Etsy Inc said it would buy Generation-Z focused fashion resale company Depop for $1.63 billion, seeking to attract younger shoppers and bolster its position in a booming market in vintage or used clothing.
Etsy came into the world’s best-known e-commerce platforms for handmade goods and vintage items after this pandemic. Estimates the U.S. second-hand clothing market alone will be worth $64 billion by 2024. Chief Executive Officer Josh Silverman said in a statement that he saw Depop as the resale home for Gen-Z consumers. Then believed that there was a significant potential to scale up its business, as he seeks to offset the return of consumers to more traditional mall and high street shopping over the next year.
London-based Depop, founded in 2011. It is known for its vintage and streetwear collections. They have more than 26 million users from over 147 countries. 90% of users are under the age of 26. According to the company, it is the 10th most visited shopping site among Gen-Z consumers in the U.S. Surveys show that greater awareness of the impact is driving younger audiences towards second-hand apparel, while thrift haul videos on YouTube and TikTok, have accumulated millions of views.
Last year, as shopping shifted online and consumers sought handmade pandemic-related items like masks, Etsy’s revenue more than doubled to $1.73 billion. The company has warned that this growth would definitely slow down, as consumers return to malls and physical stores.