Second-hand sales platform Vinted has just announced that it has made a profit for the first time in more than 15 years. In 2023, the Lithuanian company earned 17.8 million euros in profits, a brutal growth compared to the 20.4 million euros of losses recorded in 2022. “We are at the forefront of a market with enormous potential”, celebrated the CEO, Thomas Plantenga, quoted by the BBC.
The person responsible recognizes that second-hand fashion — especially in the Vinted system where users sell directly to other people — continues to be “a small portion” of the industry, but foresees increasing growth with the company leading the process. “We see many opportunities ahead of us, so we will continue to balance profitability with investment opportunities to accelerate the achievement of our mission,” he stated.
In 2023, Vinted (which has been operating in Portugal since 2021) expanded to new markets, including Denmark, Finland or Romania. Thomas Plantenga also highlights the launch of a new delivery system, Vinted Go, as well as the new method of checking luxury pieces, resulting from the purchase of the Rebelle platform. As a result, sales grew by 61% to 596.3 million euros.
According to a recent study carried out by North American retailer ThredUp, the second-hand market is already worth more than 197 billion dollars (around 183 billion euros) in Asia, the United States and Europe. However, the weight of fast fashion continues to make it difficult for second-hand platforms to make profits. Textile giants have also explored this field, with Inditex in the spotlight, after launching the Pre-Owned platform.
Vinted is one of the main names in this segment, along with Vestiaire Collective or Depop, and already employs more than two thousand people. Last year, Portugal announced that it will start monitoring anyone who makes 30 sales per year or obtains 2000 euros through this type of second-hand applications.
The business, which was created in 2008 by Lithuanian entrepreneurs Milda Mitkute and Justas Janauskas, reached “unicorn” status in 2019 when the market valuation exceeded one billion dollars. The growth is also due to greater awareness of the sustainability fashionable and circular economy appears as a solution, which not only benefits the environment, but also consumers’ wallets.
The platform’s operation is intuitive: there is a storefront that looks like any store online. “When the user sees an item they like they have two options: either press the ‘talk to seller’ button, which allows them to contact the member who is selling the product to find out more details, or press the ‘buy now’ button” , explained Thomas Plantenga to PÚBLICO. Prices are negotiable and, once the purchase is made, the money is suspended until the buyer receives the piece. If everything is fine, the amount goes into the seller’s account.
