Second Hand Clothing Consignment Website Luxe Challenges Leaders The Real Real

According to the world clothing shoes and hats net, recently, second-hand

Consignment website

Launch a beta website called Luxe, making use of second-hand products.

In the consignment area, The Real Real confronts its rival.

At present, other competitors in the second hand luxury market include: Tradesy, Vestiaire Collective and StockX.

Nowadays, traditional retailing is facing a huge crisis, and physical stores are closing down.

The growth rate of online e-commerce websites is 20 times that of the large retail market, 5 times that of discount stores. They are subverting the market.

ThredUp recently launched a joint report by FUNG GLOBAL RETAIL & TECHNOLOGY, a subsidiary of Hongkong retail giant Feng's group, that by 2021, the valuation of second-hand clothing industry will increase by 13% to 3 billion 300 million US dollars from 1 billion 800 million US dollars in 2016.

To start the consignment business of second hand luxury goods, thredUP co founder and chief executive officer James Reinhart gave consignors 100% of the goods sold during the Labor Day period (the percentage of the Commission was 80%).

They are considering prolonging the effective time of the high score.

ThredUP resell more than 30 thousand items a day, covering more than 35 thousand brands, including Tommy Hilfiger, Gap, J. Crew, Lululemon, Disney and Lands End, which enjoy a maximum discount of 90 percent off.

ThredUP will sell 10 million products this year.

James Reinhart said: "all the studies we have done show that luxury goods account for only 15% of the average female consumer's wardrobe ratio.

There are still many items in the wardrobe, such as The, Real, Real, and so on, which are sold by luxury consignment platforms, such as Vince, Theory and J. Crew.

You may have to sell different kinds of products separately, and we will cover 80% of the products from 650 luxury brands, more than any other website. "

The consignor can obtain the Luxe Clean Out consignment goods cleaning kit from thredUP.

James Reinhart said: "we will provide a very good bulletproof nylon bag, you can use it to sell anything you want to sell.

After we receive it, we will sort them out and tag the Luxe in a special way.

James Reinhart clearly stated: "we are going to challenge the recognized luxury goods consignment site leader The Real Real, thredUP is now replacing it."

When asked about the inventory of second-hand luxury goods, James Reinhart said: "for handbags, we hope you can sell Hermes Birkin bags, Louis Vuitton and Chanel handbags.

For these luxury brands, we know that they may not consider our consignment, but this will always be our vision. "

As more and more companies enter the field of second hand luxury goods, competition for those with online luxury consignment experience is becoming increasingly fierce.

The thredUP watch department is currently under the leadership of Reginald Brack, the senior vice president of Christie 's and the head of the international watch retail department, and the handbag business is led by Cynthia Houlton, vice president of the former The Real Real business development department.

Strong enemy The Real Real

Compared with thredUP 100%, the The Real Real Real, which was said to be trading at $400 million in 2016 (2 times in 2015), has a hierarchical rule for the percentage of consignor sales.

The price below (or equal to) 1500 US dollars is divided into 55% of the selling price.

The price ranges from $1501 to $9999, which is 60% of the price.

A price higher than (or equal to) 10 thousand US dollars is divided into 70% of the selling price.

For the first consignment, the premium watch with a price higher than (or equal to) 2500 dollars and all Herm s Birkin bags are divided into 80% of the selling price.

"We are not worried," said Julie Wainwright, founder and chief executive officer of The Real Real.

Thredup has different models and different infrastructure than ours.

Everyone has space, but it is difficult for them to relocate the previously focused low-end market business to the high-end market.

Online consignment of second hand luxury goods is not easy.

The Real Real operates several luxury consignment and evaluation centers in 6 cities such as New York, Losangeles, Chicago, San Francisco, Dallas and Washington, and is equipped with experts in this field.

Julie Wainwright is very disgusted with the idea of using technology to identify luxury goods. She said: "this technology is identified by pictures.

Some characteristics can be identified by pictures, such as color (but some can not).

So it works for some commodities, but not all.

We use this technology in the first step of identification. After all, image identification has limitations. "

Julie Wainwright believes that there is a risk for e-commerce websites to rush into second-hand luxury consignment business: "luxury goods purchased from various suppliers may be false, and of course there are some good goods, but there is not much room for pricing." she pointed out that only 5% of The Real Real products came from suppliers.

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Other competitors

However, many companies are now entering this field.

It is reported that eBay, a business giant, plans to cooperate with Entropy to support the resale business of luxury goods.

Entropy has developed luxury identification technology.

Even the Saks Off 5th discount provider has begun selling second-hand hermes handbags on its website.

The French luxury goods consignment platform, Vestiaire Collective, raised $62 million in January for international expansion (especially in the US and Asia).

Vestiaire Collective has 6 million users in 48 countries around the world, and the consignor comes from 17 countries.

The company has 600 thousand products on sale, and the website adds 4000 new products every day.

France is the main market of Vestiaire Collective, accounting for 35% of total sales.

S Bastien Bastien Fabre, founder and chief executive of Vestiaire Collective, said its annual sales increased by 70% over the same period last year.

StockX, a sports shoe trading platform in Detroit, is a world's first sports shoe market, featuring real-time updating of commodity trading prices in the market.

Recently, StockX has also stepped out of the field of limited sports shoes, and has launched resale of luxury goods. The products include Hermes Birkin and Kelly handbags, watches of Rolex (Rolex) and Patek Philippe (Patek Philippe).

Joshua Luber, co-founder of StockX, said: "Chanel and Louis Vuitton handbags have depreciated from 20% to 50%.

We sold a pair of Yeezy shoes with a price of 200 US dollars to US $1000, and the premium rate was 500%.

In the second hand bag consignment business, we are trying to solve a problem: StockX provides buyers with a forum to find the sellers they need.

Joshua Luber also said: "next we will enter 20 to 30 areas, including street clothing.

Within 6 weeks, StockX already had 6000 consignment designer handbags. "

StockX has won support from the strong financial resources of co founder Dan Gilbert. He is not only the founder and chairman of Quicken Loans, but also the boss of NBA Cleveland Cavaliers.

Other celebrity investors include Hollywood actor Mark Vorborg.

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