There?s a tension that exists between luxury brands and the startups that specialize in the resale of secondhand items. While these companies are profiting off of consumers by reselling items, a practice luxury brands oftentimes frown upon, they?re providing valuable insights about the luxury market.
?We work with retailers. But the first year we started, they would say, ?We hate you, go away.? Now they say, ?We have to work with you, we just don?t know how yet,?said Julie Wainwright, CEO of luxury online consignment shop The RealReal, during Recode?s Code/Commerce event during Shoptalk.
The resale companies argue they?re helping luxury brands. They provide safe and legal options for secondhand goods while foiling counterfeiters and even sending shoppers back to retail stores. Every item on The RealReal and luxury secondhand marketplace Vestiaire Collective is authenticated and approved by a staffer before it can be sold through the sites. Online consignment store Tradesy?s digital authentication algorithm has a 99.7 percent accuracy, according to the company?s claims. The resale market also acts as a point of entry-level access for young customers who can?t yet shop full price luxury, said Sébastien Fabre, CEO of Vestiaire Colelctive.
Despite the their belief that they?re helping, not hurting brands, not all luxury fashion houses see the consignment companies as allies.
?Brands might not like us because maybe they?re not at all comfortable with their products being...