ThredUp Unveils New Platform And $175 Million In Funding As Resale Trend Accelerates

ThredUp announced today a new platform called Resale-As-A-Service that will allow retailers to partner with the company. Gani Pinero Photography

Even as the retail industry has slumped, dragged down by disappointing earnings and an unending trade war, resale is exploding. With the $24 billion secondhand market looking more and more enticing to hard-up traditional retailers, no small number of them began to court the fashion resale marketplace ThredUp over the last year, CEO and cofounder James Reinhart says.
“I think all of them acknowledged that resale was a trend that was accelerating,” he adds. “But they weren’t exactly sure how to participate in it.”
The result of those conversations, ThredUp announced today, is a new platform called Resale-As-A-Service that will allow retailers to partner with the company, offering three options: an in-store pop-up, online collaboration or a loyalty program. To power the initiative, ThredUp has raised $100 million in a new funding round, to go with a previously undisclosed $75 million from last year. That brings ThredUp’s total funding to more than $300 million and values the company at $670 million, according to Pitchbook. (ThredUp wouldn’t comment on its valuation.)
In pilots of Resale-As-A-Service, Reinhart says, the loyalty program has proved the most popular of the three options. In that model, when shoppers purchase an item from a ThredUp partner, they are sent a co-branded “clean out kit”—the bag that ThredUp sellers use to send items to be resold. But instead of receiving cash, as they would in a direct transaction with ThredUp, sellers in the loyalty program get credit to the partner retailer. ThredUp keeps the markup on the resold item, and the partner retailer improves its customer retention; the individual seller, meanwhile, may get a bonus for using the loyalty program instead of going straight to ThredUp. For example, Reformation, an eco-conscious contemporary label, adds 15% to what ThredUp offers a seller as an incentive.
The pop-ups are also gaining traction, with Macy’s and JCPenney announcing last week that they are partnering with ThredUp. The in-store spaces, which will be about 500 to 1,000 square feet, will feature new items on a weekly basis, offering brands that aren’t already in a typical Macy’s or JCPenney. There will be 100 pop-ups by Labor Day, Reinhart says, including the company’s partnership with Stage Stores, a department store chain.

“In just these 10 years, we’ve had a radical shift in how people shop and buy apparel. And I think that shift is going to continue,” says James Reinhart, CEO and cofounder of ThredUp. Courtesy of ThredUp

Retailers across the board are demonstrating a “new appreciation for where the young shopper is shopping,” says Reinhart, 40. But it’s not as if Macy’s and JCPenney had much of a choice.
Both have been struggling of late. Macy’s shares fell 13% after it announced its second-quarter earnings (and its ThredUp partnership) on August 14; shares are down another 9% since. JCPenney’s results were grim, too, and it’s at risk of being delisted from the New York Stock Exchange with shares hovering around $0.60.
The two companies have long been trying to differentiate their drab department stores any way they can to draw people in. JCPenney offers Sephora store-in-stores while Macy’s last year acquired Story, a concept shop.
With their latest attempt at a tie-up, there’s no doubt they have landed on a popular trend. According to a ThredUp report, resale is growing 21 times as fast as the broader retail market and itself will become a $51 billion market by 2023.
But what’s to say those treasure-hunting shoppers will choose a Macy’s with a ThredUp pop-up over an off-price retailer like TJ Maxx? Reinhart himself notes that’s where 70% of ThredUp shoppers say they would go if the reseller weren’t an option.
Still, Reinhart is confident that ThredUp’s broad appeal—it carries more than 30,000 brands—and its ability to scale will bring more retailers on board. He hints that other partners are already in the pipeline. Plus, the resale industry is only going to keep growing. Investors already poured $300 million into The RealReal, an online consignment shop that focuses on luxury, when it went public in June. And Poshmark, another resale startup, is considering an IPO this fall, the Wall Street Journal reported in April. (ThredUp says it has no plans to go public.)
“The opportunity has gotten bigger and bigger every year,” Reinhart says. “The closet of the future…is going to look very different than the closet of today. If you think back 10 years ago when we started, you had none of these direct-to-consumer brands. There was no such thing as rental. There were no subscription companies.
In just these 10 years, we’ve had a radical shift in how people shop and buy apparel. And I think that shift is going to continue.”

Fashion retail site Poshmark to delay IPO until 2020

 Founded by CEO Manish Chandra, Poshmark provides a marketplace to buy and sell high-end clothes harvested from closets. (Facebook pic)

NEW YORK: Poshmark Inc, an online resale marketplace for second-hand clothing, has delayed plans for an initial public offering until next year, according to people familiar with the matter.
The Redwood City, California-based company has put off the potential IPO to focus on boosting sales and improving its execution, said the people, who asked to not be identified because the matter isn’t public.
A representative for Poshmark didn’t respond to requests for comment.
Poshmark had been one of several e-commerce companies looking to go public this year amid a wave of IPOs that included two online retailers in June. The RealReal Inc has fallen about 31% since then while Revolve Group Inc. has risen about 20%.

