The inexorable growth in pre-loved apparel saw online second-hand fashion platform Vinted move into profit for the first time last year, after it reported sales up 61% to around $643 million.
The Lithuania-headquartered group said that sales growth had been driven through entering new European markets including Denmark and Finland, its expansion into luxury fashion via the acquisition of upscale pre-loved fashion site Rebelle in 2022, plus the launch of a verification service.
Posting its latest results, Vinted said that sales had risen to about $639 million last year, while profit after tax was $19.1 million, reversing a loss of about $21.4 million a year prior.
The positive trading update comes after the company, which employs more than 2,000 people, most of whom are based in Lithuania, secured a near $55 million credit facility late last year in order to help fuel expansion, including potentially acquiring other businesses and developing its delivery service, called Vinted Go.
“We see many opportunities ahead, so we’ll continue to balance profitability against investment opportunities to accelerate towards our mission,” Vinted group chief executive Thomas Plantenga said, as he outlined a variety of potential growth strategies, including moving into new geographies and product categories.
“Second-hand fashion is still a relatively immature market and only a tiny proportion of fashion overall. Our performance in 2023 was not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential,” he added.
Gen Z And Gen A Propel Pre-Loved
Despite a significant shift towards second-hand fashion, online pre-loved specialists such as Depop and RealReal reported losses last year, but ThredUp co-founder and chief executive James Reinhart said at the World Retail Congress in Paris earlier this month that Gen Z and Gen Alpha consumers now believe second-hand is the coolest way to shop.
He discussed the changing norms and said that he believes circularity will become an everyday mind-set for consumers.
“The analogy I often give is that there was a time in our lives where we didn’t have recycling bins, and now the idea of not recycling is crazy. I think there are all these changes in consumer behavior and ThredUp is really trying to usher people towards those changes in apparel so that it’s obvious that you should recycle and it’s obvious that there should be circulatory built into it and that’s where we are trying to head,” he said.
“Despite what you might think of fast-fashion, one of the things that these businesses have nailed is freshness but I think an area where resale has won hands down is around uniqueness every day. That’s one of the things that I think resale can help retail do, create that reason to come back every day,” he added
Speaking at the same event, Depop director of sustainability Justine Porterie stressed that the future of circularity rests in its desirability for consumers.
“The consumer appetite can come from making those circular options more desirable, cool and accessible. We want to make it second nature and we need that push and drive from companies to make those offerings available,” Porterie said, as she added that consumers should not underestimate the role they can play in helping to create a more sustainable future.
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