The leading luxury goods market has been growing tremendously in the past several decades, with more shoppers opting to sell their gently employed luxury goods like jewelry and clothing for cold, hard cash, in addition to purchasing the pre-owned, authenticated luxury products others.
Among the greatest beneficiaries of this tendency is The RealReal, a virtually eight-year-old shopping destination for its expanding population of folks that may not be prepared or able to buy a brand new Hermes Birkin bag but are eager to purchase one in like-new requirement for less. The idea — that appears to be functioning — would be to make a virtuous cycle, whereas the bag’s unique buyer gets the majority of that re-sale cost, then uses the money to purchase another brand new purse (or a used one) which may be redeemed at a later stage in time.
Another beneficiary of this trend: TrueFacet, a five-year-old, New York-based market that claims to possess over 40,000 watches and 55,000 bits of pre-owned authenticated jewelry and watches available in its website, which has recently started offering pre-owned timepieces directly through manufacturers such as Fendi Timepieces, Raymond Weil and Roberto Coin that currently associate with TrueFacet to take their preexisting timepieces with a manufacturer warranty.
Apparently, most shoppers are purchasing what they are jointly promoting. The organization, which had raised $14.7 million in financing from investors, seems to be closing in about a second $10 million around, judging by recently registered SEC paperworkthat reveals it has up to now raised $7 million in financing and is targeting $9.8 million entirely.
TrueFacet’s backers include Founders Co-op, Freestyle Capital, and Maveron, headed by spouse Jason Stoffer, that also happens to sit on the board of Dolls Kill, an apparel market that people wrote about on Monday.
TrueFacet has a tough competition from the area, such as Crown & Caliber, a six-year-old, Atlanta, Ga.-based business that has never declared external financing, also 15-year-old, Germany-based Chrono24, that has raised $21 million over recent years. Both market timepieces alone, nevertheless.
Additionally, it competes with The RealReal, that has increased almost $300 million from shareholders and sells clothes and luxury home decoration, in addition to watches and jewelry. (The company does not break out openly which of those categories outpace others concerning sales.)
Interestingly, such as The RealReal, that currently operates permanent offline shops in the New York and L.A., TrueFacet can also be crossing the chasm to the offline world, even though it’s taking baby steps toward this conclusion.
Especially, earlier this month, it declared a partnership using Stephen Silver Fine Jewelry, that sells timepieces to a lot of monied Bay Area VCs and other Silicon Valley bigs at shops in Redwood City and Menlo Park, Calif.. For the time being at least, the shopper will even sell bits out of TrueFacet’s collection.