Founded by Julie Wainwright, the RealReal is an online consignment business (therealreal.com) specializing in a wide variety of luxury items. They deal in all types of designer clothing, accessories, jewelry, watches, fine art and home decor. They have experts from all over the United States to makes sure all their merchandise is the real, real deal. Authenticators even receive rewards if they find fake merchandise. Not only that, the company’s inventory sells extremely quickly with the vast majority of its inventory selling within 30 days of going on the market.
Though you would think that these luxury companies hold The RealReal in disdain, they do not. With the opportunity for customers to sell their luxury goods, it increases the selling potential of such goods. Many buyers go on to purchase new luxury items from the brands they were able to consign and sell. This makes sense as you have the opportunity to make some of your money back to then buy that luxury item you’ve had your eye on for so long … I know it’s for certain a plus in my book!!!
With its initial launch in 2011 it has raised over $173 million. Now, the company is looking for another $100 million from its investors. Which include: Great Hill Partners, Interwest Partners, Canaan, e.Ventures, DBL Partners, Broadway Angels, NextEquity, Industry Ventures, Greenspring Associates, Greycroft, and Springboard FUND.
The reasons behind this are still unclear as no one has been able to get an official statement from the CEO herself, Julie Wainwright. Some speculations are that the company needs to reach a broader customer base so that an IPO (Initial Public Offering) would be more appealing. To prove that the company can last in the long-run. It could also be that the company and its investors feel that the market is lucrative enough to expand the company’s operations. Perhaps a global launch is in the works … ???
Only time will tell. One thing is for certain: The consignment of luxury goods is a lucrative business … Like $1.5 trillion. Might just be some good stock to get your hands on!!!