Neiman Marcus Group is stepping into the luxury-resale market.
Fashionphile headquarters, in Carlsbad, Calif.
The Dallas-based retail conglomerate has agreed to acquire for an undisclosed price a minority stake in Fashionphile, an omni-channel concern that specializes in selling preowned ultra-luxury handbags and accessories. Established 20 years ago, Fashionphile operates not only an e-commerce site but also four physical showrooms: in Carlsbad, Beverly Hills, San Francisco and New York City. The retailer does business primarily on its website.
With this investment, Neiman Marcus becomes the first major luxury retailer to invest directly in preowned merchandise, an attractive and fast-growing segment that is projected to grow to some $23 billion in sales by 2023. Apparel resale has grown by about 20 times faster than the general retail apparel market over the past three years, according to a report from Threds, one of that sector's leading retailers.
“Our investment in Fashionphile is an exciting step in Neiman Marcus Group’s transformation into a luxury-customer platform, as we work to better serve our customers, continue to shape the future of luxury and position Neiman Marcus for long-term and sustainable growth,” said CEO Geoffroy van Raemdonck in a press release. “Over half our customers already engage in preowned luxury, and this exclusive partnership exemplifies our commitment to providing our customers with services and offerings they want and need.”
The deal will enable customers to access Fashionphile’s digital inventory of 15,000 ultra-luxury items in Neiman Marcus stores. Neiman Marcus and Fashionphile will be introducing new ways for buyers and sellers to more easily participate in preowned commerce. At select Neiman Marcus stores, customers will not only be able to get an immediate quote for their items from Fashionphile, but also to receive immediate payment they can use that very day to reinvest in new luxury fashion items at Neiman Marcus. Preowned merchandise will continue to be sold exclusively through Fashionphile.com.
Fashionphile distinguishes itself from other popular resale sites — such as The RealReal, ThredUp and Tradesy — by focusing on what it deems “ultra” luxury handbags, jewelry and accessories. This means such brands as Chanel, Gucci and Valentino.
“Customers are approaching luxury in new ways, and preowned is at the center of that shift,” said Fashionphile co-founder and CEO Ben Hemminger. Fashionphile will be “leveraging the resources, capabilities and expertise of Neiman Marcus to help us scale more quickly,” Hemminger said.
Neiman Marcus Group operates 43 Neiman Marcus stores, 24 clearance stores and two Bergdorf Goodman stores. The company also owns the Horchow and MyTheresa.com brand names and online operations.
By Brannon Boswell
Executive Editor, Commerce + Communities Today
