How Does Trades'S C Round Financing Capture Consumers?

Tradesy's main competitors, The RealReal and Poshmark, have raised 2500 US $10000 in financing pactions in the past few months.

The ultimate goal of their financing is relatively consistent: occupy the absolute advantage of the market and strive to become an oligopoly.

The three websites and their App are selling second-hand clothing including luxury brands such as Tory Burch and Louis Vuitton. They try to take part of the business of eBay and develop the second-hand clothing business into a vertical e-commerce.

Tradesy is a second-hand seller.

Fashion website.

In May 9th, it just got more than 30 million US dollars in C financing.

However, for all the second-hand clothing websites that are still alive, 2016 is the key year to decide whether they will succeed or not.

"I still think this is a" winner takes all "industry, so we have to be the last winner.

Tracy's CEO DiNunzio replied in an interview. "But does" winner take all "mean that all competitors in the same industry need go die? I'm not sure.

As a matter of fact, since last year, many of the pioneering websites that used to enter the second-hand clothing market have been cheap.

Have been annexed.

It is worth mentioning that Wildcat Capital Management, the family investment company controlled by billionaire David Bonderman, is the latest supporter of this project and is involved in this round of financing.

Kleiner Perkins Caulfield & Byers, Rincon Venture Partners, a venture capital company that once participated in B financing, is also active in this round.

As a fashion website born in St. Monica, California, the total amount of money raised since its establishment in 2012 has been nearly 7500 million.

Tradesy's main competitors, The RealReal and Poshmark, have raised 2500 US $10000 in financing pactions in the past few months.

The ultimate goal of their financing is relatively uniform: market share.

Strive to become an oligopoly.

The three websites and their App are selling second-hand clothing including luxury brands such as Tory Burch and Louis Vuitton. They try to take part of eBay's business and develop the second-hand clothing business into a vertical e-commerce.

So what they have to do is to attract more users to buy or sell second-hand clothing on their website, because customers in the industry tend to follow the crowd, and prefer the site with the largest browsing and the richest category.

DiNunzio emphasized that the main business of Tradesy will continue to focus on clothing, shoes and bags.

Although The RealReal has found a new profit growth point by buying and selling second-hand jewellery and artworks, Poshmark has also begun to allow their hottest shoppers to buy discount clothing for wholesalers and then resell them (this is a good way to increase the category).

But Tradesy can still get a large number of paction orders through search traffic.

"This is because, to some extent, the list of goods in our online store is more structured, which makes it easier for search engines to grab information."

"The amount of this round of financing is nearly 4 times that of the previous round.

But valuations have not increased so much. "

He declined to disclose the specific valuation of Tradesy, but said that this figure is higher than the previous round of up to 1 billion billion valuation.

After the end of this round, Tradesy will spend most of its money on human resources recruitment, especially data analysts and classification experts.

The talents in these fields will mainly analyze the website shopping data for the company to see if it is helpful to the promotion of fashion brands.

Of course, Tradesy will also take part of the funds to advertise to many domestic cable TV stations.

In this regard, DiNunzio explains that the cost effectiveness of television advertising and online advertising is basically the same.

But he did not want to comment too much on the company's earnings. He merely said that the company should be able to recover in the middle of next year on the basis of Ebitda.