The RealReal’s director of marketing Allison Sommer recognized the fact within her luxury consignment industry that ambiance created through the retail outlet experience enhances their customers’ purchasing experience and increases the dollar size of those purchases.
With their November, 2016 popup in New York City, the firm saw purchases grow to 6 times the value of those made through its online outlet. The company earned $2 million in gross merchandise sales, as well.
Management is building upon this success through their announcement that 2018 will be the year that The RealReal increases its expansion of its popup outlets throughout the U.S.
Noting the importance of the outlet experience to their buyers, and their bottom line, Sommer points to the 5 fold increase in business from San Francisco area customers online purchases, following their popup in the city during the 4th quarter of 2017.
Maintaining a presence at the street level affirms the company’s position among other luxury outlets notes Sommer.
The RealReal is eying Las Vegas as the next popup location, with the idea of introducing their successful model in areas that are unaffected by the cosmopolitan “popup frenzy” in the larger markets of New York and Los Angeles.
With a global membership count upwards of 7 million, the company knows the right mix of pampering and experience that is required to build a successful, high-end consignment business.
They build upon this through the premium their organization places on its customers. Affirmed in acquiring staff experience with backgrounds as diverse as Sotheby’s and Gucci, The RealReal honors its commitment of being customer driven as opposed to having a sales team that is primarily commission minded.
Originally focusing on apparel sales, the company branched into watches and designer jewelry following the requests of their consignors and customers. Acting on those leads, the highly successful product line expansion brought in $100 million in sales in 2016.
Among the talent responsible for the firm’s success, CEO Julie Wainwright, having built a strong reputation in startups beginning with the dot com era has seen the firm’s sales grow to $500 million in the 6 years since its founding. The RealReal is widely recognized as a leader within the luxury consignment marketplace.