Vestiaire Collective raises $64.2 million for its second-hand fashion platform

Vestiaire Collective just closed another big round of funding in the middle of an economic crisis — the round closed in early April. The startup raised $64.2 million (€59 million) and the company has raised more than €209 million in total, according to Crunchbase. Vestiaire Collective operates a marketplace of pre-owned fashion items. Users can both sell and buy clothes and accessories on the platform.
There’s a huge list of investors in today’s round — Korelya Capital, Fidelity International-managed funds, Vaultier7, Cuit Invest and existing investors Eurazeo (Eurazeo Growth and Idinvest Venture funds), Bpifrance, Vitruvian Partners, Condé Nast, Luxury Tech Fund and Vestiaire Collective CEO Max Bittner are all participating.
With 9 million members across 90 countries, Vestiaire Collective has become a huge marketplace. And it makes sense that an e-commerce website focused on pre-owned items is working well. There has been a ton of backlash against fast fashion over the past few years.
People now also value circular business models as it becomes more affordable to refresh your wardrobe, especially during an economic crisis, and it is better for the environment.
As always, Vestiaire Collective will use the new influx of cash to expand to more countries. In particular, with Korelya Capital as a new backer, the company will expand to South Korea and Japan this year. While the company started in France, 80% of transactions are now cross-border transactions.
Originally, Vestiaire Collective asked you to send your items to its warehouses to check them before putting them on sale. The startup has been betting on direct shipping from the seller to the buyer in Europe and it has been working well. You can get reimbursed if there’s something wrong with what you ordered though.
Direct shipping has been available in Europe since September 2019 and it now represents over 50% of orders in the region. Up next, Vestiaire Collective will introduce direct shipping in the U.S. this summer and in Asia by the end of 2020.
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Fashion Reseller Poshmark Fast Tracks Video Feature, Targeting Shoppers Stuck At Home

Poshmark is joining the social media juggernauts capitalizing on a captive consumer base by adding a video feature to its fashion marketplace that aims to make shopping for used clothing on your phone feel more like, well, shopping.

With stores and restaurants shuttered and millions of people stuck at home, platforms like Zoom, TikTok and Instagram are thriving, and now the San Francisco-based business, which sells used clothing, shoes and accessories, will allow its eight million sellers to post live 15-second videos or upload footage from their phones that links directly to the items they are selling.
Poshmark was founded by Manish Chandra, Tracy Sun, Gautam Golwala and Chetan Pungaliya in 2011 as a way for women to sell clothes they no longer wore. The app lets them “like” and comment on other people’s listings, which helped make Poshmark a more personal experience than shopping for secondhand stuff on eBay. It has since expanded into categories like menswear, kids and home décor, taking a 20% cut on sales. In 2019, it said it paid out $2 billion to sellers, double the previous year. It was reportedly valued at $1.25 billion after some existing investors sold shares in a secondary transaction last year, according to the Wall Street Journal.
The company has been building and testing a video option for over a year and planned to roll it out in the second half of 2020 but fast-tracked the launch due to the pandemic so it could offer more of a “real-world experience” to shoppers. The new feature allows sellers to show off the ways they styled an outfit they have for sale or give the backstory on how they acquired a particular item, for instance. The content will automatically disappear after 48 hours.
The feature mimics Instagram, which lets influencers and brands tag clothing, furniture or other items in their posts and link to a website where it is available for purchase. Instagram has been doubling down on its shopping features and last year began allowing customers the ability to checkout from some retailers without leaving the app. Social shopping apps such as LikeToKnow.It also offer people the ability to shop the looks that they see on celebrities and influencers. However, none allow for the purchase of secondhand clothing, a segment that is growing 21 times faster than the overall apparel market.
“Physical retail is challenged in this environment,” says Chandra, 52, CEO. “People are looking and turning in so many ways to online.”
Chandra is hoping that video will increase engagement and sales among its 60 million registered users, who spend an average of 23 to 27 minutes per day on the Poshmark app. With purchases generally correlating to time spent on a service, Poshmark sees this as a way to forge a better connection between buyers and sellers, and help move the $175 million worth of inventory that gets uploaded to its platform every week (Poshmark doesn’t hold any inventory, leaving users to buy and sell directly from each other).
While many retailers are struggling amid prolonged store closures and a looming recession that has cut into discretionary spending, Chandra says that Poshmark’s business has been fairly steady. A wave of new sellers have turned to the platform for supplemental income after cleaning out their closets or even as a main source of income. The bigger challenge is demand. Poshmark is reliant on apparel sales, which dropped a whopping 52% on a national level in March, according to the Department of Commerce. Chandra declined to provide specifics, but says demand has picked up after lagging at first.
“We were concerned in the early days of the crisis,” says Chandra. “But it seems to have balanced out.”
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Reebok UNLOCKED is partnering with thredUP

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Chanel and The RealReal Both Nab Wins in Latest Round of Ongoing Counterfeit Lawsuit

