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    The Two Tier Luxury Goods Market Has An Annual Sales Volume Of US $25 Billion, And Brand Company Has Chosen To Cooperate With The Consignment Platform.

    2018/7/14 9:26:00 81

    Luxury GoodsTwo Tier MarketConsignment Platform

    Young consumers look at the consumption concept of heavy goods, cheap and inexpensive and the concern for sustainable environmental protection, which boosted the flourishing development of the second hand luxury consignment market in the world.

    The RealReal, the US luxury goods trading website, is a huge beneficiary of this trend.


    Recently, The RealReal founder and CEO Julie Wainwright Wainwright said in an interview with Reuters that in the next two years, the total paction volume of the platform is expected to double to $1 billion, and the company will be ready to go public.

    In addition, the company is consulting with French luxury goods giant LVMH and Kering for future cooperation projects.

    Facing the second-hand clothing consignment website thredUP (last year launched the second hand luxury consignment website Luxe, see "gorgeous report": thredUP launched the second hand luxury consignment site Luxe Luxe, challenge to the industry's older The Real Real) and other fierce competition among new competitors. The RealReal believes that the famous brand cooperation with LVMH and Kering can enhance its image and enhance its competitive edge.

    Why luxury brands choose second hand luxury platform?

    So far, luxury brands have been trying to avoid second-hand pactions.

    market

    This is due to fear that second-hand trading will weaken the high-end positioning of its brand and nibble away its sales.

    However, according to Berenberg analysts at German financial institutions, luxury brands are now hard to ignore second-hand luxury goods with annual sales of $25 billion.

    market

    The number of sales in the market is expected to increase by 10% per year in the next few years, which is more than two times the expected growth rate of the first class luxury market.

    The RealReal declined to disclose details of cooperation with LVMH and Kering.

    But according to people familiar with the matter, cooperation may include data sharing - which lets brands track which consumers purchase and consign their products, and how to maintain the value of goods.

    Such information can provide help for its marketing activities and pricing.

    In addition, there is another form of cooperation between The RealReal and British designer Stella McCartney.

    The brand encourages consumers who have already bought branded goods to consign goods they do not need on The RealReal.

    Every time you sell a second-hand Stella McCartney item, the consignment seller will get a $100 coupon (The RealReal will pay half) to buy new products in the store.

    Most luxury brands are willing to cooperate with second-hand luxury goods trading websites, partly because the logistics work of second-hand goods sales is very troublesome.

    Moreover, luxury brands also believe that cooperation will bring more benefits to their sales.

    Julie Wainwright said that 20% of the amount of second-hand luxury goods sold by platform sellers will be used again to buy other goods on the website, indicating that most of the proceeds from second hand luxury consignment will return to the market.

    Consignment luxury goods fever

    Some consumers said in the interview that buying second-hand consignment luxury goods on the The RealReal platform is not the only way to buy luxury goods. They are also frequent customers of luxury brand entity stores.

    Their attitude towards luxury goods is not concerned with their old and new ones, but buying is mainly based on whether they like it or not.

    The RealReal has an anti-counterfeiting team of 100 people to identify luxury items sold on the platform. The number of products handled monthly is 200 thousand to 300 thousand.

    Vestiaire, a French luxury goods trading platform, also works with certification agencies to add 6000 new products to its website every day. About 30% of the consignment sales were refused to enter platform sales after inspection.

    The price and discount of luxury goods consigned on these platforms vary greatly, depending on the quality of luxury goods and the popularity of their brands.

    Some consignments of hot commodities even exceed the original price.

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