Depop is widespread amongst Gen Z buyers.
Depop
Online market Etsy introduced its $1.625 billion (£1.2B) acquisition of UK-based mostly fashion resale app Depop on Wednesday, as the corporate appears to broaden its buyer base amongst youthful buyers. Depop is very widespread with individuals in their teenagers and early twenties, who use the app to purchase and promote garments. It follows the same two-sided on-line market mannequin to Etsy, which is primarily used to purchase and promote handmade items.
Around 90% of Depop’s energetic customers are beneath the age of 26, and Etsy will probably be hoping its acquisition of the corporate will assist it cash in on the spending energy of this demographic, which is at the moment on the rise. While Depop has been round for ten years, it noticed accelerated progress in 2020, with its gross merchandise gross sales and income each rising 100% 12 months over 12 months.
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Younger buyers are a significant pressure in driving the expansion of the secondhand fashion market, which has helped enhance Depop to grow to be the tenth most-visited shopping website amongst Gen Z shoppers in the US.
“We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family,” mentioned Etsy CEO Josh Silverman in a press release. “Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale.”
Depop will proceed to be based mostly in London, the place it’s headquartered, and can function as a standalone market run by its current management crew.
“We’re on an incredible journey building Depop into a place where the next generation comes to explore unique fashion and be part of a community that’s changing the way we shop,” mentioned Depop CEO Maria Raga in a press release. “Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old.”
Etsy mentioned it is hoping to shut the sale in the third quarter of 2021, though the deal will first have to be scrutinized by UK regulator the Competition Markets Authority. Following Nvidia’s announcement that it might be buying ARM final September, the CMA has escalated its scrutiny of US takeovers of UK tech firms, so the acquisition will probably be topic to examination with a fantastic tooth comb earlier than getting the inexperienced mild.
