In 2019, consignment site ThredUp worked with analytics firm GlobalData and projected the then-$24 billion clothing resale market to heat up by 212% over the next five years to $51 billion. One year earlier, their research also named London-based clothing app Depop to be one of the “leading sale disruptors,” so the e-commerce company Etsy has now decided to bet on Depop by plunking down $1.6 billion in cash to acquire it.
Etsy CEO Josh Silverman expressed enthusiasm and vision in his press statement. “We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family,” he said. Silverman further added, “Depop’s world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy’s DNA and mission of Keeping Commerce Human.”
Etsy is best known as an online two-sided marketplace that efficiently connects handicraft sellers with an audience. However, its purchase of Depop will add to Etsy’s existing vintage clothing resale portfolio. Citi analyst Nicholas Jones told the New York Post, “[Etsy is] going to broaden their reach into apparel, which is a large category for them.”
Celebrating a decade in business, Depop is now the tenth most visited shopping site among America’s Gen Z population, and 9 out of 10 of its users were born after 1995. Etsy is looking to preemptively secure its share of the booming clothing resale market by purchasing Depop. “To get younger shoppers and evangelize them early should bode well for a long-term brand build,” Jones continued.
Depop CEO Maria Raga said in her statement, “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. Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old. They come to Depop for the clothes, but stay for the culture. We’ll now take an exciting leap forward as part of the Etsy family….”