Rebag's Ability To Instantly Tell What Your Handbag Is Worth Is A Game Changer In The Resale Race

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Rebag

Meet Clair. She knows current market data like the back of her hand. Clair’s not a savvy millennial or value-conscious Gen Z shopper, she’s Rebag’s new “comprehensive luxury appraisal index” for resale. And she’s retail’s latest disruptor.

Within seconds, Clair will reveal your desired bag's current and projected resale value, and voila, the shopper becomes the investor. The closet full of handbags becomes the investment portfolio.

Rebag, which lets customers buy and sell used, high-end handbags, introduced Clair last month. It's hard not to compare Clair to the Kelley Blue Book, which offers up valuations for cars. Still, Clair boasts a more refined taste with her "luxury resale taxonomy that allows you to identify any handbag down to its designer, model, style and size." It's paired with a condition grading system to identify signs of wear, "eliminating subjectivity objectively." 

Rise of resale

The rise of resale is no secret: In an interview of 20 of the top senior executives of top retailers conducted by Global Fashion Agenda, 96% claimed they wanted to advance their circular fashion efforts by 2020. It’s also no secret as to why. The resale market, already worth $24 billion, is projected to grow to $51 billion by 2023, growing 1.5 times larger than fast fashion over the next decade, according to ThredUp’s 2019 Resale Report.

And when it comes to the personal luxury market, it seems like the stigma of secondhand is rubbing off, too.

Findings from the 2019 True Luxury Global Consumer Insight report by Boston Consulting Group (BCG) and Altagamma showed that resale reached 7% of personal luxury market value in 2019, and is growing 12% per year. The report considered 12,000+ “true luxury” purchasers who met a standard threshold of spending on consumer luxury goods and services, averaging approximately €39K/ $44,000 in 2019. 

Out of true luxury consumers, 34% said they sell used products, and 26% reported buying secondhand products. It seems that holding a sustainable worldview has finally influenced purchasing behavior enough to re-define luxury values. Instead of having a closet full of clothing they only wear once in a while, women are choosing to pay to cycle through new items and embracing modular, rotating wardrobes. In essence, we’re paying to lease clothing—and we like it. 

We know lower ticket price is not the primary draw for the true luxury consumers; what they’re drawn to is the inherent value of owning luxury items boosted by the secondhand market—think, limited editions or sold-out collaborations.

Gen Z is the next luxury generation—and Rebag knows it

While secondhand shopping attracts all ages, young shoppers are driving the growth of the resale market. With millennials (ages 23 to 38) and Gen Z (ages 18-24) leading the secondhand charge and adapting 2.5 times faster than any other age group, according to ThredUp. Resale has grown over 21 times faster than any other retail apparel market over the past three years.

Traditional retailers seem to be scrambling to understand this new generation, but Gen Z’s preference for resale comes from their core, identifiable values: sustainability, affordability and authenticity. Gen Zs care about the climate and the future of the world they’re inheriting, and circular fashion speaks to their desire for limiting environmental footprints and living sustainable lives: recycling, consuming fewer resources and creating fewer carbon emissions. But, they also want instant gratification for their e-conscious choices. And speedy delivery and access to services all at the swipe of a card or tap of a phone.

When it comes to capturing the hearts of Gen Z, Rebag is doing everything right.

In addition to lifting the shroud of luxury pricing with Clair, they’ve also opened nine gorgeous and luxe-feeling brick-and-mortar stores, creating the experiences Gen Zs want by touting Instagram-able Birkin walls and in-person authentication stations. They’re cultivating loyalty with their Gen Z customers who demand unique IRL experiences, transparency with their shopping choices and authenticity from their brands. 

As Gen Zs age and their luxury buying power increases, Rebag will already have cultivated their trust. It’s a smart move— more luxury brands will soon be catching on and trying to cultivate their brand affinity with Gen Z early on.

Rebag

Authenticity and quality, guaranteed

Authenticity, now a buzzword in most conversations around Gen Z, is at the heart of Rebag’s success story and the center of their unique disruption.