Founded by Chief Executive Officer Manish Chandra, Poshmark provides a marketplace to buy and sell high-end clothes harvested from closets.
The company, whose website allows shoppers to exchange comments on products, has been at the forefront of the online shopping trend known as “social commerce.”
The company announced in February that tennis champion Serena Williams was joining its board. In June it said it was expanding its marketplace to include home decor.
Poshmark was working with Goldman Sachs Group Inc and Morgan Stanley on IPO slated for as soon as this fall, The Wall Street Journal reported in April.
Representatives for Goldman Sachs and Morgan Stanley declined to comment.
 
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WeChat Being Used by Counterfeiters to Build up their Fraud Chain

Cashing in on the price difference between luxury goods sold in China and overseas, Daigou (代购) – aka. overseas purchasing agents – have long bought goods on behalf of consumers in China. But, as the Chinese government puts in place new measures to boost domestic spending, many luxury brands have lowered their prices in China, bringing them in line with global price points. Consequently, the role of a middleman like Daigou has been threatened, and a career as an overseas buyer has become increasingly unsustainable.
Now, the overseas purchasing business is evolving in a different, darker direction, coined “Daigou 2.0″. Targeting consumers who are looking for luxury goods at a steal, counterfeiters from China are now providing fake goods under the guise of authentic Daigou vendors.


According to an investigative report by the Chinese state media People’s Daily on August 7, which was trending on China’s social media platform Weibo, luxury goods counterfeiters employ a variety of techniques to disguise the true origin of their products, such as paying insiders for production batch codes to reprint onto packaging, giving consumers the illusion they will be able to verify the authenticity of the item
Another common trick, according to the People’s Daily report, is known as ‘gold plating (镀金)’, referring to a practice of shipping the counterfeits abroad first to obtain overseas shipping documents and entry certificates, in an attempt to prove the product has been bought overseas.
Earlier this year, Jiangsu policemen seized more than 80,000 pieces of counterfeit luxury makeup from WeChat vendors in the city of Suzhou, who had been creating products imitating brands like Dior, MAC and Fresh. The total worth of these products was more than 1.5 million USD (approx. 10 million RMB), according to the local police.
In Jiangsu’s case, the main suspect confessed to purchasing barrels of cheap fragrance from Guangdong province, bringing the manufacturing costs to only 15 cents (1 RMB) per 50 ml bottle of counterfeit perfume. These fake products are then labeled with luxury brands, and sold at upwards of 30USD (200RMB) per bottle, leaving room for a huge profit margin.
The presence of trusted Daigou agents in this process can add a layer of credibility to the counterfeiters. In turn, the high profitability offered from selling fake luxury goods has motivated many traditional Daigou agents to participate in this illegal business. In recent years, the livelihood of Daigou agents has been adversely affected, as the Chinese government implements measures such as lower import tariffs on luxury goods, encouraging international brands to lower their China prices.

Recommended ReadingAlibaba’s Anti-Counterfeiting Efforts Appear to Pay OffBy Yiling Pan

An overseas Chinese student, Li, who admits to helping to sell fake luxury goods on WeChat, told Jing Daily, “the profitability now is attractive, and it’s hard to recognize the difference between counterfeit and real goods.”
She continued, “we don’t handle the manufacturing process of any product, but deliver them to clients. We then keep a certain percentage of the profits from every client we bring in.”
The intimate nature of WeChat as a one-on-one private messaging tool now serves as a shortcut for counterfeiters to strike deals.
“There is a huge loophole in the current law enforcement for the punishment of WeChat vendors” commented one Weibo user. “Wait, I think I might have bought a counterfeit product,” said another, demonstrating the widespread distrust shoppers now have for buying luxury goods via WeChat.
Both luxury cosmetic brands and WeChat itself are taking actions to prevent counterfeiting. Many high-end cosmetic brands like Estée Lauder, SK-II, La Mer, and Sulwhasoo now offer to recycle their customers’ empty skincare bottles for small rewards, leaving less room for Daigou to collect empty packaging. WeChat also claims to have punished more than 72,000 vendors selling counterfeit goods and shut down 875 counterfeit-related mini-programs.
Tencent did not immediately respond to a request for comment.

Coach brand back to ‘full health’ from selling many handbags

Parent company 'Tapestry' shares soar nearly 12% in Tuesday trading on the sale of COACH bags

Coach

Tapestry says that merchandising and marketing with spokesperson Selena Gomez has given the Coach brand a bump.

GlobalData Retail declared the Coach brand back to “full health” in a Tuesday note after Coach parent company Tapestry Inc. reported better-than-expected earnings that got a boost from North American customers who were ready to shop.
Tapestry shares TPR, -0.57% closed Tuesday up 12%.
Tapestry reported fourth-fiscal-quarter adjusted earnings of 60 cents per share, ahead of the 57-cents FactSet consensus, and sales of $1.48 billion, beating the $1.47 billion FactSet guidance.
Coach’s president, Joshua Schulman, highlighted the results of the company’s North American brand-tracking survey, which found that “premium” consumers and millennials have an improved view of the brand, which he attributed to the company’s marketing, featuring Selena Gomez; merchandising that focused on handbags priced in the $300-to-$400 range; in-store experience; and the reception for its Signature line of bags.

