The luxury resale e-commerce site The RealReal today published a report that provides a window into the consumer’s tastes and mind-set. Based on sales and demand data from millions of shoppers and millions of items sold in the past year, the company believes the report provides a definitive look at the shopping shifts and rising trends in luxury resale.
Besides e-commerce, The RealReal operates physical stores and authentication and valuation centers for high-end brands. Having sold 9.4 million items since its launch qualifies The RealReal as something of a proxy for the secondhand luxury market. Its June initial public offering saw shares jump nearly 50 percent to $29.90 in the first minutes of trading, giving The RealReal a $2.5 billion market capitalization.
According to The RealReal, 32 percent of its customers have virtually given up on fast-fashion chains in favor of luxury resale, while more than 80 percent utilize the consignment marketplace because of sustainability.
As opposed to the hype resell market—where deadstock kicks and streetwear remain highly coveted—The RealReal primarily specializes in gently-worn luxury and streetwear garments. The RealReal points out that brands like Off-White™, YEEZY, Gucci, Balenciaga, Supreme, and BAPE sell incredibly quick for them, as people consider purchases from these labels as an investment. With upscale workwear also in high demand, items such as cargo pants have been flying off the shelves thanks to Stone Island, Rick Owens, and Greg Lauren, to name a few.
Other streetwear brands and items that currently have considerably high resale value are YEEZY and YEEZY x Adidas sneakers which go for 144 percent of their original price, Supreme and its various collabs (109 percent), and Off-White™ (104 percent). In terms of just sneakers, Off-White™ x Nike is priced up by 522 percent, Off-White™ x Converse Chuck Taylor by 461 percent, and Adidas x BAPE by 272 percent.
According to The RealReal, Gucci and Louis Vuitton are the most sought after brands in luxury resale. Demand for Gucci is up 78 percent, making it the top-ranked reseller for men and women.
“Gucci and Louis Vuitton have been at the forefront of embracing culture changes and adapting to the shifting demographics of luxury buyers,” says Rati Levesque, COO, and head of merchandising for The RealReal. “We’re seeing that pay off with increasingly strong demand for both brands in luxury resale that has distanced them significantly from the other top brands.”
As Gucci continues to blur the lines between luxury and streetwear, customers purchasing both streetwear and luxury brands is up 56 percent. Subsequently, data shows that streetwear buyers prefer Gucci over all other luxury labels. Streetwear is still surging at a rapid rate, however, up 281 percent in large part due to millennials, Generation X, and women. While many are being drawn to Gucci because of its playful collaborations—from Disney to SEGA — others prefer Louis Vuitton and its collaboration with Supreme and new menswear collections from Virgil Abloh.
Meanwhile, TheRealReal has narrowed down a popular selection of “entry-level pieces,” essentially starter luxury gear for consumers looking for a balance of good value, versatility, and a long-lasting appeal. These include Louis Vuitton’s low-top sneakers, Gucci loafers, Prada derby shoes, and camp shirts—largely spurred by the popularity of Prada’s boxy camp collar button-downs.
Overall, the demand for streetwear resale is highest in the fall/winter season, as shoppers aim to layer up and land new outerwear styles. For more on the current trends in streetwear and luxury resale, be sure to check out The RealReal’s newly published Resale Report.
https://www.highsnobiety.com/p/luxury-streetwear-resale-report-2019/