Acquisition Will Let Etsy Attract Younger Consumers

Etsy Inc announced on Wednesday that it would buy fashion reseller Depop specializing in apparel for Gen-Z. Eager to attract younger shoppers, Etsy would acquire Depop for $1.63 billion. 

As young consumers become more aware of the environment and carbon footprint of the clothing sector, more and more of them begin to look for second-hand clothes. 

Analysts estimate that the second-hand market will grow at a 39% compound annual growth rate from 2019 to 2024 in the US. They predict that it will reach $64 billion by that time and will double the size of fast fashion globally. 

Depop is highly popular among young people. It is an online marketplace where Gen-Z consumers buy and sell new or second-hand clothes. The majority of Depop’s customers are indeed younger than 26. Statistics reveal that Depop is the tenth most visited shopping website among Gen-Z customers in America. 

Etsy said that its $1.63 billion deal would be funded through available liquidity and would be signed during the third quarter of 2021.