US-based Poshmark, a social shopping marketplace specialising in second-hand clothes, is entering the Indian domestic market.
As per a report published in The Times of India, a leading English daily, it could be a potential game changer for the Indian online fashion ecosystem.
The company’s India entry may not only pit it indirectly against marketplaces selling pre-owned goods such as Quikr and Olx, but also against Reliance’s Ajio, Walmart-owned Flipkart’s Myntra and Snapdeal, which have changed their strategy to focus on value e-commerce.
Manish Chandra, Founder & CEO at Poshmark, said, “When we started off 11 years ago in the US, there was a lot of scepticism, but our platform currently witnesses a gross merchandise value (GMV) of US $ 1.4 billion. But as we enter the Indian market, it’s natural to have that scepticism. However, we feel the consumer in India has always been focused on sustainability more so than any other markets. A marketplace such as ours provides both value and a sustainable lifestyle.”
Poshmark, the Nasdaq-listed company, functions as eBay and like Instagram allows users to click pictures of their own apparel and sell them to other users. Apart from giving and receiving comments and likes, users can also follow other sellers on the platform.
Unlike a Quikr or an Olx where sellers and buyers have to arrange for their own pickup and drop, shipping and payments, Poshmark provides the backend support.
Apart from the US, the company operates in Canada and Australia. It reported a GMV of US $ 1.4 billion in FY20, an increase of 29 per cent year-over-year from US $ 1.1 billion in 2019.
Poshmark has been working to set up its India team.