Senior Capstone Project
Depop
futureproof
The following is my year-long Senior Capstone Project
I was tasked with creating and executing a new business venture.
At the close of our project I presented to a panel of peers and industry professionals.
Depop is a peer-to-peer social marketplace in the resale sector. They allow users to buy and sell second-hand and vintage clothing items, namely: women’s and men’s clothing, accessories, and shoes.
Depop was created with the vision of allowing users to see what their friends and people who inspire them are liking, buying, and selling. As a company, they are dedicated to their mission of fashion for a better future.
Futureproof fashion, a term coined by Depop and a mantra for their marketing and business practices. Futureproof fashion creates a value that is nonbinary, that listens and learns from Gen Z and embodies them in the platform economy.
They believe that consumers can have it all, because that is what their users demand. Depop’s success lies in listening to their customers and taking the necessary actions to keep them.
The target market age range consists of individuals ages 18-26
These are students or professionals in entry-level creative job such as creative director, publication writer, designer, etc
Their preferred location of residence is in metropolitan areas, New York, LA, Chicago, and their personal interests are thrifting, social media, listening to music/ going to concerts, and walking around the city.
Depop targets Generation Z who have an interest in fashion and style.
From Chief Brand Officer Peter Semple: “To some degree, we have a closer relationship with Gen Z than almost any other institution in the world at scale,”
A 2020 consumer report conducted by the company lends this statement true, Finding that Depop users are fluid in their identity and this translates to how they buy and how they dress.
Users embrace a nuanced relationship with social media, one that celebrates connectivity while being aware of data privacy issues and compromised mental wellbeing as a result of social media use.
Depop became a haven for Gen Z because of the demographics distinctively experimental and hybrid style choices.
Depop customers need authenticity and strong brand values when making a buying decision.
They consider factors like price, quality, user opinion, aesthetic, and social values.
They are highly digital but still prefer the experience of in-store shopping.
This is a highly informed customer who has little patience for a lack of sustainability, individuality, or customer service.
A look at Depop in relation to it’s biggest competitors.
Depop’s strengths lie in their ability keep up with the demands of Gen Z, with their content and brand identity curated to the tastes of the generation. The sleek yet bold web/app design and the general aesthetic of the brand all draw young trend-setters. This paired with a user-friendly buying and selling process is the company’s biggest strength.
lack of promotion opportunities for sellers is a major weakness, however. It is because of this lack of promotion opportunities that oversaturation has become an issue on the app, with many sellers mis-tagging styles to improve visibility.
Strengths of The RealReal: They are a high-end luxury consignment store operating within website and in app, and there is no work on the seller end to list items or ship them to buyers.
Weaknesses: limited to luxury, and the high prices that come with it mean a lack of steady income and repeat buyers. AND the platform fails to be profitable despite major investments.
STRENGTHS: oldest major resale player. large number of active buyers with a user-friendly buying and selling interface.
WEAKNESSES: Issues With Risk In Product Quality And An Oversaturated Market.
There are also many complaints from Poshmark users that the platform has poor customer service and many issues with the selling process.
STRENGTHS: dedicated to climate activism and are fully transparent in their business practices and environmental impact.
WEAKNESSES: has not given investors a return on investment and has yet to be profitable.
Out from the COVID19 pandemic, retail is growing at levels unseen in the last 20 years, according to the National Retail Federation
Brands are utilizing a mixed retail presence with both in person and ecommerce to meet customers where they are.
Ecommerce levels have dropped since April 2019 to 15%, higher than pre-pandemic levels but lower than the highest levels seen mid-pandemic.
STRENGTHS: primarily Gen Z and Millennial audience, giving it power with the younger generations and a cool edge. Cost efficient and climate-conscious alternative to retail. Depop aligns with the social values and expectations of their target market.
WEAKNESSES: not enough active buyers to meet the quantity of listings meaning no guaranteed sale for sellers. They are a solely digital brand means customers don’t get the in-person shopping experience that Gen Z craves. Depop’s feeds are also clogged with false tags in the specified product categories because users will tag trending keywords to promote visibility.
THREATS: Other resale companies require no work on the customer end, Depop loses customers who don’t want to put any effort into selling their clothes. Other brands have more curated selections that reduce oversaturation within style feeds.
