Following the news that Etsy is acquiring Depop for $1.62bn, leading data and analytics company GlobalData has adjusted its e-commerce thematic scorecard, which now sees Etsy at the top above players such as Apple and JD.com. GlobalData’s thematic scorecards predict future winners by ranking their performance in the ten most important themes shaping their industry.
Sarah Coop, thematic analyst at GlobalData, comments: “Etsy has jumped to the top of GlobalData’s Ecommerce Thematic Scorecard, benefitting from Depop’s GenZ consumer base and social media expertise.”
Etsy has scored highly on the scorecard in themes such as social media, how it is coping with the challenges surrounding COVID-19, sustainability and digital payments.
Coop continues: “Etsy is an ESG leader, scoring 5/5 in the sustainability theme. However, it previously only scored 3/5 for social media. GlobalData has improved Etsy’s social media score to 4/5 following the Depop acquisition, due to Depop’s unique online community, which marries social media and the sharing economy, revolutionizing second-hand shopping.”
Patrick O’Brien, UK retail research director at GlobalData, comments: “The acquisition cements the importance of second-hand marketplaces. The long-term trend towards value, together with the more recent consumer desire for sustainable consumerism, has propelled a number of marketplaces to pop up with app-based offers – usually utilizing the endless-scrolling mechanism of social media sites to keep shoppers engaged. While fast fashion has long been tainted by ESG concerns, it has not had much impact on sales. However, if the likes of Vinted and Depop continue to grow at the pace they have been – and a more reflective attitude to buying fashion becomes more widespread – then the structure of the retail market could be significantly altered over the next decade.”
Sustainability is one of the most important themes for 2021, and beyond.
Coop concludes: “Etsy has future proofed its business and consolidated its position as a sustainability leader by acquiring Depop. Depop’s slow fashion and social media expertise makes the acquisition on trend for a sustainable and innovative future.
“The circular clothing economy is growing, with younger consumers increasingly concerned by sustainability, rejecting fast fashion. A total 46.8% of GenZ consumers are typically influenced by how sustainable a product is, compared to 35.1% of Boomers, according to GlobalData’s global Q1 2021 consumer survey with 21,000 respondents. Depop will grow Etsy’s customer-base, and Etsy will provide Depop with improved search and personalization, attracting more consumers and growing sustainable fashion.”