Fashionphile, a San Diego-based resale platform that specialises in luxurious purses and equipment, has acquired LXRandCo, Inc., a smaller Canadian participant within the resale house that filed for chapter final month.
As a part of the deal, Fashionphile, which counts Neiman Marcus as a minority investor, would buy LXR’s remaining stock of designer purses, mental property, in addition to its connections with retail companions as a provider of secondhand merchandise.
As an illustration, LXR bought resale stock to malls Lord & Taylor and Century21 earlier than they respectively shuttered in 2020. One other instance of a secondhand wholesaler is What Goes Round Comes Round, which supplies classic luxurious equipment for dozens of Dillard’s shops throughout the US. Le Prix, a solely B2B platform that connects secondhand suppliers in Asia and different markets with consumer-facing retailers, can also be a outstanding participant within the resale wholesale house.
With a brand new secure of provide in addition to relationships with retailers all for stocking pre-owned merchandise, Fashionphile will enter a brand new part of progress by tapping into the very fragmented B2B marketplace for luxurious secondhand items, in response to chief govt and co-founder Ben Hemminger.
“The belongings from the sale have been a possibility to take a primary step in our journey into wholesale,” he mentioned. “We will seize a certain quantity of market share in our personal direct-to-consumer [platform] however there’s a lot extra alternative once you increase into different channels.”
Proper now, Fashionphile sources its merchandise straight from shoppers buying and selling of their pre-owned items for money. However this provide has outweighed the demand for it on Fashionphile.com. Promoting these things elsewhere — similar to malls, boutiques and massive e-commerce marketplaces — could be a profitable answer.
“Proper now, we flip luggage away bc we’re over-inventoried on-line,” mentioned Sarah Davis, co-founder and president of Fashionphile. “But when we serve different channels, we are able to soak up no matter we would like.”
Whereas the LXR sale offered the preliminary enhance of stock for Fashionphile’s entry into wholesale, the corporate plans to supply the overwhelming majority of its future wholesale stock from their client sellers.
Fashionphile already works with quite a few unbiased consignment shops as a provider. Later this 12 months, it plans to open its first two pop-up places in California.
Study extra:
BoF Insights | The Way forward for Vogue Resale Report
BoF’s definitive information to vogue resale, masking the evolution of the market, its progress and upside, client behaviours and suggestions for crafting a data-driven resale technique.
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