to close by the third quarter of this year, underscores the growing influence of clothing resale platforms. More buyers are turning to the old market for something cheaper and — potentially — green As excess production of clothing rapidly gets added to landfills.
The trend appears to have accelerated as more shoppers look to ditch wardrobes, earn cash by selling their old clothes, or set up a fashion customization business out of their bedrooms.
The appetite of investors is also increasing. Last month, Vinted, Europe’s largest old fashion marketplace, raised 250 million euros In a funding round that was valued at €3.5 billion ($4.26 billion), while companies in the United States such as ThredUp and Poshmark has gone public this year.
Depop, which was founded in 2011, has been particularly successful in creating a market for younger consumers, who are adopting old fashion faster than any other group. Ninety-nine percent of its users are under the age of 26, with 30 million users in 150 countries. Munch is particularly known for its vintage clothing and streetwear – and for creating A new group of online influencers Famous for selling its wares.
“We are thrilled to add Depop – which we believe to be a resale home for Gen Z consumers – to the Etsy family,” said Josh Silverman, chief executive of Etsy.
He said he believed the platform had “significant potential going forward” and added that he saw “significant opportunities for shared expertise and growth synergies” for Etsy’s apparel sector, which was valued at $US$1 million last year. was 1 billion.
According to Boston Consulting Group, the global pre-owned apparel market is worth up to $40 billion annually – about 2 percent of the total apparel market. It is expected to grow by 15 to 20 per cent annually over the next five years.