Companies like StockX and Thredup have harnessed technology to upload and authenticate thousands of products. But, in the world of luxury appraisal, authenticity has continued to be an Achilles heel, leaving the consumer with risk at the forefront of their purchases. For instance, TheRealReal has faced questions over its ability to catch fakes before they reach a customer. Plus, with luxury brands like Chanel still resisting and undermining the resale movement, trust has been the missing element in the equation of luxury resale. 

For sellers and buyers alike, Clair offers a free, instant evaluation of a handbag’s value—regardless if you want to sell.

It starts with a luxury resale taxonomy that identifies each bag from its designer all the way to model, style and size. Next, Clair walks you through a grading system to identify the bag’s state of wear from “excellent” to “good.” For example, wear on corners or handle darkening, exterior scratches or marks. That’s followed by the do's & don’ts guide to submitting photos.

After a quick calculation, Clair will present the bag’s value and the price Rebag would pay for it. Want to sell? You’ll quickly get a prepaid shipping label to mail your bag. Then, Rebag vets and white-glove inspects the bags, and within 2-3 business days, you’ll be paid.

Rebag

Inside Clair, you can view Rebag’s in-house statistics regarding bags’ retail prices vs resale value, based on production dates, condition and current trending styles. They also plan to share their recommendations for buying and selling each quarter, just like the stock market. 

So, what’s all the fuss about? While other major resale platforms have their own internal systems for pricing, Clair is the first external database of its kind openly sharing market value. Likewise, Rebag buys bags directly (and quickly) from its sellers versus consigning them, bringing all the burden of inventory onto themselves. Questions of authenticity become a lot more important when it’s on the company dollar, so they’ve become experts at authenticating and assessing handbags. 

“Our authentication team...is bullet-proof for us,” said founder Charles Gorra. “When you send a bag to us, we only pay after our authentication is done... As a buyer, of course, we have a money-back guarantee, lifetime guarantee, when it comes to authenticity.”  

For many people, luxury resale felt like it had strings attached. Now, buying a handbag from Rebag comes with extra security attached. 

Luxury secondhand: A new economy

Rebag’s success is symptomatic of a broader shift in retail. A new secondary economy is on the horizon and we’re witnessing the first steps in that direction.

Clair is the frosting of the story, but resale technology is the cake. It seems that in this equation, everyone is winning. Rebag, secondhand sellers, secondhand shoppers—everyone eats cake. Rebag’s tech is both adapting to and enabling a change in customer habits, significant of a larger shift in the industry around the secondary market. They know that circular fashion is transparent, socially-conscious, accessible and easy to use. And, with their valuation feature, Rebag is revealing the market value of a good to a customer, something that most current owners of luxury handbags had been missing. 

Those who were fearful of selling, or who had never even considered resale, are now joining the market. And confidently, at that. Because of resale technology, we’re seeing true luxury consumers selling their prized items. Now, an entire second layer of customers (like Gen Zs) who were previously unable to purchase luxury items at full price, are shopping, too. It’s not used; it’s pre-loved. 

People have always thought their handbags have held value, even while they were sitting in dustbags on the shelf. The ability to trade handbags like stocks with better speculation has changed the game, not only when it comes to authenticity and trust, but also for circular fashion buying habits. Thanks to platforms like Rebag, there’s a new level of transparency of price and authenticity, and it's driving luxury consumers’ interest in the resale world.

The race for luxury resale

Rebag investor Birgir Ragnarsson said when it comes to the resale market, “Rebag both provides an entry point to the luxury ecosystem and sustains it.” He’s absolutely right. Rebag has the tech, and I’m sure we’ll see their proprietary pricing and transparent evaluation tools evolve in 2020. I also guarantee this tech won’t be limited to handbags. 

It’s without a doubt that resale is the future of our industry, and in the face of a looming recession, the entire luxury ecosystem could likely rest upon it. 

The question remains: Is Rebag just first in a line of fashion retail companies that are, well, technology companies? Rebag may have a competitive edge today, especially when it comes to authenticity and speed-to-market, but I wager there’s someone hot on their heels, whether it’s The RealReal, Thredup, Poshmark, or a resale innovator we have yet to meet.

The resale race has just begun—who will come out on top?

