Resale platform ThredUP Days after he announced he was joining the ranks of tech companies laying off workers amid the economic slowdown, he launched a new, light-hearted marketing strategy against the “addiction to fast fashion.”
Strong Q2 masks are slowly coming.
In the year On August 15, ThredUP co-founder and CEO James Reinhart announced during the Q2 earnings call that the company would be laying off approx. 15% It will also close the company’s workforce and processing center in Vernon Hill, Ill. Additionally, the company plans to scale back construction on the new Dallas fulfillment center, a key component of ThredUP’s long-term growth strategy. This is despite a strong performance in Q2, when the company saw a jump in revenue 27% Yoi to 76.4 million dollars and overall profit growth 19% Yoi to 52.6 million dollars.
While the company is concerned about a possible slowdown in the second half of the year, Reinhardt noted on the earnings call: “All the data we’re seeing suggests that Consumer health is declining, especially among budget consumers, which is a meaningful segment of our customer base.,” he said. Given the volatility we’re seeing with the consumer, it’s very difficult to predict exactly how the customer will behave at the end of the half year, making year-on-year comparisons challenging during this period.
approx 60% ThredUP’s customer base has a household income. Under $100,000And Reinhart noted a “clear divide” between the company’s premium and value consumer segments. When the average order for price consumers is reduced 7% In Q2, AOV increased for the premium segment. 15%. By adjusting to these dynamics, Reinhart points to the flexibility of the company’s marketplace model, which allows it to adjust pricing, seller fees and demand shifts. Despite this efficiency, the cost-cutting measures were “a proactive step toward our profitability goals,” Reinhart said.
A quick fashion confession to help Gen Z
two Days after breaking the news, the company launched a new hotline designed to help Gen Z “resist the challenge of fast fashion and embrace more sustainable shopping habits.” The hotline, which is being fronted by “Stranger Things” star Pry Ferguson, at One in three According to a recent study by the company, Gen Z consumers “feel addicted to fast fashion.”
Customers in the US can now call 1-855-THREDUP to hear from Ferguson on why they should ditch their fast fashion habits. Callers can stay online to learn more about fast fashion’s environmental impact and how conservation is a sustainable option, as well as leave voicemails with their own fast fashion confessions.
“At ThredUP, we are committed It inspires the new generation of consumers to think first.Erin Wallace, VP of Integrated Marketing at ThredUP, said in a statement. “Our data shows that college students want to stop shopping fast, but we know it’s hard to resist. That’s why we’re so excited to partner with Pria. Together, we’re committed to making it easier than ever for consumers to start their fast fashion habits and embrace healthy ways to shop.
This isn’t ThredUP’s first volley in its war on fast fashion—earlier this year, the platform launched a sustainability-focused marketing campaign aimed at shoppers in the San Francisco Bay Area. Shin Pop-up event.