“The RealReal has revamped luxury as we know it today. The RealReal specializes in authenticated second-hand apparel, house goods, jewelry, and artwork. The luxury brand business is led by Chief Executive Officer Julie Wainwright. The consigner is in preparation mode of seeking $100 million in new funding. The company successfully raised more than $170 million 7 years ago, since inception.
The resale business started out as an online store that initially sold upscale women’s fashion labels from Louis Vuitton to Cavalli. Sellers or consignors ship merchandise into the company for the purpose of a sale. Once sold, the company and the seller share the profits. The RealReal eventually migrated to selling jewelry, art, home decorations, and menswear as well. The RealReal positioned safeguards in place to ensure that their customers receive veritable merchandise. They increased their staff to include brand authenticators, jewelers, art specialists, and other verifiers. The company launched its first brick and mortar store in bustling New York City. The Soho flagship store offers a high-end shopping experience for its customers. The shop has included a quaint refreshment cafe and an in-store flower shop. Their Soho boutique offers free evaluations and allows consignors an opportunity to drop off sale items.
It still is somewhat unclear as to why the company is looking to gain more capital. The luxury second-hand industry is booming, so the company is on-track with leveraging funds to promote further endeavors. The RealReal is incomparable in their business model structure. They offer much more than apparel and supports their merchandise 100% via authentication methods.
Initially, the RealReal did not encounter acceptance from any of the leading luxury brands in the marketplace. Today, those same brands garner excitement for the long-standing consignor. They now view the RealReal as a springboard to higher annual sales and revenue. Customers from the RealReal eventually purchase items under the same brand umbrella. They love the brand and item so much, that they end up buying from the high-end retailer as well.
The RealReal gain much of their awareness via pop-up store campaigns. This is where they test run their concept in a temporary location for a said amount of time. The strategy gives them an idea of where to target sales, and if a new store would do well in a particular geographic location. It is not clear what path to further success CEO Julie Wainwright will take, but thus far, she is clearly moving in the right direction.”