The RealReal and Chanel have each scored a few wins in the highly-watched trademark-centric lawsuit that the famous French brand waged against the resale giant for allegedly selling counterfeit goods, and using the Chanel name to “deceive consumers into falsely believing that [it] has some kind of approval from or an association or affiliation with Chanel [when it doesn’t] or that all CHANEL-branded goods sold by The RealReal (“TRR”) are authentic.” In response to the motion to dismiss that the San Francisco-based resale site filed last year, a New York federal court has agreed to toss out a number of Chanel’s claims, while enabling three to remain intact.
On Monday, Judge Vernon Broderick of the U.S. District Court for the Southern District of New York granted TRR’s motion to dismiss in part, agreeing to toss out Chanel’s claims of trademark infringement, and false endorsement and unfair competition, as well as the Paris-based brand’s claims under New York State General Business Law on that basis that TRR’s “use of Chanel’s genuine trademarks is not likely to cause customer confusion, and because Chanel has not adequately alleged injury to the public at large.”
At the same time, the judge refused to dismiss Chanel’s trademark counterfeiting/infringement and false advertising claims, and similarly kept its common law unfair competition claim in play, as well because Chanel “adequately alleges that TRR marketed and sold counterfeit Chanel products, and because [TRR’s] advertising regarding the authenticity of the products it sells is literally false.”
In the recently-released opinion and order, Judge Broderick looks first to Chanel’s claims of trademark infringement, false endorsement and unfair competition, which he says Chanel “does not plausibly allege … based on [TTR’s] use of genuine Chanel trademarks” in connection with its sale of authentic Chanel products, as the Lanham Act – the federal statute that governs trademarks and unfair competition – “does not prevent one who trades a branded product from accurately describing it by its brand name, so long as the trader does not create confusion by implying an affiliation with the owner of the product.”
Here, Judge Broderick asserts that Chanel fails to successfully make its claims because it is “highly unlikely that a customer buying a secondhand Chanel product from [TRR]—which unambiguously holds itself out as consignment retailer in a luxury market— would confuse the nature of [TRR’s] business, the source of its products, or its affiliation—or lack thereof—with Chanel.”
To be exact, the judge points to the following factors as examples of why consumers are not likely to be confused about the source of the goods in question or be misled into believing there is an affiliation between TRR and Chanel given TRR’s use of Chanel’s trademarks: 1) “Chanel’s trademarks are incredibly well-known, recognizable, and prevalent in the luxury fashion market;” 2) “As Chanel makes clear in [its complaint], [it] does not sell secondhand or vintage Chanel goods, and in that sense, [TRR] does not directly compete with Chanel;” 3) “Chanel has identified no evidence of actual customer confusion, or that [TRR] has adopted the genuine Chanel trademarks in bad faith;” and 4) “the luxury fashion market is a relatively sophisticated market that … commands top-dollar prices.”
The judge similarly states that “Chanel has not plausibly alleged facts suggesting that [TRR] ‘stepped over the line into a likelihood of confusion by using [Chanel’s] mark[s] too prominently or too often, in terms of size, emphasis, or repetition,” and thereby, diminishing the merits of a nominative fair use defense. “Chanel has identified no facts suggesting that The RealReal displays Chanel-branded goods ‘more prominently than other luxury-brand goods,’” Broderick asserts, and “has offered no non-conclusory allegations to suggest that [TRR] inaccurately depicts its relationship with Chanel or Chanel’s products and services.”
This is particularly true, according to the court, given the disclosure on TRR’s website that “[b]rands identified on [its website] are not involved in the authentication of the products being sold, and none of the brands sold assumes any responsibility for any products purchased from or through the website,” and that “[b]rands sold on the [website] are not partnered or affiliated with [TRR] in any manner.”
With those claims out of the way, Judge Broderick states that Chanel does, in fact, “plead sufficient facts to plausibly allege a cause of action for trademark infringement based on [TRR’s] advertisement and sale of counterfeit Chanel products.” And while the resale site is “involved neither in the manufacture nor the affixing of [Chanel’s] trademark to [any counterfeits], its sale of the [counterfeits] [is] sufficient ‘use’ for it to be liable for the results of such infringement,” Broderick declares, due to the nature of its model.
As distinct from the Second Circuit’s finding in Tiffany Inc. v. eBay Inc., in which eBay was let off the hook for the counterfeits sold on its site, Judge Broderick says that TRR may be liable for infringement in connection with the sale of allegedly counterfeit goods because it “retains the power to reject for sale, set prices, and create marketing for goods, and unlike eBay is more than a platform for the sale of goods by vendors.”
“By adopting a business model in which [TRR] itself controls a secondary market for trademarked luxury goods, and by curating the products offered through that market and defining the terms on which customers can purchase those products, [TRR] reaps substantial benefit,” according to Judge Broderick. “As a result of this business model, [TRR] must bear the corresponding burden of the potential liability stemming from its ‘sale, offering for sale, distribution, [and] advertising of’ the goods in the market it has created.”
In terms of the alleged counterfeits sold by TRR, the court states that “Chanel has adequately averred that its own investigation revealed that [TRR] marketed and sold counterfeit Chanel products, and Chanel has also alleged that [TRR’s] own customers have complained about the receipt of counterfeit merchandise,” which is “sufficient to plausibly allege that [TRR] directly infringed Chanel’s trademark.”
Finally, as for Chanel’s false advertising claim, the court sides with the “iconic” fashion brand, determining that TRR’s “advertisements regarding the authenticity of the products it sells, considered in context, are literally false.” For instance, TRR’s statement that it “ensures that every item on [its site] is 100% the real thing” is an “unambiguous representation of fact,” per Broderick, which stands in contrast with “Chanel’s allegations that certain products advertised and sold by [TRR] are counterfeit.” As such, this “suffices to establish a plausible allegation of literal false advertising based on [TRR’s] representation that all the products it offers have been authenticated and are 100% the real thing,” thereby, enabling Chanel’s claim to move ahead along with Chanel’s unfair competition and counterfeiting/trademark infringement claims.
Chanel made headlines when it first filed suit against The RealReal in November 2018, accusing the popular resale site of “selling counterfeit CHANEL handbags,” despite its claims that it “ensure[s] that every item on[its site] is 100% the real thing.” The fashion brand went on to claim that while “there is no nor has there ever been any approval by or association or affiliation between Chanel and The RealReal …. the RealReal understands that the value of its CHANEL-branded inventory and attraction for consumers is enhanced if consumers believe that Chanel has a business relationship or affiliation with The RealReal.”
From the outset, The RealReal has vehemently denied Chanel’s claims, characterizing the brand’s suit as “nothing more than a thinly-veiled effort to stop consumers from reselling their authentic used goods, and to prevent customers from buying those goods at discounted prices.”
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How Covid-19 Changed the Resale Market

Secondhand fashion platforms like Poshmark, Depop and Thredup are seeing high demand during the pandemic. But will it last?

Louis Shapero was a casual user of the resale platform Depop before the pandemic. But with retail shut down across Europe and North America, his once-sleepy online storefront is suddenly buzzing.

The 22-year-old British university student says he’s handled dozens of sales for Stone Island sweatshirts, Van X  Supreme sneakers and other streetwear items in the last three weeks, more than he logged in the previous six months. He’s doing some shopping as well on the platform, which targets Gen Z with its Instagram-like feed of used clothes and accessories.
Shapero isn’t the only Depop seller who’s red hot right now. The platform says US sales are up 150 percent from the same time last year in mid-April, and have doubled in the UK. At Poshmark, a rival resale site where sellers tend to list low-price fashion from brands like Anthropologie and Kate Spade, the third week of April was the company’s best ever in terms of sales.
Resale sites are coming out big winners as the pandemic plunges the economy into a deep recession. They will have their pick of inventory, as brands look to shift clothes that went unsold during lockdowns. Soaring unemployment is good for the secondhand market too: analysts predict the newly jobless will turn to sites like Thredup and Rebag to clean out their closets for extra cash. And consumers, stuck at home and worried about their finances, may have stopped buying new clothes, but they’re still hunting for bargains online.
“We aren’t going out drinking or clubbing but still have leisure time,” said Shapero. “People are now just spending money on clothes instead of going out.”

People are now just spending money on clothes instead of going out.

Shoppers aren’t quite as eager to splurge on used luxury goods, even at a discount. The RealReal, which sells $700 Louis Vuitton bags and $350 Prada pumps, saw sales plunge 40 percent the week of April 8, according to data compiled by Earnest Research, which monitors consumer spending habits. The company’s stock is down 22 percent since late February.
Some expect secondhand luxury to take off as well, particularly if a deep recession forces even wealthy consumers to watch their spending. Vestiaire Collective, a luxury reseller with a mostly European clientele, saw sales jump 20 percent in late April, and Rebag sold more handbags in late April than it did over Black Friday. At StockX, which sells sneakers that can cost thousands of dollars, sales were up 75 percent the week of April 15 compared with last year, according to Earnest, though the average price of sneakers sold decreased.

“[Resale sites] are better off than retail, and they are way better off than department stores,” said Sonia Lapinsky, a managing director in AlixPartners’ retail practice. “This crisis will completely change shopping behaviours, and when every dollar counts, resale will be far more attractive.”
New Opportunities
Before the pandemic hit, the resale market was on track to double from $24 billion in 2019 to $51 billion by 2024, according to a report from Thredup and GlobalData, a retail analytics firm.
This growth may very well accelerate. The 2008 financial crisis paved the way for “flash sale” sites like Gilt and Rue La La, where the pairing of discounts and a ticking clock proved irresistible to shoppers. Resale sites, with their ever-changing assortment, offer that same combination, said Chris Ventry, vice president of business solutions firm SSA & Company and a former Gilt Groupe executive.
Resale sites also add a feeling of community to the equation. Platforms like Poshmark and Depop allow buyers and sellers to comment on each other’s listings and send direct messages (though Depop has also struggled with predatory messaging aimed at younger users). Fans have created Facebook groups to talk about their secondhand finds, while sneaker resale drama fills forums on Reddit.

