Etsy Inc (ETSY.O) on Wednesday announced it would acquire Gen Z-focused fashion resale company Depop for $ 1.63 billion, seeking to attract young buyers and strengthen its position in a booming market. boom in vintage and used clothing.

After increasing sales due to a pandemic over the past year, Etsy, one of the world’s best-known e-commerce platforms for handmade goods and vintage items, estimates that the U.S. clothing market used alone will represent $ 64 billion by 2024.

General manager Josh Silverman said in a statement that he viewed Depop as “the go-to home for Gen Z consumers” and believed there was significant potential to grow his business as he sought to compensate. the return of consumers to more traditional shopping centers and high street stores. over the next year.

London-based Depop, founded in 2011, is known for its vintage and streetwear collections and has over 26 million users in over 147 countries.

About 90% of its users are under the age of 26 and it is the 10th most visited shopping site among Gen Z consumers in the United States, according to the company.

Surveys show that greater awareness of the impact of the clothing industry on the environment is also pushing young audiences towards second-hand clothing, while “thrift haul” videos on YouTube and TikTok, which show the cheap shopping by people, have racked up millions of views.

The boom has prompted companies like Gap Inc (GPS.N), Vera Bradley and celebrities like Serena Williams to team up with other industry players Poshmark (POSH.O) and ThredUp (TDUP.O).

Etsy’s revenue more than doubled to $ 1.73 billion last year, as purchases moved online and consumers searched for handmade pandemic-related items like face masks, but the company warned that growth will slow as consumers return to malls and physical stores.

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