Vestiaire Collective, the secondhand luxury goods site based in Paris, wants Chinese customers to warm up to the idea that previously owned luxury is still luxury.
With a recent $65 million round of funding, bringing its total dollars raised to $130 million, Vestiaire Collective is targeting Chinese expansion. Right now, the company claims to have six million members in 47 countries, and it’s tailored different versions of the campaign to each of its key markets, including the U.S. and Hong Kong. While the company currently ships to China and Hong Kong, its in the process of onboarding Chinese sellers, and opening a logistics hub in the region, both of which the company plans to complete by early 2018.
“Vestiaire Collective has been going through three years of fast growth, and it’s now established in Europe for used luxury fashion. We’ve been building a strong presence in the U.S., as well, and we want to continue our expansion through Asia to become the first globally established platform in the market,” said Olivier Marcheteau, Vestiaire Collective’s chief operating officer. “We’re the only platform that lets U.S. sellers connect to European sellers. In Asia, we want to make sure we have the logistics in place to tap into those wardrobes.”
As more Chinese luxury customers spend money at home, the country is driving a majority of the growth in the luxury goods market. According to a 2017 McKinsey report, Chinese luxury shoppers are expected to add $150 billion to the global luxury market by 2025, totaling 44 percent of the overall market size. In response, luxury brands like Gucci, Louis Vuitton and Saint Laurent are building e-commerce strategies in the market, either opening up brand sites or partnering with platforms like Alibaba or JD.com.
Right now, the most room for scale is in China, where the secondhand luxury market has yet to really take off. As Vestiaire Collective guns for the Chinese luxury customer, and seller, the…