OPPORTUNITIES: They can add physical stores in select cities to give customers a personalized in person experience with opportunities to see the clothes and try them on before purchasing
Depop has an unmet customer need of giving users the in-person shopping experience and connectivity they crave. This gives customers the ability to shop in-person, see the clothes before they buy them without having to hunt down styles they want and sell clothing without having to run a Depop shop.
Customers are currently meeting this need outside of Depop
As such, a permanent retail space where customers can shop secondhand with a curated product assortment and space for community gathering will improve upon what Depop does well and set them apart from other secondhand retailers.
The store will launch in May 2024, with ample time to create a space that is both inspiring and circular. Using majority second hand fixtures and furniture, we will build a store that is futureproof- one that celebrates the old merging with the new.
The focus of this retail space will be building community and inspiring connection with the added benefit of a shopping experience.
Secondhand fashion lovers have community online, it’s time to nurture this community in real life.
The store will give customers the option to donate any items passed up by our buyers.
In addition, we will be partnering with TenThirtyFive, a Nashville based thrift store that strives to instill confidence, dignity, and worth through mentorship and fashion for at risk women.
TenThirtyFive Upscale Thrift allows struggling young women to shop for free using an instore voucher
Raider Retail provides students with clothing, shoes, and hygiene products for free within their high school. This partnership inspired TenThirtyFive to expand these community closets to other Tennessee middle and high schools.
We are going for a space age, retro-futurism aesthetic to play on reimagining newness.
the blending of the old with a futuristic twist is perfect for depops marketing and branding plans while still setting us apart from depops digital legacy.
First location will reside in the heart of downtown Nashville, due to the cities rising popularity as a tourist destination and because of it’s eclectic local clientele
Major cities like New York and Los Angeles, while full of secondhand shoppers, have an oversaturated market of thrift and vintage stores. According to the New York Times, stores in these cities have no problems acquiring donated or consigned items, however there is an issue in getting these products off the floor
Out of towners and locals seek experiential shopping experience.
The store will be called futureproof, a mantra meaning fashion for a better future.
Depop has seen major success in their previous pop-ups with evidence that a physical retailer will thrive.
With the rapidly growing secondhand market and consumer demand for a circular fashion economy more and more customers are interested in buying resale items.
This new opportunity will refresh the brand and give customers the experiential shopping and community space they crave.
Fashion lovers lack a community space.
With blurred boundaries between commerce, entertainment, and connection, Gen Z craves a retailer that knows them and celebrates their individuality.
Futureproof’s product assortment is dependent on what customer’s bring in to the store.
Our in-store buyers are trained to look for trendy and quality pieces that will do well in our market. We will take men’s and women’s clothing items, shoes, and accessories.
Items will be curated to the taste of Depop’s online customer base as well as the Nashville market.
Customers can sell their clothes 7 days a week from open to 6 pm. Items are priced depending on style and demand but priced at an average of 70% of original tag price. Sellers may choose to cash out at 50% of Futureproof’s price in store credit or 30% in cash.
To celebrate the grand opening of Depop Futureproof, we will be hosting a first look party the night before the store is set to open. The party will be invite only, focusing mainly on local, Nashville celebrities, influencers, and secondhand sellers
This party is mainly to get the word out about Futureproof and get customers excited about the new shopping experience.
To incorporate the idea of reimagined newness, wheat paste posters will be put up across Nashville. This eye-catching, print marketing medium will feature vintage and futuristic ad imagery with a Depop twist. These posters will go up 2 months before the store’s opening to create hype around the launch.
For our social and digital marketing, posts will be made to all Depop social media accounts featuring announcements of the store, in addition to eye-catching retro futuristic imagery to establish the brand outside of Depop’s digital platforms.
We will also be utilizing Instagram and Facebook’s paid ad systems to announce the store, create buzz, and encourage local Nashville consumers to bring their unwanted clothes to us.
We will also be adding announcements and a webpage to Depop’s app and website. We will also be encouraging customers to take pictures and videos in-store and wearing clothes purchased in-store for opportunities to be featured on Depop’s social media pages.
