The company's value proposition to consumers is its wide range of second-hand goods from 5,000 brands across 100 categories at attractive prices up to 90% off estimated retail price and saving buyers an estimated $3.3 bln off estimated retail price since its founding in 2009 according to the company.Īccording to GlobalData, the resale market is valued at $9 bln in 2020 and is expected to grow at a CAGR of 33% through 2025 to $47 bln by 2025. As of 2020, the platform had 1.24 mln buyers and 428,000 sellers. ThredUp operates an online resale platform selling women's and kids' apparel, shoes and accessories. Capitalizing On the Resale Market Growth with Expanding Partnerships Lastly, it is expanding in Europe with the planned acquisition of Remix for $28.5 mln which is forecasted to grow at a CAGR of 13% through 2025. Besides that, it is implementing automation at its distribution centers to raise its profitability as it remains unprofitable due to high distribution centre related costs accounting for around 50% of revenues. The company's active buyers have grown by 35.9% in the past 2 years on average as it expanded its logistics network and partnerships with major apparel retailers across the US including Macy's ( M ), Gap ( GPS ), JCPenney, etc. The US resale market is forecasted to grow at a CAGR of 33% to 2025 as consumers are attracted to the attractive prices of resold goods. In this analysis, we examine the company's growth drivers with the rising secondhand apparel market, the profitability of the company and acquisition as part of its international expansion plans. The company was launched to make it easier for people to buy and sell used clothing as it handles the selling processes through its massive distribution network across the country. ( NASDAQ: TDUP) is an online platform selling women's and children's clothing, shoes, and accessories.
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