Online thriving industry
More and more are now turning to the luxury shopping and selling sites, a market worth $ 19 billion. This is the new online thriving industry that appeals to luxury lovers.
Two years ago, in Marie Green’s wardrobe, a fashion stylist from San Diego, she became unbreakable. He spent $ 12,000 to $ 20,000 a year to buy expensive branded clothes, bags and shoes that he did not want to wear. Until he discovered, RealReal, the online luxury clothing store and second-hand accessory.
“It literally changed my life,” Green said in Blooomberg, which sold $ 50,000 of personal items to the site, which is now making its most shopping. Last year, Louis Vuitton bought a Louis Vuitton collector bag for $ 1,495, when the market price is twice as high. She says she has lowered her budget to $ 6,000 to $ 10,000 to buy designer clothing.
Sales of second-hand luxury goods through e-commerce have been launched in recent years. Relevant sites, such as RealReal and the Parisian Vestiaire Collective, offer consumers who have a fury with expensive brands of renowned designers to recycle their wardrobe by purchasing the items of cravings much cheaper.
The value of the luxury second-hand market, including appliances, accessories, watches and jewelery, has reached $ 19 billion, according to Claudia D’Arpizio, a partner at Bain & Co. The largest blossom is $ 4 billion in leather goods and clothing in this market as their sales are rising faster than the overall luxury goods industry.
“We are moving from a time of possessing life to another, where we enjoy the products, use them and then leave them,” says Fanny Moizant, co-founder of Vestiaire. She estimates that 80% of Britons have clothes in their wardrobes, which they no longer wear, worth $ 16 billion.
RealReal, set up in 2011 in San Francisco, has earned $ 55 million in 2013 and predicts it will reach 100 million this year. It has an application called RealBook, which lists resale prices for more than 500 brands and which feeds from their website data the current selling prices. It is indicative that the selling prices for certain products, such as the Kelly all-leather leather pouch from Hermes, may exceed the retail price if impatient buyers demand it directly.
Sites of this kind publish prices and details, winning a commission for each sale: Vestiaire gets 25%, RealReal starts with 40% and goes down to 30% when the products, sold by someone, reach $ 7,500.
According to Bloomberg, what distinguishes the specific sites from EBay is that they examine the authenticity of the products. RealReal has a team of specialists in luxury goods who look at them and guarantee their authenticity before making them available for sale.
The second-hand market also has a positive impact on manufacturers of luxury goods, as D’Arpizio points out, as it helps the rich to feel less guilty about wasting thousands of dollars in something that will be forgotten in their wardrobe. At the same time, it boosts luxury brands even if it affects sales at outlets and discount stores.
“The purchase and sale of deluxe second-hand goods was a taboo a decade ago,” says Yann Le Floc’h, a former banker at Exane BNP Paribas and co-founder of online second-hand InstantLuxe in Paris in 2009. “Today, is considered a smart move “.
This site is now expanding to China, targeting both rich Asians and the large middle class.