Etsy is De-popping bottles after $2bn acquisition
Etsy still cool... here's why this acquisition makes sense
What's the key learning?
- The second hand fashion market is on the rise
- The industry is expected to grow 39% annually for the next 5 years
- Younger consumers are prioritising sustainability and are concerned about fashions global footprint
THAT'S A HELLA BIG PURCHASE
Etsy, the old-school e-commerce retailer, is buying hip peer-to-peer social shopping app Depop for around $2B AUD.
Ety and Depop have totally different customers.
Etsy's audience skews towards older customers with craft goods and vintage items.
Depop (pronounced: Dee-pop) is a secondhand marketplace for a new generation of social media users. Most of the clothes are trendsetting and its consumers are fashion conscious.
Depop has 30 million users - and 90% of them are under the age of 26. This is exactly why the old-timer Etsy, has pulled out its cheque book.
So, what's the key learning?
Macklemore was a pioneer - because secondhand fashion or thrift shopping is BLOWING UP right now.
The global pre owned clothing market is expected to grow 39% annually for the next five years (How do you feel about that fast-fashion?).
There is a groundswell of interest amongst young consumers who are prioritising sustainability and concerned about fashion's impact on the environment.