Luxury clothing and accessory retail site The RealReal secured $50 million in funding from Growth Hill Partners this week. In the same week, L2 released the first report ranking the digital performance of luxury resale sites, and The RealReal took the top spot due to its best-in-class site experience and online visibility. A few strategies that separate The RealReal from the pack:
Robust product pages on The RealReal contain detailed information that nudge skeptical shoppers towards a purchase. While written content on the site is minimal, editorial style images encourage browsing and product discovery.
The RealReal invests heavily in search and bids directly against traditional luxury retailers on popular items such as “Louis Vuitton wallet”.
Instagram is an important tool for selling to luxury clothing and accessory fans, and The RealReal invests in shoppable sponsored ads to generate impulse buys ad browsing. While resale sites generally have smaller followings than their luxury counterparts, they successfully leverage their followings to generate sales.
The RealReal also engages its most loyal users with a tiered loyalty program. The tiered loyalty program offers tangible benefits that don’t cut into the brand’s bottom line: two-day shipping, exclusive content, and early access.