Depop the Social Shopping Platform

Developing the Business Model for International and Physical Expansion

Helen Beney

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781350989955.0001
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Abstract

This case explores Depop, a social shopping platform founded in 2012 that operates in the UK, Italy, and the USA. The business developed as a digital vintage and streetwear fashion resale marketplace and has gained high awareness amongst individuals between 14 and 24 years of age in the UK. Designed for the Instagram generation, the platform allows users to buy, sell and amass followers, and develop retail personalities.

In January 2018 Depop announced that it had secured US$20 million in series B funding. These funds were raised in order to support Depop’s growth in the US market. Depop hoped to do this through both developing the functionality and user experience of the digital platform and establishing physical spaces that would facilitate creative conversations and retail experiences for users in key American cities. This case study can be used to explore business strategy, international expansion, and experiential retail spaces. By considering the founder’s vision and the business’ current operating model, customer base, and market contexts, this case provides students with a basis upon which to explore the potential value proposition for bricks-and-mortar expansion, and to evaluate the digital and physical business model and opportunities for growth in the United States and internationally.


Learning Objectives

Upon completion of this case, students should be able to:

  • Identify user’s aims, needs, and motivations to explore Depops’ creative and cultural positioning.

  • Discuss and appraise the potential business challenges presented by having two categories of customers: buyers and sellers.

  • Assess Depop’s key business activities, skills and resources, partners and relationships as strategic devices to deliver customer value in a highly competitive and growing marketplace.

  • Conduct a macro analysis to review the risks and opportunities associated with the US market, with specific reference to the competition, sector growth, and business channels.

  • Analyze the effectiveness of Depop’s current customer value proposition, that gives equal focus to socializing and selling.

  • Evaluate the current Depop business proposition through the lens of the business model canvas (Osterwalder 2010; Strategyzer n.d.).

  • Develop a customer value proposition for Depop that could drive scale in the United States over the next two to five years.

  • Discuss the opportunities for experiences, content, and collaborations that could effectively drive brand awareness and user engagement for Depop.

  • Evaluate the opportunity to develop physical spaces as part of Depop’s business development strategy.

  • Research, design, and justify solutions for the physical spaces proposed in the United States.

  • Discuss the opportunity to bridge the gap between online and offline retail.

  • Explore the resources and relationships required for Depop’s development relative to the potential impact on scale and revenue generation.

  • Assess the business functions, processes and relationships required to support a value proposition for growth in the United States.

  • Review strategic business model options for operating and driving revenue at scale internationally.

  • Analyze whether the relative scale of the funding Depop have received could support the growth strategy you have identified.

Introduction

Figure 1. Depop logo Red.

Depop logo Red.

© Depop.


Background and business development

In 2011, Simon Beckerman was living in Italy where he had cofounded a lifestyle magazine, PIG (a younger version of Dazed and Confused, the provocative British style and culture magazine), and a sunglasses brand “Super Sunglasses.” He recognized that the rise in the internet required that he move online in order to generate further revenue. He consequently had the idea to combine the creative vibe and insight of PIG with a digital sales platform that would host the unique items that featured in the magazine. He believed that the site should be mobile and social so that its users (creatives, influencers, designers, and brands) could see what their friends were buying and liking. Before long, Beckerman realized that this online platform required a selling platform as well and thus re-envisioned the app as a social selling marketplace under the name of Depop. In launching Depop, Beckerman’s mission was to help creative people not only to sell but also to be “discovered.”

Beckerman secured initial seed funding of €2 million (approximately US$2.4 million) in October 2012 from H-Farm, an incubator campus and venture capital firm based in Italy that specializes in start-up investments in the digital and innovation sectors (Crunchbase n.d.). Following this, Depop moved their headquarters from Italy to London for the business’ international launch in April 2013 and quickly generated a user base that was 50,000 strong and who were selling around 350,000 items. At this time Depop had only fourteen employees. Depop describe their philosophy and style as:

a global conduit of connection, not only in m-commerce, but culture, design, and creative communities around the world. (Depop n.d.-a)

Beckerman recognized that most decision-making within fashion buying was based on social factors and thus designed the app with features that were typically reminiscent of social media channels such as Instagram; users are able to “like” and “follow” other sellers in order to encourage buyer and seller interactions. Engaging with Depop is simple—sellers downloaded the app, make a profile, and upload photos and copy for the items they want to sell. Users can scroll through the “explore” page of items that are recommended by the Depop team, search for specific items, or browse the stores they follow. Sold items remain on the site and therefore build followers who add to the brand and store’s personality and profile.

