Etsy, the purpose-driven marketplace that connects millions of passionate creatives with buyers from around the world announced on June 2nd that they have purchased another marketplace, Depop, the app that’s popular with Gen Z as a go-to for buying and selling unique pre-loved fashion. With a price tag of $1.625 billion dollars, the 10-year old Depop is one example that proves the value of the second-hand marketplace. According to some reports, the second-hand market is expected to grow at a 39% Compound Annual Growth Rate (CAGR) over the next few years in the United States. Now that the two peer-to-peer marketplaces will operate side-by-side, how will this change the landscape of second-hand fashion?
Etsy’s Impact On Vintage Fashion
Etsy’s mission is to keep commerce human, and we’re committed to using the power of business to strengthen communities and empower people.
Since its launch in 2005, Etsy has become a premiere e-commerce platform for both creatives of handmade goods and those who sell vintage items. Boasting a strong user-base, Etsy has even launched vintage collectors onto new career paths – full-time vintage fashion stores. Brooklyn-based Maeven Vintage is one shop that has seen its owner, Amy Yee, turn her passion for collecting and repairing vintage pieces into a profitable career after 1 year of launching her store on Etsy.
From a seller’s viewpoint, Etsy is a valuable platform not only because it connects stores with an extensive audience that spans across 150 different countries, but also because it connects them with data to better understand what customers are searching for and buying. And, as a platform that aims to ‘keep commerce human’, Etsy also highlights various shops through its homepage, newsletters and general shopping suggestions as a way to highlight the owners behind these stores. All of these – community, analytics and exposure – are valuable resources for the success of any business and Etsy offers that to businesses along with a relatively low overhead cost.
From a customer’s viewpoint Etsy makes shopping for vintage pieces relatively easy. Instead of visiting trade shows, estate sales or country stores, vintage enthusiasts can conveniently shop on the website or app where special features like video have now been added for more ease when buying. And, a marketplace, this is done while directly connecting the customer with the seller.
DePop’s Sustainable Rise With Gen Z
Gen Z is adopting second-hand fashion faster than any other audience.
In 2011, Depop launched as a community-led app in London, England. Within a decade Depop, boasted by 30 million active users, generated a multi-million dollar growth rate that increased 100% year-over-year making it one of the fastest growing platforms in the resale space. And, that boast comes from a community that is mostly under the age of 26. When compared to millennials Gen Z is more passionate about sustainability and supporting brands whose ethics match their own. According to some reports 62% of Gen Z shoppers prefer to buy from sustainable brands while only 44% of millennials reported the same. They’re also willing to pay more for sustainable products too. And, with second hand and vintage proving to be a more sustainable choice than fast fashion, it’s no wonder that the peer-to-peer second hand app has taken off.
Depop is a great concept. I loved it from a sustainability aspect as well as how easy it was to connect with my customers. ~ Tabitha Darling, @Pink_Ink
Even as an app that is a self described destination for ‘unique finds’, Depop’s most popular finds are Y2K fashion pieces. That means that 90s style staples like platform slides, all things velvet, crop tops and baguette bags are some of the most popular items on the app. Some vintage sellers have also made a full-time career on Depop by tapping into customers’ shopping preferences. And, much like Etsy, Depop also highlights these sellers through blog Q&A posts and homepage features. The platform also supports small businesses by offering guides and handbooks to guide them on the path to making smart business decisions.
How Will This Change The Future Of Vintage Fashion?
As words like sustainable have risen to the top of customers’ shopping vocabulary so has second hand and vintage fashion. From 2019 to 2020 online searches for ‘shop sustainably’ rose by 650%. During that same time period, fashion spending dropped by 79% while searches for second hand-related searches increased by 104%. It’s no wonder that the second hand market is valued at $28 billion globally over the next few years. So, when you have two heavyweights in the second hand/ vintage fashion space ‘combine forces’ what will be the outcome?
Community is the foundation of both Etsy and Depop. While second-hand platforms like TheRealReal or ThredUp sell vintage, pre-loved and second-hand designer fashion, neither focus on connecting the seller directly with the customer. Instead, each e-commerce site operates more like a second-hand department store where brand names or styles outrank where the item came from. Etsy and Depop operate in the opposite direction where ‘storefronts’ are highlighted allowing customers to connect with and ‘heart’ their favorite shops instead of only items. Shop owners are also the ones who package and ship items allowing the seller-to-customer relationship to continue to grow.
Supporting Small Businesses is another pillar of both sites’ business models. Small businesses are regularly featured and offered resources to scale and grow their business on both platforms.
Etsy became the first global ecommerce company to offset 100% of carbon emissions from shipping.
Sustainability is something that both companies are investing in. In 2020 Etsy offset 173,000 metric tons of CO2 through investments in clean energy and projects aimed at protecting forests. Similarly, Depop is making plans to become climate neutral by offsetting CO2 emissions through partnerships with organizations like the South Pole to fund climate action projects like the Kariba Forest Protection project.
For customers who value the unique features of each platform, Etsy has stated that, “Depop will continue to operate as a standalone marketplace run by existing leadership team.” This can be refreshing news for vintage fashion lovers of either marketplace. What the company states will happen is that the merger will allow the companies to learn and grow from another to make online shopping easier for customers. And, as two companies with a strong stance on supporting small businesses and sustainable initiatives hopefully this acquisition will help to further support the small shops that sell these vintage wares while making us all more aware of sustainability and how we can positively impact nature through out buying choices.
Source link
