Fashionphile Enters Secondhand Wholesale | BoF

Fashionphile, a San Diego-based resale platform that specialises in luxurious purses and equipment, has obtained LXRandCo, Inc., a smaller Canadian participant within the resale length that filed for chapter utmost while.

As a part of the do business in, Fashionphile, which counts Neiman Marcus as a minority investor, would acquire LXR’s extra stock of fashion designer purses, highbrow trait, in addition to its connections with retail companions as a provider of secondhand merchandise.

For example, LXR bought resale stock to area shops Lord & Taylor and Century21 prior to they respectively shuttered in 2020. Any other instance of a secondhand wholesaler is What Is going Round Comes Round, which gives antique luxurious equipment for dozens of Dillard’s shops throughout the United States. Le Prix, a only B2B platform that connects secondhand providers in Asia and alternative markets with consumer-facing shops, may be a chief participant within the resale wholesale length.

With a unused strong of provide in addition to relationships with shops serious about stocking pre-owned merchandise, Fashionphile will input a unused segment of enlargement via tapping into the very fragmented B2B marketplace for luxurious secondhand items, in step with government and co-founder Ben Hemminger.

“The assets from the sale were an opportunity to take a first step in our journey into wholesale,” he mentioned. “We can capture a certain amount of market share in our own direct-to-consumer [platform] but there’s so much more opportunity when you expand into other channels.”

Presently, Fashionphile resources its merchandise without delay from shoppers buying and selling of their pre-owned items for money. However this provide has outweighed the call for for it on Fashionphile.com. Promoting these things in other places — comparable to area shops, boutiques and obese e-commerce marketplaces — can be a profitable resolution.

“Right now, we turn bags away bc we’re over-inventoried online,” mentioned Sarah Davis, co-founder and president of Fashionphile. “But if we serve other channels, we can take in whatever we want.”

Life the LXR sale supplied the preliminary spice up of stock for Fashionphile’s access into wholesale, the corporate plans to supply the gigantic majority of its time wholesale stock from their user dealers.

Fashionphile already works with quite a lot of detached consignment shops as a provider. After this moment, it plans to observable its first two pop-up places in California.

Be told extra:

BoF Insights | The Future of Fashion Resale Report

BoF’s definitive information to type resale, overlaying the evolution of the marketplace, its enlargement and upside, user behaviours and suggestions for crafting a data-driven resale technique.