wo of the biggest names in e-commerce are joining forces today. Etsy has announced that they acquired the popular fashion resale app Depop for $1.62 billion. The acquisition will bring together a combined user base of over 60 million people ranging from ages 15 to 39.
Etsy’s user base are primarily Millennials, who were the first to use the app in 2008 when it was initially popular. The platform’s focus on handmade or vintage items with a unique, personalized aesthetic was a game changer for Millennials who wanted to buy one-of-a-kind items from an individual person rather than a large online retailer.
Similarly, Depop has cornered the Gen Z market with its smart digital strategy that uses influencer marketing and an emphasis on how buying used clothes is better for the environment. Gen Z loves to stay up-to-date and on trend, and Depop is the home for many influencers to resell their used clothing. In fact, 90 percent of Depop users are under 26, making it the favorite e-commerce site for young people today.
What’s going to happen to Etsy and Depop?
Here’s our take on the situation:
- Etsy will definitely benefit from Depop’s innovative digital strategy that uses mission-driven values combined with influencer marketing to tap into the minds of Gen Z. Depop’s emphasis on being an eco-friendly alternative to fast-fashion retailers is refreshing to Gen Z, who tend to be more conscious consumers.
- Depop will gain mentorship and insight from Etsy on how to better manage their online community of sellers and buyers. The reselling app will benefit from Etsy’s in-house customer service to help prevent more Depop Drama moments from spreading on social media.
- Both of these apps unite the collective trend among Gen Z and Millenials to support individual sellers over larger retailers. Consumers are willing to spend the extra dollar on these sites when they know it’s supporting a person rather than a big brand like H&M. Both Depop and Etsy have a strong community of buyers and sellers who need to be supported to ensure brand loyalty.
Etsy’s acquisition of Depop is a great way to merge resources to create a better experience for users on both platforms. For brands and marketers that took inspiration from Depop’s social media marketing campaigns, Etsy might have something similar in the works very soon. Similarly, Depop gives Etsy deeper insights about how younger demographics interact online–valuable information to any company trying to connect with Gen Z.
It'll be interesting to see what happens next. As with digital media, everything is constantly changing–meaning that what happens today could have huge effects in the next coming weeks.