The RealReal Inc. said Monday that it has partnered with Gucci for an online consignment shop through year end.
Gucci is part of the Kering
lineup of luxury brands that also includes Balenciaga and Alexander McQueen.
Gucci is the most in-demand men’s brand on The RealReal
for a third consecutive year and is the number two brand on the site behind Louis Vuitton
which topped the list for the first time.
Gucci has also seen demand from shoppers ages 18-to-34 soar, The RealReal said.
Resale demand for Gucci on The RealReal is up 19% this year, with women’s crossbody bags and belts among the brand’s items maintaining high resale value over the past three years.
The online shop is live now.
“It becomes yet another vehicle for acquiring supply (partnering directly with brands), which is key given that unlocking supply is one of the biggest growth drivers for RealReal (there is plenty of demand, but supply has been a constraint),” wrote Wells Fargo analysts in a note.
Wells Fargo also thinks the partnership will give The RealReal further credibility among shoppers, and highlight the eco-benefits of the resale market.
The Gucci collaboration also includes a promise to plant a promise to plant a tree for every item sold through the online shop.
Wells Fargo rates The RealReal shares overweight with a $20 price target.
The RealReal stock has fallen 14% for the year to date. Kering shares are down 0.3%. And the benchmark S&P 500 index
is up almost 5% for 2020 to date.