RealReal leads in the international luxury resale market, and it encourages shoppers of second-hand goods to buy them at a discount. Therefore, it revolved the pattern of scarcity and price-tags which was once associated with high-end luxury. Due to its high-end shipment service worth $450 million, customers secure a golden chance to resell the products that they no longer wear at a reduced selling price. Also, through its website, more than eight million accessories, home goods, and second-hand luxury clothing have been consigned, and this constitutes the same items offered by Louis Vuitton.
Rati Levesque pursued his higher learning studies on matters concerning economics and before aiding in the launching of The RealReal in 2011, he was the owner of a high-end boutique. He is also the chief merchant of the company, San Francisco-based. Levesque argues that the reason for the current excellent performance of Luxury is because most individuals have stopped to view them just as a playful purchase but as an investment where one can get 60% or even 80% of the luxury back. Also that their data is in support of this and the primary market has the best experience at the moment because 80% of their consignors carry on their shopping using the commission they get in this market.
The RealReal merchant’s main aim is to keep people up to date regarding what’s trending up and down, and what to be consigned now. The reason behind this is that they adjust prices depending on the demand and supply of the item and the data is given to the sales team who take the initiative to educate the customers at their homes. Rati also reveals that Manolo slingback shoes are the most selling items for them as at now and informs that this is the right moment for consignors to sell theirs to earn them a large number of dollars. The same philosophy applies to Gucci products.
At RealReal, the history of an item is essential information since they do rely on it to update their data in real-time which is usually determined via supply and demand. In case they find out that the past selling trend of an item is not pleasing or it has not left its inventory for an extended period, they conclude that they have overpriced the product and they tend to lower its price as a trial to determine whether its sale rate would rise. The company has also been earning from watches for the last two-and-a-half years due to their fabulous performance in the market. The young generation highly prefers the likes of more vintage watches which have leather straps. Also, among the younger demographic, the Shinola is selling faster as compared to Rolex. In general, it is clear that all the heritage pieces and classic marquis brands performance are pleasing right now.
In conclusion, the presence of social media has made everything appear identical considering that most people want to get a unique item and it always feels great to have the real thing. The exponential growth that has been experienced by The RealReal over the years at its city’s business has seen it open the New York pop-up, followed by opening the Francisco pop-up, New York store, and right now they have the LA store. Also, it has been approximated that its customers and consigners tend to purchase and sell 40% more as compared to before, as well as most of its clients and consignors are new. All these accomplishments by the company have been stirred by the massive advertisement put in place.
