WATCH: Reporter Lisa Librenjak highlights Fashionphile’s partnership with Neiman Marcus to attract millennial and Gen Z’ers. Fashionphile is an online retailer that buys and sells preowned designer and luxury goods.
By: Lisa Librenjak
An American Chain of luxury is taking a huge step towards attracting younger shoppers.
Neiman Marcus invested in Fashionphile, an online retailer that buys and sells luxury goods.
Fashionphile was found in 1999 and promotes itself as an ultra-luxury pre-owner retailer with a
15 thousand item category. The question is will this hurt luxury industry demand for Neiman
Marcus and will it actually reach its goal to attract millennials and generation Z?
Neiman Marcus has 42 locations in the United States and is known to be one of the most
prestigious department stores including designer and luxurious apparel.
Some of those locations will serve as Fashionphile drop-off zones for items to be resold. So instead of going through the online process, you can retrieve a quote then and there for the pre-owned item and decide what type of payout you would like.
This is not the first time Neiman Marcus has made such a decision.
In 2015, the luxurious department store had a brief relationship with TheRealReal also
known as a Fashionphile’s competitor. But the payout was strictly Neiman Marcus Gift Cards.
Luxury Resale is a sensitive business. Paris-Based Designer Store Chanel, sued Fashionphile,
TheRealReal, and other sellers over the practice.
In 2014, Fashionphile settled with Chanelagreeing to remove any language from its site that might confuse shoppers that the reseller is affiliated with Chanel. According to a 2019 Resale Report from ThredUp, a popular fashion resale business, more than one in three Gen Z’ers will buy secondhand items in 2019, nearly nine in 10 apparel retailers said they will get into the resale business by 2020, and by 2023 the secondhand market will reach 51 billion in growth, nearly double from what it makes now.
Will this hurt luxury industry demand?
Neiman Marcus CEO, Geoffrey Van Raemdonck, who’s worked with other designer stores such as Ralph Lauren and Louis Vuitton, says he is not worried about the re-commerce or growing sustainability movement. He says the decision was also based upon a customer survey the retailer conducted last year, which found that half of its shoppers were shopping on resale sites but were dissatisfied by the available services. Mr. Raemdonk’s goal is to change that.
It appears the resale market phenomenon is becoming the new mainstream.