Etsy expands its product diversification and launches a baby products registry

It is learned that on August 21, according to foreign media reports, Etsy launched a baby products registration service, allowing consumers who are or are about to become parents to add their favorite products to the registration list.

In May this year, Etsy launched a registration service for wedding supplies. Behind this series of actions, Etsy hopes to change consumers' inherent perception of its "handicraft platform" by expanding its product categories. It is reported that Etsy is trying to transform into a comprehensive e-commerce platform to expand its customer base and increase consumer purchase frequency.

When the COVID-19 outbreak occurred in 2020, Etsy's stock price soared 250% that year thanks to the surge in sales of masks. Not only that, in 2020, Etsy's sales in multiple categories increased, and the top six categories accounted for more than 80% of its total merchandise sales. Among them, home furnishings performed well, with sales of US$3.2 billion and a growth rate of 118%.

However, since American consumers regard Etsy more as a shopping platform for handicraft gifts, they only think of shopping on Etsy when they have specific needs. For daily purchases, American consumers tend to choose large retailers such as Amazon and Walmart. Therefore, after the epidemic, Etsy's sales have declined significantly, but Etsy, which has tasted the sweetness, is obviously not satisfied with this.

Therefore, Etsy started to diversify its product categories. As the number of products on its platform exceeds 100 million, Etsy launched personalized services for some vertical categories to facilitate buyers' selection.

In May this year, Etsy launched a wedding dress registry service, where buyers can add related products they like on the platform to the registry list. Recently, Etsy has launched a baby products registry service. In addition to the platform's desire to expand its customer base, Etsy's launch of the registry service is also influenced by other factors.

First, Etsy saw a significant increase in searches for baby products on its platform, showing some clear trends, including the following:

• Collectible Customized Categories: More and more parents in the United States are looking for collectible customized categories. In the past three months, searches for customized toy boxes have increased by 270% year-on-year, and searches for handmade toys have increased by 80% year-on-year.

• Farm Animal Themed Categories: Inspired by cottagecore and western decor and style trends, Etsy saw searches for cow-themed items grow 126% and duck-themed items grow 93%.

• Floral-themed categories: Searches for daisy-themed items grew 136% as parents named their babies flowers, such as Jasmine, Daisy, Lily and Violet, and searches for wildflower-themed items grew 116%.

Second, competition in the U.S. baby products market is intensifying.

After closing its last store in 2018, baby products retailer BabiesRUs reopened its first U.S. store on July 19 and may expand nationwide. Its advantage is the experiential facilities it provides in the store, including photo opportunities, stroller test tracks, etc.

Meanwhile, on August 21, Target announced the expansion of its Good & Gather private label food brand to include baby and toddler products, including yogurt chips, yogurt bars and teething biscuits.

Now, with the impact of the upcoming resumption of student loan payments and the end of the child tax credit in the United States, consumers are facing increasing pressure, which may put pressure on Etsy's third-quarter sales. But its Chief Financial Officer Rachel Glaser said Etsy will still provide consumers with additional discounts.

Personalized gifts are still a track with great growth potential in the world. According to data, the global personalized gifts market is worth about US$30.3 billion in 2022 and is expected to expand to about US$47.6 billion by 2030. However, competition is also fierce, and Etsy may need more efforts to seize this market.

Editor✎ Ashley/

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