Poshmark, a popular online thrift store that gives people the ability to sell their clothes, accessories, and homeware, ended 2021 with a bang. At the end of the year, the second-hand platform announced its plans to become publicly traded. The announcement likely helped the young brand climb 62 spots in the BrandGraph 500.
BrandGraph, a tool that analyzes social media content, ranks the top 500 brands based on their social popularity. Poshmark’s performance on the BrandGraph 500 list improved toward the end of 2021. In November, recently after Poshmark announced its plan to go public, the brand climbed 40 spots, landing at No. 33. In December, just one month before the first stock was traded, Poshmark climbed another 22 points, landing at No. 4.
Poshmark: Nasdaq listed
The online reseller, which recently hit its 10th anniversary, made the necessary moves to go public at the end of 2021. POSH set the terms for its IPO (initial public offering) at the beginning of the year. The company planned to sell 6.6 million shares priced between $35 to $39.
Its first day on the market, stock prices soared 142% higher than expected and pushed the valuation of the company to $7 billion. The volume of social content surrounding Poshmark started to spike in November.
Take a look at BrandGraph’s weekly content volume chart. You’ll notice the amount of content starts climb in late November and continues through the beginning of 2022.
Influencers took to social media when the company made the big announcement and again when the stocks were traded in early January. Reselling coach @_rock_star_reka_ gave the company some love on its first public day of trading, saying she plans to be a long-term investor in the company. Becoming NASDAQ listed had influencers buzzing about the resale platform. Social chatter went up, as did engagement, which likely propelled the brand up the BrandGraph500.
Additional Poshmark announcements play a role
While announcing its IPO is the biggest year-end news for Poshmark, there were also a series of other announcements and acquisitions that likely played a role in the brand’s skyrocketing placement on the BrandGraph 500. Here’s a look at other factors that could have helped the company move up the ranks:
Poshmark acquired a sneaker authentication platform
Poshmark announced its purchase of Suede One, an online platform that verifies the authenticity of sneakers by using machine learning, computer vision, and human analysis. The purchase marked Poshmark’s first acquisition and represented the company’s commitment to creating an authentic experience for both buyers and sellers.
Like many online platforms, Poshmark consumers are wary of buying fakes. To help reassure customers that they’re buying real Yeezy 350s for example, an authentication goes a long way.
Poshmark adds electronics
In November Poshmark announced it was adding “electronic gear and stylish wearables” to its app. It provided a product catalog of permissible items that can be sold on Poshmark, giving sellers and shoppers more opportunities.
Rumors of expansion for Poshmark
In early December, news about Poshmark’s potential expansion overseas hit the news. Insiders say the online reseller has plans to expand into Europe. The company already had a strong presence in the U.S. and Canada, and added Australia and India to its list of markets earlier in 2021.
These rumors were not confirmed by any Poshmark executives, although the company has stated that it does plan to continue its growth in English-speaking countries abroad. At the same time, Poshmark hired a new executive to manage international growth, after seeing sluggish sales in several of their new markets.
Online thrift sales hit new heights during the holidays
During the 2021 holiday season, consumers flocked to resale sites to find unique gifts. Sites like Poshmark saw a boost in sales and gift cards. What’s fueling this surge?
There are a few factors at play. Experts say the stigma of buying used has faded and more consumers would rather have a unique shirt or dress than purchase clothes at a retailer where everyone can buy the same thing. Poshmark also ran influencer marketing campaigns during the holiday season to promote shopping on the app.
The resale rally likely got a boost from sluggish supply chains too. Shoppers likely ran into a lot of “out of stock” options on top sites like Amazon, so they decided to go another way.
Poshmark gets into NFTs
Making its way into the NFT space, Poshmark launched its own NFT collection to celebrate its 10th anniversary. Proceeds from the sales went to Mission Bit, which aims to make computer science more accessible to under-resourced high school youth.