Founder and Chief Executive Officer Julie Wainwright of The RealReal has said that the foremost thing that American shoppers are looking for is value. He luxury consignment shop is based in San Francisco, California, and sells millions of dollar worth of pre-owned luxury products online. They are also opening physical locations around the world where customers can see the products first-hand before making their selection. She started this company in 2011 and her prior experience includes being the CEO of Pets.com and Reel.com.
Since The RealReal launched the previously-owned luxury consignment industry has exploded. This company held its Series G financing round recently and Julie Wainwright says that they brought in $115 from venture capitalists. All told her company has raised $288 million. Her company now has annual revenue of $500 million and has nine million members.
The RealReal helps to extend the life cycle of luxury goods. They are put to good use instead of sitting in a closet somewhere. The website has Hermes bags, Manolo Blahnik mules, Rolex Watches, and more. Most of these products have been gently used and some are completely brand new. This website also helps people track the resale value of the luxury goods they own so they are informed if they think it’s worth selling it or not.
There are two ways that The RealReal acquires fashion goods from their members. In 60 cities they offer item pick up where someone goes out to the customer’s home and gets the luxury product. Otherwise, the member can mail it to The RealReal. Either way, the item is authenticated by an expert to make sure it is the real deal and not some fake.
Once the authentication process is completed the items is given a price, photographed, and put up for sale on the website. The person selling the item gets a percentage as does The RealReal. If the item is worth less than $200 than the consigner gets 50%. If the item is worth over $10,000 than they get 70% of whatever the luxury product sold for.