The fashion industry is quite profitable. Nevertheless, the manner in which you approach this industry determines your success rate. With that said, it is good to acknowledge the business models of companies such as RealReal. As for RealReal, the fashion company was established seven years back, and the organization has been thriving accordingly. Julie Wainwright is the woman behind the founding of the brand.
RealReal engages in the sale of goods that have been pre-owned before. Additionally, the RealReal also deals with commodities that only come from reputable brands. Another key point to factor in is that the RealReal thoroughly counter-check the legitimacy of the products that they are reselling to make sure that there are no counterfeits. By doing so, RealReal always guarantees their clientele quality goods from reputable brands.
The RealReal has also engaged in fundraisers. One of the fundraising events targeted $115 million; however, things took a turn for the better, the total amount raised was $288 million. Although the company cannot be categorized as profitable at the moment, the company’s annual revenue has been amounting to $500 million in terms of sales. Additionally, it was mentioned earlier that the RealReal only deals with goods from reputable brands. Well, the brands are such as Roles, Gucci, among others. As for commodities, the RealReal resales goods such as clothes and accessories such as watches and other forms of jewelry.
At times, people buy various items, and they often decide to dispose of them afterwards. Some of this items are slightly used, and they can even be classified as brand new. Julie Wainwright acknowledges that selling these pre-owned items increases the life duration of most of this products. With that said, the RealReal also provides their clientele with a way to countercheck the resale value of the various commodities that they purchase and also sell afterwards; this tactic is improving on the purchase of various reputable brands.
Another point to factor in is that the RealReal is an e-commerce based company that always posts the various items they are selling on their site. Additionally, the products are displayed after they have been counterchecked for authenticity. Anyone who feels like disposing of any items may ship them for free to the RealReal. The company also takes some percentage as a commission depending on the price range of the commodities.
Find out more about The RealReal: https://techcrunch.com/2017/05/05/the-realreal-is-opening-a-real-store-in-new-york-and-other-news-from-ceo-julie-wainwright/