The boutique relies on deliveries from around 3,000 consignees to maintain high inventory levels, and Picherit and Isaacman say their top performing brands are a mix of local high-end fashion – Camilla and Marc, bassike and Zimmermann – and international behemoths such as Chanel, Gucci and Dior. The most expensive item they’ve sold on Instagram is a Chanel bag for $ 9,000.
Resale is exploding and, like many fashion trends, COVID-19 has accelerated its growth. Industry insider website The Business of Fashion has called the resale a “big winner as the pandemic plunges the economy,” and even established fashion houses are getting into the act.
Levi’s has long taken second-hand jeans, repaired them and sold them. American sports brand Lululemon recently announced that it will start buying back workout clothes for resale, and Brooks Brothers has a second-hand section on its website.
In October, Gucci and resale site The RealReal teamed up on an online store featuring “vintage” Gucci pieces, and European luxury giant Kering (owner of Gucci) recently allocated $ 216 million ($ 280 million). dollars) to invest in French second-hand retailer Vestiaire Collective. .
Shopping is a fundamental part of human connection. It’s not just product sourcing, it’s connection, it’s identity.
– Manish Chandra, Managing Director of Poshmark
Poshmark, a resale site where users sell everything from clothing to housewares, was recently launched in Australia, only its third largest market outside of the United States and Canada.
“When we look at a market, do we think how big is online commerce and e-commerce? Says Manish Chandra, CEO of Poshmark. “Australia saw an explosion in e-commerce last year. Second, we looked at the country’s attitude towards sustainability. We have found that Australians love second-hand shopping, not just to buy, but also to make money off their old clothes. “
Like Trading in Style, Chandra says Poshmark has a built-in community element. The site began in 2011 with live “Posh Parties” where Chandra and her team handed out iPods – iPhones didn’t yet exist – and encouraged users to share details online. of the items they were selling. “We’ve lost a lot of iPods,” he says.
The pricing challenge
As of February, Poshmark is listed on the Nasdaq at $ 42 per share and is worth around $ 3 billion. Chic parties have become PoshFest, which – if the pandemic permits – will be held later this year in the United States, with live shopping and pop-up events.
“Shopping is a fundamental part of human relationships,” says Chandra. “It’s not just product sourcing, it’s connection, it’s identity. “
Picherit and Isaacman say that the price of second-hand items is difficult. Typically, they reduce the original recommended retail price by 30%, but factors such as wear and tear, the item’s age, and its market attractiveness all have an effect.
“Those Chanel ‘Dad’ sandals that are sold out?” said Pichérit. “We could sell them at full price, or even more. You can’t find them anywhere, so people are desperate.
Shippers are paid on a sliding scale, ranging from 50 percent of the total sale price for items under $ 999 to 80 percent for those over $ 6,000.
And while buying second-hand has a halo of sustainability, Picherit and Isaacman say most of their customers are looking for a good investment rather than looking to save the world.
“We have a lot of customers who say they only buy through us, not retail stores,” Isaacman says. “They get a better price with us, and the clothes are in near new condition.”