Poshmark, the popular second-hand retailer, is facing challenges as a result of Apple’s new privacy controls on digital ad tracking. This has led the company to forecast third-quarter revenue below estimates. Apple’s policy, which was implemented in April, requires developers to obtain user permission for data tracking across different sites and apps. Facebook has expressed concerns about the impact this policy will have on customers.
Poshmark heavily relies on social media marketing to attract shoppers, and the effects of Apple’s policy were felt in the latter part of the second quarter. CEO Manish Chandra expects these challenges to continue into the current quarter. Despite this setback, Poshmark remains optimistic and believes that the effects will be temporary. The company has been investing in alternatives such as TV ads and partnerships with celebrities like Marie Kondo, demonstrating their adaptability and commitment to overcoming these difficulties.
In the second quarter, Poshmark saw a 22% increase in revenue to $81.8 million, surpassing analysts’ estimates of $80.3 million. The company has been successful in attracting young buyers interested in environmentally sustainable shopping. The impact of the Delta variant of the coronavirus does not pose a major concern for Poshmark’s revenue outlook.
A competitor of Poshmark, ThredUp Inc, reported better-than-expected second-quarter revenue, leading to a 7% increase in its shares. ThredUp Inc also forecasts third-quarter revenue above expectations, highlighting the positive performance of the second-hand retail market.
In a strategic move, Poshmark recently announced its plans to expand to India. India is the second-most populous country and one of the fastest-growing e-commerce markets globally. This expansion will allow Indian consumers to join Poshmark’s community, enabling them to make money, save money, connect with others, and fuel entrepreneurship. The Indian market provides a significant opportunity for Poshmark due to its large base of active internet users and sustainability-conscious consumers, particularly among Gen Z and Millennials. With its unique social commerce model, the company believes it will be well-received in India.
Poshmark’s CEO, Manish Chandra, expressed his excitement about bringing Poshmark to his home country, India, and sees it as an ideal fit for their business model. As part of its expansion efforts, Poshmark has appointed Sylvie De Wever as its first Vice President and General Manager of International, and Anuradha Balasubramanian as the General Manager of Poshmark India.
Overall, despite the challenges posed by Apple’s privacy controls, Poshmark remains optimistic about its future success. The company’s focus on diversifying its marketing channels and expanding into new markets like India positions it for continued growth and profitability.
Useful links:
1. Apple’s Privacy Policy
2. Poshmark’s Official Website
