Handcrafted marketplace leader Etsy is buying online secondhand clothing retailer Depop for $1.6 billion in a bid to capture the Gen-Z market.
Etsy is a platform for artists to sell their designs, and the purchase of Depop will add clothing to their app. Depop is an app marketplace for people seeking to buy or trade secondhand clothing.
"The resale market in general is a massive market that we think is well positioned for growth well into the future," said Etsy chief executive Josh Silverman. "We think Gen Z is the most exciting community within resale."
According to the Financial Times, the purchase is meant to attract a younger demographic to the Etsy platform. Etsy's average user is around 39 years old, while Depop has an average age under 26.
The $1.6 billion acquisition will help bolster Depop's growth. The company hopes that Etsy's experience with global trade will help Depop expand internationally. Etsy believes Depop's expertise with social media will be a help to its growth as well.
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