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Great news for luxury brand lovers who can now own a piece of the pie. The Real Real IPO is now a public company as of the 28th of June 2019 . Shares can be purchased on Nasdaq, Robinhood and other online trading platforms.
As reported by the New York Times
The Real Real is a San Francisco based company as reported by the New York Times , has raised more than ” $350 million from firms including Greycroft Partners and Great Hill Partners” (Erin Griffith , New York Times : 06/27/ 2019)
Although the company prides itself for reselling of authenticated vintage fashion, public concerns over reports of fakes falling through this company’s consignment shop is seen on online reviews such as the Better Business Bureu , Trustpilot and Site Jabber. The popularity of vintage designer items have seen a rise within the past years due to a new waste conscious generation who do not see much value in over spending on trivial items. It also opened doors for those who have a passion for designer items but have never been able to afford one. Sales sometimes go as low as 70% off retail price.
In November, Chanel filed a lawsuit against the RealReal accusing the business of selling counterfeit Chanel products and giving consumers the false impression that the two companies were affiliated. The only way consumers can know that they’re buying genuine Chanel items is by purchasing from Chanel or from an authorized seller, the French fashion brand said.” (Erin Griffith , New York Times : June 27 2019)
It’s understandable why retail luxury houses should be concerned about the pre-loved market, especially due to the fact that sales and marketing have been heavily concentrated on the notion of scarcity. The increase in availability of vintage high end designer items means these items become too available on the market. Members in certain purse groups on Facebook and also online forums have mentioned that Louis Vuitton also monitors and even bans purchases from customers who could potentially be re-sellers. I personally link this to increase of demand in the preloved markets. A more recent development in controlling products in the resale market is seen in new repair policies for the House of Chanel. . Chanel will not repair your items unless you can prove you have bought directly from Chanel and have the receipts to prove it. This however, creates a new business opportunity for luxury repair companies such as the Leather Surgeans, Rago brothers and the handbag spa
The Online business has a lot to celebrate with it’s successful launching on the NASDAQ.
” We make it easy for consumers to shift their consumption behavior to a more sustainable model ” quoted by Julie Wainright, founder and CEO of the REAL REAL (Instagram Post ).