Depop are aware that being creative and pushing boundaries are intrinsically related to success. They aim to create and maintain strong community connections, with their fundamental customer value proposition giving equal focus to socializing and selling. The product offer is deliberately progressive and inclusive. Whilst vintage and street style items are dominant, the product mix allows for an eclectic curation such as street style items adjacent to fabulously styled drag outfits, and “plus” models mixed with size eights. Depop engaged with users to encourage great styling and strong photography and contact those with good stock but bad photos to help them develop their profile. By valuing curation in the app and creating fresh editorial content, Depop is determined to keep its core integrity and personality.

Figure 2. @inthejunkyard/Alex Lee.

@inthejunkyard/Alex Lee.

© Depop.


Services: Buying and selling

Sellers on Depop are responsible for packaging and postage in the UK; “shipping integration” with a one-click printable mailing label available in the United States from 2017 (Depop n.d.-b). Money changes hands through Paypal and 10 percent of the transaction is paid to Depop. The comparative costs for sellers using resale sites depends on the service model offered. Depop, like eBay and Etsy, charges a 10 percent commission from all sales for the basic sellers service. Direct competitors to Depop such as Poshmark in the United States charge up to 20 percent but manage the financial transactions and provide sellers with prepaid packaging materials. In the luxury sector the basic costs vary from 20 percent (Tradesey) to 25 percent (Vestiare Collective). Vestiaire Collective provide options for sellers who can choose a basic or concierge service that authenticates, values, photographs, wraps, and dispatches sales for a fee.

By the end of 2015 the app, operating under the motto “hello we’re open,” had been downloaded some 3 million times, with a third of its users selling items. The app was beginning to get significant recognition, British Vogue described it as “a thrift-shopping oasis for millennials combined with an interactive interface that references the double tap attention grabbing sinkhole of Instagram” (Satenstein 2016). Owing to its success Depop was able to launch in the United States in 2015. Los Angeles became the second most popular city for use of Depop only after London and, whilst growth in the app use had been slower there, Beckerman saw the United States as the next phase in the brand’s journey.

The customer: Buyers and sellers

At its initial launch in Italy in 2011, the Depop customer profile initially followed that of PIG magazine, “cool” millennials, whilst in the UK the brand resonated more strongly with a younger generation aged between 16 and 24 years old. The United States also followed the UK profile, which meant that there was a large crossover of Generation Z and millennials that dominated Depop’s international market: 80 percent of users were under 25, 70 percent were female, and 60 percent of the app’s users both bought and sold (Knowles 2018). Most of Depop’s buyers were into streetwear or vintage, and many sellers identified themselves as creatives, stylists, or curators.

For Generation Z, buying into the authentic voice of “culture curators” and the eclectic product mix is seen as aspirational; there is fun in the discovery that they do not just have to follow the taste set by traditional fast fashion brands and high street stores. For Depop, the community interface is key for “a buy-and-sell space that’s far more fun than sitting at home alone on your computer waiting to snap up something from eBay” (Banks 2017). “We are really hands-on when it comes to discovering and empowering creativity at an early stage,” said Depop’s senior marketer, Tainá Vilela. “That’s what sets us apart.” The communication style of the app also resonates with the “authenticity-first mindset of the digital generation” (Banks 2017) where sellers are encouraged to personally engage with products and cultural conversations.

The Depop team are always on the hunt for people and brands to include on the platform that embody the “Depop style” and, when producing content, the priority goes toward showcasing those who shape or would shape culture. Beckerman said;

in a sort of way the magazine we were creating before is inside Depop. We see ourselves much more than a marketplace but also going towards media somehow in a more—if I may use this word—modern way. (Banks 2017)

With further funding throughout 2016 and 2017, Depop was able to secure its place as the resale app of choice for younger millennials and teenagers in the UK. Beckerman described this as “gradual lean growth [which was] picking up very fast” (Banks 2017).

