Goodwill Hunting #07: what Shein and Depop have in common
Goodwill Hunting #07: what Shein and Depop have in common
Goodwill Hunting curates pre-loved fashion finds from across the web
Gen Z loves both Shein and Depop. At first glance, this seems paradoxical. If Gen Z is supposedly the most sustainability-minded generation, how can they reconcile buying ultra-fast fashion?
First, some context: Shein is an ultra-fashion fashion retailer that was founded in 2008 and is reportedly valued at $100 billion.1 Every day, Shein pumps out thousands of new low-cost items, often priced at $5 or less. The hashtag #SheinHaul on TikTok has over 5.1B views (vs. 2.1B for #SustainableFashion, 1.4B for #ThriftHaul).
Depop was founded in 2011 as a peer-to-peer secondhand marketplace with social commerce features; it purposely resembles Instagram’s square grid-like CX, and has a large, active community of buyers and sellers (~30M worldwide), of which 90% are under 26 years old.2 Every day, there are ~140,000 new items listed on Depop—from vintage band tees to hard-to-get streetwear to Y2K fashion. In 2021, Etsy acquired Depop for $1.625 billion.
Shein is to Wario as Depop is to Mario.
At surface level, Shein and Depop are polar opposites, but this is more about the what and the how of their business models. Diving deeper, we see that both Shein and Depop address a similar who and why.
Who: Primarily Gen Z shoppers who are digital natives, spend hours per day on social apps (TikTok, Snap, Instagram, etc.), and are experimenting with their personal style but have limited purchasing power
Why: Want new, trendy, and cheap fashion to express their style and avoid outfit repeating
What: Stylish, size-inclusive fashion that’s more affordable than alternatives
How: Shein (fast fashion, newly manufactured items) vs. Depop (thrifting, new-to-them secondhand items)
Both Shein and Depop meet the same underlying consumer needs for trendy, cheap fashion.
Shein pumps out 1000s of new styles daily with an average selling price as low as $5. Thrift stores—whether IRL like Goodwill or URL like Depop—also refresh daily with 1000s of new styles at low prices. Why do consumers want so much new stuff though?
There’s a lot to unpack here, but this insight from CBInsight’s latest Future of Fashion report3 “clicked” for me: 1 in 7 fashion consumers think it’s a faux pas to be photographed in an outfit more than once. More than once.
The Extremely Online generation has not yet bought into the mantra of Buy Less, Buy Better, Wear Longer. Until then, Shein and Depop will coexist.
Goodwill Hunting offers curation-as-a-service—but make it (resale) fashion.
♻️ 3 products
Handmade Gold Leaf Headpiece from Etsy ($28)
Vintage 1960s Sequined Empire Waist Gown from Etsy ($58)
Vintage Gold Opera Gloves from Ebay ($18)
📕 3 reads
Will trading physical clothes for digital ones lure shoppers to Web3? (Vogue Business) In celebration of Earth Month, London-based fintech startup Twig is partnering with Web3 fashion platform The Dematerialized. Consumers can trade in IRL clothes with Twig and get URL clothes on The Dematerialized.
Why cross-reality retail design is the next innovation frontier (The Future Laboratory) Fashion futurist Victoria Buchanan predicts that brands and retailers will offer cross-reality experiences with tactile interactions, sensory stimulation, and social interactions. Think sensory room, but make it fashion (like this Balenciaga store).
HibiscusDAO White Paper. The vision of HibiscusDAO is to create a community-driven ecosystem for more ethical and sustainable apparel production. Move over DTC, here comes DAO-to-consumer.
🚀 3 jobs
Stitch 3D — Product Manager. Partner with technical teams to build 3D rendering tools and software for fashion brands to reduce waste and scale digital sampling.
Treet — Software Engineer. Lead engineer reporting to CTO for resale-as-a-service startup. With Treet, brands can create resale marketplaces directly on their DTC site to drive incremental revenue and loyalty with sustainability-minded shoppers.
The RealReal — Senior Director of Vendor & Strategic Partnerships. Lead business strategy and operational performance for the luxury consignment organization.
✨ 3 inspirations
Landing: Landing is a community for visual inspiration, curation, and design. Think Polyvore 2.0 with shoppable mood boards/collages for ~vibes~ curation.
Fell in YSL: Follow @fellinysl for creative inspiration like “Rick Owens looks as Brutalist Architecture.”
Bridgerton Ball: Adult prom, but make it Regency-themed. Help me pick out a vintage ball gown for the upcoming Bridgerton Ball: see dress options here.
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Disclaimer: My posts are my own and do not reflect the opinions of my current, past, or future employers. Goodwill Hunting is not affiliated with Goodwill Industries or the film Good Will Hunting
Crunchbase: “Shein Reportedly Valued At $100B With Fresh Funding”, April 2022.
CBInisights: “The Future of Fashion: From design to merchandising, how tech is reshaping the industry”, March 2022.