When Tapestry was still called Coach Inc. the company launched an effort to rehabilitate the Coach brand, pulling back distribution at department stores and increasing focus on a higher price point in the interest of the brand’s image.
Neil Saunders, managing director at GlobalData Retail, declared the company’s efforts a success after fourth-quarter sales rose 5%.
“In our view, this is a very respectable result, which, once again, underlines the return to full health of a brand that once suffered from ubiquity and excessive discounting,” Saunders said. “The performance in the U.S. was particularly strong, aided in large part by the more robust consumer economy, which has spurred spending on luxury products.”
Tapestry’s other brands include Kate Spade and Stuart Weitzman. Tapestry continues to integrate Kate Spade into the fold after it was acquired in 2017. And Stuart Weitzman continued to suffer from operational issues.

By Tonya Garcia

Published: Aug 15, 2018 4:27 p.m. ET

LINK

How Well Known Labels Are Changing the Counterfeit Stigma

 

A Guccy shirt from Gucci Resort 2018Photo: Yannis Vlamos / Indigital.tv

Once upon a time, counterfeit designer goods were a fashion no-go. Buying a fake piece of clothing or accessory was associated with a try-hard attitude and an empty pocket. Take, for example, Sex and the City’s “Sex and Another City” episode, in which Samantha Jones bought a knockoff Fendi bag from the trunk of a car. After showing it off to her friends, she noted, “You’d never know it wasn’t real Fendi unless you look inside at the lining.” Later on, Samantha’s dirty little $150 made-in-China secret was found out publicly at a party—a small price to pay for long-lasting embarrassment.

But times have changed. Recently, some of the most influential runway designers have created cringe-worthy, definitely-not-real clothes and accessories—a far cry from Samantha’s trunk-plucked Fendi, inspired by the more modern appeal of bootleg fashion. Alessandro Michele showed Fake Gucci T-shirts loudly emblazoned with the label’s logo for Resort 2017, a design based on counterfeits that were popular on the streets during the ’80s. The brand’s Resort 2018 collection continued with the theme of through-the-looking-glass bootleg culture: A coat with Gucci-monogrammed sleeves became the meme heard round the Internet after it drew comparisons to a similar topper by Harlem-based designer Dapper Dan, the original kingpin of DIY luxury bootlegs, who created a Louis Vuitton monogrammed coat for Olympic medalist Diane Dixon in the ’80s. There were also shirts that read Guccy—reflecting a trend at bargain bazaars, where misspelled names (deliberate or otherwise) are on every corner.

Before Gucci’s foray into faux fakes, there was, of course, Vetements, which turned the concept of fake fashion on its head and shilled “real fakes” to the mass market. In October 2016, the brand held an “official fake” garage sale outside Seoul, where off-kilter remakes of iconic pieces nodded cleverly to the proliferation of Vetements bootlegs in that city. Since Vetements, like Gucci, has become one of the most copied labels in the world, the strategy makes sense: If you can’t beat the copycats to the punch, then join them for a higher price tag. The approach seems to be working. Those Fake Gucci T-shirts have sold out both at Selfridges and Farfetch.

A Fake Gucci T-shirt from Gucci Resort 2017Photo: Yannis Vlamos / Indigital.tv

I recently returned from Tbilisi, Georgia, with hoards of thick plastic “Chinatown” bags printed with the double-C Chanel logo (with the house’s name written as “Ceanhl”) and other totes combining Louis Vuitton’s classic Damier monogram with Gucci monogrammed tabs. The cheap carryalls may be considered the bane of luxury—they are scathingly, shamelessly fake—but there’s also a cheeky charm that comes with proudly sporting something so obviously not real. My colleagues seemed to agree with this line of thinking: The totes were a hit at the office. “It’s a so-bad-it’s-good thing,” said Vogue’s Fashion News Director, Chioma Nnadi, the recipient of one of the bags. “There’s nothing subtle about the fakeness of it. It’s like no-shame fake.”

Fake Chanel tote bags, a fake Versace shirt, and fake Chanel bedsheets from Eastern EuropeCourtesy of Liana Satenstein / @liana_ava

On a smaller scale, there is the rise of millennial bootleg artists. Designer Ava Nirui of @avanope has built a career out of embroidering Gucci onto Champion hoodies and merging Carhartt with the Chanel name. Imran Moosvi, aka @imran_potato, uses the Louis Vuitton and Gucci monograms in almost everything—splicing them into Nike zip-up hoodies or creating natty ties from them. “For me personally, fake stuff is more fun,” he says. “There’s more freedom to do whatever you want with it. I think the stigma associated with something being bootleg or fake is starting to disappear a little bit, because at the end of the day, people just want to see a cool product.”

