The RealReal is a Making a Name for Themselves

The RealReal has been dismissed by many luxury establishments, but it is becoming clear that it is a company to be reckoned with. It has found success by slowly becoming a trusted partner for luxury-fashion consigners and buyers over the years. This strategy has helped push them to the forefront of the resale market. In fact, the company has made $288 million in funding since it began in 2011.

In the beginning, the RealReal was solely an online company. In its first year of business, the company made $10 million dollars in sales, followed by six years of growth. In 2017, sales topped $500 million. Today, the company is expanding from its online market to actual brick and mortar storefronts. Thus far, they have opened two stores.

One is located in New York City, while the other is in Los Angeles. The Los Angeles store has a unique section that is devoted to men’s fashion, which is a fast-growing part of the company’s business. In addition to these two permanent locations, the company has got the word out about its brand through pop-up shops. These shops only opened for a short time, sometimes a day to a couple of weeks. All of these storefronts help the company in several ways. They produce larger orders and help the company secure the best quality consignments for them to sell.

One of the main reasons The RealReal has found success is because it appeals to a large market. For older, wealthy clients, the draw to find a good deal is what leads them to consignment shops. For Millennials, which is one of the company’s main targets, the hunt to find that perfect item at a great price is what draws them in. They want to have their own look that can’t be easily copied by others. This company is great at providing that.

Another benefit of the company is that it allows more people to have access to luxury brands. While not being “cheap,” they make luxury items much more affordable. This means it isn’t impossible for many Millennials to afford a high-end item, such as something from Louis Vuitton. Customers love finding a treasure that they never thought they could have had before or something that slipped through their hands at a boutique at a fraction of the price.

This online consignment boutique helps support first-time sales for luxury brands. Many first-time buyers like to look at consignment shops first to see the price of their potential buys. The reason is that they want to know they are getting a good value. Additionally, they want to know that, if they want to, they can sell the item after they are done with it and make a significant amount of their money back. 

The company is also a great source of trends. Based on searches of their customers, they can tell what luxury retailer is hot at any point in time. For instance, they have noted that Gucci has pushed Chanel out of the number one spot for the most searched brands on the site, and Louis Vuitton continues to hold the number two spot, with Chanel being close behind. They also track trends between men and women, noting that men are moving more towards casual street styles.

As time goes by, the company has received a major increase in online traffic, as well as more engaged traffic. Most buyers look at around ten pages per visit. Most of these visitors are of the Millennial generation, making up nearly one-third of their customers. As the years go by, this company is becoming a major success and a real threat to all other companies in the retail business.