By 2018, Depop was able to segment its creatives (sellers) into four levels; the level that their sellers were sat at was dependent on their level of activity and number of followers. This ranged from one-time sellers, through to beginners, to active, and finally to top sellers, who frequently had 400,000 followers on Depop and could (but not necessarily) have in excess of 100,000 on Instagram. An example of one of these top sellers is Isabella McFadden, “@internetgirl,” who personifies the style of social communication that is so successful on the site. MacFadden, 22, a college dropout from Toronto with a flair for retro and “thrift-shop” fashion began “monetizing” her social media presence on the app in 2016. By 2018, she had almost half a million followers (placing her consistently in the platform’s top global sellers), employed two assistants, and had opened her own website selling unworn second-hand stock and her own fashion line (Whatling 2018). Over time, Depop has become well known as a hub for Generation Z creative entrepreneurs.

Figure 3. Isabella McFadden @internetgirl/Brigita Žižytė.

Isabella McFadden @internetgirl/Brigita Žižytė.

© Depop.


Consumer lifestyles

Raga and Beckerman identified that the app tapped into the millennial future work-scape; millennials did not want nine-to-five desk jobs but hoped to combine “social self-presentation” with “numerous activities, pulling revenues from all corners of the physical and digital worlds” (Remsen 2017). “They’re much more entrepreneurial,” Raga said in an interview with the Financial Times (Remsen 2017). For many users, Depop was their first experience of buying and selling; some quickly graduated to top 500 seller status where monthly sales of between $600 to $10,000 was common. Beckerman observed that many of their sellers were “savvier” than traditional fashion outlets, some of which are struggling to adapt to mobile selling. Even established online clothes brands such as Monki sold one-off or customized items on the app as a way to reach a younger audience (Whatling 2018).

Marketing and promotion

Unlike other resale apps, such as Austrian start-up Shpock, Depop spends very little on traditional marketing, such as television advertisements. Instead, it uses the social aspect of its community to spread the word by showcasing up-and-coming designers and referencing magazines and bloggers that feature the brand. They have developed a number of partnerships with brands and individuals that had developed a sense of authenticity with its consumers, such as Converse and the blogger Chiara Ferragni, who reflect their creative and cultural values. Influencers such as Shaq O’Neal and Dita von Teese were also amongst the first to start using the app; the presence of popular influencers on Depop greatly raised public awareness.

In 2017 Depop rebranded its site focusing on the “attitude” and “confidence” of its buying and selling community. Beckerman said, “we are curating now a proper editorial team and we will treat Depop not only as an app but like a proper magazine” (Banks 2017).

Figure 4. Depop homepage.

Depop homepage.

© Depop.


The Depop team

Sellers, buyers, employees, and investors are considered important stakeholders who, Depop feel, believe in the business and share their resources with others, whether that is their capital, time, or passion. However, as a relatively new entrepreneurial venture the vision of Beckerman was key in driving that strategy. When Beckerman first received investment, he recognized that he needed a strong team to work with him, including the need for a CEO to run the company, which would allow him to focus on the vision and direction. In 2016 Beckerman became Creative Director, and Maria Raga, previously VP of Operations, became the CEO. Together, their aim was to become the most loved and inspirational marketplace for creatives all over the world.

I am thrilled to be leading Depop, it’s an exciting time for us as we are becoming a truly global platform,” said Raga …. We are becoming part of the youth culture and a place for people and brands to inspire and get inspired by each other. (Terrelonge 2016)

By 2017 there were over 100 staff internationally, working across PR, photography, marketing, design, technology, finance, and community (seller) development and support. Many of the young Depop team were attracted to working for the company as they were initially users of the app and, unlike many digital start-ups, they came from both technological and creative backgrounds. They embodied the brand philosophy when working with sellers not only by giving them insights on their sales but also by producing original “media” content and stories, showcasing their shops, and distributing PR.

The growth of Depop

Depop grew from 5 million users in 2016 to 8.5 million users by the start of 2018; a growth of 103 percent globally and 130 percent in the United States. At the beginning of 2018 they had 100 staff across four offices in Italy, the USA, and the UK. The business had developed in the UK as a vintage and streetwear fashion resale site with high awareness amongst 14-to-24-year-olds, and by 2017 annual transaction values were in excess of US$230 million.

