Luxury Brands Become More Entrenched; High-value Purchases Spike During COVID-19

SAN FRANCISCO, Aug. 25, 2020 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)--the world’s largest online marketplace for authenticated, consigned luxury goods--today released its annual Resale Report. Based on sales and demand data from more than 17 million members and millions of items sold, the report charts the current state of luxury resale and COVID-19’s impact on what consumers are buying and selling.

Despite the current economic climate, shoppers doubled down on safer investments from established luxury brands offering timeless styles and strong resale value. Sales growth of high-value items, across numerous categories, outpaced that of low-value:

• High-value jewelry sales grew 22x more than low-value
• High-value handbag sales grew 2.4x more than low-value
• High-value watch sales grew 6x more than low-value

For the second year in a row, Gucci and Louis Vuitton remain the most in-demand brands within luxury resale. Louis Vuitton edged its way over Gucci for the No. 1 spot for the first time, while Gucci remains the No. 1 Men’s brand for the third year in a row. Driven by a surge in demand for millennials and Gen Z, both brands continued to strengthen their lead over No. 3 brand Chanel.

“In a bright spot during these difficult times, brands, shoppers and consignors alike are engaging in the circular economy,” said Rati Levesque, COO and head of merchandising for The RealReal. “Gen Z, millennials and men are the new faces of luxury shopping, and the brands in tune with what they want are rising to the top.”

Other trends that rose to the top during COVID-19*:
Stealth luxury favored over logomania:

• Demand for understated handbags was nearly 5x stronger than that of statement handbags
• Sales for quieter men’s styles grew 2.4x more than statement styles 

Stealth luxury favored over logomania:

• Demand for understated handbags was nearly 5x stronger than that of statement handbags
• Sales for quieter men’s styles grew 2.4x more than statement styles

Buyers embrace luxury labels’ streetwear designs:

• Balenciaga becomes No. 1 brand in streetwear
• Demand for luxury streetwear spiked 486 percent in the past two years

Buyers and sellers turn to Home/Art like never before:

• Art consignment was up 150%
• Customers spent 26 percent more on home items compared to apparel, quarter-over-quarter

As brick-and-mortar came to a standstill, brands and retailers turned to luxury resale to connect with buyers and give new life to pieces past and present – interest increased 22x during COVID-19.* For consumers, economic uncertainty, heightened environmental consciousness and access to virtual appointments strengthened resale’s appeal. New consignors during COVID-19* increased 27 percent, of which 37 percent were millennials and Gen Z.

*During COVID-19 measures change from March/April to May/June 2020

About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, consigned luxury goods. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have 150+ in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by hundreds of brands, from Gucci to Cartier, supporting the circular economy. We make consigning effortless with free in-home pickup, drop-off service, virtual appointments and direct shipping for individual consignors and estates. At our stores in LA, NYC and San Francisco, customers can shop, consign, and meet with our experts. At our 10 Luxury Consignment Offices, four of which are in our retail stores, our expert staff provides free valuations.

Press Contact:
Erin Santy
Head of Communications
pr@therealreal.com

Investor Relations Contact:
Paul Bieber
Head of Investor Relations
paul.bieber@therealreal.com

 

 

 

Source: The RealReal