But does the trend have legs? “I don’t think this design culture has longevity, because people will always find a way to overdo and ruin,” Moosvi says. After all, is there really fun in spending top dollar for an item that mimics a fake $15 one? Luxury consumers so far seem not to mind; it remains to be seen whether Guccy will have the same effect. Until then, maybe it’s more real to stick with the fake deal.

The RealReal Is Officially Consignment Queen

$173 Million later, the new funding comes just in time for the retailer to open its first store.

 

While it’s fair to say e-commerce has totally changed shopping — putting mall brands out of business and spawning a new category of fast fashion retailers on steroids — the luxury market has had a harder time breaking out online. High-end brands are notoriously uneasy about e-commerce for fear of eroding exclusivity, and sites like Amazon, Alibaba, and eBay, riddled with counterfeit goods, have not proven to be great business partners.

You can get your Louis Vuitton and Hermès another way though: The secondhand market has found a way to make luxury and online shopping work, and San Francisco-based site The Real Real is leading the sector. This morning, it confirmed it’s just closed on $50 million in funding from private equity firm Great Hill Partners. The startup’s largest amount of funding to date brings the total amount it’s raised to $173 million. The upcoming wad of cash will go toward expanding the business, which consists of more than 800 employees and three giant fulfillment centers, and a company spokesperson confirms The Real Real will eventually file for IPO, though there are no current plans in the works.

The Real Real remains the fastest-growing of the bunch; even the Kardashians and Saudi princesses use it.

The RealReal is one of many secondhand luxury shopping companies that have leveraged the ease of the internet and enticed shoppers to buy and sell luxury online (although not all have survived). But while sites like Tradesy, ThredUp, and Vestiaire Collective have cashed in on this previously untouched sweet spot, The Real Real remains the fastest-growing of the bunch; even the Kardashians and Saudi princesses use it. The site boasts five million users, has sold four million items to date, and is expected to surpass $500 million in revenue this year.

To Julie Wainwright, the company’s founder and CEO, the site’s success really boils down to trust — a major factor in both online and luxury shopping. Wainwright started The Real Real in 2011 during a time when the options for selling luxury were feeble.

“There was nothing out there that provided the level of service and trust that needed to be added to the equation,” Wainwright told Racked in an interview a few months ago. “eBay can say 90 percent of its products are legitimate, but then what about the other 10 percent? There were consignment stores, but the space was always limited, and most of them weren’t big enough to be sophisticated. I wanted to construct a business that gives you the best of the internet, and then fills in where the internet leaves holes on trust, authentication and service. We take off of the top of eBay and the bottom off Sotheby's.”

Part of the appeal of the startup is that it employs luxury buyers, art curators, gemologists, and watchmakers to authenticate product — not quite as high-end as shopping at Christie’s, but not quite a pawn shop either. The Real Real has employees who visit homes to evaluate product in every major city in the US, and perhaps most importantly, the site takes ownership of listed items, so shoppers can feel secure when splurging — and oh, are they splurging.

Listings have hit as high as six figures (while Wainwright wouldn’t confirm the average listing price, she has said that “Net-a-Porter[‘s] average basket is $430, and ours is bigger.”). These days, The Real Real is selling everything from clothing to art to furniture to diamonds, Wainwright told Racked that 25 percent of its customer base is men, which probably is a nod to the site’s robust list of watches and sneakers.

The icing on the cake here is that The Real Real sees itself as a player that’s bolstering the luxury sector, not preying off of it. In 2017, it is expected to pay almost $300 million to those who are selling on the site, and the company says this money will then be spent “back in the primary market, continuing the luxury lifecycle.” The company is also collecting data on luxury brands, and is currently in conversations about potential partnerships with brands like Louis Vuitton, according to TechCrunch. Wainwright told Racked a third of its customers are millennials, and The Real Real studies which brands are popular by age demographic.

The company is also collecting data on luxury brands, and is currently in conversations about potential partnerships with brands like Louis Vuitton.

“I’ve met with all the top brands and I tell them that I’m the gateway drug for their brands, and some are in trouble,” she told TechCrunch last month. “Dolce is in trouble. We pick it up from people over 40 [years of age] and sell it to people over 50. There’s a whole disconnect with its advertising and they know it. They aren’t reaching millennials at all. We can also predict trends... if you have Valentino Rockstuds, hand ’em over, because the party is over.”

As part of its ongoing growth strategy, The Real Real is getting into brick and mortar. Wainwright tells Racked she can envision opening a giant store of sorts in five years that’s dedicated to secondhand merch — “a superstore in a major metropolitan area that has one floor dedicated to women's fashion, one to men’s, one to home, and one for art.”

For now, The Real Real is executing its plans for store expansion on a more practical level: This winter, it will open a shop in New York City’s Soho neighborhood that will double as a valuation space and a store. Wainwright has said that the new store will have 100 Birkins on the wall and well, nothing can really top that. 

