Cettire : some reasons for such a growth

Cettire is such a unique case, that it is quite interesting to try to identify some of the reasons for their growth :

1/ The company was created in 2017 (vs 2007 for Farfetch). So, they are still at the initial stage which can explain why the company have such a top line growth : + 300 % in FY 20 and + 349 %e in FY 21 based on their recent guidance

2/ As an online company, one of their main indicator is the traffic on their website.
The company is proving to have a great ability to keep a significant growth of their traffic.
During Q3, they were able to increase the traffic on their website (by 3 % qoq, despite a negative seasonality) thanks in particular to 2 elements : allowing its customers to pay with Afterpay and by initiating a policy of free return.
Since the beginning of Q4, they have announced other ways to maintain a high level of traffic : launch of a new product categories (for kids) and agreement with Klarna.

3/ Real ability to generate repeat customers
Once they get their potential customers via the traffic on their website, they have been able to turn them into customers with an average conversion rate of 1 %+.
What's also interesting is their ability to increase the ratio of repeat customers which keeps growing from 17 % in FY 19 to 34 % in H1 FY 21.
This has a double positive effect for them : limit the cost of acquisition to get new customers and also increase their average revenue per customer.
During H1 FY 21, the average revenue per customer was 868 $ for repeat customers vs 735 $ for new customers.

4/ Geographical expansion
We know that 66 % of their sales comes from the US.
Looking at the last figures from Similarweb (April 2021 traffic), they continue to have a good growth in the US with an increase of 8.4 % mom.
Out of the US, they had an estimated growth of 18 %, supported by strong growth in several countries : + 34 % in Australia, + 58 % in the UK, + 29 % in Taiwan and + 88 % in Korea.

Cettire is such a unique case that we can wonder what may limit their growth in the medium term.
First, their market share at the moment remains very low at 0.15 % based on their expected FY 21 revenues (80 m) and the estimated size of the luxury e-commerce market.
Based on the last disclosed figures, Cettire could have maximum sales of 500 m based on what they call stock value (according to my understanding, it corresponds to the maximum of products they could access given their existing agreements with luxury brands suppliers).
So, the main question remains probably : what maximum market share will luxury brands leave to a company like Cettire which is focused on luxury promotions on line ? Given their very low market share, they probably still have a significant potential of growth.