This crisis will completely change shopping behaviors, and when every dollar counts, resale will be far more attractive.

“These shopping platforms are social networks,” said Andrea Szasz, principal at global consulting firm Kearney. “Flash sale sites hooked consumers with scarcity and newness, but the needs of consumers today is that sense of community in the digital world.”
On April 29, Poshmark added a short video feature similar to Instagram Stories. The platform moved up the launch from later this year in response to the platform’s surging activity.

Related Articles: Counterfeit Fashion-Manufacturers Now Making Counterfeit Masks

Poshmark's new feature, Stories. | Photo: Courtesy

In the luxury market, a recession could steer fashion back toward a more muted aesthetic, analysts say. Shoppers could end up selling the ostentatious and logo-heavy items they purchased in better times.
Sasha Skoda, head of women's merchandising at The RealReal said searches for classic jewellery, such as Cartier earrings and gold necklaces, are up 40 percent and 72 percent, respectively, over the last month, as “people gravitate toward classic investment pieces.”

Sales for investment watches like the Patek Philippe Nautilus and Rolex Daytona are up on the watch resale site Chrono24, said chief executive Tim Stracke.
Resale and the Excess Inventory Problem
Many brands offload their inventory to resale sites, whether it’s luxury labels at The RealReal or Adidas dropping product on StockX. Gap, Abercrombie & Fitch, Madewell and J.C. Penney have partnered with Thredup too. Still, they often see resale as competing with new clothing in their own stores.
That attitude seems to be shifting out of necessity, with entire spring collections gathering dust in warehouses and stores. Poshmark’s Chandra said his company is in discussions with large brands about creating wholesale lines that would be sold by professional Poshmark sellers.
Depop Chief Operating Officer Dominic Rose said Depop is building a wholesale platform for brands to sell on the site too. Come mid-May, brands can start selling directly to Depop sellers.
New Challenges
As masks and social distancing become ingrained habits, consumers might become warier of allowing used clothing to be shipped to their homes.
“As the crisis goes on, concerns will be about what people touched, and this could create social resistance towards used products,” said Szasz.

Depop sales are up during Covid-19. | Source: Courtesy

Peer-to-peer platforms like Poshmark have a dedicated landing page that addresses sanitary concerns during the coronavirus pandemic, pointing them to the Centers for Disease Control and Prevention’s guidance, which says it's safe to receive packages.
Consignment sites, which store and ship sellers’ items, can sanitise products directly, a potential selling point to customers. But they risk having to shut down warehouses if workers are exposed to the coronavirus. The RealReal had to close storefronts where sellers could have items appraised in person, and cited “limited warehouse operations” as a problem in the first quarter. Thredup is about a month behind in processing inventory due to low staffing at its warehouses, said chief executive James Reinhart.
Both consignment and peer-to-peer sites also need reliable shipping methods, which have become harder to secure with hundreds of millions of people shopping more online while under lockdown.
“This specific health crisis has brought vulnerabilities in the system,” said Poshmark’s Chandra. “We’re keeping an eye on logistics.”
Some resale start-ups operate at a loss, and could struggle to take advantage of the flood of merchandise hitting the market. Warehouses and appraisers are expensive, and margins on used goods are thin. StockX laid off over 100 employees earlier in April and is shifting “from a growth-focused mentality to one rooted in operational efficiency.”
“Many don’t have the working capital to make that kind of product acquisition,” Ventry said.
Resale sites also aren’t the only ones offering deep discounts. Fashion brands and retailers are increasingly resorting to sales, and the deals will only get better if the economy worsens further. More brands are launching resale on their own, including Patagonia, Eileen Fisher and Nordstrom.
“The competitive advantage resale has will be less when we come out of this,” Ventry said. “If everything is on sale, customers will surely go to retail first.”
Editor's note: This article was revised on 30 April, 2020 to reflect that searches for Cartier earrings and gold necklaces are up on The RealReal, not sales.
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Trump Administration Expected to Crack Down on Marketplace Sites in New Counterfeit-Centric Memo

Almost 10 months after Donald Trump signed a memo aimed at combatting the import of counterfeit goods into the U.S., with an emphasis on “third-party online marketplaces,” including “Alibaba, Amazon, and eBay,” and less than two weeks after reports that the $1 trillion behemoth that is Amazon will do more to prevent the sale of fakes on its sites, the Trump administration released its official plan to cut down on the ever-increasing counterfeit trade. 

A booming industry, the total trade in counterfeit and pirated goods tops $1.5 trillion across the globe, according to the International AntiCounterfeiting Coalition. Counterfeit and pirated goods, as well as trade secret theft, cost the U.S. economy, alone, as much as $600 billion a year, or 3 percent of the U.S. gross domestic product, Steve Shapiro, the unit chief for the FBI's intellectual property rights unit told CNBC.

Given the jurisdictional issues when it comes to counterfeit sellers (most are located outside of the U.S.) and other practical roadblocks at play, the fight against fakes is a complex one. “Foreign sellers face little risk of prosecution,” an administration official told Reuters. As such, strong U.S. government action "is necessary to fundamentally realign incentive structures." 

Speaking to CNBC on the heels of the signing of Phase One of Trump’s trade deal with China this month, which follows from claims of rampant infringement of American intellectual property by Chinese entities, Peter Navarro, the Director of the National Trade Council at the White House, revealed that as of now, “if you’re an intellectual property rights holder, whether you’re Michael Kors or Louis Vuitton or Pfizer selling prescription drugs, the onus is really on your company to police the internet, where a lot of this counterfeiting occurs.” 

“That’s not right,” according to Navarro, who says that “the Amazons and the Alibabas, Shopify” – which “have been facilitators of the Chinese counterfeiting” – need to act on their “responsibility to police the problem.” He further noted that sites like “Amazon and eBay” are “making a bunch of money … selling this counterfeit stuff,” without “accepting [their] full responsibility,” which is almost certainly a reference to marketplace sites’ recurring attempt to disclaim liability by asserting that they are not the “sellers” in such equations but merely middlemen. This is what Amazon argued in a recent case over the sale of a defective dog leash that a consumer purchased from its site. 

That case – which could have sweeping impacts for Amazon and its vas third-party marketplace – is still underway, with a Third Circuit Court of Appeals hearing en banc expected this year.  

As for the Trump administration’s latest counterfeit-specific plan, on Friday, the Department of Homeland Security’s Office of Strategy, Policy & Plans released a report entitled, “Combatting Trafficking in Counterfeit and Pirated Goods,” stating that at the forefront of the “best practices for private sector stakeholders” is “the idea that e-commerce platforms, online third-party marketplaces, and other third-party intermediaries such as customs brokers and express consignment carriers must take a more active role in monitoring, detecting, and preventing trafficking in counterfeit and pirated goods.” 

