Luxury Consignment Company for re-sales known as The Real Real is now looking to come up with about $100 million before it considers paving room for others and listing on the industrious stock exchange market. The Real Real specializes in the resale of high-quality, fashionable designer clothing, jewelry, stylish watches that bears notable brand names like Gucci, Prada, Louis Vuitton and Hermes among others.
According to the chief executive officer of The Real Real Julie Wainwright who is currently trying to pitch investors on the same project, the company will probably raise the entire amount from the look of things. Initially, with the help of angel investors, The Real Real raised over $170 million during its launch seven years ago.
How to Succeed
From the look of the mechanism of operation, The Real Real is likely to land another marketing deal as it works under a prestigious consignment model that allows it to stash up to 70 percent commission. This entirely depends on the value of the said item. Even so, the company does not have to purchase stocks or unsold items that have been returned to the consumer.
Besides, the firm employs gemologists, horologists as well as luxury experts for them to ascertain the viability of the items stored. This is in light of maintaining the standards of quality assurance. When interviewed in 2016, Julie Wright categorically stated that the value of the employed gemologists is equivalent to the authenticity of the products sold. Although this is an expensive investment, the returns are worth it as the same amount made from the proceeds.
The Real Real started out as a boutique investment for women’s luxury fashion. Until now, the business has branched out to menswear, art, jewelry, home décor as well as watches among others. Coupled with a brick-and-mortar geographical location, the company has impressive potential and is on the right path to delivering outstanding results.
More on the Real Real
Also important to note is the fact that the company is a handful venture filled with backed-up online businesses that specialize in the fashion industry.