The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Citron Research said on Thursday Etsy Inc has become one of the largest platforms in the world for counterfeit goods, sending the e-commerce firm’s shares down about 6 percent.
Etsy did not immediately respond to a Reuters request for comment.
Citron Research, which cemented its reputation in the research industry by calling out poor performers and betting against their stock, said the percentage of counterfeit goods on the platform had become too large and Etsy could no longer defend it as a small percentage of revenue.
The research firm alleged that Etsy has allowed sellers on the platform to buy “ad words” of the brands and then labeled many of them as trusted websites.
ADVERTISEMENT
Citron, founded by Andrew Left, added Etsy risks running afoul of the Federal Trade Commission, the Department of Justice, the U.S. Securities and Exchange Commission as well as the Customs and Border Protection.
Some analysts expect Etsy to see a grim holiday-quarter as lower income consumers rein in spending on home goods, clothes, jewellery and accessories, which combined makes about 60 percent of the company’s gross merchandise value.
In November, the e-commerce platform posted a third-quarter loss for the first time in eight quarters, hurt by higher shipping costs and a strong dollar.
By Ananya Mariam Rajesh; Editing by Krishna Chandra Eluri
Learn more:
The marketplace’s $1.6 billion acquisition of the young-skewing resale platform is a big bet on the future of secondhand fashion. It also spells bigger, badder competition for the growing field of contenders in the category.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.