An increased focus on the crack down on counterfeits will be a welcome development for fashion and luxury brands, in particular, which is a particularly hard-hit segment of the market when it comes to the scale of the manufacturing and sale of counterfeits. After all, luxury goods are amongst the most commonly affected, with fake luxury products – from logo-bearing sunglasses to fake leather goods and shoes – accounting for “between 60 to 70 percent” of the total sales of counterfeit goods, per Harvard Business Review, “ahead of pharmaceuticals and entertainment products and representing perhaps [the equivalent of] one quarter of the estimated $1.2 trillion total trade in authentic luxury goods.”

With that in mind and given the need for luxury brands, in particular, to maintain the image of exclusivity associated with their valuable trademarks, brands routinely spend tens of millions of dollars each year to police unauthorizes uses of their trademarks. HBR reported in May that LVMH Moët Hennessy Louis Vuitton, the parent company to 75 luxury goods brands, including fashion houses like Louis Vuitton, Dior, Givenchy, and Celine, “employs at least 60 lawyers and spends $17 million annually on anti-counterfeiting legal action.” 

All the while, luxury titans have been busy lobbying governments “to extend enforcement bodies’ powers to seize and destroy fake goods, and to block access to websites that sell counterfeit goods,” per HBR. If the impending memo is any indication, the Trump administration is willing to up the ante. oa here

Rebag Introduces Clair, An Instant Evaluation Tool For The Luxury Resale Industry

Have you ever wondered how much you can buy your dream bag—that Dior tote that everyone is carrying—for on the secondary market? What’s a fair price? What’s a deal? Or, are you trying to slim down your closet and trade in that Louis Vuitton Speedy, but not sure about the right amount to sell it at? 

Rebag, the luxury handbag buying and selling retail destination, unveiled a new groundbreaking tool that allows users to check the value of luxury handbags, whether it’s that Gucci that’s already in your closet, or that Chanel that you’ve had your eye on for years. The appraisal system is called Clair, named for the acronym for Comprehensive Luxury Appraisal Index for Resale. “Essentially, it's an instant evaluation tool for the luxury resale industry,” said Charles Gorra, the founder and CEO of Rebag. “We think it has a much broader impact in terms of the whole luxury ecosystem.”
Traditionally, the luxury handbag market is shrouded in secrecy. Brands keep the numbers in their heavily controlled stock to themselves. To come up with a fair price at which to buy a pre-owned handbag could take up to an hour of phone calls and price checking, but now, thanks to Clair, that can be done simply by visiting the Clair app or website. Gorra and his team spent five years recording data that spans across 50 brands and 10,000 styles of handbags. When asked how the data was collected, Gorra was vague in his response, simply saying, “Pretty much anything you can think of is somehow in there.”

What used to take an hour to calculate now takes seconds simply by entering the information required to appraise the handbag’s value. “Basically, it's a taxonomy,” said Gorra, who explained that there are five segments within that taxonomy that are taken into account: type, designer, model, style, and size.
Those who end up selling their luxury handbags to Rebag will be instantly quoted a price in cash or credit—which is 15 percent more than the cash value—because of Clair. Users can simply print out the label and ship the handbag to Rebag, or if they are located in Los Angeles, New York, Miami, or San Francisco, they can drop it off at a brick-and-mortar location.

“We can find a price, and everyone will know that and you will have good surprises, and you may have bad surprises—but you will know.” said Gorra. “And also, you will know now, which is very important.”
But Clair isn’t just for those looking to buy or sell on Rebag. Gorra knows very well that people may not necessarily use the tool for that. He also knows that people may scour the market for handbags sold below the Rebag buying price to sell to Rebag. Clair provides a free instant evaluation to anyone who wants to use it. “Clair is meant to be essentially an open source framework for the industry,” he said. “It's not for just for Rebag, it's for everyone.” Gorra wants Clair to be for the secondary luxury handbag market what the Kelley Blue Book is for used cars.
For those who want a return on investment, Clair will provide up-to-date data on the resale market. Gorra said that Hermès is the unicorn, while Chanel, Louis Vuitton, Gucci, and Goyard are the safe bets as he points to a diagram that shows that data. Then, Gorra explained that a simple handbag accessory, like the Louis Vuitton bandouliere (strap) could make a massive difference in the resale value. Those who have it will get 70 percent of the retail price, while those who don’t only get 40 percent of the retail price.
Although StockX provides a service that shows how much items are offered or sold for, Gorra explained the difference between Clair and StockX. “StockX is a peer to peer marketplace, right?” asked Gorra. “So it's what they're servicing at StockX is not a StockX view, it is not a StockX price. It is the reflection of an individual currently putting a bid or an ask on StockX that StockX does not control.”
Clair will certainly have an impact on the luxury handbag secondary market. The next year will show just how much, as well as how brands and consumers will react to it now that they have the knowledge to sell and buy luxury handbags wisely.

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President Trump enthusiastically tours new Louis Vuitton workshop that will employ 500 in Texas flanked by his chic daughter Ivanka

President Donald Trump toured the new Louis Vuitton leather workshop in Alvarado, Texas on Thursday
Trump was joined by his daughter Ivanka and her husband Jared Kushner 
The family toured the new Louis Vuitton facility and spoke with workers
Just prior to arriving at the plant, Ivanka had been photographed clutching a Chanel bag 
The bag, however, was noticeably absent when she arrived with her father at the Louis Vuitton plant 
Following the tour, Trump was scheduled to headline a campaign rally in Dallas 
Trump began his trip to Texas on Thursday at a fundraiser in Fort Worth that raised about $5.5 million for Trump Victory

Trump arrived at the Louis Vuitton plant in Alvarado on Thursday afternoon where he toured the new facility and spoke with workers.
Just prior to arriving at the plant, Ivanka had been photographed clutching a Chanel bag.
The bag, however, was noticeably absent when she arrived with her father at the Louis Vuitton plant.
Looking to promote new jobs, the first family were spotted touring the Louis Vuitton plant and being shown various production lines.




President Donald Trump toured the new Louis Vuitton leather workshop in Alvarado, Texas on Thursday




Trump was joined by his daughter Ivanka as they toured the new plant and spoke to workers

Just prior to arriving at the plant, Ivanka had been photographed clutching a Chanel bag. The bag, however, was noticeably absent when she arrived with her father at the Louis Vuitton plant



Trump and Ivanka participated in a ribbon cutting ceremony at the new workshop alongside Chief Executive of LVMH Bernard Arnault, CEO of Louis Vuitton Michael Burke and Alexandre Arnault (left to right)

'I've seen that before,' Trump told his tour guides while pointing to one of the iconic bags set up on a table.
Trump went on to address a crowd at the plant for a ribbon cutting ceremony.
'This workshop will soon employ 500 of the most highly skilled workers anywhere in the world,' Trump said.
'No one can match the precision and perfection of an American artisan.'
During his speech, he heaped praise on his daughter and son-in-law and made them stand so the crowd could applaud them.
Trump said Ivanka was 'responsible for 14 million jobs this year'.
Following the tour, Trump was scheduled to headline a campaign rally in Dallas.
Trump began his trip to Texas on Thursday at a fundraiser in Fort Worth that raised about $5.5 million for Trump Victory, a joint fundraising committee benefiting the Trump campaign and the Republican National Committee.
The Texas visit comes at a critical time for Trump, whose dealings with the president of Ukraine are the subject of a quickly unfolding impeachment inquiry run by House Democrats.
While Republicans have largely defended Trump, they have sounded alarms over his decision to pull U.S. troops out of northeast Syria - a move that paved the way for Turkey to invade and assault the Kurds, who'd fought alongside the U.S. in its campaign against Islamic State militants.




