Investors have been pouring billions of dollars into luxury clothing resale platforms, despite many of these platforms operating at a loss. However, Vinted, a secondhand clothing resale app from Lithuania, has managed to turn a profit by selling vintage looks for cheap. In 2016, Thomas Plantenga took a gamble on a television advertisement to save the struggling startup, which was burning through cash and facing financial trouble. His tough decisions, including slashing fees by 75% and closing offices outside Lithuania, paid off as Vinted’s revenue surged.
Vinted’s success has made it one of Europe’s largest consumer marketplaces, with over $600 million in revenue in 2023 and 100 million users globally. The platform’s unique business model, with fees starting at 70 cents and capped at 8%, has allowed it to capture the market from a seller’s perspective. Plantenga’s strategic changes, such as pushing the sorting and shipping responsibilities onto users, have made it easier for sellers to list and sell items. Vinted’s focus on a seamless user experience has also led to increased engagement and purchases.
Despite facing competition from established players like eBay and newer entrants like Mercari and Poshmark, Vinted has managed to carve out a niche in the market. The platform’s success has even attracted the attention of luxury resale market, with the recent acquisition of rival Rebelle aimed at tapping into the high-end fashion segment. Plantenga sees an opportunity for Vinted to continue growing and expanding into new markets, with plans to target countries based on a mathematical formula for success.
While Vinted has seen success in Europe, its attempts to enter the U.S. market have been unsuccessful so far. Plantenga attributes the challenges in the American market to its fragmentation and maturity level. Despite setbacks in the U.S., Vinted remains focused on expanding its presence in Europe and growing its luxury resale segment. Plantenga’s vision for Vinted as a brand for regular people and regular clothing, as well as tapping into the luxury segment, shows his ambition for the platform’s future growth.
For Plantenga, who has a track record of building successful companies and turning around struggling startups, the goal is to take Vinted public through an IPO. His leadership and strategic decisions have transformed Vinted from a struggling startup to a profitable unicorn, setting it apart from its American counterparts in the luxury resale space. With a focus on user experience, affordability, and market expansion, Vinted is poised for continued success in the competitive world of secondhand fashion resale.
