A New Look at Consignment
There are consignment shops and then there is The RealReal. A high end consignment and resale shop launched by Rati Levesque. Levesque had studied economics and owned and upscale boutique but saw an edge in the market with a whole new kind of store. This is an opportunity for customers to resale luxery items such as the Gucci brand. The added bonus is data proves 80% of the customers are putting the money back into the new clothing market.
Consignment is a simple concept of selling something you bought and getting part of your money back afterwards. So you can see some cash from the Gucci bag you had to have last season. The RealReal offers clothing, acessories and home goods with styles for men, women and children. Shopping is available on the website, stores in New York and Los Angeles, as well as pop ups. Anyone can log into the website and browse by entering their email and a password.
Levesque is trying to get the public to see a luxury purchase as an investment. Buying something made well and made to last can pay off in the future. With customers earning up to 60-80 percent of their original purchase back, an upscale Gucci purchase is no longer just a frivolous buy. The RealReal wants to educate the public and use this motto: Make well, buy well, resell. One way they try to educate is letting customers know what is trending and what is not. Helping Consignors see the best time to sell and that benefits the company and the customer. The company tracks previous sells and studies what is trending now, so they know when to raise and lower prices.
The employees are there to encourage the buyer, but they also serve another purpose. They try to inform the customer of the latest trends. What the company is selling a lot of. The customer can know this is a good time to bring in items that are trending. They also can see what the latest styles for themselves. Products can also increase in value when a designer retires. This often moves products, when they become viewed as a collector item. This creates a demand for a limited in number product, thus driving up the price. Another way they help the customer is by placing chip IDs on every tag. Employees have certain customers who are looking for certain pieces. They can send notifications to the customer and let them know they have what the customer is looking for. It is like having a personal shopper, someone looking for your style all the time.
One product that has been selling well for the company is watches. They have noticed trends that people want their own unique look. By offering products, like watches, customers can create one of a kind style. So, they can avoid looking like everyone else on social media. Low supply of specific items allows individuals to create their own unique appearance with upscale brands. Consignment is also an excellent place to find vintage pieces that so many people are looking for today.
This consignment company was tested with pop-ups and this allowed the store to build their business. They have many consistent returning customers as well as new ones coming all the time. This company has consigned over eight million pieces and has over nine million members. The company is valued at $450 million dollars. A somewhat simple idea has taken off and been very successful. It is a winning situation for the consignor and for their buyers. After all, if they don’t have what you are looking for, they may get it in tomorrow!
