It’s the Zoomer dream workforce: Poshmark—a number one net market for classic clothes, jewellery, and decor—meets Snapchat, the brand new king of social media platforms for the teenage bracket.
The 2 tech-focused firms are collectively launching Poshmark Mini, a social shopping product housed inside Snapchat. In keeping with a media launch, Mini will convey “the joys of the Poshmark treasure hunt” to the app, by letting customers work together with different customers throughout real-time “Posh Events,” browse your entire catalogue of 200 million-plus gadgets on the market, and see what manufacturers are trending.
In doing so, Poshmark is capitalizing on twin shifts accelerated by the coronavirus pandemic—the digitalization of retail, and the embrace of thrifting. And in 2020, a 12 months of quarantine-induced solitude, retailers additionally leaned on social options. In keeping with Poshmark, its customers engaged in additional than 30 billion social interactions, largely pushed by youthful generations. Now with Snapchat, which reaches about 90% of People aged 13-24, Poshmark is extra immediately concentrating on Gen Z as a key future client.
It’s not alone: Final 12 months Walmart hosted its first dwell, digital shopping occasion with TikTok, one other social platform favored by youngsters.
It’s a strategic transfer for Poshmark, which has apparently been struggling since its public debut on the Nasdaq in January. Regardless of Gen Z’s professed love of classic items and secondhand shops, which boosted gross sales for thrift-sellers like Poshmark and ThredUp in current months, positive factors have been overshadowed by widening losses. Poshmark reported a internet lack of $75 million for the primary quarter of the 2021 and its inventory is down 65% from its opening worth.
For Snapchat, in the meantime, the transfer furthers its foray into e-commerce, which CEO Evan Spiegel highlighted as a shiny spot in current earnings calls. It started testing model pages with Goal, Adidas, Ralph Lauren, and Dior final summer time, and has been steadily upping its investments in augmented-reality becoming room instruments, full-body scan expertise, and digital clothes for avatars. As it continues to compete with the likes of TikTok and Fb to diversify income streams, we are able to anticipate extra retail partnerships to come back.