Trump, chief executive of LVMH Bernard Arnault (center),  Bernard Arnault (second from right) and Ivanka listened as workers spoke during the tour




Trump arrived at the Louis Vuitton plant in Alvarado on Thursday afternoon where he toured the new facility and spoke with workers




I've seen that before,' Trump told his tour guides while pointing to one of the iconic bags set up on a table




Trump tours the Louis Vuitton workshop with Bernard Arnault (right), Alexandre Arnault (third from right), Ivanka Trump and Michael Burk (second from left)
Upon landing in Texas on Thursday, Trump credited his threat of sanctions on Turkey and the violence that has taken place for the announcement of a cease-fire, though critics say Trump green-lit the incursion and put the Kurdish forces in danger by announcing a U.S. troop withdrawal.
Trump described the cease-fire as an 'incredible outcome' that could not have occurred 'unless you went somewhat unconventional.'
A White House meeting between Trump and congressional lawmakers to discuss the situation devolved into an insult-fest on Wednesday, with the president calling Democratic House Speaker Nancy Pelosi a 'third-grade politician' and Pelosi storming out.
Trump and Pelosi continued to trade jabs after the meeting, with each accusing the other of having a meltdown.
Texas is an important state for Republicans.
Trump carried the Republican stronghold and its 38 Electoral College votes by 9 points in 2016. But Democrats have pointed to demographic trends as well as the fact that Republican Sen. Ted Cruz won reelection by just over 2 points last year as evidence that the second-most-populous state could soon be in play.
Trump's campaign and the RNC have been raking in money, raising a record $125 million in the third quarter of this year.
By comparison, former President Barack Obama and the Democratic National Committee raised just over $70 million in the third quarter of 2011 for his reelection campaign.




Trump speaks during a ribbon cutting ceremony at the Louis Vuitton workshop




During his speech, he heaped praise on his daughter and son-in-law and made them stand so the crowd could applaud them. Ivanka was spotted waving to the crowd as they clapped




Jared Kushner and Ivanka Trump were front row for the ribbon cutting ceremony at the Louis Vuitton workshop in Texas on Thursday




Ivanka Trump, Jared Kushner and Commerce Secretary Wilbur Ross listen during an event with Trump on Thursday




Trump waves after stepping off Marine One on the South Lawn of the White House in Washington after returning from a campaign rally in Texas




White House senior adviser Jared Kushner and Ivanka Trump arrive at Andrews Air Force Base to board Marine One for a short trip to the White House. The couple traveled with President Donald Trump to Texas for a rally and to tour the Louis Vuitton Workshop
President Donald Trump has toured a new Louis Vuitton leather workshop in Texas with his daughter Ivanka and her husband Jared Kushner in tow.

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StockX's new CEO tells Jim Cramer going public is 'certainly our objective as a company'

If StockX has plans to hold an IPO, it now has a person at the helm with experience in public markets.
StockX, the Detroit-based e-commerce marketplace that started out as an exchange for limited-edition sneakers, in June brought on eBay alum Scott Cutler to lead the privately held company as CEO. In the same month, the company raised $110 million in a Series C funding round to give it a $1 billion valuation.
The resale platform, which has expanded into other high-end products, was launched in 2016 by Josh Luber and billionaire Quicken Loans founder Dan Gilbert.
"We have world-class investors, including Dan, that are in this and I think wouldn't that be great if we ended up with that [public] outcome, that's certainly our objective as a company," Cutler, who previously was a senior vice president at eBay and president of StubHub, a unit of eBay, told CNBC's Jim Cramer in a "Mad Money" interview Monday. "But we're going after a global opportunity with consumers around the world and we're super excited about this innovation in commerce."
StockX and its 800 employees across the United States and Europe serve customers in 170 countries, according to Cutler. The e-retailer is one of the many new companies that are helping change the direction of the industry.
Before eBay, Cutler was an executive vice president at the New York Stock Exchange for nearly a decade. He succeeded co-founder Luber as chief when he joined StockX earlier this year. Intrigued by its business model, Cutler said he first became acquainted with StockX in its infant days and got connected with Luber via LinkedIn.
"I saw the idea and I thought it was just transformational, the combination of all of these things together in this company," he told Cramer, "and then who would have known a few years later that I would join and have the opportunity to run it in partnership with the founders."
StockX already has its mind on the IPO process, though not the kind that stock investors can get their hand on. Last week, the company rolled out a collectibles initiative, its fifth product category, in collaboration with Adidas dubbed "The adidas Campus 80s StockX IPO."
Through the partnership, three designers from across the globe are tasked to design, create and produce a total of three "unique sneakers" in 10 days, Cutler said. StockX then debut 330 pairs of each sneaker on its online market where customers place bids over the course of three days.
There were 10,000 bids placed with 20% coming from outside of the United States, the CEO said.
"This is the first time where a brand comes direct into the marketplace and allows the consumer to dictate the price that they're willing to pay for these rare, one-of-a-kind sneakers," Cutler said. "When it came down to it, when you talked about the average clearing price was a little over $200 across all three, and 90% of the bidders paid less than what they bid on the sneakers."

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Correction: A previous version of this story misidentified StockX co-founder Josh Luber and Quicken Loans founder Dan Gilbert. 
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Madewell Is Reselling Its Own Used Jeans Via a Partnership With Thredup

Photo: Courtesy of Madewell

Madewell began its commitment to extending the lifecycle of clothing long ago with its "Blue Jeans Go Green" denim recycling program: When you donate any pair of jeans, you're given $20 off a new pair. (Could that then fuel unnecessary consumption? Sure, but few recycling/sustainability programs are perfect.) It also launched a fair-trade denim capsule earlier this year. Starting Monday, Madewell is taking that commitment to circularity a step further through a partnership with ThredUp, the massive secondhand online retailer.
They've collaborated on "The Madewell Archive," a collection of pre-owned jeans that Madewell sourced from Thredup. Each pair was hand-selected, washed and refurbished and, now, placed into select stores for sale for $50 a pair — quite a bit cheaper than a new pair of Madewell jeans, which are typically around $130. They'll be available in select stores in Austin, Chicago, Nashville and NYC starting on Oct. 14 and California starting on Nov.1.
"At Madewell, we're on a mission to create the longest, most sustainable lifespan for our denim, whether you're purchasing a new pair that are made through sustainable practices or recycling old ones through our longstanding denim recycling program," said Anne Crisafulli, head of merchandising at Madewell, in a statement.
"At ThredUp, our mission is to extend the life of clothes through resale," added Karen Clark, VP of partnerships at Thredup. "When a brand as loved as Madewell embraces secondhand, it says a lot about the evolution of fashion and the promise of a more circular future."
The news fittingly follows parent company J.Crew's recent announcement that Madewell is being spun off into its own company, which will be taken public with an IPO. As part of that process, the brand released a prospectus that majorly emphasizes the brand's commitment to sustainability.
Meanwhile, as Thredup has raised money and expanded, it's pursued a number of partnerships, including with Reformation and Cuyana, wherein Thredup essentially powers recycling programs for each brand: Shoppers receive or can print a Thredup shipping label, send in unwanted items and receive credit to use at that brand. More recently, it partnered with Macy's and J.C. Penney, both of which are selling used items from Thredup in their stores. Madewell marks the first brand to resell its own items via Thredup, but it's a model we could see becoming more common so long as the items aren't overly trendy and are, well, made well, so that they hold up — both qualities we should all be looking for in our clothing anyway to ensure it lasts.  oa here

Fast fashion is out. Renting and resale will become the new normal

Around the globe people become more aware of the trade off between buying fashion items, wearing them a few times, disposing and what it does to our planet. Many new (online and physical) retail platforms have started concentrating on second hand items and renting out. Some even say that the second hand fashion market will outgrow fast fashion by 2028.

