RealReal, a seller of used luxury goods, employs over 100 authenticators to fight counterfeit items. It plans to go public this week.
Graham Wetzbarger, RealReal’s chief authenticator, shows how to spot a real Dior saddle bag: The ‘D’ on the hardware is slightly more bold and the serifs have rounded edges. Photo: The RealReal By Suzanne Kapner June 25, 2019 8:22 am ET As The RealReal Inc. prepares to go public this week, the online marketplace for used luxury goods faces a big challenge: weeding out the fakes.
Despite uncertainty over provenance, demand for previously owned luxury goods is on the rise, particularly among millennials who don’t attach a stigma to used products the way previous generations did. They see the secondary market as a way for fashion to be more sustainable by giving products a longer life. Designer brands have come under fire in recent months for burning unsold goods. In September, Burberry Group PLC said it would discontinue the practice.
The heat stamp on an Hermès Kelly bag is located beneath the front strap and will be either silver or gold to match the hardware. Photo: The RealReal Sanaa Himani said she regularly scours consignment websites, but feels most comfortable buying from RealReal. “They make a big effort to verify everything, and they also have a money-back guarantee,” said the 29-year-old Manhattan resident. RealReal will refund the purchase price if a buyer questions an item’s authenticity.
The company incurred a loss of $75.8 million for the year ended Dec. 31, on revenue of $207 million, up 55% from the prior year. Returns or order cancellations accounted for 29% of the total amount customers paid for goods in 2018. Last year alone, the company added 2.6 million items to its stable.
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