 

Coach to Buy Kate Spade in $2.4 Billion Deal

A statement released by Coach said the combined company will create a "leading luxury lifestyle company" supported by "significant expertise in handbag design, merchandising, supply chain, and retail operations."

The luxury retailer Coach announced on Monday that it agreed to buy Kate Spade for $18.50 a share, for a total transaction value of $2.4 billion.
The per-share acquisition price is 27.5% higher than Kate Spade's share price as of December 27, the last day of trading before deal rumors started affecting the stock price.
Still, it's 23% below a nine-month high of $24.10 reached February 27.
Shares for the handbag and accessories maker surged by 8.1% in premarket trading Monday, while Coach's stock was little changed.
"Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials," Coach CEO Victor Luis said in the release.
Kate Spade has been under external pressure to do a deal since November, when the New York-based hedge fund Caerus Investors sent the company's board a letter pushing for a sale.
"We have become increasingly frustrated by management's inability to achieve profit margins comparable to industry peers," Caerus' founder, Ward Davis, and managing partner, Brian Agnew, wrote at the time.

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The Best Designer Bags to Buy Now and Sell Later

Designer handbags are expensive: This is a fact. And that many shoppers prefer to pay less than the original retail price for them is another. Fortunately, there are a lot of places to do that online.

Resale itself is a billion-dollar industry; the annual revenue is an estimated $17 billion, and the category of handbags is particularly lucrative. High-end consignment sites like The RealReal and Vestaire Collective are owning this space, and making it incredibly simple (and more secure) to shop for pre-owned designer bags online, with the same type of customer service experience you’d find at any other reputable e-commerce site. Secondhand shopping has come a long way in the past few years.

So what’s worth your investment? Here, we asked Graham Wetzbarger, The RealReal’s senior director of authentication, which bags you should consider buying now if you’re looking to resell later.

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What are some of the most popular bags on The RealReal right now? What are people going crazy for, or showing an increased interest in?

There are always going to be some staples: the iconic brands that are always in fashion, both on the high end and on the low end. The biggest names are Chanel, Hermès, and Louis Vuitton. Those always have really high demand; they’re iconic, and because of their very high price point, people really seek them out on the secondary market.

Last year, Mansur Gavriel was huge, but now the bags sit for a few days. They still sell, but the sense of urgency is a little less than what it was. We’ve seen other brands come up and come down. Sometimes it has more to do with the silhouette and brands that cater to that silhouette. We’re seeing a big spike in Kate Spade right now, because they do a lot of really youthful and colorful bags. They also do tons of crossbody, just like Rebecca Minkoff. They’re an accessible price point, and the color palette is suited toward spring and summer. When people want a seasonal bag, they’re not going to go too expensive.

MCM is also really coming up. We’re seeing a customer who’s more street-style-driven than luxury Fifth-Avenue-driven, who’s loving cool sneakers and MCM backpacks and bags and baseball caps. Even some of these vintage MCM bags are doing really well.

A Delvaux bag.

Photo: Vanni Bassetti/Getty Images

What other shapes are big?

I think Lady bags — with a nice, sophisticated, gorgeous top handle — are back, and have been for a while. You see these from Delvaux, they’re gorgeous; Valextra has many that are stunning. And then the backpack is back, so hard. Everyone from Chanel to Mansur Gavriel and so many brands in between — everyone wants a backpack, and everyone is doing a backpack.

What are some of the best bags to buy now that’ll be worth the investment later on?

You can’t go wrong with Louis Vuitton monogram canvas. Not only is it very durable, but it holds its value, probably 70 percent of what you paid for it. And then when you consider the brand increases prices 10 percent every year, that’s a great ROI.

Something on the more entry-level price point is harder, because they tend to go on sale. Department stores will put things on sale seasonally, so you can get them retail at a lower price point. And there are just so many more of them made, so the secondary market gets a little bit flooded. You’re never going to get a really strong ROI on something like that — it needs to be slightly less approachable and more covetable than a mass brand. Finding those brands that don’t go on sale, have smaller production, and have bags that are very publicized are always going to have staying power.

Also, there are some silhouettes, even in Louis Vuitton, that wax and wane depending on what the house is doing now. These houses and these brands that have lots of history and deep archives are often pulling and resurrecting styles that have been out of production for a while, so that really has an influence and effect on the secondary market and on vintage items that are similar.

Photo: Christian Vierig/Getty Images

How long should you hang onto a designer bag before selling it?

In general, I always say a year. If you keep your bag for a year, it’s still going to be in great shape and still relatively on trend. And if it does have some spin of seasonality to it, in a year you’ll be back in that same season as when you bought it.

Sometimes, we can feel a trend before the data shows it. About four or five months ago, we kept getting more and more Rockstud Pumps from Valentino every day. At first we were like, “Awesome!” and then we were like, “Wow,” and then we were like, “Uh oh...” The data always comes a month later. So intuitively, that means it’s time to clear your Rockstuds. When the data starts showing that their velocity has slowed down and they’re taking longer to sell and the selling price point has gone down as well, that’s the sign that this trend is over.

