The RealReal Releases Luxury Shopper Insights Study
The RealReal (NASDAQ: REAL) released its 2021 Luxury Shopper Insights Study, revealing significant shifts in luxury buying behavior. Luxury resale growth is outpacing the primary market, with a 14-point increase in brand awareness since 2019. Men represent a key demographic, being three times more likely to exclusively buy luxury. Additionally, 48% of luxury shoppers plan to purchase luxury resale in the next two years. The company emphasizes sustainability, noting a 13% increase in shoppers citing it as a buying factor. The study indicates ongoing opportunities for market expansion despite current challenges.
- 14-point increase in brand awareness since 2019, significantly outpacing competitors.
- 48% of luxury shoppers are likely to purchase luxury resale in the next two years, indicating strong market demand.
- A 13% increase in shoppers noting sustainability as a key factor in purchasing decisions.
- Luxury purchases at outlets and department stores have declined significantly by 10 and 7 points, respectively, since 2019.
- Only 24% of luxury shoppers currently purchase pre-owned items, indicating room for growth in market engagement.
Luxury buying patterns have changed dramatically; Leaders emerge in expanding resale market
SAN FRANCISCO, Sept. 14, 2021 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today released findings from its latest Luxury Shopper Insights Study. Based on national research led by Lisa W. Miller & Associates Research, the 2021 study uncovers and identifies key behavioral shifts among luxury shoppers and their impact on retail and resale.
“As the luxury resale market continues to evolve, its growth is significantly outpacing the primary market,” said The RealReal Chief Marketing Officer Orr Shakked. “There is a distinct divide in resale, with just five marketplaces, including The RealReal, having meaningful aided awareness. In fact, The RealReal has seen a 14 point awareness increase since 2019, a more than 50 percent greater increase than any of the other 24 resale brands researched.”
Luxury buying patterns have changed dramatically
- Outlets and department stores saw the greatest declines in luxury purchases, down -10 pts and -7 pts since 2019
- Luxury resale has attracted more new buyers since 2019 than all previous years combined
Male shoppers represent the greatest luxury growth opportunity
- Men are ~3X more likely to exclusively buy luxury
- Men are 1.5X more likely to constantly clean out their closets
Awareness drives major divide among resale marketplaces
- Among 24 resale players researched, only these five have aided awareness above
30% : eBay, Poshmark, thredUP, The RealReal and Sotheby’s
Nearly half of luxury shoppers plan to buy luxury resale
48% of luxury shoppers are very or extremely likely to purchase luxury resale over the next two years (+6 pts since 2019)- Resale purchase intent is up across every luxury category, most notably jewelry and watches (+13 pts and +12 pts since 2019)
In evolving market, customer experience is critical to adoption
- While The RealReal’s NPS improved, many other players declined, indicating the need for improvement to continue market expansion
“Resale has seen record growth over the past two years, but only 24 percent of luxury shoppers currently purchase pre-owned pieces. Bringing more new shoppers and consignors into the circular economy is essential to creating a more sustainable future for fashion,” stated Julie Wainwright, founder and CEO of The RealReal. “We’ve seen a 13 percent increase over the past two years in The RealReal shoppers citing sustainability as a deciding factor to purchase from us. It’s critical we continue raising awareness of the negative environmental impact of fashion and resale as a solution every one of us can adopt to help reduce the garbage truck’s worth of textiles that are landfilled or burned every second.”
To view The RealReal’s 2021 Luxury Shopper Insights Study, please visit www.therealreal.com/trr/2021-Luxury-Shopper-Insights-Study.
About The RealReal Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with more than 23 million members. 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 hundreds of 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 thousands of brands across numerous categories—including women's and men's fashion, fine jewelry and watches, art and home—in support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We do all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as handling shipping and customer service. At our 17 retail locations, including our 14 shoppable stores, customers can sell, meet with our experts and receive free valuations.
Press Contact:
Erin Santy
pr@therealreal.com
FAQ
What does The RealReal's 2021 Luxury Shopper Insights Study reveal?
How much has brand awareness for The RealReal increased since 2019?
What percentage of luxury shoppers plan to purchase resale luxury items in the next two years?
What demographic represents significant growth potential for luxury buying according to the study?
How does sustainability impact buying decisions in luxury resale?
