Online stores with used design, fashion, flourish in the network. Luxury is so affordable, much to the Annoyance of big brands. The do not want, that your article of all to be worn – and go to court.
Tradition is no guarantee of success even in the case of luxury, especially in times of globalization. In the USA, the classic retail breaks increasingly way, as recently as a few weeks, the New York-based luxury house, is Barney’s insolvency purchase logged. Meanwhile, stores such as thereal rise Online real to the new sizes on the market.
What was long a wealthy clientele was reserved for the Birkin Bags by Hermès, for example, or the little Black dress of Chanel – sold thereal real with significant discounts second-Hand: a cream-colored handbag by Chanel about there is used for 1795 instead of 4800 dollars and black Velvet Pumps by Christian Louboutin for 675 instead of 1295 dollars. The Segment of luxury, fashion is not only sustainable, but sustainable is revolutionizing. To the delight of ascending Startups – and to the suffering of the classic stamps.
Fashion for Millennials
In the USA, the country of consumption, seem to be companies like thereal real or the competitor Poshmark and ThredUp to hit a nerve. A study by the consulting firm Boston Consulting Group concluded that most of the people, the enthusiasm for expensive products second-Hand to live there in the world. “Every Second here has already been purchased second-hand luxury goods, or sold,” says Marketing analyst Pam Danziger, who investigated the industry for decades.
Especially Millennials, born in the period from the early 1980s to the late 1990s, belong to the group of buyers. Sustainability is especially important. 44 percent are thinking before buying a product on the ecological factors and resale value. “Clothing is always more to the Investment, not a disposable item,” says Danziger.
For the business with second-hand fashion only fashion Fans are no longer interested, however, for a long time. More than 350 million dollars in The real Real has already received donors of money, including venture capitalists such as e. ventures, have also invested in Netflix and Sonos.
Worth billions on the stock market
Within eight years, became so from a small Online Shop, a million-dollar Commission business and – according to its own figures – is also the world’s largest Online marketplace for second hand luxury fashion. More than ten million Designer has sold thereal real last year, each customer spends an average of $ 450.
From each sale, the company retains up to 50 percent of Commission, the Rest of the company pays to the Principal. Around a billion dollars have flowed in this way, since the company’s founding.
On 28.06.2019 thereal real went on the New York stock exchange
The success led thereal real only a few weeks ago to the stock exchange. 300 million dollars of the Online Shop took on the first day of trading, the stock climbed to a prompt by 45 percent.
The investors were not deterred, that the company makes no profit – $ 27 million net loss stood alone last year in the books.
Bank of America raised recently their price target to $ 28 per share, the Credit Suisse certifies to the company is even a prospect of $ 30 per share. The real Real would be more than 2.4 billion dollars in value – is no coincidence, in view of the increasing demand.
Soon, more important than new?
According to the analysis firm Global Data, the market with Second-Hand clothes has increased in the last three years, 21 times faster than the business with newly-produced goods, so-called Fast Fashion. Until 2028, the trade in used clothing is to implement 64 billion dollars – and thus for the first Time in the history of fashion to bring in more than the business with newly-produced goods.
Not to miss this Trend, invest now, many luxury brands in the market of used goods. LVMH, for example, the parent company of companies such as Dior, Louis Vuitton and Marc Jacobs, acquired last year for a minority stake in the stage of Goods, a resale shop for Sneakers and Streetwear that has grown in the last two years.
Neiman Marcus, one of the largest, prestigious Department store chains in the US, invested at the beginning of the year, in the Second-Hand Website Fashionpile that sells used handbags and jewelry. And in Switzerland is Richemont, the company ventured behind brands such as Chloé, Cartier and IWC, in June last year a similar step, by bought the British retailer, watchfinder, an Online marketplace for luxury second-Hand watches.
The strategy behind it is attacking a business model, the long classic Second-Hand stores or platforms like ebay was reserved. If you wanted to sell old clothes, or used jewelry, gave all of his stuff either in the Vintage Shop around the corner or set them self as an auction on eBay. For relatively little money, a buyer could make is usually a real bargain, but often without certainty, whether they really hold an authentic piece of in the hands.
Authenticity check
Right here is thereal real has now found his niche. “We employ more than 100 experts, who check every day, thousands of products on authenticity,” says Megan Zamiska, spokesperson for the company. Dozens of gem-examiners, watchmakers, and art curators to expose the fakes, before you circulate on the website. For a diamond necklace of the British jeweller Graff, for example, more than 20 hours of audit work fell last.
She would turn over in his grave? Gabrielle “Coco” Chanel, founder of the eponymous fashion house, in the year 1935
Some of the luxury brands this process is, however, not safe enough. A few months ago the fashion house Chanel filed a lawsuit against thereal real. The charge: the Online marketplace to sell replicas and support product piracy.
Thereal real spokeswoman Zamiska rejects the accusations and sees them as part of a larger campaign. “Chanel’s lawsuit is nothing more than a terrifying brutal attempt to prevent our clients to sell luxury fashion at a cheaper price.” The traditional brand is going to stop the circular economy, quite deliberately.
Not for everyone
Chanel is not only about competition, but especially to the own Prestige, Neither in the retail nor on the Chanel site it is possible to acquire reduced products of the brand.
Chanel do not even want to that everyone can afford the brand, said Barbara Kahn, a Marketing Professor at the Wharton School in Pennsylvania. “As soon as the articles are for a not-so-high-income clientele affordable, threatens the value of the brand in the eyes of high net worth to decline the clientele.”
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Just Chanel is very exclusive, a lot more than designers such as Hermès. “The dispute clearly shows how tense the mood is between Online Resellers, such as thereal real and luxury brands that rely on artificial scarcity,” says Kahn.
Only Stella McCartney, the founder of the eponymous luxury label, and daughter of the former Beatles, Paul McCartney, is shown open for cooperation with Second-Hand companies such as thereal real.
For the campaign ‘The Future of Fashion is circular’ has joined McCartney in the spring with the luxury platform. The Ads ran on Radio, television and in social media, urged the fashion industry to support the principle of “to make well, buy well, resell”. It was probably the first and only Time that a luxury fashion house urged actively to secure the article to resell.