With the ambition to expand the US business, Depop identified that they would need to drive brand awareness in order to expand their buyer and seller base. They felt they could do this predominately through word of mouth and by curating an exceptional social buying and selling experience. They also believed they needed to drive original content to strengthen the brand and develop physical spaces to achieve their ambition. However, in planning to do so Raga and Beckerman were moving away from Depop’s core activity of managing an online marketplace. They also needed to quickly identify which skills and technologies to invest in to enhance their digital functionality and user experience. Whilst challenging, they felt that a combination of the physical and digital was key to competing and driving scale in the United States.

Business Problem

The marketplace and competition

With some three quarters of purchase decisions identified in 2017 as being influenced by social networks, combining social with shopping via mobile devices was widely recognized as a highly attractive market area. Mobile (M) commerce was the fastest growing sector globally, and the number of sites and apps for users to resell garments had grown significantly. eBay was launched in 1995, and with it the resale market grew. In 2017 ThredUP, another US fashion resale website, estimated the value of the US “re-commerce” market at US$18 billion annually (n.d.) and IBISWorld (2018) calculated it was worth around £700 million in Britain. Looking at resale across all channels it was forecast to reach 11 percent of the market by 2027, and therefore outselling fast fashion globally (ThredUP n.d.).

Whilst eBay dwarfed all other players, generating circa US$9 billion in revenue per annum (Datafox n.d.), the market sector was growing fast with Tradesy, ThredUP, Vestaire Collective, Vinted and the RealReal, and Poshmark all actively pursuing growth strategies in the US market. “Poshmark,” arguably Depop’s closest competitor in the United States, launched in 2011 and reportedly had 3 million sellers, and sales of US$500 million in 2017. Poshmark was successful in raising US$87.5 million in funding in 2017, led by Temasek, which is also an investor in Farfetch (Sherman 2016), and planned to expand and enter new countries, starting with additional English-speaking regions and then moving into Western Europe and Asia. They also planned to make the shopping experience more immersive; for example, partnering with Amazon on “Poshmark Stylist Match” to link the Alexa artificial intelligence tool to their app (Sherman 2016).

In China, where Wechat dominated, the resale market was valued at US$60 billion annually (2018) with Alibaba spending US$15 million in 2016 to acquire Xian Yu, a social commerce app. In Europe, the Austrian flea market app Shpock claimed 10 million users and launched UK television advertisements during 2017 to increase awareness and attract users.

Due to the highly competitive nature of the market and the low conversion of product on offer to sales revenue, it has proven hard for businesses to translate activity into profit (Sherman 2016). This has already led to some consolidation with Covetique (backed by ASOS) closing and Tradesy acquiring luxury reseller Shop Hers in 2015.

The Depop ambition

Between 2015 and 2017 Tradesy, ThredUP, Vestaire Collective, and Vinted and the RealReal (all active in the US resale market) alone raised over US$240 million in funding, leading to what has been described as a “winner-takes-all” battle for second-hand clothing start-ups (DiNinzio in Sherman 2016).

Raga and Beckerman believed that they too needed scale to compete with these start-up brands. They intended to continue with their strong “mostly organic growth” by tapping into the next generation’s entrepreneurial, community driven, and creative spirit. They felt that growth in the United States was essential before they could consider other market opportunities. They understood that the quality and volume of sellers and the attractiveness of their “product” was key to driving the business, not least because the percentage of goods sold relative to the volume on offer via social commerce were often “as low as fifteen percent” (Azeez 2015).

Fashion re-sale is a challenging business, not least because it requires a high level of consumer participation. (Sherman 2016)

Their ambition was to create a natural extension of the app where the Depop community could get together and inspire each other, providing multifunctional spaces to help bridge the gap between online and offline (Chitrakorn 2018). From the start Depop had always welcomed the user community into its offices. Beckerman had identified that encouraging creative conversations and supporting “culture shapers” digitally and physically was a key pillar of the brand, and he and Raga wanted to be active and visible in both domains.

At the end of January 2018, Simon Beckerman and Maria Raga of Depop sat down to discuss the next stages in building the company. Raga had recently announced in an interview that they had secured US$20 million in series B funding, Raga stated:

The investment will support the global growth of the platform, particularly in the US, and scale the business. This will include the opening of bricks and mortar beta spaces, which will help us get even closer to our users and experiment with new formats. (Terrelonge 2018)

Beckerman and Raga needed to firm up their plans regarding these beta physical spaces and to drive their strategy for growth.

