RealReal, IKEA, H&M & Co invest a lot in second hand trading platforms.
The IPO of the second-hand platform Realreal shows how "hot" things have become. Large chains such as H&M and Ikea also want to get involved.
Both a careful approach to the environment and brand awareness are in vogue. If a young consumer wants to live these trends, there is usually a big hurdle - her own budget. Trendy brands are expensive. That's why it's no wonder that "Second-hand" has experienced a rapid upswing in recent years. This means that the contemporary buyer no longer associates the slightly dusty and cosy ambience of flea markets and brothels with it.
Billy goes back.
The booming second-hand business mainly takes place via the Internet or established chain stores. Ikea has been able to sell furniture back in good condition for a year now. The Swedish furniture store then sells the used furniture again. However, Ikea does not have the best reputation for stability and value. Interesting alternatives for investors are opening up in the USA.
Two weeks ago, Realrealwas listed on the Nasdaq stock exchange. In the first hour of trading, the price jumped 50% to $30. Over the past few days, the price has levelled off just below $26. The company is thus valued at almost $ 2.2 billion. Realreal operates a platform on which luxury goods such as handbags, watches and dresses from Gucci, Chanel, Hermès and other suppliers are resold.
Daily 1400 articles are examined.
The company checks all the goods and sets a price, a commission is due on the sale. On sales of $711 million, Realreal collected $207 million in the past fiscal year. The company told Bloomberg that in 2018 it checked 1400 items daily, priced them, described them in detail, photographed them and put them online. The company employs numerous specialists in this field. This is a great advantage for the seller, compared with large mixed-goods providers such as Ebayand Facebook. But even Realreal is not immune to counterfeiting. Last year, Chanel sued the platform because it allegedly circulated counterfeit goods from the luxury manufacturer.
In terms of visitor numbers, Realrealis only number three in the rapidly growing US second-hand clothing market. Poshmarkin particular is much larger, but Thredupalso attracts more visitors. However, these suppliers sell much cheaper fashion items and are not listed on the stock exchange.
Sneakers for 20 000 dollars.
Large clothing chains have also recognised the potential of the second-hand market. The US chain Neiman Marcus has participated in the Fashionphile platform, which has a business model comparable to Realreal. The global fashion giant H&M is experimenting with its own second-hand line "Other Stories" and the Swedish platform Sellpy.
The Stockxsneaker exchange could soon become a candidate for the stock exchange. Here, rare sneakers change hands for $20,000. Among the first investors - the company was founded in 2016 - were rapper Eminem, actor Mark Wahlberg and Salesforce founder Marc Benioff. Stockxcompleted another financing round a few days ago. The company received $110 million, the valuation is around $1 billion.