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Online Second-Hand Fashion Seller Sellpy, Majorly Backed By H&M, Expands Into 20 European Countries


05/31/2021


Online Second-Hand Fashion Seller Sellpy, Majorly Backed By H&M, Expands Into 20 European Countries
Placing its bet on the continuation in the growth in demand for sustainable fashion, the Swedish online second hand retailer Sellpy is expanding into 20 more countries in Europe.  A majority stake in the company is owned by the fashion giant H&M.
 
This was announced by Sellpy on Monday.
 
All the elements and processes for offering and selling second hand clothes customers including picking up the goods from sellers' homes, photographing, selling and shipping, are handled by the start-up al.one. The company was first launched in 2014 in Sweden and with this latest announced expansion the company will have a presence in 24 countries in total.
 
Second hand fashion and apparel was the one of the fastest growing market segments within the fashion industry, Sellpy said in a statement.
 
"Every garment bought pre-owned saves resources for our planet. Demand in our new markets is growing rapidly", Head of Expansion Gustav Wessman said.
 
There is increasing and growing scrutiny of the fashion industry of promoting a throwaway culture which leads to waste and unsustainable business practices even while a larger section of fashion consumers are also become increasingly conscious about the supply chains and country of origin and sustainability of the clothes offered by various fashion and clothing brands.
 
The H&M group has been experiencing slowing sales in many H&M stores and has had a few rough years in the market and hence is one the lookout of additional avenues for revenue streams and had first taken up a stake in Sellpy in 2015.
 
According to Wessman, about 70 per cent of Sellpy is owned by H&M which has invested more than 20 million euros ($24.38 million) in the company.
 
Sellpy on its part has initiated a partnership with H&M which will now give access to one of the warehouses of the bigger retailer H&M in Poland in addition to getting help from H&M for the service and distribution services of Sellpy as well as for quality control of garments and efficient handling of orders.
 
The Lithuania based retailer Vinted managed to raise 250 million euros ($305 million) earlier this month for expanding its business into more countries in Europe and beyond. At that time the company said that a pre-money valuation on the business of 3.5 billion euros was accorded to the company because of the fundraising.
 
Since it was launched, Sellpy has sold more than nine million garments to customers, the company said.
 
(Source: businesstimes.com.sg)