Raga and Beckerman agreed on two locations that reflected their creative and cultural positioning, and in which they hoped to open bricks-and-mortar spaces for Depop: New York’s China Town and the Silverlake area of Los Angeles. Now they need to make decisions on the value proposition that will determine how they will design and use the spaces for launch.

Back in 2015 Beckerman had said that he would like Depop to be a new and more modern version of eBay; he hoped that Depop would do so by tapping into millennials enthusiasm for influencers and social media, as well as by considering their desire for a more personal and social shopping experience. Indeed, by 2018 the resale market, with its retail appeal for Generation Z and millennials who frequently hunt for value, vintage, and unique items was starting to be seen by many investment companies as a major opportunity and was generating considerable funding from investors, especially for digital marketplaces. In the United States, there are already a number of medium-to-large players across all levels of the market and the volume of investment has increased the intensity of competition where businesses are engaged in a race for growth and market share. Depop feels that focusing on the United States will present the best opportunity to deliver international scale. They also recognize that in order to scale internationally they will also need to drive brand awareness and engagement. Could creating physical experiences contribute to widescale US brand awareness? How could the planned spaces help them get closer to their customers, bridging the gap between online and offline retail? What propositions, products, functions, and services would inspire more US customers to explore Depop and become loyal users of the app; both as buyers and sellers? What value propositions and business model opportunities would best enable them to compete in the United States and ultimately globally?

Business Questions

  1. Is venturing into physical space a wise move to aid Depop’s community development and brand awareness in the United States, or could it represent a costly diversion from their core activity of running a digital marketplace and scaling the online transactions through growing their user base?

  2. If physical spaces were to prove a key element of the growth and market penetration strategy, what should the customer value proposition be? What should the spaces look like? What cultural and retail-based experiences could they host and curate, and how could they bridge the gap between online and offline and reach a wider audience?

  3. From Depop’s perspective, the fundamental business issue is how to grow across the US market.

    • Depop has a distinct brand personality that effectively taps into the teenage and millennial zeitgeist in the UK. How could they develop this to achieve a high level of brand awareness across the United States, driving the number of users and transactions quickly?

    • What would inspire more US customers to explore and become loyal users of the app? What customer value could Depop add?

  4. The market has been described as a “momentum business” where the resale markets are only as attractive as the sellers and users that they represent.

    • Is Beckerman and Raga’s focus on “cool community engagement” sufficient to compete with larger established businesses in the United States and Europe and those who have generated larger sums in various rounds of funding?

    • Could the stated aim for largely organic growth compete in a potentially “winner takes all environment” and one where the social media giants could still enter the market?

  5. The millennial desire for “friction free” transactions means that functions, services, and security need continuous improvement from in-house or collaborative research and development teams.

    • What features might provide a competitive advantage for Depop and how might these be developed?

    • How important is brand trust in developing the number of buyers and sellers? How could Depop drive brand trust in the United States?

    • We have already seen collaborations between Poshmark and Amazon, what are the opportunities and risks for Depop Make specific reference to the competition for growth in the United States

Teaching Notes and Grading Guide

Students should come to the case study with a knowledge of the different types of fashion resale apps that are offered globally. Tutors should refer to the teaching resources for background on the business, market, and suggested models.

Preparation

  1. Do you or your friends buy or sell on Depop? Why is this? How does the experience compare with other resale sites, if you have used them?

  2. How attractive is the Depop offer to you and why?

  3. If you were Depop why would you want to open physical spaces in the United States? Consider whether the venture into physical space is a wise move or could represent a costly diversion?

The teaching plan allows for forum discussion and decision-making and small group work; allowing for the consideration of immediate action-orientated issues and more general analysis and business model development activities. This is designed to be split over two 1.5 hour sessions; parts 1 to 3 and then 4 to 5 or could be condensed into one 2.5 hour workshop. There is an option for an additional 2D and/or 3D workshop for design development for the physical spaces.

Part 1 (15 minutes): Ice-breaker. Take a vote: Should Depop move toward purchasing physical space, yes or no? This activity is designed to generate discussion within the class. After taking a vote the tutor could ask students to identify two or three compelling reasons for their choice and use these to develop a debate and discussion. It may be advisable to start with the minority decision and, at the end of the allotted time, another vote could take place to see if any students have changed their perspective. Students should be encouraged to consider topics such as original content, core competencies and team skills, resources, and partnerships.

