Is a shift in the retail industry, and it’s leaning towards resale. The RealReal is doing real well by all accounts. Recently their stock price increase by 40%, pointing to a trend among consumers per secondhand goods
Real Real is an app and website where Chanel, Cartier, Christian Louboutin, and Gucci can be purchased at a fraction of their original cost. When they were first debuted to the public, they brought in $300 million.
Former Pets.com CEO Julie Wainwright, took her startup public in 2011. The visibility The Real Real has enjoyed since then has brought them healthy sales numbers. They made $207 million in sales last year alone.
The Real Real gets a portion of each sale that goes through their website, app, or one of their retail stores. The average Shopper spends about $446 in each transaction.
With increased resources, The Real Real has focused on refining the customer experience. For example, they run a consultation service for their top customers who passed their gently used luxury goods through The Real Real. Part of that is a team of gemologists and horologists that can assess the authenticity of watches, jewelry, and other accessories.
If operations continue at this pace, The Real Real expects to open more physical stores to match the three already open in Los Angeles and New York.
According to linkedin.com, expansion efforts inside The Real Real depends on the continued support of younger shoppers. These are people with a general concern about the environment but still want to purchase luxury items. The RealReal sees this as a real trend, and retailers like Neiman Marcus and H&M getting into the resale business seems to confirm that.
Real Real determine that these shoppers are concerned about the impact from producing clothing, we just made them interested and recirculating rather than manufacturing. They ran a survey and discovered 64% of millennial shoppers see reseal as a benefit to the environment. But the secondhand market offers up bargains on luxury goods is seen as a plus.
About The Real Real:
CEO Julie Wainwright founded The Real Real at her kitchen table in 2011. It was a small startup with an aggressive appetite to change luxury resale.
Eight years later, The Real Real has attracted millions of shoppers and consignees to their online platform and stores in Los Angeles and New York. To know more about the Real Real you can visit crunchbase.com