The RealReal: Bringing Consignment into the Forefront of Everyone’s Minds
“The RealReal-The Fashion Site That Sells Secondhand Gucci and Louis Vuitton-Wants to Raise a New $100 Million Investment”, an article written by Jason Del Rey, takes an in-depth look at the growth experienced by the young consignment and retail giant. When it comes to business, the consignment model is a win-win for everyone involved. Sellers are able to get rid of their unused items, buyers are able to get something at a discounted price, and the consignment store owner is able to score a commission on those items. Founder Julie Wainwright has taken that model and applied it to the used luxury goods sector and it has taken off like a bomb.
In fact, the growth has been so exponential that Wainwright and her company are seeking an additional $100 million worth of private funding in order to substantiate further growth and explore other business opportunities. In recent years they have expanded their stock to include a multitude of luxury brands such as Chanel, Louis Vuitton, Gucci, Versace, and Hermes to name a few. The sales model has had an unintended consequence of building strong relationships between The RealReal and those brands. When people are shopping online for these items, they noticed that they are holding a specific degree of value. This shows them that it might be worth investing in a particular piece because it holds its value better. That means that more buyers are shopping at both The RealReal and the original luxury brand.
One of the ways that The RealReal has earned such a good reputation is through their use of competent authenticators. Every single item that comes through their doors is handled and inspected by a live individual. These individuals have been trained and can even tell where a zipper on a bag may have been manufactured. In their retail location, located in Soho, they are even offering workshops that train buyers to spot fake items on their own. With such a unique and expressive business model, it is no surprise that The RealReal is doing so well within its industry. The growth that it experiences is sure to explode should receive the additional financing.