Part 2 (40 minutes): Explore the customer and the Depop value proposition in small groups.

The aim here is to promote small group discussion. There is the assumption that students will have been briefed on use of the business model and value proposition canvas prior to these exercises. Tutors can refer to the open source resources developed for using the business canvas and value proposition on Strategyzer.com (Strategyzer n.d.).

  • Who are Depop’s customers? How would you describe them demographically and psychologically? What is the community cultural position? (Discussion 5–10 minutes.)

  • Complete a value proposition canvas (Strategyser n.d.). You may want to split the responses for both users and sellers considering their similarities and differences, and that a significant number of users were both users and sellers (30–35 minutes). Questions that could be asked include:

    1. What are users trying to achieve when buying and reselling clothing? What are the customers emotional, physical, or financial needs and motivations? How does the customer want to interact with others or be thought of? What would give them satisfaction?

    2. What problems do users (buyers and sellers) face when engaging with the site; are there frustrations or things that could annoy them? What are the functional, financial, or social concerns or challenges? Are there any barriers to reselling or using the app?

    3. What are the outcomes and benefits that Depop’s customers seek: this could include functional and financial benefits, social gains, positive emotions, and cost savings.

    4. Having established the consumer needs and concerns, ask students to think about how Depop address these via their value proposition. What do Depop do to meet consumer needs, satisfy their aims, reduce frustrations, and generate benefits from using the app? How could they meet or exceed customer expectations including functionality, social gains, positive emotions, and cost savings? Ask student to map these on their customer value proposition canvas (Strategyser n.d.).

Part 3 (35 minutes): Complete the Depop business model canvas (Strategyser n.d.). Continue the discussion in small groups, ideally with a printed business model canvas and supplies of colored sticky notes. Allow 5 minutes at the end to discuss each groups’ perspective. Tutors may wish to introduce each element of the canvas separately (c. 5 mins each) and make use of online YouTube videos from Strategyser.com for this. Note this case only requires the consideration of the relativity of revenues and costs within the model, no financial data is provided.

Part 4 (60 minutes total): Growth in the United States; consideration of online/offline activities, and functional/service enhancements.

  • Discussion (20 minutes): How can Depop gain awareness and grow scale in the United States through online and offline channels? Ask students to note these ideas on a mind map and/or sticky notes.

    • In small groups ask students to think about the values of Depop, how did they achieve organic growth in the UK, and how can these factors be applied to help them grow in the US market?

    • What physical activities/experiences can Depop develop for their physical spaces, how can these bridge the online/offline experience?

    • What technical (and safety) functions should be a priority for the app?

    • Are there service functions that would enhance the user experience?

    • Are there collaborations that might be advantageous?

  • Evolving the business model (20 minutes): Ask students to map their thoughts onto an evolution of the Depop business model to identify actions and priorities for the business development for growth in the United States.

  • Understanding the competition (15 minutes but could be extended): The objective here is to map out the competitive landscape as presented in the case and to develop a discussion regarding the future potential for Depop in the race for scale. If more time is allocated this session could be extended to include a full evaluation of the macro business context in order to explore potential further evolutions of the business model. (Tutors may wish to prompt students on the potential for greater competition in the UK as well as in the United States.)

  • Conclusions (5 minutes but could be extended): Ask the class to vote again about whether Depop should move into physical space. Having evaluated their business model, opportunities in the United States, and the competitive landscape ask students whether as investors (with a potential US$20 million) they would invest in Depop. Ask them to identify a compelling argument either for or against investing in the business.

Part 5 (30 minutes): Designing the spaces. In small groups consider the key aspects that the proposed physical spaces need to deliver. Brainstorm the overall design guidance, consider the nature of retail in the space, and consider the development of “schedule of experiential/retail events” for the physical space launch and roll out. What is the community relationship with the space?

Part 6 (90 minutes, optional): Individual work. Ask students to develop the physical concept of the store: this could include a design workshop for a “mood-board,” and 2D and/or 3D designs for the space launch and roll out.

Written assignment

Written assignments could be developed using the key business questions outlined at the start of the case. Grading should be based on:

  1. The ability to understand and apply the business value and business model canvas for the analysis of current business propositions.

