The RealReal is valued at $1 billion, and their customers are still saving money by buying pre-owned articles or by renting them. In fact, customers of The RealReal and Rent the Runway get emails letting them know just how much they are saving by making their purchase through their companies over buying them brand new. These “reports” asp show how much they are helping Mother Nature as well by “recycling clothing, accessories, and shoes rather than buying them new. The RealReal wanted their customers to know that by buying consigned designer items, they are making a huge impact on how healthy the environment is.
Rent the Runway has quite an elaborate report that they send out that goes into what they rented and how much their purchases would have cost brand new. It’s also a way for the companies to drive home the loyalty of their customers. This is a way that they can deliver a personalized service that you won’t find elsewhere. Emails are also an effective form of communication and are a way to educate customers while creating a touch point that can potentially lead to further sales.
The RealReal, founded by Julie Wainwright, is a consignment store that specializes in selling designer goods that are gently-loved. The e-commerce store has found a niche that wasn’t already there, and they are very successful because of it. The RealReal has received $123 million in funding and is expected to get up to as much as $500 in gross merchandise. This can be accredited to their mobile app, which has made the company more accessible to their customers and has made it very convenient to make purchases everywhere and on the go.
The RealReal has gained a reputation for making sure that every item that they sell has gone through a very rigorous authentication process. The RealReal’s primarily an online store, but they are also located in New York and is expected to add more physical stores so that their customers can shop in person if they are in the area or if they prefer a more intimate shopping experience.