Depop deal sees Etsy top GlobalData e-commerce thematic scorecard

Following the news that Etsy is acquiring Depop for $1.62 billion, GlobalData has adjusted its e-commerce thematic scorecard.

This predicts ranks company performance in the ten most important themes shaping the e-commerce industry. Etsy is now at the top, above the likes of Apple and JD.com.

Sarah Coop, Thematic Analyst at GlobalData, comments: “Etsy is benefitting from Depop’s GenZ consumer base and social media expertise.”

It has also scored highly on how it is coping with the challenges surrounding Covid, sustainability and digital payments.

We’re excited to announce that we’ll be joining the Etsy, Inc. family of brands.
Together we’ll be able to grow the Depop community even further and advance our mission to build the world’s most diverse and progressive home of fashion!
Read more here >> https://t.co/5vjrshkwbp pic.twitter.com/XGF6JDTyfV
— Depop (@depop) June 3, 2021

Coop adds: “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 its 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, revolutionising 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 utilising the endless scrolling mechanism of social media sites to keep shoppers engaged.”

He concludes: “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.”