The end of ownership.
Second to oil, the clothing and textile industry is the largest polluter in the world. The carbon footprint from textiles production in 2015 was greater than the CO2 equivalent of international flights and shipping combined. Three-quarters of our clothing will end up burned or buried in landfill. Some say that more than half of the fast fashion produced around the world is thrown away within one year. New circular techniques are being used in the production processes. But in a world where people are more conscious and aware of what and why they buy, it is normal that new retail concepts enter the market place. Enter, second hand and rental.

Resale and rental are changing the script.
Fashion is big, really big. The world market is estimated around $1,3 trillion, bigger than Russia's GDP. The market of resale fashion is tiny, but developing quite fast. From just thrift stores and buying on platforms as e-Bay, to a vast array of new brands. Resale apparel used to be the domain of bargain hunters, some were treasure hunting. Now early adaptors are browsing the many new (online) platforms entering the market place.
Some crucial facts and data from US based Thredup:

• the US resale market will grow from $7bn in 2019 to $23bn in 2023
• including already existing thrift stores total market will grow to $51bn by 2023
• resale apparel has grown 21x faster than the retail apparel market in the last 3 years
• 2/3 of all women shoppers have bought or are willing to buy resale
• 40% of consumers now consider the resale value of an item before buying it, a 2x increase from 5 years ago
• Millennials and Generation Z are adapting 2.5 times faster, compared to other groups.
• second hand, rental and subscription are projected to be the top 3 fastest growing categories in the 2019-2028 timeframe
• in 2018 the US fast fashion market was $35bn, compared to $24bn for second hand. By 2028 the second hand market will have grown to $64bn, whereas fast fashion's growth is projected at $44bn
• According to Mintel 44% of young women said they would like tone more eco friendly in their approach to fashion

Why own stuff?
There are multiple drivers for this massive shift. There is the obvious penetration of social media and the importance of influencers. Female fashion buyers are increasingly savvy on updating their wardrobes to the latests crave of the catwalks. With real buying power mostly being flat, in many economies, this obviously create tension. Add the increasing consciousness on sustainability and the fact that a new perception has been growing on possession and ownership (why own stuff?, aka the sharing economy), it's easy to see why things are moving. Some also mention smaller housing as a driver for change, with the average number of items in consumers' closets declining from 164 items in 2017 to 136 in 2019.
Elizabeth Cline, author of the Conscious Closet: “Resale offers the wardrobe-rotating fun of fast fashion without the guilt or waste. By driving preferences away from disposable fashion towards higher-quality clothes, reuse is a boon for our personal style and the planet.”

Rental is different, a closet in the cloud.
For many online fashion retailers "wardrobing" or "ASOS parties" are a huge problem. The demand for fresh looks is prompting many people to order online, wear it and return it later ("after the party"), often for free. Fashion industry returns hoover around 40-50% of items being bought online. Many new platforms persuade consumers from wardrobing into hiring. The US apparel rental market is relatively small, estimated to grow to $4,4bn by 2028, just 1% of total clothing sales. But it grew 24% in 2018 compared to 5% for the wider clothing market, GlobalData shows.
These rental platforms are buying clothing wholesale from brands, some are introducing revenue sharing models allowing brands to upload items, the platform taking care of cleaning and delivery in return for a share of revenue.
Rent the Runway redefined the fashion rental market already in 2009, starting with one offs like a dress for a gala. Many platforms have evolved now to a monthly subscription model and are positioned mostly upmarket. Some even IPO-ed recently, because investors love the recurrent revenues of the subscription business model.
Some examples. Both second hand and rental. Physical and online.

The diversity of brands and formats serving second hand and rental customers is immense. Round Two in the US is a resale outlet, with only two stores. A tactile experience with overflowing racks, but not as in the old thrift stores, where you would occasionally meet a bargain hunter. Round Two is different, young people and kids are roaming the racks, with brand new items and slightly worn ones. A brand new $300 T-shirt by Supreme, next to a vintage bootleg Janet Jackson T-shirt ($250) . It's a place where you can buy and sell. Nothing is on consignment (in that case the seller retains ownership).

Vintage Brands store in Monnickendam (Netherlands) is doing the same as Round Two, though aimed at a different customer. Yearly over 700 women offer their personal fashion and accessory items, from Zara to Gucci, in consignment in this cosy store. Loyal customer find an extra reason for visiting the store: the social aspect is important, talking with the owner and other customers, on what's "new" and hot. You can sit down and read a magazine, drinking coffee. Sellers are often buyers. Vintage Brands' main marketing channel is word-of-mouth and social with a look book on Facebook and Instagram. The annual catwalks are famous and people drive over 100 miles to see models showing off.
Hirestreet is the UK first high street rental service and aims at budget conscious students. Hirestreet offers 10 day rentals for prices as low as £7. Most stock refreshes every week. Users will enter event date and choose outfit filters (with the "occasions" filter ranging from date night to maternity...) and Hirestreet will generate available rentals. Isabella West from Hirestreet found out that young women were spending over £500 a year on fast or disposable fashion and if they hired rather than bought they could save £400: "I found this amazing. £400 is the price of a holiday."

In the US the two dominant platforms are Rent the Runway and the RealReal, both very successful and growing fast. Rent the Runway (valued at $1bn) is a fashion subscription platform offering premium and exclusive fashion and accessories brands. It claims 10 million members. Its "unlimited plan" at $159 per month will offer unlimited access to as many items as a customer wants. If you love the idea of wearing premium brands like Gucci, Kates Spade and Diane Von Furstenberg RtR is a great option. RtR merchandise arrives in a garment bag with a prepaid UPS label for returns. Next to its platform they operate 5 stores and multiple drop off locations, but it is essentially a technology (and logistics) company. With the data being used both on the returns and via its "virtual closet" RtR is perfectly positioned to personalise its offering.
The RealReal is a premium luxury resale platform, with a Gross Merchandise Value (GMV) of $710mm in 2018, processing 1,6 Million orders from 400,000 different buyers. Items are authenticated and researched before being offered on its online platform or physical stores. In many cases professionals (authenticators) are visiting the seller, and discuss which items could be sold on the RealReal's platform, they are also advising on price. The merchandise is held in consignment for sellers. The company takes a 40 per cent cut of each sale, which is reduced for high-value items or for consignors who sell more than $10,000 per year. 56% of the RR's consignors count environmental impact as a key reason to sell on the platform. Buying a second hand Fendi bag for the price of the new Michael Kors bag ($300) is probably equally important.
In a complete reversal of things 7 years old Le Tote, a US based rental fashion platform, bought 190 years old Lord & Taylor department stores, some 35 locations located in the Midwest of the US. An old legacy company absorbed by a new one. Le Tote's proposition is different from RtR's. Most of its customers spend just $69 per month for mid-market brands like J Crew and Zara.
Meanwhile high street brands as Scotch & Soda, Rebecca Taylor and Urban Outfitters (with Nuuly) have started renting out items in a comparable scheme as RtR.
H&M could rethink it's $4bn unsold stock and put in on a rental platform. They just announced a limited rental service for its new premium collection from recycled fibers in a Stockholm store. Express, a fashion mall brand with 600 stores in the US, started a rental service with a $70 monthly subscription. Ikea even launched a furniture rental service earlier this year.
Rental and buying secondhand fashion is beyond icky.
So things are definitely moving. This business is beyond the icky feeling people used to have with wearing items somebody else had worn before. It's still early and it is probably harder to persuade consumers to hire affordable apparel than catwalk creations, just because there are just too many cheap alternatives available. Some platforms are growing too fast, causing some hiccups. With young and conscious consumers growing up and becoming more influential this will change. The sharing economy is here to stay. oa here

