Vinted, the online marketplace for secondhand fashion, has achieved a significant milestone by reporting a remarkable 61% surge in sales, reaching nearly €600 million (£513 million).
This surge has propelled the company into profitability for the first time, marking a significant achievement amid the burgeoning demand for “pre-loved” clothing.
Based in Lithuania, Vinted attributes its impressive growth to various strategic initiatives, including its expansion into new markets such as Denmark and Finland. Additionally, its foray into the luxury fashion segment, facilitated by the acquisition of secondhand high-end fashion platform Rebelle in 2022, has contributed to its growth trajectory. Moreover, the introduction of a verification service has bolstered customer confidence and further fuelled sales.
In the fiscal year, Vinted’s sales surged to €596 million, positioning it as a formidable player in the fashion e-commerce landscape. Remarkably, the company achieved a profit after tax of €17.8 million, a significant turnaround from the previous year’s loss of approximately €20 million. With a workforce of over 2,000 employees, predominantly based in Lithuania, Vinted continues to solidify its position in the market.
Vinted’s success reflects a broader trend driven by increasing consumer concerns about sustainability, budget constraints, and a desire for unique fashion choices. Particularly among younger demographics, there has been a notable shift towards purchasing secondhand clothing.
To facilitate its expansion plans, Vinted secured a €50 million credit facility, earmarked for potential acquisitions and the enhancement of its delivery service, Vinted Go. Thomas Plantenga, CEO of Vinted Group, underscored the company’s commitment to exploring various growth avenues, including geographical expansion and diversification of product categories.
Despite the growing popularity of the “pre-loved” fashion category, online secondhand retailers have faced profitability challenges. Vinted’s success stands out in this context, highlighting its ability to navigate the competitive landscape effectively.
Looking ahead, Vinted remains optimistic about its growth prospects, viewing the secondhand fashion market as an area of immense potential. As consumer preferences continue to evolve, Vinted aims to capitalize on emerging opportunities while maintaining a balance between profitability and investment to fulfil its mission.
The mainstream acceptance of the “pre-loved” fashion trend is evident, with popular culture, including reality TV shows like Love Island, embracing and promoting secondhand style. Despite challenges, such as stiff competition and profitability concerns among industry peers, the momentum behind the “pre-loved” fashion movement remains strong.
With sales of secondhand clothing and footwear projected to comprise a tenth of the global fashion market by next year, the outlook for the resale fashion sector appears promising. GlobalData forecasts indicate robust growth in pre-owned fashion sales, underscoring the continued appeal and relevance of sustainable fashion choices.
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Secondhand fashion seller Vinted moves into profit after 61% sales rise