Startups to Watch
Luxury brands are turning to online resale platforms to drive growth and create new value for consumers amid economic challenges.
The fashion industry hasn’t been spared from feeling the impacts of the global pandemic.
Along with mass store closures and stay-at-home orders, fashion brands have faced unprecedented disruptions to typical operations. The previously fast-growing street wear space, for example, is just one area feeling the burden, with unicorn StockX laying off 100-150 employees just 1 month after its CEO said business was booming. Consulting firm BCG recently updated its sales estimates for the fashion and luxury space, forecasting a decline of anywhere between $450B and $600B.
But in spite of these challenges, early signals suggest that fashion resale platforms focusing on luxury items could emerge as a bright spot for brands in search of solutions.
Paris-based Vestiaire Collective, which sells pre-owned luxury items, raised a $64M Series G in April 2020 to expand in Asia, while Neiman Marcus’ Fashionphile had its biggest non-promotional sales day of the year that month.