Luxury reseller The RealReal doesn’t see Amazon as a threat
The RealReal CEO Julie Wainwright says the demand for luxury items has never faltered despite the coronavirus outbreak.
Amazon is moving ahead with plans to launch a luxury brand platform as early as September, according to multiple reports.
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The marketplace, which will reportedly feature a dozen American and European brands, is expected operate similar to the business model of Farfetch, giving luxury retailers complete control over the aesthetic and atmosphere of their own virtual stores. The brands will also have access to the Amazon's vast network of suppliers.
Sources told Women's Wear Daily that a $100 million marketing campaign is in development and a warehouse is being built in Arizona to accommodate the project. They added that Amazon plans to work with the brands on film and television programs “going forward.”
Women's Wear Daily noted that the project was originally scheduled for the spring but was delayed to September due to the impact of quarantines put in place as a result of the coronavirus pandemic.
Amazon has declined to comment to FOX Business on rumors or speculation.
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Julie Wainright, the CEO of luxury fashion retailer the RealReal, told FOX Business' Liz Claman that her company does not see a potential fashion marketplace from Amazon as a threat and hopes that the e-commerce giant will help lift up struggling contemporary brands.
“The contemporary brands need a lot of help and so if it spurs their growth and helps them in this difficult time, I think its great for them," Wainright said. "The resale market has always had a different rhythm than the primary market, but clearly we need the primary market to succeed in order for us to have a secondary market, so I really do hope it is most focused on high-end contemporary and they need help and we support that."
A new marketplace would be the latest entry for Amazon into the retail fashion space. The company has ramped up its efforts over the past few years, launching Prime Wardrobe back in 2018 and Personal Shopper in 2019. Amazon also has its own in-house fashion brand called The Fix.
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