Throughout the past, it’s been difficult for many people to obtain luxury clothing of their own. It’s often difficult for customers to find large amounts of luxury clothing at once. It’s often been difficult for people to find the items they want while shopping at smaller boutiques. In addition, the prices of these types of clothing is another barrier to entry. The RealReal is a company that’s changing the way people think of buying and selling luxury clothing.
Instead of operating like other traditional retail companies, The RealReal thinks of luxury clothing as a type of investment. While the value of certain items changes, luxury clothing continues to remain popular throughout the world. Therefore, it’s wise to think of luxury clothing as an investment that you can sell back instead of letting it sit in your closet. Within the fashion industry, customer demand for items is always changing. In the past, many consumers were afraid to purchase pieces of luxury clothing. However, The RealReal allows consumers to have a way to sell back these items to interested buyers. This way, customers can buy luxury without feeling guilty that they’ll wear it only once or twice. For instance, customers growing unhappy with Louis Vuitton clothing will use The RealReal to sell back their items.
Making things easier for shoppers, this company is able to look over data based on luxury clothing demand. By shopping with The RealReal, customers are able to learn what’s trending and what isn’t by looking at real-time industry data. Therefore, customers can use this data to decide what’s worth buying or selling. If the value of Louis Vuitton handbags increases, people with these items lying around can sell them. This also benefits someone looking for Louis Vuitton handbags to purchase. In addition, The RealReal uses this real-time data to adjust prices of their inventory. By looking through the company’s price history database, employees know when to increase or lower prices.
This unique business model remains beneficial for The RealReal. Whether shopping in-person or online, customers are able to have access to a wide range of luxury items. The RealReal thinks of each store as a mini-warehouse, with each item tag having its own special chip. If someone tries on an item in Los Angeles, the sale of this item online gets put on hold. This allows The RealReal and their customers to have real-time access to inventory data.
To summarize, The RealReal is a company that’s helping people buy and sell luxury clothing. The RealReal wants their customers to have an easier time finding and purchasing luxury clothes. Valued at $450 million, this company is doing a great job of fulling their mission. In addition, this company also consigns accessories and home goods. Since launching in 2011, The RealReal has been able to consign over 8 million items to their registered network of over 9 million members. Currently, The RealReal has retail locations in both New York and Los Angeles as well as their thriving online ecommerce store.