Farfetch partners with second-hand clothing service

Luxury fashion platform Farfetch has partnered with second-hand clothes donation service Thrift+, giving customers access to a free collection service for unwanted items in exchange for credit to use on the etailer’s site. 

A participant in Farfetch’s technology accelerator programme, Dream Assembly, Thrift+ sells second-hand fashion online and donates a portion of the proceeds to one of 160,000 registered charities in the UK.
Through the new partnership, customers will be able to order a Thrift+ x Farfetch donation bag online. They can then book a free collection service, or drop off the filled bag at a local drop-off point.
Thrift+ will photograph and list items for sale on its site. Once an item sells, one-third of the proceeds are donated to the customer’s nominated charity, and one-third is awarded to the customer as Farfetch credit. Customers can also choose to donate their share to charity.
Thomas Berry, director of sustainable business at Farfetch, said: “We know our consumers would like an easy way to clear their wardrobes of unused items, and at the same time, they would like to feel positive about it. Thrift+ x Farfetch links our customer base with an innovative service that improves the donation experience and has a positive impact by giving good quality clothes another useful life and supporting multiple charities.
“This is a natural extension to our Farfetch Second Life resale programme, focused on luxury handbags, and part of our broader approach to sustainability.”  ao here

Waddell & Reed Financial Inc. Invests $8.02 Million in RealReal Inc (NASDAQ:REAL)

 

Waddell & Reed Financial Inc. bought a new position in shares of RealReal Inc (NASDAQ:REAL) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 277,445 shares of the company’s stock, valued at approximately $8,018,000. Waddell & Reed Financial Inc. owned approximately 0.34% of RealReal as of its most recent filing with the SEC.
Several other institutional investors and hedge funds also recently added to or reduced their stakes in the company. FNY Investment Advisers LLC bought a new stake in shares of RealReal in the 2nd quarter valued at about $63,000. Pendal Group Ltd acquired a new stake in RealReal during the 2nd quarter worth approximately $146,000. Maven Securities LTD acquired a new stake in RealReal during the 2nd quarter worth approximately $289,000. Crestline Management LP acquired a new stake in RealReal during the 2nd quarter worth approximately $482,000. Finally, CIBC Private Wealth Group LLC acquired a new stake in shares of RealReal in the 2nd quarter valued at $575,000. 25.14% of the stock is currently owned by institutional investors.

RealReal stock traded up $0.66 during trading on Friday, reaching $19.35. The company had a trading volume of 2,103,900 shares, compared to its average volume of 1,467,223. RealReal Inc has a 12-month low of $12.58 and a 12-month high of $30.05. The business’s 50 day moving average price is $16.23.
RealReal (NASDAQ:REAL) last released its earnings results on Tuesday, August 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.06. The company had revenue of $71.00 million during the quarter, compared to analysts’ expectations of $70.10 million. The business’s revenue for the quarter was up 51.1% compared to the same quarter last year. As a group, analysts anticipate that RealReal Inc will post -1.24 EPS for the current fiscal year.
REAL has been the topic of a number of recent analyst reports. Stifel Nicolaus reaffirmed a “buy” rating and issued a $30.00 target price on shares of RealReal in a research report on Wednesday, August 14th. Credit Suisse Group initiated coverage on shares of RealReal in a research note on Tuesday, July 23rd. They issued an “outperform” rating and a $30.00 price objective for the company. UBS Group initiated coverage on shares of RealReal in a research report on Tuesday, July 23rd. They set a “buy” rating and a $30.00 target price for the company. Bank of America cut their target price on shares of RealReal from $28.00 to $24.00 and set a “neutral” rating for the company in a research report on Monday, August 12th. Finally, Cowen began coverage on shares of RealReal in a research report on Tuesday, July 23rd. They issued an “outperform” rating and a $32.00 price objective for the company. Two analysts have rated the stock with a hold rating and six have given a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $28.14.

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Poshmark Pays Out Over $2 Billion To Its Community Of Seller Stylists

The social commerce platform leads the way in democratizing retail at scale, empowering over seven million sellers and 50 million users nationwide.

Poshmark, a leading social commerce platform for the next generation of retailers and shoppers, today announced it has paid out over $2 billion to its community of seven million Seller Stylists who are reimagining and ushering in a new era of retail. The milestone illustrates how Poshmark uniquely serves as a springboard for sellers to build thriving businesses and brands, using a robust set of e-commerce tools to support the end-to-end social shopping experience. Today's announcement doubles the $1 billion milestone that Poshmark reached just over one year ago.
The retail landscape is shifting as consumers demand more from brands than ever before. Consumers reward sustainability and transparency, they value access to goods over ownership and are looking to develop meaningful connections with the retailers –– or resellers –– they engage with. Poshmark's social commerce platform is built on these shared values, effectively enabling a new generation of sellers to serve that consumer base and bring the human connection back into commerce. This flywheel of consumers, retailers, and Poshmark's platform has helped democratize retail as a whole –– making it easy for anyone to buy and sell coveted items, engage with like-minded people, or grow a thriving business. Poshmark's community has scaled to over 50 million users nationwide, including seven million Seller Stylists, who drive massive engagement on the platform. Today, Poshmark users spend 23-27 minutes on the platform, share 30 million listings daily, and have access to over $175 million worth of inventory uploaded to the platform every week, ranging from luxury fashion to streetwear to home decor.
"This is an incredible moment for resale and social commerce. As a leader of these two burgeoning retail models, we are proud to have created a platform where anyone can build a business doing what they love, and become part of a diverse and hyper-engaged community," said Manish Chandra, founder & CEO of Poshmark. "Today, Poshmark is the foundation for thriving retail and resale businesses and brands, who have amassed engaged followers, thousands of dollars of income, and a supportive, entrepreneurial community. The extraordinary success of these retailers, who are uniquely equipped to serve today's consumer, is indicative of the widespread growth and future promise of social commerce."
In a momentous year, Poshmark has surpassed a number of critical milestones, further delivering on its mission to democratize retail by enabling anyone to sell, shop, or share their style:

• Category Growth: Poshmark launched the Home Market in June 2019, expanding for the first time beyond fashion and makeup into a new area of retail. By launching a new category, Poshmark has expanded the opportunity for sellers and shoppers alike to connect, discover, and transact.
• International Expansion: Poshmark expanded the community into Canada in May 2019, the company's first international launch, enabling more people to participate in social selling. In the four months since launch, the Canadian Poshmark community has grown to over 300,000 users –– a milestone that took over 15 months to reach when Poshmark first launched in the app store in 2011.
• Leadership: Poshmark welcomed tennis champion Serena Williams and fashion industry veteran Jenny Ming to its board of directors, rounding out a board with a deep and diverse set of retail, entrepreneurial, and business experience.

