continues to take new steps in its international growth with its arrival in Portugal after landing in Italy last year. Its CEO, Rob Cassedy, analyzes in an interview with elEconomista.es the reason for choosing the Portuguese market and its upcoming expansion plans encouraged by the advance of the second-hand market and the consolidation of new forms of sustainable consumption in Spain. The second-hand item sales platform -born in Spain in 2013- has doubled in size, exceeding 300 employees at its headquarters in Barcelona. It also has the confidence of investors after having raised 157 million euros in a financing round led by the French venture capital fund Korelya Capital and the Korean Internet company Naver.
Why have you chosen Portugal for your next landing?
Without a doubt, we believe that the arrival in Portugal represents a great opportunity. Italy is a bit bigger, but we see that there are similarities between the three European markets (Spain, Italy and Portugal) and we think that we will be able to break the same barriers. We believe that in Portugal we will be able to achieve the objective that we have already achieved in Spain: that the buying and selling and exchanging of second-hand products continues to grow and is increasingly fashionable. In addition, we are convinced that sustainability is a growing concern for the consumer, which gives additional importance to platforms like ours, focused on the circular economy.
Wallapop is already in the three main markets of Southern Europe (Italy, Spain and Portugal), will they enter new countries?
We do not rule it out. By inventory, we are leaders in southern Europe and larger than our competitors in Portugal and Italy. And, in Spain, Wallapop also leads the second-hand market. At first, in Portugal it will be possible to buy both products in the Portuguese market and in Spain. And, from Portugal, in a first phase, only items can be sold domestically.
“We have doubled our size in Spain, surpassing 300 employees in Barcelona”
How much do you expect to grow this year? What number of users does Wallapop currently have in Spain?
I have been working in the marketplace industry for more than 20 years and the moment is really very exciting. With the escalation of inflation, the consumer will have new needs: they will look for better prices and, at the same time, we are seeing a greater awareness of the user towards sustainability. For all these reasons, we are excited about the growth opportunities that are presented to us and that will allow the trading platform to reach levels never seen before.
Are the prices also similar in the three markets?
Yes, they are similar, but the goal is to continue making the marketplace grow much more. This way, if you can’t find something in Spain, for example, you can find it in Milan or Lisbon with easy shipping between the countries. In the medium term, we are looking for the second-hand product market to grow and become much more attractive to the consumer. The final result is that the product catalog will be much broader and, therefore, will offer better prices.
How many users does Wallapop currently have in Spain?
Wallapop has 15 million monthly users, which is equivalent to 50% of the population that uses the Internet in Spain. During the last two years, the company has doubled in size, and currently has more than 300 employees at our headquarters in Barcelona.
“Six out of ten consumers plan to buy more second-hand items than new over the next three years”
The second-hand market, has it entered the life of the Spanish to stay?
Definitely. Our latest studies reveal this. 60% of those surveyed affirm that, in the next three years, they plan to buy more second-hand products than first-hand; a figure that increases considerably compared to the previous edition of the study, in which 20% planned to do so in the next five years. It is a habit that 83% of those surveyed have already acquired, who say they have bought or sold second-hand products in this same period.
How is the Wallapop business going? Are your numbers growing?
In 2021, our business experienced 65% year-over-year revenue growth. In addition, we have exceeded our expectations for the first half of this year 2022 with a 59% year-on-year increase in revenue at Wallapop Shipping. Specifically, Wallapop Envíos already represents 44% of all transactions on the platform. More than 2.4 million users have downloaded our app in Italy and we have become the most downloaded app for buying and selling reused products in the Italian market.
Are you seeing a greater concern among Spanish consumers for sustainability?
That’s how it is. The third edition of our study “The Network of Change: a new paradigm in consumption, where awareness wins over impulse”, reflects that conscious consumption is already a reality in 90% of Spanish homes, and not only that, rather, the sustainability of a product influences whether it is bought or not. In other words, the advance and consolidation of the new forms of sustainable consumption in Spain have skyrocketed. The study reflects a change in mentality, since 90% of users claim to make conscious consumption by repairing or reusing it before going on the market to purchase a new product. Likewise, 62% of consumers consider, and are influenced by, the sustainability of a product before purchasing it. In other words, six out of ten people plan to buy more already produced items than new ones over the next three years and 90% say they feel satisfied with themselves when they incorporate sustainable habits in their purchases.
In this context of rising inflation and rising interest rates, will the search for cheaper second-hand products continue to grow?
Definitely. Citizens are more willing to buy second-hand products. Both the pandemic and the current crisis have highlighted the need to get good items at better prices and to ‘monetize’, turning all those things that are not used into money. For this reason, we are in an unprecedented moment and one that presents great opportunities for Wallapop to continue growing.
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