Depop

History

2021: Etsy bought Depop for $1.63 billion

In early June 2021 electronic commerce , the vintage products platform Etsy was acquired by Depop, a company specializing in reselling fashionable clothes, for $1.63 billion. Thus, Etsy is trying to attract young buyers and strengthen its position in the fast-growing market for vintage or used clothing.

After a surge in sales caused by the pandemic, Etsy estimated that the used clothing market in the United States will reach $64 billion by 2024. CEO Josh Silverman noted that he sees Depop as a "secondary sales market for Generation Z consumers" and an opportunity to expand its business that will help offset the return of consumers to more traditional shopping centers and retailers after the pandemic.

Popular application for resale of expensive things sold for $1.62 billion

Generation Z is a huge demographic group that sets fashion, including the fashion for reusing everyday things, Silverman said.

The London company Depop, founded in 2011 by entrepreneur Simon Beckerman, is known for its collections of vintage and street clothing and has acquired more than 26 million users from more than 147 countries. According to the company, about 90% of its users are under 26 years old, and this is the 10th most visited shopping site among consumers of generation Z in the United States.

Silverman expects Depop to expand Etsy's share of the clothing market, which is growing as people return to work and study. In 2020, Etsy recorded a gross clothing sales of about $1 billion, and the company's total revenue doubled. GlobalData Research Firm Managing Director Neil Saunders and other analysts agree that the deal should give Etsy new growth opportunities in the postpandemic world.^[1]

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