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Fake baby products are everywhere—here's how to spot the difference

Counterfeit strollers, car seats, carriers and more put your child in serious danger—and the problem is more widespread than most parents realize. Here’s how to avoid buying a fake.

 

Counterfeit versions of this feeding mat are widely available and could put your baby at risk. Photo: Hip Mommies 

  Jayne Gregory* was pregnant with her first baby and perusing the booths at a downtown Toronto baby show this past spring when she noticed a table selling a product called Happy Mats—silicone placemats that double as plates and suction to the table or high-chair tray so little hands can’t knock them off. Gregory had heard of the mats and they sounded great, so she bought one.
What she didn’t know is that she hadn’t actually purchased a real Happy Mat; it was a knock off. “I just assumed it was the same one—I had no idea it might be something different,” says Gregory. How could she have known? The booth, which featured a number of brightly coloured teething toys, bibs and stuffies, looked totally legitimate. The seller was pleasant, and Gregory was, after all, at a large, reputable, big-city trade show.
It wasn’t until a few weeks later that she discovered through a random Facebook post about counterfeit baby products that she hadn’t bought the real Happy Mat, which is manufactured by a Colorado-based company called Ezpz, and distributed in Canada by Toronto company Hip Mommies. “My biggest concern is health and safety,” says Gregory. “There’s going to be food touching this, and I would be putting it in the dishwasher. What if the material breaks down?”
Hip Mommies owner Jennifer Chua says she often hears from parents who, unbeknownst to them, have purchased fake Ezpz mats. “They come to us saying the product doesn’t work well, and they want a refund,” she says. “I ask them where they bought it, and then I have to tell them they’ve bought a fake.”
Unfortunately, this problem isn’t limited to Ezpz mats. Fake baby products are now everywhere—both online and at bricks-and-mortar stores. And some of them could put kids in real danger.
“The counterfeit problem in Canada is massive,” says Lorne Lipkus, an intellectual property lawyer in Toronto. He says the value of counterfeit goods sold in Canada annually is in the tens of billions, and while no one is certain how much of that is baby products, it’s clear that many major baby-gear brands are affected. Infant-carrier maker Ergo, baby gear company Skip Hop and stroller manufacturer Maclaren, for example, all have pages on their websites about fakes.

How does this happen?
Counterfeiters are masters at replicating. They’ll make fake product websites that look just like the real ones, or advertise a product on a site like eBay, Amazon or AliExpress using images stolen from the real company. An image of Chua’s daughter appears on the authentic Ezpz mat packaging, and she says the picture is now being used around the world to sell fake mats.
Chua says scammers have even begun running real Ezpz ads on Facebook, but when users click it, they’re taken to an illegitimate site, and Lipkus says criminals are increasingly using social media to peddle their wares. “We’re seeing more and more where social media sites like Facebook or Instagram are being used to house the counterfeit operations,” he says.
Because the counterfeit problem is so rampant on Chinese e-commerce sites like Alibaba and AliExpress, it’s super easy for pretty much anyone to order a bunch of knock-offs and sell them at baby shows, in pop-up retail locations, on buy-and-sell websites like Kjiji and Craigslist, and even in mom-to-mom Facebook groups.
The dangers of fakes
Wearing a fake Kate Spade bag that you got on Canal St. in New York is one thing. Wearing your baby in a knock-off baby carrier is another. When a shady company fakes a name-brand product, there aren’t any checks and balances to ensure the item won’t put your kid in danger. Nobody is checking what material it is made of, how strong the product is, and what chemicals were used, whereas products that are imported legally must be declared with the government and can be subject to inspection. They would have to comply with Health Canada’s consumer product safety regulations, which address things like flammability, phthalates and for certain children’s items, choking and strangling hazards.
It’s important to note as well that companies who are legitimately importing from China will visit factories and develop relationships with manufacturers to ensure processes are acceptable. Distributors may also do some due diligence; Chua’s Hip Mommies, for example, reviews third-party safety testing reports for its products before it decides to distribute them.
On top of that, when you buy fakes—whether it’s baby gear or that Kate Spade bag—you may well be supporting bad people doing very bad things. “The factories in China that are making more than 80 percent of the counterfeits are often controlled by organized crime,” explains Lipkus. “They might be providing terrorist financing, and they often use slave and youth labour.” He says he’s had clients go into factories where kids as young as six years old are mixing dangerous chemicals. That can’t be worth a few dollars off the list price.
How to avoid buying a counterfeit baby product
While Lipkus says that every major store you can name has had a problem with counterfeit products, there are nonetheless ways you can protect yourself.
-If you’re looking to buy a specific product, visit the manufacturer’s website to see who is legally allowed to sell it. You’ll often find this under “authorized retailers/distributors” or “where to buy.” Both brick and mortar stores and online shops are usually listed.
-If you’re buying online from Amazon, click on the “sold by” link. It should list either the manufacturer itself, or the name of a distributor, which you can check to ensure it is authorized (see point above).
-Be skeptical if you notice poor descriptions of the product online, such as grammatical errors or other eyebrow-raising verbiage. For example, a fake Ezpz mat on Amazon.ca says the product is good for use on baby walkers, an item that’s illegal in Canada.
-Stick to well-known, well-established online retailers, and/or ones that also have brick and mortar locations. If you find a smaller online retailer that you’d like to shop from, do a bit of digging. Do they have a Contact Us page, and do people respond to your emails? Are their social media accounts active? Beware of websites that offer time-limited deals, or ‘only five left’ at a bargain price.
-If you’re buying in person from a store, baby show or market, inspect the product carefully. Does it look and feel well-made? Take a close look at the packaging, as counterfeiters often use flimsy plastic and leave off key details. You may also see spelling and grammatical errors.
-Be careful when buying from buy-and-sell websites or off Facebook. If someone advertises that they have a limited number of an item at a great price, those could be knock-offs. Similarly, if someone in a neighbourhood group says they have 14 baby carriers available, it’s worth wondering why any one person would have so many carriers.
What to do if you discover your item is fake
Start with the retailer who sold you the item and request a refund. It’s possible they, too, have been duped, and may readily offer you a refund. If that doesn’t work, call your credit card company. Most protect against fraud, so if you’ve used your card to buy an item that turns out to be counterfeit, you may be able to get your money back. Lipkus also recommends informing the Canadian Anti-Fraud Centre as well as the police (using the non-emergency line). It’s an extra step, but if nobody reports these things, it can never be stopped. Once the matter is resolved, destroy the item. If it’s not safe for your baby, it’s not safe for anybody else’s either.
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