2022

CONTENTS
INTRODUCTION.....................................................................................................................................2
Depop Marketing Strategy....................................................................................................................2
VALUES OF DEPOP................................................................................................................................4
Forecasting Depop's Annual Revenue for 2019–2021..........................................................................5
CREATING VALUE OF DEPOP............................................................................................................5
HOW DEPOP COMMUNICATE VALUE.............................................................................................7
THE PROLIFERATION OF BEDROOM ENTREPRENEURS..........................................................8
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10
INTRODUCTION
People from all over the world may buy, sell, and learn more about rare items from one another
using the platform provided by Depop. The original function of Depop's marketplace was as a
social network where artists could promote and sell their items. Over time, however, the
marketplace shifted its focus to place a greater emphasis on the significance of the user
community. You can see it digitally by using a website or an app on your mobile device.

Depop has undoubtedly taken off since it first launched in 2011, when it had 1,000,000 users and
was available in only 150 countries. Currently, the platform has 30,000,000 subscribers and is
available in 150 countries. Roughly nine in ten of their active users are under the age of 26, and
the diverse selection of items, dedication to environmental responsibility, and emphasis on social
issues are some of the things that draw them in.

A user experience that is evocative of social media is provided by the platform known as Depop,
which allows users to gain access to pre-owned goods. The shopping software known as Depop
offers protection for purchasers and takes a 10% cut of any revenue made through its platform.

Depop Marketing Strategy

Depop was the starting point for the careers of a great number of up-and-coming musicians, and
it has since become a launchpad for the establishment of further distribution channels for the
artists' work. The app has also been used as a platform by already established celebrities in order
for them to sell items and cultivate stronger relationships with their own fan bases.

Fig 1. Marketing strategy of Depop

The app has been used to market the signature designs of well-known celebrities such as Lilly
Allen and Emily Ratajowski, amongst others. Olivia Rodrigo, the latest it girl, utilised the site in
order to advertise and sell the clothing that was featured in the music videos for her platinum
record. She followed the standard protocol for Depop celebrities and gave 100 percent of the
proceeds from her "Sour Shop," which was named after her debut album, to a charitable
organisation.

Fig 2.Depop App

In particular, Rodrigo's scenario is instructive of how a natural connection can form between a
firm and a celebrity. In this case, Rodrigo is a baseball player for the Los Angeles Dodgers.
Rodrigo and Depop aren't the only ones who have a lot in common with each other when it
comes to their respective fan bases. The partnership was beneficial to both Rodrigo and the app;
not only did she clear out her stock in record time, but as a direct result of the partnership, the
app acquired a significant number of new users. The high degree of trust that is maintained
among Depop's users is directly responsible for the platform's phenomenal success. Depop
influencers are able to circumvent the use of conventional wholesalers and sell their items
directly to the audiences they have built up. Every user just chooses articles from their own
storage space while putting together a collection. In point of fact, the Depop crowd has even
developed its very own signature aesthetic. The programme enables the creation of a
personalised shopping experience that is enjoyable at every stage of the process.

VALUES OF DEPOP
Depop is a well-liked social e-commerce network, particularly among individuals who are in the
business of selling pre-owned, vintage, or previously worn clothing items. A devoted following
has emerged among young people in the United Kingdom and the United States between the
ages of 18 and 26. Simon Beckerman's company, Depop, which he began in the Italian startup
incubator H-farm, soon acquired traction as a result of word-of-mouth marketing. The United
Kingdom was its first major market, and at the time, there was already a very strong demand for
vintage clothing in that country. Comparable to Instagram, the shopping app offered by Depop
shows high-quality images of real people modelling the items that are for sale. As a consequence
of this, a brand-new category of "influencer seller" came into being, joining the ranks of "side-
hustlers" who supplement their income by reselling used products that they had acquired at a low
cost. Even if depop may be a phenomenon in certain circles, the vast majority of people who are
above the age of 35 are still unaware of it and do not use it. Ninety percent of Depop's users are
considered to be under the age of twenty-six. However, it has only taken off in a select few
countries, including Australia, Italy, the United Kingdom, and the United States, with the latter
two countries accounting for more than 70% of downloads in 2020 and 2021 respectively.
Following is the value process of depop:
 Fig 3. The value process of Depop

Forecasting Depop’s Annual Revenue for 2019–2021.

Fig 4. Annual revenue of Depop

CREATING VALUE OF DEPOP

Simon Beckerman, who founded the company in 2008, discusses the aspects of the website that,
in his opinion, set it apart from other secondhand markets. It is "a highly current version of a
marketplace that strives to develop a cool community in order to differentiate itself from other
similar platforms." (2015) According to Morrison. Additionally, he explains that the concept
behind Depop is that individuals are able to create a definition of who they are for themselves.
In each of their stores. People bring their personalities to their online identities and to the
products they sell. If you make an effort to put some of yourself inside it, then it will share its
story with you. I am able to form an opinion about a person's personality based on the
photographs they take. (Morrison, 2015). The following three examples are provided for the
reader as an aid in forming a clearer mental picture of what a Depop shop might look like.

