The RealReal has represented an exceptional turn in the fashion market. We’ve reached a stage where purchasing secondhand items have become more commonplace, instead of being a shameful act. When it comes to The RealReal, it is more likely that the reason for this is the type of goods that the company peddles out to their customers. On Recode.com there is an article by Jason Del Rey, “The RealReal-The Fashion Site That Sells Secondhand Gucci and Louis Vuitton-Wants to Raise a New $100 Million Investment”, that discusses some of the better qualities of the new consignment giant. There is a real opportunity for retailers like this, where individuals have access to goods they would normally have access to.
While The RealReal does sell secondhand luxury goods, they work in conjunction with sellers to ensure that their products find a new home. The RealReal takes a commission on every single item that they sell, anywhere from 50% to 60% of the proceeds. This is how the company has made their money, more than 170 million at this point. Items usually don’t make it long in the mostly web-based transactions, but even in their brick and mortar location items are constantly fluctuating in an out of the retail floor, as those items are also listed for sale on the website. While this promotes a sense of urgency, it also allows individuals to see all of the items that are available to them at a given moment.
The RealReal has an exceptional business model and it gives customers a sense of security when they are shopping for their secondhand goods. It is commonplace for individuals to attempts to pass off fake items as luxury items, having a service like The RealReal allows individuals a sense of freedom when they are shopping for these types of items. The article discusses how the current CEO is trying to expand funding, one can only hope that this is in an effort to expand the shopping opportunities as well. The market for such goods seems to be growing, and new alliances among luxury brands are being created. It seems that for now, The RealReal is bridging the gap between consignment and luxury.