Second-hand fashion creates only third-rate profit

Financial Times12-20 13:00

The second hand economy is booming. A growing number of businesses allow thrifty, eco-friendly consumers to trade vintage or recycled clothing online. But profiting from the shift to thrift is hard. ...

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But profiting from the shift to thrift is hard. \n...</p>\n\n<a href=\"https://finance.yahoo.com/news/second-hand-fashion-creates-only-050029870.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Second-hand fashion creates only third-rate profit</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSecond-hand fashion creates only third-rate profit\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 13:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/second-hand-fashion-creates-only-050029870.html><strong>Financial Times</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The second hand economy is booming. A growing number of businesses allow thrifty, eco-friendly consumers to trade vintage or recycled clothing online. But profiting from the shift to thrift is hard. \n...</p>\n\n<a href=\"https://finance.yahoo.com/news/second-hand-fashion-creates-only-050029870.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/second-hand-fashion-creates-only-050029870.html","article_id":"2492746486","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492746486","pubTimestamp":1734670829,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The second hand economy is booming. A growing number of businesses allow thrifty, eco-friendly consumers to trade vintage or recycled clothing online. But profiting from the shift to thrift is hard.One reason for Vinted’s success is that it does not charge sellers’ fees. Increasingly, rivals are following suit. Ebay UK recently removed fees for most private sellers, in the hope of unlocking a significantly larger market. Etsy removed US selling fees for its Depop customers in July. It says the move has paid off, by increasing listings and expanding the selection available to buyers.Yet even the recent pick-up in Depop’s performance does not justify the steep price Etsy paid for the British fashion app, which reported a net loss of 49mn last year. Etsy spent $1.6bn on the business in 2021, in a bid to deepen its relationship with Gen Z consumers. 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The rare distinction of being a reseller that is both profitable and growing — with revenues up 61 per cent to €596.3mn last year — underpinned a €1.5bn increase in its valuation to €5bn over the past three years.\nOne reason for Vinted’s success is that it does not charge sellers’ fees. Increasingly, rivals are following suit. Ebay UK recently removed fees for most private sellers, in the hope of unlocking a significantly larger market. Etsy removed US selling fees for its Depop customers in July. It says the move has paid off, by increasing listings and expanding the selection available to buyers.\nYet even the recent pick-up in Depop’s performance does not justify the steep price Etsy paid for the British fashion app, which reported a net loss of £49mn last year. Etsy spent $1.6bn on the business in 2021, in a bid to deepen its relationship with Gen Z consumers. It had to write down its value the following year by $898mn. \nThis is not the only case where enthusiastic shareholders have lost money after putting an excessive valuation on a resale business. Other examples include luxury resale company RealReal and California-based ThredUp. RealReal shares have rallied this year after a debt exchange transaction that reduced its indebtedness and extended maturities. It reported an 11 per cent increase in revenues for the third quarter to September. But analysts do not expect it to turn a net profit until 2028, according to Visible Alpha.  \nBusiness models differ. Some like RealReal and ThredUp offer convenience — at a price — to sellers. France’s Vestiaire Collective has also introduced the option of getting the company to do the admin work involved in selling. This marketplace for high-end second-hand clothes and bags says it expects to become profitable at the group level within a few months.  \nVinted expects sellers to do the work of photographing, listing and shipping the goods themselves. But the absence of a fee helps to expand its marketplace, which will be further enlarged by new categories such as electronics — something that should support alternative revenue streams including advertising, shipping and payments services. That would be a big plus given the threadbare prospects of the resale market generating big profits from commissions alone.\nvanessa.houlder@ft.com\nCopyright The Financial Times Limited 2023\n© 2023 The Financial Times Ltd. All rights reserved. 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