The web secondhand vogue vendor Vinted has reported a 61% rise in gross sales to virtually €600m (£513m), taking the corporate out of the purple for the primary time amid a increase in demand for “pre-loved” clothes.
The Lithuania-based group stated progress had been spurred by getting into new markets together with Denmark and Finland; an growth into luxurious vogue by way of its acquisition of secondhand high-end vogue web site Rebelle in 2022; and the launch of a verification service.
Vinted stated gross sales rose to €596m final 12 months – making it a couple of third of the scale of Asos – whereas revenue after tax was €17.8m in contrast with a lack of about €20m a 12 months earlier than.
The group employs greater than 2,000 individuals, most of whom are primarily based in Lithuania.
Vinted’s progress comes as issues about sustainability, tight budgets and tedium with copycat vogue throughout the excessive avenue have pushed a pointy enhance in gross sales of secondhand clothes, significantly amongst younger individuals.
Late final 12 months the corporate secured a €50m credit score facility to assist it develop, together with doubtlessly buying different companies and increasing its supply service Vinted Go.
Thomas Plantenga, the chief govt of Vinted Group, stated it was taking a look at quite a lot of completely different choices for progress together with shifting into new nations and product classes.
“We see many alternatives forward, so we’ll proceed to steadiness profitability towards funding alternatives to speed up in direction of our mission,” he added.
“Secondhand vogue continues to be a comparatively immature market and solely a tiny proportion of vogue general. Our efficiency in 2023 was not solely proof that we will ship sturdy progress however that we’re on the forefront of a market with big potential.”
The “pre-loved” class has gained mainstream reputation. The fact TV present Love Island was sponsored by eBay and featured some contestants performing as influencers to advertise secondhand fashion.
Mainstream retail chains together with Primark are additionally internet hosting secondhand sections of their shops.
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Regardless of the shift, on-line secondhand specialists have struggled to earn money, and Vinted’s rivals Depop and RealReal reported losses final 12 months.
In opposition to the backdrop of heavy competitors amongst sellers, the eBay market just lately eliminated all vendor charges for pre-owned vogue.
Gross sales of “pre-loved” clothes and footwear are on observe to make up a tenth of the worldwide vogue market subsequent 12 months.
World gross sales of pre-owned garments surged by 18% final 12 months to $197bn (£156bn) and are forecast to achieve $350bn in 2028, in keeping with a report by GlobalData for the resale specialist ThredUp.
The landmark is anticipated to be reached a 12 months later than predicted, as international progress stays barely behind earlier estimates.
