The RealReal is just one of the online stores that are now selling used clothes and accessories to baby boomers and millennials alike. Poshmark and ThredUp are two other online stores that are growing their sales amidst this new fashion craze for fabulous secondhand clothes and accessories.
RealReal is the first to start trading on the stock market, priced at $20 a share. This price could raise $300 million in the IPO. Many new companies this year have had their initial public offerings backed up by venture capital. The CEO of RealReal is Julie Wainwright. She says it’s the largest online store for upscale consignment apparel that is genuine. We have prominent and influential designers like Cartier, Hermes and Gucci. RealReal is growing because more and more women believe in shopping for quality, well put together dresses, handbags, and scarves.
According to cunchbase.com, the RealReal has opened up some brick-and-mortar stores in two big cities, LA and New York City. This helps to introduce many more people who can see and feel the quality of the fabrics and feel reassured when they shop the online locality.
Consignment stores and the Salvation Army have always been available but did not offer the same quality experience as these new startups. The traditional retailers are worried these new stores are a new competition and different because there is more invested in the ambiance of the shopping experience.
The Chanel company has filed a lawsuit against the RealReal, claiming that some Chanel products in its stores have been found to be not so real, that is, fake. It’s believed to be essential for Chanel customers to preserve a sense of exclusivity when they buy the product. Traditional department stores are worried that people will not want to buy brand-new clothing that’s much as much.
Ms. Wainwright, who is the founder, thinks that profitability is well on the horizon for this growing, popular company. The RealReal is well on it’s way to being a leader in this new industry. To see more about Real Real you can visit marketwatch.com