Stock Market Downgrade on Etsy

[kritter]

I was cruising some stock upgrades and down grades and saw this review on Etsy.

Shares in etsy are trading today at $20.79 down from it's 52 week high of $35.74.



"In a report published Monday, analysts at Wedbush downgraded Etsy Inc from Neutral to Underperform. The price target was maintained at $14. The analysts expect the company to witness "rapid near-term growth," while reporting strong Q1 results on May 19.

"Our research indicates as many as 2 million items on Etsy (5% of all merchandise) may potentially be either counterfeit or constitute trademark or copyright infringement," the analysts said, while mentioning that "Etsy has become a go-to destination for counterfeits."

Counterfeit infringements include items belonging to several popular designer brands. Sample of the high risk listings indicate that violations are likely to be 20 times more on Etsy than on eBay Inc or Alibaba Group Holding Ltd.

However, the analysts believe that Etsy is unlikely to be held directly liable for such infringements.

If the company chooses to ignore these potential violations, it could adversely impact Etsy's brand among both sellers and buyers."

"Brands increasingly pursuing sellers on Etsy could materially reduce listing fees and commissions. We believe a reduction in listing fees may be meaningful as they constitute as much as 20% or revenue."

[val2525]

Doesn't surprise me. Etsy never should have let the mass produced items in, I don't care if they are 'technically' hand crafted (designed).

[SA]

I wonder if they're counting copyright infringement into the "counterfeit"numbers. I can see that with all of the unlicensed handmade stuff. Still happens on eBay, don't get me wrong, but I think most of the hand crafters have moved to Etsy.

Interesting. Thanks for sharing.

[Deleted]

Very interesting.

[Pantlandia]

Etsy is a haven for copyright infringement and Etsy will do nothing about it unless the copyright holder files a complaint.

[val2525]

I still think going public will be the kiss of death for Etsy.

[RetroMonde]

I agree Val. It almost has to make a huge shift in products and policies in order to make the required $$ for investors. Those changes aren't likely to sit well with many sellers. I wanted to build a decent sized vintage menswear store there but am not very serious about it anymore. I'm making sales there so I don't plan to close it. But if I want to sell on an eBay clone, I'll sell on eBay itself.

Sandra

[mupcycledcouture]

www.popsugar.com/fashion/Etsy-Seller-Claims-Target-Stole-Merica-Flag-T-Shirt-Design-37466012#photo-37466012

They keep getting bad press.

[Shirley U Geste]

And she probably saw it somewhere else and started to use it herself. #MERICA is hardly unique.

[mupcycledcouture]

I know right? Original ideas are hard to comeby. However, that is blatant infringement. If it said #merica but looked vastly different I would feel differently. That is a direct copy.

[Deleted]

Target is the one in bad light on that article not Etsy, I saw it yesterday. From what I saw Target has been charged with stealing shirt designs from small craft type sellers for years. Sounds like whoever they pay to design has no original ideas. This isn't a case of a popular tag or design it's clearly straight up copying as were many other samples I saw. But it's Target so it will quietly be swept under the rug. Now replace Target with WM and there would be rioting in the streets to support the lady it was stolen from LOL


The majority of what I see on Etsy is in violation of copyrights etc. It's the norm over there from what I've seen. I agree that most moved from Ebay to there since it's not monitored like Ebay can be.

[Deleted]

I'm sure this means I'm uncool, but I don't get it. What is #merica?

[Shirley U Geste]

America

Interestingly enough one of the tribes on Survivor this season is called MERICA.   And multiple times they have had #MERICA on the bottom of the screen.  So it has been around awhile.

Target did rip off her design though, and that is just wrong.  

[Deleted]

I think it's a twitter thing but I'm uncool too so not sure. You know the whole hashtag this and hashtag that. Honestly though I'm just guessing LOL

[val2525]

It's a play off of a redneck saying, "this here's 'Merica" etc (instead of America - mumble it, you'll get it).

[Deleted]

May 14, 2015 4:44:34 GMT val2525 said:

It's a play off of a redneck saying, "this here's 'Merica" etc (instead of America - mumble it, you'll get it).

Thanks, Val!  Guess I need to brushup on my redneck.

[Shirley U Geste]

On the Today show this morning they interviewed her.

Target has pulled all the shirts, and they gave her the particulars of the company and manufacturer that sourced them to Target. Sounds like if she wants recourse she will need to go after that company as they are the ones who took the design to Target.

[pyrexandpearls]

May 12, 2015 4:39:45 GMT val2525 said:

Doesn't surprise me. Etsy never should have let the mass produced items in, I don't care if they are 'technically' hand crafted (designed).

I couldn't agree more! I rarely but anything on Etsy anymore. I love handmade bath and body goodies but most all of the shops I like have moved on from Etsy to independent websites.

[RetroMonde]

Supposedly that's why they allowed "designer" mass-produced items, to allow the designer room to grow on Etsy instead of moving off to their own site. I think they miscalculated and it's gonna backfire.