Just like with technology, being an early adopter always helps. Trust your instincts. If you see something and you like it, go for it. If you start seeing a lot of other people carrying it or that style being replicated by other designers, you know it’s at its peak, and that’s a great time to part with your goods — before the trend is over. It’s just over-saturation. Mansur launched the bucket bag and it was huge, and every other designer started doing a bucket bag. It was popular for a minute, and there are a ton out there. So while there aren’t as many Mansurs, there are a ton of other facsimiles. So it just slows down and kind of kills the trend. 

This interview has been edited for length and clarity. Original here

6 REAL REASONS FAKES ARE DANGEROUS

6 REAL REASONS FAKES ARE DANGEROUS

Counterfeit handbags, shoes, jewelry and accessories are not only illegal, they can be toxic to the economy, environment and even your health. According to CBS New York, the sale of counterfeit goods account for a detrimental $250 billion industry. Here are 6 reasons, the price simply does not justify the purchase:

1. Child LaborThe counterfeit market relies on cutting corners to maximize profits - this ideology unfortunately applies to every aspect of counterfeiting process. Counterfeiters do not abide by the standard government regulations put into place with intention to protect workers. Employees assembling counterfeit goods are often children, working for less than fair wages, in less than acceptable conditions. It is not uncommon for these underaged employees to be sent by their families to live and work in counterfeiting factories in order to help provide for their impoverished families back home. 

2. Counterfeit Goods Fund Illegal Activity

Many counterfeit operations are created as a front to launder money acquired from criminal activities. Most often, organized crime networks operate many illegal activities all at once and use the sale of counterfeit goods to either launder money or generate funds for other criminal activities like drug trade, human trafficking, sex trafficking, robbery or terrorist activities. All of these activities hurt both local and global economies as well as cause severe injury and harm to basic human rights.

3. Unsafe Working ConditionsTo make matters even worse, the factories themselves force unsafe working conditions upon their employees. Workplace safety is of no concern and many serious injuries often occur while on the job. Protective clothing such as masks and gloves are not provided to employees and therefore they work unprotected from toxic chemicals, dyes and unclean air quality clouded with dust, fumes, or even fabric particles from sewing, cutting or distressing fabrics. Exposure to these elements can cause serious longterm illness.

4. Health Risks and DiseaseOne of the most common health issues caused by poor working conditions is Silicosis, a respiratory disease that can lead to death if left untreated. Silicosis, is the result of silica dust particles entering the lungs and is most frequently acquired from sandblasting materials to achieve a 'distressed' look (thats right - the faded jeans that literally everyone wears). In 2009, over 20,000 workers suffered from this disease (due to workplace conditions) in China alone.

5. Negative Environmental ImpactLooking at the issue from an environmental standpoint, counterfeiting factories do not dispose of their waste properly or in accordance to any regulation. Surrounding communities can feel the affects by becoming unknowingly exposed to toxic chemicals in their air, soil or water sources. Again, potentially leading to longterm illness and environmental issues.

6. They Can Kill You.Counterfeit goods can be hazardous to your health. The technical construction of counterfeit goods is under par at best. Materials used to make fake handbags, shoes, clothing and accessories are often completely toxic! This is primarily concerning when counterfeiting children's apparel, though the toxins can most certainly affect adults as well. Lead paint can often be found in counterfeit goods which is highly toxic and can be deadly if ingested or if the child puts their hands in their mouth after coming into contact with the product containing lead paint. Many of the fake handbags, shoes and accessories that we have seen over the years have a pungent plastic-like or even gasoline-like odor to them. This can undoubtedly be bad for not only your health but also the environment.

Currently, trade in counterfeit goods is estimated to be a $500 billion dollar global industry. By the year 2025 it is predicted that the global economic loss due to counterfeiting could reach $2 trillion dollars annually. In 2005, customs preformed 8,000 seizures of goods valued at more than $92 million. In the United States alone, it is estimated that 750,000 jobs are lost each year due to counterfeit goods. Please follow this link for an extensive report on the severity of counterfeiting in the global marketplace.

Real Authentication offers expert authentication services for luxury designer handbag brands like Chanel, Hermes, Louis Vuitton, Givenchy, Burberry and many more. Our handbag authentication experts have truly studied the ins and outs of each and every brand we offer authentication services for. It may seem hard to believe, but with daily research of each designer handbag brand, we are able to confidently pass our expertise off to you through authentication, appraisal and identification services. We are always happy to answer any questions or concerns you may have regarding your preowned designer purchases. We specialize in handbag authentication but also provide many additional services you may need as well!

www.realauthentication.com

Monogram Print is OUT! Its All About Minimalism and a Neutral Look

The logo 'It' bag is officially dead..........

In today’s fashion circles the once-trendy accessory just doesn’t carry the same weight that it used to. The need for loud, shouty branding is flailing in the midst of a sea change.

