Redwood City, CA—An acquisition deal between Shutterfly and Spoonflower has been completed. A pioneer in online photo sharing and leading retail/manufacturing platform for personalized products, Shutterfly bought Spoonflower for approximately $225 million of enterprise value.
“At Shutterfly, we believe that anyone can be a creator. That’s why we’re expanding the aperture of what you can discover, make and buy on our platform,” said Hilary Schneider, chief executive officer at Shutterfly.
“This strategic acquisition helps us expand our lens on creativity to include not only photo personalization but also a full range of custom designs created by independent artists. We will break down the barriers to creating and discovering custom products, gifts and home décor items by providing expanded access to high-quality manufacturing and production at scale for individual creators and small businesses alike. We’re delighted to welcome Spoonflower to the Shutterfly family of brands.”
The move doubles the total addressable market; it also positions Shutterfly to help close a gap in the creative economy, a $2.25 trillion industry. It will do so by leveraging its vertically integrated production platform to deliver customized products for makers and small businesses.
Spoonflower powers a diverse community of more than 3.3 million unique artists, creators and businesses. What’s more 4,000 new designs are uploaded on average every day.
Shutterfly and Spoonflower Deal
Spoonflower is a global marketplace of custom fabric, wallpaper and home décor. Its acquisition will increase the depth of what people can create, customize as well as buy on the Shutterfly platform. It will also connect 21 million Shutterfly users to more than a million designs by independent artists in the Spoonflower marketplace.
Shutterfly’s strategic vertical integration of its supply chain, manufacturing and technology engine powers a diverse collection of products. Its production facilities and network of fulfillment sites also provide Shutterfly with personalization and customization capabilities at scale.
As a result of the acquisition, Shutterfly will soon make available countless custom- and customer-designed product options. More than a million designs are already available in the Spoonflower global marketplace with the ability to customize high-quality products in the Shutterfly catalog.
What’s more, while Shutterfly customers can buy custom designs or customize their own products in the Spoonflower artist marketplace, designers and artists can also sell their designs on Shutterfly.
“We’re thrilled to join the Shutterfly family because we found the perfect fit for our business, products, team and community as we work together to address the growing market opportunity,” said Michael Jones, general manager of Spoonflower.
“We are excited about the opportunity to offer Shutterfly customers a wider assortment of custom-designed products like wallpaper, fabrics, linens and bedding, as well as to connect them with Spoonflower’s community of artists, while enabling our makers to scale their business as a direct result of Shutterfly’s vast manufacturing capabilities and expertise.”
Spoonflower is based in the tech hub Research Triangle Park (RTP) area in Durham, North Carolina. It also has an international office in Berlin.
Coresight Weighs In
According to Coresight Research, makers are a fast-growing segment of the creative economy. A massive increase of creative professionals using online platforms to sell unique designs across various products has driven this segment.
“While the home décor marketplace enjoyed massive growth during Covid, the industry’s capacity to meet consumer demand was severely challenged, often delaying projects by months,” commented Deborah Weinswig, CEO/founder, Coresight Research.
“We don’t see that demand flagging anytime soon; so this acquisition addresses a huge gap in the marketplace. Shutterfly’s vast manufacturing footprint helps Spoonflower scale to meet the demands of consumers, interior designers, DIYers, small businesses and artists. And Spoonflower’s ever-growing library of designs takes the idea of rapidly rolling out an expanded product line, including fabric, wallpaper and home décor, to a new level of customization and production efficiency.”