The RealReal Resale Report 2024

A Deep Dive into Resale using the recent The RealReal Resale Report 2024.

Company and Leadership

The RealReal is a luxury resale platform powered by proprietary technology and physical stores.
The company was founded in 2011 by Julie Wainwright and is now under the leadership of the new CEO John Koryl ex Neiman Marcus Group and digital connoseir.
The company IPO'd in the US in 2019 raising $300million (Forbes). Their last raise was a Series H and the company has grown to 3,032 full time employees (Dec 2023).

Market and Financial Performance

The Circular Economy is estimated to generate $4.5 trillion of additional economic output by 2030 (Accenture).
The growth in second-hand luxury worldwide is estimated to grow to $15.4billion (Statista).
Although 2023 Revenue for TheRealReal shows a dip, the platform has been growing since the 2020 pandemic baseline illustrated. The Profit story is different and shows a loss making company.

Luxury Brands

The Top 10 searched brands are Louis Vuitton, CHANEL, Prada Group, Gucci, Loewe, Miu Miu, CELINE, Bottega Veneta, Christian Dior Couture and The Row.

Consumer Behaviour

Indicates a powerful shift from runway led trends to culture influencing trends bottom up due to the relevance of TV shows, Netflix and Streetstyle.

Drivers of Growth

For The RealReal growth has been attribute to creative shakeups at Maisons that raise curiosity in collections and Throwback series such as The Sopranos and Sex and The City.

Trends

Trends unveiled include: Office Siren- skirt and slack suits as streetstyle, Bling Boom- loud luxury on the jewellery front, a departure from quiet luxury and Mainstream Vintage- vintage becoming more available.

Sustainability

Circularity through increasing product longevity is at the heart of what The RealReal do so natural they should attract consumers sharing the desire to prolong the life of luxury.
They have also observed customers embracing imperfect items that need repair or refurbishment motivated by potentially personalising items or acquiring luxury at a more affordable price.

Circularity Opportunity

A large number of luxury brands are missing out on this circular business model by not offering their own or partnering to offer clients a resale service.
This is a huge opportunity for sustainability teams to explore the internal stakeholder engagement and leading role that sustainability teams can play to be value driven.

Resale Partnerships and the Sharing Economy are on the latest Fluxury Sustainability Radar: https://lnkd.in/e_V8zWVF

To explore this and more trends with Fluxury and the role your team can play to add value, you can book a 1 hour session here:
https://lnkd.in/eX7qpSN9