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Rebag

Meet Clair. She knows current market data like the back of her hand. Clair’s not a savvy millennial or value-conscious Gen Z shopper, she’s Rebag’s new “comprehensive luxury appraisal index” for resale. And she’s retail’s latest disruptor.

Within seconds, Clair will reveal your desired bag's current and projected resale value, and voila, the shopper becomes the investor. The closet full of handbags becomes the investment portfolio.

Rebag, which lets customers buy and sell used, high-end handbags, introduced Clair last month. It's hard not to compare Clair to the Kelley Blue Book, which offers up valuations for cars. Still, Clair boasts a more refined taste with her "luxury resale taxonomy that allows you to identify any handbag down to its designer, model, style and size." It's paired with a condition grading system to identify signs of wear, "eliminating subjectivity objectively." 

Rise of resale

The rise of resale is no secret: In an interview of 20 of the top senior executives of top retailers conducted by Global Fashion Agenda, 96% claimed they wanted to advance their circular fashion efforts by 2020. It’s also no secret as to why. The resale market, already worth $24 billion, is projected to grow to $51 billion by 2023, growing 1.5 times larger than fast fashion over the next decade, according to ThredUp’s 2019 Resale Report.

And when it comes to the personal luxury market, it seems like the stigma of secondhand is rubbing off, too.

Findings from the 2019 True Luxury Global Consumer Insight report by Boston Consulting Group (BCG) and Altagamma showed that resale reached 7% of personal luxury market value in 2019, and is growing 12% per year. The report considered 12,000+ “true luxury” purchasers who met a standard threshold of spending on consumer luxury goods and services, averaging approximately €39K/ $44,000 in 2019. 

Out of true luxury consumers, 34% said they sell used products, and 26% reported buying secondhand products. It seems that holding a sustainable worldview has finally influenced purchasing behavior enough to re-define luxury values. Instead of having a closet full of clothing they only wear once in a while, women are choosing to pay to cycle through new items and embracing modular, rotating wardrobes. In essence, we’re paying to lease clothing—and we like it. 

We know lower ticket price is not the primary draw for the true luxury consumers; what they’re drawn to is the inherent value of owning luxury items boosted by the secondhand market—think, limited editions or sold-out collaborations.

Gen Z is the next luxury generation—and Rebag knows it

While secondhand shopping attracts all ages, young shoppers are driving the growth of the resale market. With millennials (ages 23 to 38) and Gen Z (ages 18-24) leading the secondhand charge and adapting 2.5 times faster than any other age group, according to ThredUp. Resale has grown over 21 times faster than any other retail apparel market over the past three years.

Traditional retailers seem to be scrambling to understand this new generation, but Gen Z’s preference for resale comes from their core, identifiable values: sustainability, affordability and authenticity. Gen Zs care about the climate and the future of the world they’re inheriting, and circular fashion speaks to their desire for limiting environmental footprints and living sustainable lives: recycling, consuming fewer resources and creating fewer carbon emissions. But, they also want instant gratification for their e-conscious choices. And speedy delivery and access to services all at the swipe of a card or tap of a phone.

When it comes to capturing the hearts of Gen Z, Rebag is doing everything right.

In addition to lifting the shroud of luxury pricing with Clair, they’ve also opened nine gorgeous and luxe-feeling brick-and-mortar stores, creating the experiences Gen Zs want by touting Instagram-able Birkin walls and in-person authentication stations. They’re cultivating loyalty with their Gen Z customers who demand unique IRL experiences, transparency with their shopping choices and authenticity from their brands. 

As Gen Zs age and their luxury buying power increases, Rebag will already have cultivated their trust. It’s a smart move— more luxury brands will soon be catching on and trying to cultivate their brand affinity with Gen Z early on.

Rebag

Authenticity and quality, guaranteed

Authenticity, now a buzzword in most conversations around Gen Z, is at the heart of Rebag’s success story and the center of their unique disruption.

Companies like StockX and Thredup have harnessed technology to upload and authenticate thousands of products. But, in the world of luxury appraisal, authenticity has continued to be an Achilles heel, leaving the consumer with risk at the forefront of their purchases. For instance, TheRealReal has faced questions over its ability to catch fakes before they reach a customer. Plus, with luxury brands like Chanel still resisting and undermining the resale movement, trust has been the missing element in the equation of luxury resale. 

