The RealReal is an upscale resale website that was founded by CEO Julie Wainwright. The company recently secured new financing and is aiming to raise another $100 million, which would already add to the $170 million the company has managed to raise in the seven years they have been open. The RealReal specializes in the resale of clothing and accessories from brands such as Louis Vuitton and Gucci.There is speculation as to why the company and their investors are seeking to move forward with additional fundraising efforts. Some think that they haven’t grown enough to generate public interest and may not yet be ready to function as a stand-alone company. Others feel that the company actually has potential beyond what was previously thought in regards to the luxury second-hand market. RealReal goes to great links to minimize knock-offs and fakes that come through the channels. They employ an in-house team of experts to authenticate the merchandise before they offer it for sale. The company uses a consignment business model in which they offer the customer anywhere from 50%-60% of the sale price.
The RealReal is a company that is appealing to a growing market. Many people find the options of buying second-hand luxury clothing and accessories very appealing. They also feel more confident ordering from a company that takes a wide variety of measure to ensure authenticity and quality. People know that they get a quality and authenticity guarantee, which makes buying luxury items from RealReal safer than other channels online.
Julie Wainwright began a small company from her home and has managed to create a thriving company that practices modern business standards and believes in sustainability. RealReal is expected to continue to see growth and continues their efforts to raise additional funds to help increase their reach and productivity.