Over the last six months, online secondhand platforms Thredup, Poshmark and StockX have filed for megawatt IPOs, reaching valuations of $1.3 billion, $3.8 billion and $7.5 billion, respectively. A growing tide of startups want in on the action, using white label technology, digital passports and a combination of rental and resale to differentiate themselves.
Trove CEO Andy Ruben believes his platform can build new business. “Sixty-five per cent of the people buying resold are new to the brand, having been unable to afford it before,” he says. “It’s an opportunity to increase the value in the brand, not decrease it.”
Why haven’t more luxury brands invested in resale? Andy Ruben, CEO of white label resale platform Trove, which powers resale for sustainability-conscious brands including Patagonia and Eileen Fisher, says this comes down to the perceived risk, which is quickly diminishing. “Luxury brands are good at strategy but they don’t want to be first. Right now, they’re watching and learning. In the next couple of years, we’ll witness a luxury player doing it right.”