Second-Hand, First Choice: The Story of Vinted's Expansion
Second-hand doesn't mean second-best. Nothing proves that like the success of Vinted, the Lithuania-based second-hand marketplace that has taken the world of fashion by storm.
Now, Vinted is seeking to capitalise on the growing consumer appetite for pre-owned goods by expanding, pushing beyond its fashion roots into electronics, books, toys and video games. The move comes as the platform reports its first profitable year, with revenue climbing 143% since 2021.
The more Vinted can engage its consumer base in second-hand transactions, the less waste we'll see across a vast range of industries.
So, how has Vinted managed it all?
The company, which achieved profitability with US$19.3m in earnings on revenue of US$648m last year, has seen its valuation rise to US$5.4bn following a recent US$370m secondary sale. This marks a significant increase from its US$3.8bn valuation in 2021, reflecting strong investor confidence in the second-hand market's growth potential.
A focus on operational excellence
"In the end, our vision is to make second-hand first choice globally, and for any type of product you can imagine," CEO Thomas Plantenga says, highlighting the company's ambitions beyond its traditional clothing market.
Vinted's expansion strategy focuses on operational improvements rather than flashy features.
According to Thomas, Vinted is prioritising "unsexy" areas such as efficient shipping, payments and quality checks – crucial infrastructure for building trust in second-hand transactions.
Building trust in the marketplace
This operational focus has already yielded results. The company has launched Vinted Go, its dedicated shipping business, and introduced a luxury fashion verification service to combat counterfeit goods. These initiatives address key challenges in the second-hand market, particularly following a Channel 4 investigation that highlighted issues with counterfeit products on the platform.
The company's expansion coincides with broader market shifts, as traditional retailers like Primark and H&M introduce second-hand sections in their stores. This mainstreaming of pre-owned goods has helped drive Vinted's geographical expansion, with the platform launching in eight new European markets including Finland, Romania and Greece.
For now, it looks like the sky is the limit for Vinted.
Strong market performance
Strategy Director Sebastiaan Lemmens revealed that the company's gross merchandise value has grown 3.5 times since 2021, suggesting strong user engagement across its markets. The platform's success in new territories indicates growing consumer acceptance of second-hand shopping, particularly in markets where sustainability concerns are increasingly influencing purchasing decisions.
"We're well on our way making second-hand first choice across Europe," he says.
Challenges in new categories
The move into electronics represents a significant opportunity but also poses unique challenges. Unlike clothing, electronic items require more rigorous quality checks and often come with warranty considerations. However, the company's experience in managing complex logistics and verification processes through Vinted Go might come in handy here.
The platform's growth reflects wider changes in consumer behaviour, as inflation and environmental concerns drive shoppers toward second-hand options. A Vinted spokesperson addressed the platform's approach to quality control: "We act as swiftly as we can against anything that violates our terms and conditions," highlighting the balance between rapid expansion and maintaining marketplace integrity.
"The opportunities aren't just for those clearing out their cupboards or sole traders searching for a supplementary income," noted James Rigg, CEO of Trojan Electronics Group, speaking about Vinted's electronics expansion. "Big business needs to recognise this move in the market and by forging partnerships with third-party service providers, they can capitalise on this shift in consumer attitudes."
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