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One of the largest online resale apparel platforms, thredUP, has announced the first phase of its international expansion strategy. It will be acquiring one of Europe’s major fashion resale firms Remix Global AD (Remix).
Tapping into Europe’s secondhand market
The upcoming acquisition is part of the U.S.-based thredUP’s expansion strategy into Europe where according to GlobalData, the secondhand market was predicted to be worth US$21 billion in 2020, a number that is expected to soar to US$39 billion by 2025.
Remix has developed a customised single SKU logistics system enabling the quick processing of millions of garments. This is quite similar to thredUP’s proprietary operating platform and after the acquisition, the U.S.-based secondhand thrift store will develop Remix’s system further by adding a complementary operational infrastructure.
We’re bullish about the massive opportunity in the European resale market and are thrilled about the chance to build on Remix’s technology and operational expertise to help accelerate its growth
James Reinhart, co-founder and CEO, thredUP
In addition, an expert management team will spearhead its expansion into Europe. It will make investments in Remix’s product portfolio and processing infrastructure, along with a go-to-market plan to help drive its growth.
Remix will continue to function as an independent company under thredUP with CEO Lyubomir Klenov in charge and will facilitate thredUP’s expansion into Europe.
“Lyubomir and his team have built a strong, lean, customer-first business, and they know how to deliver resale operationally across multiple markets in Europe,” said thredUP’s co-founder and CEO, James Reinhart in a statement. “We’re bullish about the massive opportunity in the European resale market and are thrilled about the chance to build on Remix’s technology and operational expertise to help accelerate its growth.”
Capitalising on thredUP’s Resale-as-a-Service
The acquisition will open ways for thredUP to expand its Resale-as-a-Service(RaaS) platform beyond its base country, allowing brands and retailers to provide customised resale services to European consumers.
Klenov said: “We’ve long admired thredUP’s leadership in the United States and their dedication to building a mission-driven company that makes it easy to buy and sell secondhand. Together, I believe we can build upon Remix’s core operational engine, technology, and logistics to bring that scalable experience to the European market, where resale has only scratched the surface.”
The acquisition will close by Q4 2021 with a US$28.5 million consideration. In addition, thredUP will provide Remix’s management team US$6.5 million in restricted stock units to vest over a period of 4 years.
This news follows thredUP’s accelerating growth in its domestic market with its report stating that the online resale market is poised to grow by 27% and within five years, it will rise by a whopping 414%.
It even expanded its RaaS support to companies like Vera Bradley, FARFETCH, LG, and Madewell, who is expecting to double the life of 1 million pairs of denim by 2023 through its new ‘Madewell Forever’ platform.
Lead image courtesy of thredUP.