Depop Is Being Bought by Etsy for a Whopping P77.8 Billion
Etsy has just announced that it is buying Depop for $1.63 billion (approximately P77.8 billion). The move, according to industry experts, is a strategic one as Depop is a Gen Z focused reseller of vintage clothing, home decor, and other handmade goods.
The deal is expected to close at the end of the third quarter of 2021.
Founded in 2011, Depop has cemented its status as a resale platform with over 18 million users—a majority of which are Gen Z consumers. Recently, the shopping app has come to be known for its support of sustainable fashion sources.
Etsy's users, on the other hand, are a combination of Gen Z and millennials with an average age of 39. Etsy and Depop's marketplace categories overlap as both specialize in vintage goods. But, Etsy is more focused on handmade, craft items. While Depop is a go-to for pre-owned clothing and accessories.
"The resale market, in general, is a massive market that we think is well-positioned for growth well into the future… We think Gen Z is the most exciting community within resale," Etsy chief executive Josh Silverman said in a statement to the Financial Times.
The sales of vintage fashion goods have been forecast to grow as early as 2017. A report by fashion platform ThredUp and analytics firm GlobalData shows that the resale market has grown 21 times faster than retail over the last three years.
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