For sellers and buyers alike, Clair offers a free, instant evaluation of a handbag’s value—regardless if you want to sell.

It starts with a luxury resale taxonomy that identifies each bag from its designer all the way to model, style and size. Next, Clair walks you through a grading system to identify the bag’s state of wear from “excellent” to “good.” For example, wear on corners or handle darkening, exterior scratches or marks. That’s followed by the do's & don’ts guide to submitting photos.

After a quick calculation, Clair will present the bag’s value and the price Rebag would pay for it. Want to sell? You’ll quickly get a prepaid shipping label to mail your bag. Then, Rebag vets and white-glove inspects the bags, and within 2-3 business days, you’ll be paid.

Rebag

Inside Clair, you can view Rebag’s in-house statistics regarding bags’ retail prices vs resale value, based on production dates, condition and current trending styles. They also plan to share their recommendations for buying and selling each quarter, just like the stock market. 

So, what’s all the fuss about? While other major resale platforms have their own internal systems for pricing, Clair is the first external database of its kind openly sharing market value. Likewise, Rebag buys bags directly (and quickly) from its sellers versus consigning them, bringing all the burden of inventory onto themselves. Questions of authenticity become a lot more important when it’s on the company dollar, so they’ve become experts at authenticating and assessing handbags. 

“Our authentication team...is bullet-proof for us,” said founder Charles Gorra. “When you send a bag to us, we only pay after our authentication is done... As a buyer, of course, we have a money-back guarantee, lifetime guarantee, when it comes to authenticity.”  

For many people, luxury resale felt like it had strings attached. Now, buying a handbag from Rebag comes with extra security attached. 

Luxury secondhand: A new economy

Rebag’s success is symptomatic of a broader shift in retail. A new secondary economy is on the horizon and we’re witnessing the first steps in that direction.

Clair is the frosting of the story, but resale technology is the cake. It seems that in this equation, everyone is winning. Rebag, secondhand sellers, secondhand shoppers—everyone eats cake. Rebag’s tech is both adapting to and enabling a change in customer habits, significant of a larger shift in the industry around the secondary market. They know that circular fashion is transparent, socially-conscious, accessible and easy to use. And, with their valuation feature, Rebag is revealing the market value of a good to a customer, something that most current owners of luxury handbags had been missing. 

Those who were fearful of selling, or who had never even considered resale, are now joining the market. And confidently, at that. Because of resale technology, we’re seeing true luxury consumers selling their prized items. Now, an entire second layer of customers (like Gen Zs) who were previously unable to purchase luxury items at full price, are shopping, too. It’s not used; it’s pre-loved. 

People have always thought their handbags have held value, even while they were sitting in dustbags on the shelf. The ability to trade handbags like stocks with better speculation has changed the game, not only when it comes to authenticity and trust, but also for circular fashion buying habits. Thanks to platforms like Rebag, there’s a new level of transparency of price and authenticity, and it's driving luxury consumers’ interest in the resale world.

The race for luxury resale

Rebag investor Birgir Ragnarsson said when it comes to the resale market, “Rebag both provides an entry point to the luxury ecosystem and sustains it.” He’s absolutely right. Rebag has the tech, and I’m sure we’ll see their proprietary pricing and transparent evaluation tools evolve in 2020. I also guarantee this tech won’t be limited to handbags. 

It’s without a doubt that resale is the future of our industry, and in the face of a looming recession, the entire luxury ecosystem could likely rest upon it. 

The question remains: Is Rebag just first in a line of fashion retail companies that are, well, technology companies? Rebag may have a competitive edge today, especially when it comes to authenticity and speed-to-market, but I wager there’s someone hot on their heels, whether it’s The RealReal, Thredup, Poshmark, or a resale innovator we have yet to meet.

The resale race has just begun—who will come out on top?

I am CEO, founder, and chief retail strategist of Scaling Retail, named one of WWD's Top 20 Women in Business (2017). We are an international retail consulting and brand...