3.1 Phillip Lim Large Pashli 

But don’t just take our word for it, according to a recent report by market research group NPD a third of handbags bought by US customers in the last year have been quiet, discreet, no-logo carryalls.

Unsurprisingly, those over the age of 50 are the most unobtrusive consumers with 40 per cent opting for no-logo bags - but this isn’t a trend reserved solely for the more mature dresser.

Even Generation Z, a cast of consumers in their late teens and early 20s fixated on big branding are on board too, with their no-logo buying increasing by eight per cent.

Chloé 'Medium Marcie' Leather Satchel

“Consumers are becoming less focused on image and more focused on individuality – especially the younger generations,” said Marshal Cohen, chief industry analyst at The NPD Group.

“While the cachet of designer logos is still relevant for many, the days of consumers looking to be a part of a designer or brand movement are waning in favour of their desire to find the style and function unique to their personality and lifestyle.”

In the 90s, logos were just as important, if not more important, than the clothes themselves and you had to decide which brands you were going to commit to. Maximalism reached fever pitch.

Oh what should we buying instead? Thanks in no small part to the success of indie brand Mansur Gavriel, whose pared-down bucket bag fired up the masses, brands like Michael Kors and Coach have cut back on their logo heavy handbags.

Instead, subtlety and a discreet, modern take on brand classics dominates. For Michael Kors, the Gracie is the most recent celebrity favourite, while the Mercer offers a chic take on the satchel.

Yves Saint Laurent Cabas Chyc Tote

Also going big with bags that promise to stand the test of time is Coach, who have just released Coach Icons; an installment of three key styles that have been reimagined from the archives to celebrate their 75th anniversary.

The Duffle, Saddle Bag and Dinky offer functionality and super-subtle details that give them an enduring appeal. What’s more, they tend to come at a relatively attainable price, not bargain bucket of course but they’re in general far cheaper than their heavily embroidered counterparts.

It’s refreshing to see the fashion cycle turn towards a trend that’s less about status and more about personal style. The reign of the logo handbag looks to be ending but these new iterations, while less commercial, look set to be just as popular among the fashion forward.

Much Growth in Luxury Handbags as LVMH Makes Gains

LVMH shares soared after its sales of luxury goods beat analyst estimates, proving its resilience to an industry slowdown and giving a boost to struggling competitors.

The stock closed up 4.5 percent to 164. 10 euros Tuesday in Paris, after gaining as much as 5.8 percent, the highest price since the Nov. 13 Paris terrorist attacks that provoked a drop in tourism and demand for luxury goods. Third-quarter sales rose 6 percent on an organic basis, beating the 4 percent expected by analysts. Increased demand for leather goods and fragrances fueled growth, with Asia improving significantly, the company said.

LVMH led gains in stocks such as Burberry Group Plc and Kering SA, the owner of Gucci. The luxury industry had been grappling with weaker demand in Asia, exacerbated by a slowdown in tourism to Europe following terrorist attacks. Last month Richemont, the maker of Cartier, warned that first-half earnings fell about 45 percent amid a slump in demand for Swiss watches, and Hermes International SCA abandonded a long-term sales growth target.

“The strong performance of the fashion and leather goods division and commentary about improvement in Asia should be taken positively for the soft luxury industry as a whole,” Zuzanna Pusz, an analyst at Berenberg, wrote in a note. 

For a Bloomberg Intelligence analysis of LVMH’s results, click here

LVMH said better results in Asia boosted sales growth at its biggest segment, fashion and leather goods, to 5 percent, the fastest pace in more than a year. Revenue from perfumes and cosmetics also bested estimates as Louis Vuitton introduced seven namesake fragrances.

In mainland China, sales picked up from mid-single-digit percentage growth in the first half to mid-teens in the third quarter, Chief Financial Officer Jean-Jacques Guiony said on a conference call. Chinese nationals were very active buyers both in and outside China, but it wasn’t clear whether this trend would continue, he said. Performance in Hong Kong also improved, while still in decline, the CFO said.“Hong Kong is still in negative territory,” Guiony said. “We were mid-teens negative and are mid-single-digit negative now.”

Richemont, which also owns fashion and accessories brands like Chloe and Alfred Dunhill, advanced 3.6 percent in Zurich. Swatch Group AG, the maker of Omega and Longines watches, ended the day up 4.1 percent. Hermes added 1.4 percent in Paris and Kering, whose Gucci brand is on the comeback trail, gained 1.5 percent.

The luxury industry has been suffering from a drop in tourism in Europe after last year’s terrorist attacks and the March airport bombing in Brussels. Demand for expensive timepieces has been hit the hardest lately. In July, Swatch reported its lowest first-half profit in seven years as demand cratered in Hong Kong, France and Switzerland.

-bloomberg.com

Discounted Authentic Louis Vuitton Bags? YES Please!

London, The Lowest Priced Louis Vuitton Bags in the World

 

Louis Vuitton Marc Newson Fleece Backpack

....Have you packed your bags yet? No pun intended!

