Vestiaire and Depop on the Rise of the Resale Economy

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We invited Max Bittner. Ceo of vascular collective and Marya RAGAS COPD pop to the voices twenty nine teen stage to speak with B. O. F. Sustainability correspondent. Sarah Kent about the rise of the resale economy. Neither you come from a fashion industry background so I wanted to stop by having both of you talk through way you come from and what drew you to this opportunity and Maria if you would like to kick off sure so late Hayden I also have to accept that I come from. The math made consulting World and I did that for about five years and then I jumped into the world Started at groupon. I did that for about five years. And then I I discovered depot actually before being part of the team Because I was looking for some vintage clothes and I was talking about the fact that he was a mobile first platform which five years ago. It was not that obvious Many companies wear addresses from web into mobile and so the fact that he was mobile. I the fact that they were using social media very smart way to build community to to a very very organic way I was redirected by it. So that's why he joined a Max. You had very strong equalness background but not in fashion. So why make the jump into this industry so I previously built a company called Lozada in Southeast Asia which was ECOMMERCE general merchandise? We are actually terribly bad at fashion and was one of my obsession for a long time and I really failed miserably. Added and after selling the company TATY BABA. I was looking for opportunities moving back to Europe. In vecchio opportunity came out of nowhere after I didn't know the company understood the concept of retail. But I've been in such a tunnel for the last seven eight years that I didn't have time to digest it but what fascinated me when I looked at the business in kind of engaged with with Moore was the incredible emotional connection between the buyers and the sellers and the products in the brands and the engagement with the platform and coming from Asia. This whole concept of community social engagement is is such a big part of ECOMMERCE and I felt that you know. Of course you have pioneers like the pope driving that in Europe but the rest of the environment was still heavily Amazon Dogma ties about a surge after card filters efficiently as possible. You know the emotional connection of of you know not much so I felt this was an incredibly exciting but and you know living in a world where we all ask ourselves what to do. It seemed like an amazing opportunity to actually run a business. Which core kind of fundamental is built on sustainability is built on on circularity? So you know I looked at what the business was good at and I think the stairs and amazing fashion. Dna A great brand amazing supply and a look at what could be improved with my background on Scaling and Tech Company and I felt the combination was an amazing one. Utah Utah Johnson. Very topical points this Stain Ability. The power of community all of which kind of encapsulated in recall. Mus Is it that that's helping to drive this market now. All Maria water. What is driving the growth? We're seeing and resell the moment So I think there's there's three things that are driving. Industry one is definitely a consumer behavior change towards Secondhand again five years ago it was hard to to believe that there was gonna be in a way you think about the next generation more than fifty percent are already buying secondhand or concealing to Isaac and hunting the near future so this is something that five years ago it was really hard to to conceive. the second thing is the fact that sicken sick and heights more accessible and so our consumer supressive by default so allowing people to buy high quality items at a lower price is definitely something very attractive for consumers and lastly the proliferation of all impact from slightly Bob and respective it's allowing a basic concentration of inventory at digitally military that allows consumers to have more choice in the case of of depot. I think the driver has been more and driven by our core audience so ninety percents of our users are under the age of twenty six. So they're very young and they are looking for for ways to socialize. That are different to the ones of all of the generation so again The promoted social media. Because that's their mobile natives. And they they do that. Also for fashion dates so for us will go a community. You see that the fact that the pope is social platform social marketplace. It has basically make the business to grow faster and getting Organic Way. And then secondly the second thing that our audience wants is to make money and so we are able to provide a platform that makes it very easy for them to sell those items and to make money as a result so as a consequence you you have very vibrant community are very engaged users that are super passionate about fashion and they are actually in the day making secondhand cool which again contributes to making the resale platform. I mean the the research will go faster. And that's that's the has a slightly different beast as a luxury product. It's more it's an older consumer. Is it the same drivers the flight northing happy? You remembered all the statistics because keeps forgetting them but to add to that. I think there's one or two points which are allowing us as a business to thrive. I think the first one is that that from the outside the fashion industry in some sort of way mirrors. What's happening in society? Where you know. The rich get richer and the luxury players are chasing them up. The stairs might use the example of being also consultant in the past. Having to buy suits choice back then was buying Hugo boss suits. I'm German so that's what I have to wear as a German and buying food which I couldn't afford the time in at the time is any suit would cost like eight hundred fifty euros nine euros now. Sued cost two thousand five hundred euros and on the bottom end. You know you have the parts of side which are struggling and fast fashion becoming cheaper and cheaper to to serve those needs and you have this forgotten middle class. You know which in the past could afford I suit is bag a nice night in a in a nice hotel but a lot of that has become out of reach because the industry defines itself by becoming more and more exclusive and you know being some sort of a hard to reach and so I think the opportunity frosties is absolutely to defend ourselves and make a lot of these beautiful products accessible in some sort of way in finding the right owner for the right product and the right time in their life cycle. So I think that's two points and I'm sure you'll both happily talk about how great this market is and the opportunities there for the next fifteen minutes. Let's talk a little bit about the challenges as well on the luxury side. Everyone will be aware of the criticisms leveled against the Rio recently in terms of the problems with their authentication problem. Max with Vesti Eras. Call capacitor in the space. How damaging are those allegations the credibility of the entire luxury resale market? And how big a challenge is authentication. You know I'm I'm not going to hide behind. This was my competitor. You know I think you will find the same criticism against this year am out there. I think we do a lot to improve every single day and you know we face our challenges being fast growing company to to scale of every process that we make as much as we can so so. We're not perfect. We try to perfect. We try to improve every day. I think the the two three things to that I really want to point out is Frost at our cores is the trust in our community and the trust that community gifts to each other and towards us and if things in that in these processes breakdown You know we really see all as a platform to step in and say okay something wrong. We'll take care of it in. The consumers need to reach out to us and we will fix it and we tried to learn from every one of these mistakes every single time they happen and I think the second one is that we have this community. We have people we trust. These people have a history on us and I think it's our job as a platform in the future to make that history much more transparent and and you know bring people together and but let's not distract from the things that we do well. I think it's very easy for for new business models like ours who go like the speed that we do to point out the small things which go wrong you know. I would love people to really focus on on the good we bring. I think we are fundamentally at Harvard business. Which does something about sustainability and circularity? And that's a lot more than you know. Trucking in forty trees to fashion show in saying

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