The industry of buying and selling luxury goods is worth over trillions of dollars. The RealReal is a successful online consignment shop, that has taken the luxury market by storm. As one of the top pioneers in the second hand luxury e-commerce market, the RealReal has managed to grow their company quickly and continues to expand. They currently employ over 600 people, with locations all over the United States. They even ship worldwide.
The RealReal is an online, luxury, e-commerce store focused on selling second hand clothing from high end brands such as Chanel, Prada, Gucci as well as many other deluxe labels. Although this market has proven to be fruitful statistically, it takes expertise and skill to successfully run a business like this. Despite a competitive market, the RealReal has manage to sustain and grow their company, while other similar companies fizzled out and shutdown.
RealReal’s success is due to how and what they sell. The store regularly sells $30,000 and $40,000-dollar products a day. They once sold a princess’s diamond cuff to another princess for $100,000. The exchange of expensive products is not the only aspect of success to their million-dollar grossing business. Their success lies in their business model. The RealReal doesn’t actually have any product stock; they do not risk losing money from any unwanted or unsold items. The RealReal instead connects potential buyers with sellers. They act as a middle man. They then take a small percentage of the commission.
CEO and founder of The RealReal, Julie Wainwright, isn’t interested in selling the business they are actually working toward an imminent IPO. They are also meeting with investors in order to raise over $100 million in new funding.
The RealReal is definitely something worth looking into as a possible investor. The business has thrived for this long because of their business savvy fundamentals and qualities. They’ve raised over $170 million in funding since its conception. The RealReal also grossed approximately $500 million in 2017. This expanding luxury e-commerce shop seems to be a promising investment based on their pattern of success.