How is this even possible you ask?  It's economics my Dear Watson!  With the fall of the Brittish pound back in June, dropping more than 17% against the American dollar - actually has some benefits. The cost of luxury goods, for the itme being, cost less in the UK after the conversion. 

According to research by Deloitte, the Speedy 30 Louis Vuitton handbag is $802 in London, compared with $850 in Paris, $970 in New York, and $1,115 in China.  All relative o course.

 

Louis Vuitton Speedy Bandoulière 30 Aurore

"The trend in luxury pricing in the U.K. is being driven mainly by the depression in sterling – thus making the same item more affordable in the U.K. market than any other major luxury market," Nick Pope, the head of fashion and luxury at Deloitte, told the BBC.

‘People don’t like paying more for the same product.’

In fact, it’s said that 64% of comparable luxury goods are now cheapest in the UK.

Louis Vuitton Capucines GM

If ever, right now is the best time to buy your investment bag!

Big is Back! Huge Handbags Are Hitting the Runway for Spring 2017

Bigger is Better and less is certainly not more.  The new Spring 2017 line of handbags hit the runway this week and oh my we can't wait to fill them! 

Balenciaga Spring 2017

Imaxtree

Balenciaga Spring 2017

Imaxtree

Balenciaga Spring 2017

Imaxtree

Céline Spring 2017

Getty

Céline Spring 2017

Getty Pascal Le Segretain

Marni Spring 2017

Imaxtree

Céline Spring 2017

Getty Pascal Le Segretain

BAG SELLING GUIDE | Learn When It's Time to Sell Your Investment Bag

WHY SELL MY BAG?

There are many reasons to sell designer handbags, but most often it comes down to money.. or bag space within your overflowing closet! Regardless of your reasoning, it's always nice to have a fresh start, and who could complain about recouping some cash from an old bag fling? There are many outlets for selling your designer handbags, purses and accessories, and just as many reasons why each bag outlet may or may not be a right fit for your purses.

BAG CONSIGNMENT ONLY

There are a handful of consignment shops out there that buy designer handbags outright, but often bag resellers only offer consignment. Consignment means that you send your purses into the consignment shop and the consignment shop lists the designer handbags for sale on their website. Often the consignment shop will give you an estimate of what they anticipate selling the purses for, and also what their payout or consignment shops rate will be. A typical consignment shops rate is somewhere between 60% to 70% of the purses sale price. This means that once the bag sells, you will then be paid the pre-determined consignment shops percentage. Consignment will typically net you the highest return on your designer handbags, the only downfall is that you must wait for the purses to sell before you can be paid.

BAG BUYOUT OFFERS

Unlike consignment only, many resellers of designer handbags will also provide a flat buyout offer. Usually this offer will be anywhere from 40% to 60% of what the seller anticipates they will sell the purses for on their end. In order to be a functional business, the reseller does need to make a profit, so don't be offended when the buyout offer may be much less than what you are seeing the purses listed for on their website. Though they may be taking a larger chunk of the overall profit from selling the designer handbags, they are also acquiring the risk and overhead that now owning the bag entails. Taking direct buyout offers from consignment shops that do offer this option is best if you are not able or willing to wait for the purses to sell on consignment. 

BAG DIRECT SELLING

An additional option for selling your designer handbags would be to try and sell the purses directly to a customer yourself. Many sites, such as eBay and Tradesy allow you to list your designer handbags and sell directly to the next owner. This way to sell your purses is a bit more cumbersome than most prefer. As a direct seller, you are in charge of photographing the purses, writing an accurate description, answering any questions regarding the purses, and eventually even shipping the designer handbags once they do sell. The host site as well as monetary processing sites (such as PayPal) will take their percentage of your sale. This cut often amounts to around 10% of your selling price. Direct selling can be fun and and feel very rewarding, however more times than not, large handbag resellers can actually obtain a higher selling price for your handbags than you ever could selling the purses on your own. Many resellers provide a convenient and reliable shopping experience that their clients are willing to pay a little extra for.

BAG VALUE FACTORS

As mentioned in the REAL AUTHENTICATION Buying Guide, all designer handbags are not created equal. Certain brands like Chanel, Hermes and Louis Vuitton never go on sale and rather than lose resale value over time, can actually increase in value! Value factors like color, silhouette and textile all affect the resale value of your purses. If the handbag is viewed as a "classic" or "timeless" piece, you are likely to get more for your purses than if the piece is really wild, funky or clearly screams "I'm from the 80's!" For more information on Investment Purses and how to buy designer handbags as an investment, please click here.

BAG SHIPPING COSTS

Shipping is an outlier than some may not even consider when selling your beloved designer handbags. Though most consignment shops do provide you with a prepaid shipping label, if you are an international client, often times you are responsible for shipping in full, half of the shipping cost or at the very least Customs Fees. If you are acting as a Direct Seller, charging the customer shipping for your purses may hinder your sale as online consumers typically gravitate toward Free Shipping.​

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​Have additional questions?  We would love to hear from you! Contact us at info@realauthentication.com