RealReal is a luxury consignment company which had its first successful brick-and-mortar location in New York. According to DigiDay, the RealReal plans to make 2018 its “pop-up” year by furthering investing in their in-store experiences. RealReal’s director of marketing, Allison Sommers has remarked that the hope is to legitimize the company by giving it a “street level” presence.
The RealReal’s previous pop-up in 2016 generated a revenue of $2 million. Since then, the retailers have been very motivated by the store’s success that they have been wanting to try other pop-outs throughout the nation. Their street level orders are currently six times that of their online ones. Their successful pop-up in San Francisco in November 2016 helped increase their profits by 500 percent.
One of the RealReal’s secrets is staying aware of and staying up-to-date on the latest trends of men and women’s luxury fashion, home décor and fine jewelry. Another route to their success has been their appearances on “The History of Chanel” and “How to Value a Diamond”. The RealReal has enjoyed success so far but has had to work harder as they’ve seen competition, such as ThredUp catching up to them. Sommers has stated that RealReal’s main challenge is to give people an outlet other than the landfill for their nice clothes, jewelry, décor. Having brick-and-mortar locations seems to remain the top secret of their success.
RealReal was founded by Julie Wainwright who is also known for starting up circles in a variety of things, including winding down the Pets.com e-commerce during the dot-com era. She’s attributed RealReal’s success so far to honing in on the luxury market and taking full ownership of their products and inspecting them before they go out to the floor or are shipped out. By 2016, she had already sold $100 million worth of watches and other fine jewelry.