As Coresight Research commented on July, Recommerce and thrift shopping are going mainstream as consumers increasingly seek out value (both economic and ethics-based), clothing that expresses individuality and that is Instagrammable. Consumers are on both sides of the transaction, donating and consigning as well as purchasing. The desire to simplify and de-clutter is contributing to these forms of commerce.
In this regards, many solutions driven by FaaS or Fashion-as-a-Service have been recently commented:
• Circular Fashion: Millennials are driving companies to sustainable practices even if their business model is based on volume, low margins. New generations demand for sustainable products and a visible and transparent value chain: from “sheep to shop”.
• Subscription model: Rental economy, long tail or freeconomics have changed consumer behavior. Nownership or how new generations value experience and access over ownership, is no longer a trend but a reality. Some of the main benefits of the model are customization, guidance, convenience and discovery.
• Fashion renting: Rental business model respond to a need of access (and continuous freshness) while increasing product lifespan and therefore reaching out one of the objectives of circular economy.
• Fashion Resale: Within the circular economy ecosystem, we can find companies that bet on product reuse, an important pillar of the wheel that increases product lifespan and allow customers to experience the sharing economy. Reuse is about the experience, not the product.
The RealReal is the first Resale startup to go public
The RealReal shares began trading on the Nasdaq Global Select Market on June 28, 2019, under the symbol “REAL.” The company rose 45% in its first day of trading after a $300 million initial public offering. It´s the first unicorn of its kind.
The RealReal is the leader in authenticated luxury consignment. With an expert behind every item, it ensures everything it sells is 100% real. The company has 100+ in-house gemologists, horologists and brand authenticators who inspect all items available online each day.
As a sustainable company, The RealReal gives new life to pieces by brands from Louis Vuitton to Cartier, and hundreds more, supporting the circular economy.