French unicorn Vestiaire Collective is now acquiring its US counterpart, Tradesy, for an undisclosed amount.
Read the article in Les Echos by Charlie Perreau, published on March 15, 2022, at 3:56 p.m.
Consolidation is underway in the second-hand fashion market. At the end of 2020, Vinted acquired its Dutch competitor United Wardrobe to strengthen its presence in Europe. In 2021, Etsy acquired UK-based Depop for $1.6 billion, while luxury marketplace Farfetch acquired Luxclusif. Now it is the turn of French unicorn Vestiaire Collective to acquire its US counterpart, Tradesy, for an undisclosed amount.
This is the first acquisition for the French second-hand fashion platform. Founded in 2009, the same year as Vestiaire Collective, Tradesy operates on the same model as the French unicorn. “When people ask me to define Tradesy, I always say that it’s the American Vestiaire Collective,” explains Tracy DiNunzio, the founder and CEO of the US company. Over the past thirteen years, Tradesy has attracted 7 million members, all in the United States.
The United States, the No. 1 Market
Unlike Vestiaire Collective — which has offices across Europe, Asia, and the United States and customers in more than 80 countries — Tradesy has never expanded beyond its home market. The deal will therefore enable its members to sell their items worldwide, while giving buyers access to products from outside the United States. “Our US customers love European fashion,” says Tracy DiNunzio. Vestiaire Collective’s item authentication technology will also be integrated into Tradesy.
For the French company, which raised €356 million in 2021, the acquisition is part of its strategy to expand in the United States. The country is the unicorn’s largest market and the one that has posted the strongest growth, up 75% in one year.
A New Authentication Center
Combined, the two platforms have 23 million members and more than $1 billion in transaction volume. By comparison, Vinted generates more than $2.75 billion in gross merchandise volume (GMV), according to a recent report by Cross-Border Commerce Europe. However, the Lithuanian start-up is more focused on the mid- and lower-end segments, while Vestiaire primarily targets the luxury and mid-range markets, with brands such as Sézane, Maje, and Sandro.
Tracy DiNunzio will oversee all US operations. The US teams at Vestiaire Collective (25 employees) and Tradesy (140 employees) will gradually be merged. “We will assess each other’s strengths and identify synergies,” says Maximilian Bittner, CEO of Vestiaire Collective. A new authentication center will open in the Los Angeles area, becoming the French company’s second in the United States, after New York, and its fifth worldwide.
According to Bain, the luxury resale market was worth $37 billion at the end of 2021. An increasingly attractive market for brands and brick-and-mortar retailers, which are gradually launching their own second-hand offerings, including Sandro, Galeries Lafayette, and Printemps in France.
Charlie Perreau @CharliePERREAU