Fig 5. Depop product

On Depop, stores are user profiles with unique visual styles. As seen in the examples, users
gained independence by creating their own content. The photos of people's faces on their profiles
are all shot differently, so it's easy to tell them apart. "Social media influenced features" were
also mentioned as a motivation to investigate. Social media is hard to define. Fotsis (2015)
rethought the notion of "social media" after a rigorous literature study. Social media was
described in at least 15 different ways. His research shows that "Web-based programmes that
build and exchange user-generated content" constitute social media.

According to Tang et al. (2012), "social media or user-generated content are sources of online
information created, initiated, circulated, and consumed by consumers" Before sharing, users
must create original content. Depop listing identical! Users can "follow" other users, send them
direct messages, like content, and forward it to others. Users must create and distribute original
content. In conclusion, the platform's users benefit from being able to express their own style
while creating their own storefronts. Depop is a "marketplace for personal, cultural, and
community expression" . Depop's main audience, Generation Z, embraces self-expression and
uniqueness. (Blackwell, 2021).
 Fig 6. Depop creating values.

HOW DEPOP COMMUNICATE VALUE

As a result of omni-channel commerce, in which customers can access items and services from
anywhere online, new shopping tools and platforms have evolved to compete with retail websites
and marketplaces. One of these companies just announced a fresh round of financing to continue
its rapid expansion and remain competitive. General Atlantic led Depop's $62 million Series C
investment round. The company's software allows users to publish and sell things via the
company's and third-party social feeds. Klarna's prior investors, including HV Holtzbrinck
Ventures, Balderton Capital, Creandum, Octopus Ventures, TempoCap, and Swedish CEO
Sebastian Siemiatkowski, participated to this round of funding.

This prize will fund multiple initiatives. The startup should expand its technology stack. This
could include improved recommendation and picture-detection algorithms. The second goal is to
develop operations in the U.S., which CEO Maria Raga says will become the company's most
important market. This country is home to 5 million people, but that number is expected to
quadruple to 15 million in three years. Peer-to-peer markets like Vinted and Posh mark, as well
as social media platforms like Instagram and Pinterest, emphasize online buying. The rewards
are enormous. ThredUp, an online marketplace for pre-loved items, predicts the used clothing
business will grow from $24 billion to $51 billion over the next five years. This represents 10%
of retail sales. Depop raised $40 million. This valuation is only a "up round" as of yet. Raga told
me this week she was "thrilled"

THE PROLIFERATION OF BEDROOM ENTREPRENEURS

The company's recent expansion and redirected efforts led to this fresh investment. Depop caters
to millennials and Gen Z consumers, as "social shopping," "selling to groups of followers," and
"using social feeds" suggest. One-third of 16-to-24-year-olds in the UK, where Depop was
launched, are registered users. 90% of the company's active users are under 26. Raga's success
stems from the fashion industry's rapid change. She explained that their goal was to revolutionize
the fashion sector like Spotify and Airbnb. She added that "the fashion world hasn't really taken
notice" of how things have changed on the consumer end, despite issues such as sustainability
(and specifically waste in the fashion industry), how trends are set today (no longer dictated by
brands but by individuals), and the fact that anything can be sold by anyone, from anywhere. She
also said, "You can start a fashion business from home."

Social networking applications are not an add-on for the aspiring businesspeople of today who
are working out of their bedrooms; rather, they constitute the foundation and the driving force
behind all of their activity that takes place online. According to the firm, the typical user of the
Depop app launches the application "many times per day." This is done for a variety of different
reasons, including surfing, following other users, communicating, commenting, and, of course,
making purchases.

On Depop, 85 million users follow or message each other every month. The business has gained
13 million customers, doubled its earnings each year, and has a $500 million gross merchandise
value. 10% of Depop's revenue for the period would be $50 million. Rapid acceptance and
significant utilization have led to 13 million users, 100% year-on-year revenue growth, and $500
million in gross merchandise value since debut. The service's user base has expanded 100%
annually in recent years. Depop keeps 10% of total revenues, or $50 million for the period.

CONCLUSION
Using the Depop platform, users may purchase, sell, and exchange information on unique objects
with one another. There are currently 30,000,000 active users on the network, and it is accessible
in 150 different countries. Many famous people, including Lilly Allen and Emily Ratajkowski,
have utilized the app to promote their own personal designs. If you're in the business of selling
used, vintage, or pre-loved apparel, you'll find that Depop is one of the most popular social e-
commerce networks out there. It has gained a passionate following among young adults in the
United Kingdom and the United States.

When it comes to selling their wares, Depop influencers don't need to rely on traditional
distributors because they can sell to their audiences directly. Depop was formed in 2008 by
Simon Beckerman, who claims that its central idea is that everyone has the freedom to define
themselves. Photos of people's faces used for profiles are all shot in slightly different ways, so
it's easy to tell them apart. In their own words, the creators of Depop describe it as "a
marketplace that gives space for personal expression, cultural expression, and community
expression" (Blackwell, 2021). A large portion of Depop's customer base belongs to Generation
Z, which places a premium on individuality and creativity.

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