HONG KONG — Prices on the luxury fashion resale platform Vestiaire Collective will drop an average of 10 percent, thanks to a lowered commissions structure that will roll out on the platform Wednesday.
The pre-owned fashion player revealed that the changes will most significantly impact customers looking to buy and sell pieces at more accessible price points, and also items that fall into the rare, desirable high-luxury category, as those pieces will enjoy a capped commission.
“This commission restructure is one of the first major changes I wanted to impact the business since joining Vestiaire Collective at the start of this year,” said Maximilian Bittner, the company’s chief executive officer. “This significant drop in commission will encourage more sellers to the site, knowing they will be able to sell their item at a fast rate whilst also making a strong profit.”
“For the buyers, it means they can purchase the desirable pieces they’ve always wanted at even more accessible prices. I believe that giving our users more direct value is the most powerful medium to keep them engaged and excited,” he said.
In an interview last month with WWD, Bittner expressed that previously the platform had been reliant on giving out vouchers to stimulate user activity. He said the company was also looking into dropping commissions during certain periods, for instance, if demand for brands peak suddenly as it has for Chanel and Fendi in the wake of Karl Lagerfeld’s death.
According to Vestiaire Collective, the resale industry is currently estimated to be around 8 percent of the 260 euro billion luxury market and set to double in size by 2022.
While the firm is sharpening up its business model under its new ceo, the second-hand goods sector is watching the latest developments in the lawsuit between Chanel against The RealReal, another online luxury resale operator, and vintage goods seller What Goes Around Comes Around. The French house has complained that the two parties guarantee to consumers that their products are “100 percent the real thing”. In court documents however, The RealReal said the statement is a more “general expression of opinion.”
The case may have far-reaching implications, including for Vestiaire Collective, which emphasizes that its counterfeit checks are done in-person and are subject to “rigorous physical quality control”, although the company cannot promise that products are verified by the brands.