Etsy Just Bought Depop for 1.6 Billion

[knickerocker]

Theres a New York Times article here: https://www.nytimes.com/2021/06/02/business/etsy-is-buying-the-fashion-resale-app-depop-for-1-6-bill...

I may be wrong but it feels like another nail in the coffin for handmade.

[mommawhazelsquilts]

Are you aware that we can't read that story unless we subscribe to the NY Times?

[knickerocker]

I'm not subscribed and can read it but here it is copied and pasted for you.

Depop, the fashion resale marketplace beloved by Generation Z, is to be acquired by Etsy for $1.6 billion, the two companies announced on 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 shoppers are turning to the secondhand market for something cheaper and — potentially — greener as the overproduction of clothing increasingly adds to landfills. 

The trend appears to have been accelerated by the pandemic as more shoppers looked to declutter wardrobes, earn cash by selling their old clothes or set up fashion customization businesses from their bedrooms.

Investor appetite is also on the rise. Last month, Europe’s largest secondhand fashion marketplace, Vinted, raised 250 million euros in a funding round that valued the start-up at €3.5 billion ($4.26 billion), while in the United States companies such as ThredUp and  Poshmark have gone public this year. 

 

Depop, which was founded in 2011, has been particularly successful in building a marketplace for younger consumers, who are adopting secondhand fashion faster than any other group. Ninety percent of its users are under 26, with 30 million users across 150 countries. The platform is particularly known for its vintage clothes and streetwear — and for creating a new cohort of online influencers famous for selling their wares. 

“We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family,” said the Etsy chief executive, Josh Silverman.

 

 

He said he believed the platform had “significant potential to further scale” and said that he saw “significant opportunities for shared expertise and growth synergies” for Etsy’s apparel sector, which was valued at $1 billion last year.

According to the Boston Consulting Group, the global pre-owned apparel market is worth up to $40 billion a year — about 2 percent of the total apparel market. It is expected to grow 15 to 20 percent annually for the next five years.

[SeasideRoseCreations]

You can Google it and other articles that don't require subscriptions will show up @mommawhazelsquilts 

[NixAeterna]

@mommawhazelsquilts  - not to worry, there's an archived, British report on the story at: https://archive.is/zxD5M

[CuriousityShop]

You can read it on ecommercebytes

[UppNorthCo]

I don't think that will affect the hand made portion of etsy but I do wonder if the 20 year old vintage rule will still be enforced.

as for "the overproduction of clothing increasingly adds to landfills" etsy is guilty of contributing to that with the excessive proliferation of POD t-shirt shops. 

[FallsAveVintage]

Thanks Knicker, was at my article limit!

[SeasideRoseCreations]

How would this have any affect on handmade?

[mommawhazelsquilts]

Yeah, that was my question also.   It might take some re-sellers off the Etsy site.

[SarahLouCraftsUK]

I saw this news article earlier and wonder what impact it would have if any on Etsy as @mommawhazelsquilts says, I hope it will be a benefit in fact. 

[knickerocker]

I dont know if it will and it might not even be incorporated but it feels like we're moving further away from handmade. It feels like this, I'm not saying we are.

[TheLastKult]

@SeasideRoseCreations 

There are some handmade clothing and accessories sellers on Depop.

[AnniebelloPaper]

I guess it depends on whether Etsy invites all those sellers to join the Etsy website or if they just keep it as a separate venue and push all the resellers from Etsy over there.

[SmudgePlant]

I'm all for "pushing over."

[OneEyeCatStudio]

I always wondered why they didn't push all the resellers over to Pattern.
They could have cleaned up the site and gotten another $15 a month income from hundreds and hundreds of sellers.

[OrientBijouxFrance]

My guess is that they will invite them to join the Etsy website, like any other kind of resellers, since J.S. said :  "We are simply thrilled to be adding Depop .....  to the Etsy family,”  lol... to me it is very clear.  I remember they closed Etsy Studio very quickly. It is their interest to keep a unique venue because a buyer can move easily to other items and buy stuff they did not plan to buy !

[ACakeToRemember]

They did an investor presentation yesterday and have said it's going to remain separate from Etsy because it's a different business model and target audience.

[FallenAngelBrass]

Thanks for that info, @ACakeToRemember 

[howtobooksandmore]

I would think if etsy has 1.6 billion dollars in cash laying around, they could use a little to hire more customer support, fix some of the problems with the site, fix the problems with pattern and a lot of other things that are needed around here.

[knickerocker]

Indeed. 1.6 Billion is an incredible amount

[VicsVintageWardrobe]

Was thinking exactly the same thing. They are slipping off a cliff and seem oblivious. 

[moonbeamgifts]

I thought once Etsy started handling funds, they were required to have phone support but I didn't see that materialize or at least stick around.

I finally gave up on Pattern.   I just couldn't work within the bugs.

[IndustrialBlonde]

Brilliant minds think alike! 

[CinnabarAndSienna]

Think of the quality of the stats page you could get for 1.6 billion :0)