Fashionista is one of the most-visited fashion publications, a trusted source of fashion news, criticism and career advice. They have compiled an article on the 2021 IPO boom and what it means to IPO a fashion business. We will have a closer look at some of the companies on their list that have a strong market presence and have gone public in the past few years.
As the global economy slowly recovers from the COVID-19-induced recession and private equity companies aim to exit long-term investments, IPO markets are showing signs of picking up across the world.
Many retailers had to close their stores during the pandemic. With the rise of online shopping, those who remained active had to digitize their business. With more and more fashion companies going online, investors have bought into the belief that these retailers can attract younger shoppers through a sharing economy of “rentable fashion” and social media.
In 2020, the number of initial public offerings (IPOs) in the United States reached a new high, with 407 IPOs raising a total of $145 billion.
Founded in 2011, Poshmark is an online marketplace for second-hand goods. The company’s stock rose more than 140 percent in its initial public offering at the beginning of the year, putting the online apparel marketplace at more than $7 billion.
Poshmark has chosen an exact brand match domain Poshmark.com.
Farfetch is a London-based luxury e-commerce retailer. It provides boutiques worldwide with a place to sell their items without having to carry any inventory. Farfetch’s first public offering (IPO) was priced at $20 per share. Farfetch’s stock has been on a rollercoaster since debuting at $27 in September 2018, sinking below $20 in the following months and recovering to just under $30 a few months later, to finally plummeting to roughly $11 when the firm revealed lower-than-expected quarterly earnings on Aug. 8.
Farfetch has also secured an exact brand match domain Farfetch.com.
Revolve is an e-commerce retailer that enables shoppers to find and buy clothing, accessories, and shoes. In June 2019, Revolve’s initial public offering (IPO) began at $18 per share and ended at $34 on the first day of trading. By the end of the week, the stock had risen to $42. The company’s quarterly sales increased by 22% year over year, while net profits increased by 34%, and adjusted EBITDA increased by 40%.
Revolve has chosen an exact brand match domain Revolve.com.
Now let’s look at what the other companies on the list have chosen as their online address.
All companies have secured an exact brand match domain.
Only one brand has a dash in their domain (Net-a-Porter) and they have also secured the not dashed version (netaporter.com). This is usually done to avoid user errors, avoid traffic leaks and generally protect global brands with a long-term view for their future.
Here is the full list of fashion startups that went public in 2021.
|Domain extension||Fashion startups using it|
|levistrauss.com||Levi Strauss & Co.|