  2. The critical exploration of demographic and cultural consumer segments: identifying and analyzing their motivations, needs, and wants to generate business or brand loyalty.

  3. The identification of market factors and competitive contexts in order to evaluate market opportunities and threats.

  4. The design, development, and evaluation of a value proposition for growth in the United States and Europe for the next three to five years.

  5. The critical evaluation and development of a business model to compete successfully in the United States and Europe.

Additional reading and resources for tutors and students

Depop. n.d. Buy. Sell. Discover.” Accessed December 29, 2018. http://www.depop.com.

Find in Library Osterwalder Alexander and Yves Pigneur. 2010. Business Model Generation . Hoboken, NJ : Wiley.

Thredup. n.d. Thredup 2018 Resale Report . Accessed July 23, 2018. https://cf-assets-tup.thredup.com/resale_report/2018/2018-resaleReport.pdf .

Tutor resources

Depop. n.d. Buy. Sell. Discover.” Accessed December 29, 2018. http://www.depop.com .

Remsen Nick. 2017. “How the Clothes-Selling Platform Depop is Creating Young Entrepreneurs.” Financial Times, March 2. Accessed July 20, 2018. https://www.ft.com/content/67de4da6-fed4-11e6-8d8e-a5e3738f9ae4 .

Satenstein Liana. 2016. “All Those Millennials Can’t Be Wrong: Why Depop Just Might Change the Way You Shop.” Vogue, March 31. Accessed July 20, 2018. https://www.vogue.com/article/depop-millennial-friendly-shopping-app .

Sherman Lauren. 2016. “Resale Sites Prepare for Battle.” Business of Fashion, May 11. Accessed July 20, 2018. https://www.businessoffashion.com/articles/fashion-tech/resale-sites-recommerce-online-vintage-real-real-thredup-vestiaire-collective-tradesy-poshmark .

Thredup. n.d. Thredup 2018 Resale Report . Accessed July 23, 2018. https://cf-assets-tup.thredup.com/resale_report/2018/2018-resaleReport.pdf .

Strategyzer. n.d. Canvases, Tools and More.” Accessed July 20, 2018. https://strategyzer.com/canvas.

Find in Library Osterwalder Alexander and Yves Pigneur. 2010. Business Model Generation . Hoboken, NJ : Wiley.

Appendices

Appendix 1 The business model canvas according to Osterwalder (2010).

The business model canvas according to Osterwalder (2010).

© Stategyser.com.


References and Further Reading

Azeez Walé. 2015. “Depop: We’re all Shopkeepers Now.” Politico , October 27. Accessed July 20, 2018. https://www.politico.eu/article/depop-were-all-shopkeepers-now/ .

Banks Emma. 2017. “Simon Beckerman Talks What’s Next for Depop.” Milk XYZ , April 24. Accessed July 20, 2018. https://milk.xyz/articles/simon-beckerman-talks-whats-next-for-depop/ .

Brignall Miles. 2017. “It’s Part-eBay, Part-Instagram, but is Depop Safe for Your Teenagers? The Guardian , June 3. Accessed July 20, 2018. https://www.theguardian.com/money/2017/jun/03/depop-ebay-instagram-teenagers-buy-sell-risks-fraud .

Chitrakorn Kati. 2018. “Depop Secures $20 Million for US Expansion.” Business of Fashion , January 23. Accessed July 20, 2018. https://www.businessoffashion.com/articles/news-bites/depop-secures-20-million-for-us-expansion .

Christy Sophie. 2015. “Fed up with eBay? Sell on Etsy, Depop and Folksy instead.” The Telegraph , March 30. Accessed 20 July 2018. https://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/11490640/Fed-up-of-eBay-Sell-on-Etsy-Depop-and-Folksy-instead.html .

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The author wrote this case solely to provide material for class discussion and independent learning. The author does not intend to illustrate either effective or ineffective handling of a situation. The comments and interpretation presented are not necessarily those of the company or its employees.

Definitions

Seed funding:

The initial round of capital financing to support the early development of a business, offered in exchange for equity.

Series B funding:

The second round of capital financing for a start-up business. At this stage the product/service is usually already being sold to the market.

Customer value proposition:

The benefits that a company provides to a consumer in order to encourage them to use their service.