The RealReal’s Annual Resale Report Reveals Top Trends in Luxury Resale

Rhea-AI Summary

SAN FRANCISCO, Aug. 25, 2020 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL) released its annual Resale Report, highlighting luxury resale trends amid COVID-19. Sales of high-value items surged, with jewelry sales growing 22x more than low-value items. Louis Vuitton topped the luxury brand rankings, overtaking Gucci. Demand for understated luxury increased significantly, with a 486% rise in luxury streetwear. The report indicates a 27% increase in new consignors, primarily millennials and Gen Z, reflecting a shift toward sustainable shopping practices.

Positive

• High-value jewelry and handbag sales increased significantly, with jewelry growing 22x and handbags 2.4x compared to low-value items.
• Louis Vuitton became the top luxury brand, with Gucci leading in men's categories, driven by millennial and Gen Z demand.
• Increased interest in luxury resale with a 22x rise during COVID-19, indicating a strong market for sustainable shopping.

Negative

• None.

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

FAQ

What were the key findings from The RealReal's 2020 Resale Report?

The RealReal's 2020 Resale Report showed significant growth in high-value item sales, with luxury items outperforming low-value categories during COVID-19.

Which brands topped The RealReal's luxury resale rankings in 2020?

In 2020, Louis Vuitton overtook Gucci as the top luxury brand in resale, while Gucci remained the leading men's brand.

How did COVID-19 impact luxury resale trends according to The RealReal?

COVID-19 led to a 22x increase in interest in luxury resale, with growing demand for high-value items and the rise of new consignors, mainly millennials and Gen Z.

What trends emerged in luxury shopping during COVID-19 according to The RealReal?

The report highlighted a shift towards stealth luxury, with understated styles gaining popularity over statement pieces and a surge in luxury streetwear demand.

How much did art consignment increase during COVID-19, based on The RealReal's report?

Art consignment increased by 150% during COVID-19, reflecting an uptick in consumer interest in home and art items.