Etsy Buys Depop for $1.6bn USD to Tap Gen Z Audience
Crafty website Etsy has bought the second-hand clothing app and platform Depop in an unexpected sale to the tune of $1.6 billion USD.
Etsy is typically used by “cottagecore aesthetic-chasers” if they are in the Gen Z group, but most of its sellers are aged 39 on average. It’s perfect for those looking for handmade, vintage, or arts-and-crafts goods, while Depop is the go-to app for Gen Z and millennials to buy and sell their second-hand clothing gems. With this in mind, Etsy bought Depop to try and tap into the Gen Z market, as the app is used by millions who are often 26 years old or under.
Speaking on the sale, Etsy chief executive Josh Silverman tells FT, “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.” The acquisition is more than just a way to get into a market it once dominated, as Depop has also proved the profitability and popularity of its platform — revenue reached $70m USD last year, and there are many other platforms that have tried to replicate (and not pull it off as well) as Depop.
The sale also benefits both parties, as Depop wants to learn more about community safety while Etsy will understand how Depop has dominated social media and the app world. As the FT writes, Maria Raga, Depop’s chief executive says, “Many of the challenges that we are going through as a business are things that Etsy has gone through before… Etsy has made massive improvements in terms of search and discovery, and this is something that we can definitely learn from.”
In other news, here’s what HYPEBEAST has to say about the rumors of Virgil Abloh designing Liverpool’s kits.
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