Poshmark CEO: Influencers 'pretty much driving our consumption'

Summary

Poshmark CEO Manish Chandra discusses the impact of inflation and post-pandemic consumer behavior on the second-hand fashion market. Despite a spending slowdown, Chandra notes an uptick in sales towards the end of June, driven by fast-moving trends and the platform's social experience. Poshmark's new features, like live streaming and Posh Lens, aim to boost user engagement and make finding items easier. Chandra highlights the platform's community-driven approach and its appeal to a wide range of consumers, including the potential to capture an older demographic through selection, sustainability, and economic benefits.

Takeaways

• 📉 Inflation is easing, but there is a noted slowdown in spending growth, impacting the consumer retail sector.
• 🛍️ Poshmark, a platform in the second-hand fashion market, has observed changes in consumer spending due to inflation and shifting post-pandemic preferences.
• 🔄 There is a recent uptick in spending towards the end of June and the beginning of July, indicating a potential positive trend for the back-to-school season.
• 👜 Consumers are adapting quickly to fashion trends, with significant year-over-year sales increases for brands like Coach and Loro Piana.
• 🤳 Poshmark introduced live streaming in April, which has quickly scaled and contributed to user engagement on the platform.
• 💼 As a business leader, Manish Chandra discusses navigating the uncertain economic environment and Poshmark's role in helping consumers save money and make money through resale.
• 📈 Despite a slowdown in 2022, Poshmark is optimistic about long-term growth due to new trends and the platform's inventory flexibility.
• 🕶️ Poshmark is leveraging AI with a new feature called Posh Lens, which matches user-uploaded photos to find similar items, enhancing the shopping experience.
• 🤝 The platform's community engagement and inventory breadth make it an attractive partner for brands looking to connect with a diverse user base.
• 👗 Influencers and creators are key drivers of consumption on Poshmark, helping to shape fashion trends and community interests.
• 🌐 Poshmark aims to capture a broader demographic by increasing selection, reducing the stigma around second-hand shopping, and emphasizing economic and environmental benefits.

Q & A

What economic conditions are currently affecting the consumer market according to the transcript?

The transcript mentions that inflation is easing but there is a slowdown in spending growth, indicating that high inflation and a shift in consumer spending towards experiences like travel are affecting the consumer market.

How does Poshmark CEO Manish Chandra describe the current trends in consumer spending on the platform?

Manish Chandra notes a slowdown in spending due to inflation and a post-COVID shift towards travel. However, he also mentions an acceleration in spending towards the end of June and beginning of July, which he views as a positive sign.

What is the impact of younger consumers on the trends seen on Poshmark?

Younger consumers are rapidly adapting to different fashion trends, such as 'Barbiecore' and 'Y2K', which are driving significant year-over-year sales increases for brands like Coach and Loro Piana on Poshmark.

How has Poshmark enhanced user engagement on its platform?

Poshmark introduced live streaming in April, which has been scaling fast and hosting over a hundred thousand shows per month, facilitating buying, selling, and auctioning, thus keeping users engaged.

What challenges and opportunities does Manish Chandra see for Poshmark in the current economic environment?

While there has been a slowdown in spending, Manish Chandra sees opportunities in the platform's ability to offer discounted shopping and income opportunities for consumers, which can be beneficial during stressful economic times.

How does Poshmark's business model benefit from not holding inventory?

Poshmark's model allows for quick adaptation to current trends and consumer demands without the burden of inventory, which can be an accelerator for long-term growth.

What is the new feature 'Posh Lens' and how does it work?

Posh Lens is a feature developed in partnership with the South Korean company Naver, which allows users to upload a photo of an item they like and find matches across Poshmark's extensive inventory.

How does Poshmark's community engagement impact its business strategy?

Poshmark's vibrant community of over 100 million users is a significant asset, as it recycles millions of items and provides a platform for brands to engage with a massive and highly engaged user base.

What role do influencers play in Poshmark's ecosystem?

Influencers and creators are crucial in driving consumption and trends within Poshmark's micro-communities, which cater to specific interests and fashion needs.

How does Poshmark plan to capture an older demographic?

Poshmark aims to capture an older demographic by increasing the selection of items available, reducing the stigma associated with second-hand shopping, and emphasizing the economic and environmental benefits of resale.

What are the long-term growth drivers for Poshmark as identified by Manish Chandra?

The long-term growth drivers for Poshmark include new trends like live shopping, the fast-moving velocity of consumer demands post-COVID, and the platform's ability to offer both shopping and income opportunities.