The luxury online resale site, RealReal is launching several beauty products and adding them to its assortment of expensive items. In keeping up with its luxury ethos, the brick-and-mortar e-commerce site located in the SoHo district in Manhattan and one Las Vegas pop-up outlet, seems to be testing out beauty products if they will also add up to their revenues.
Industry insiders reveal that beauty products were available at The RealReal’s SoHo store since last year’s holiday season as well as in its Las Vegas pop-up. Rati Levesque, the store’s chief merchant said that they are testing a group of curated beauty products in their brick-and-mortar store as well as in their website. It seems that they want their customers’ journey to be complete.
Levesque revealed that they want to be regarded as their luxury customers’ dependable destination where they can find the best coveted luxury product selection for all categories from beauty to clothing. She also admitted that they are currently in the early stages of development but they are planning to invest heavily in the beauty category in the following months.
Apparently departing from its usual business model that is consignment-based, the beauty products that The RealReal is selling are new, according to reliable sources. But in keeping with the store’s sustainable luxury niche, the brands of beauty products they are selling are of the clean variety.
These brands include the likes of Cap Beauty, In Fiore, Grown Alchemist, Rahua, Maison Louis Marie, Uma Oils, Ellis Brooklyn, Kahina Giving Beauty, Julisis, Babo, Olio E Osso, Pai Skincare and many more. Reports indicated that these items are sold directly to The RealReal and not through the usual third-party distributors.
It appears that The RealReal has joined the bandwagon of stores and companies adding beauty products to their merchandise. Last year, Madewell, Free People and Anthropologie launched their own distinguished beauty items. In addition, forever 21 has also opened Riley Rose stores, eight in all. They are selling products that are friendly to the Millennial’s.
Industry experts believe that this is a way that these brick-and-mortar stores are attracting customers to their outlets as well as the authentication of their particular brand positioning. There are reports indicating that it is very likely that The RealReal’s approach is more of the latter.
Whatever the case, Julie Wainwright, chief executive and founder of the company, stated in a Women’s Wear Daily interview in October that they are launching home and beauty brands and selling these new products in their store. She observed that the lines are getting blurred somewhat. Wainwright also added that they will allocate space for special sales and admitted that they are already discussing this with some people.
The company started small with the founder working only at her home, in a kitchen table. She visited consignor homes using a U-Haul vehicle. Today, the store is a unique site offering luxury items on consignment. It now employs more than 600 people in multiple locations all over the United States.
The company is accepting and shipping its products all over the world. Established in 2011, RealReal now has more than 4.5 million people signed up and has sold more than 2 million products. In 2015, the company’s total sales are $200 million, double the amount it sold in 2014.