Vinted, Vestaire Collective The fierce war of resale sites

Vinted, Vestaire Collective The fierce war of resale sites

For Alice, a young Parisian in her thirties, it was a pleasant surprise. Fan of fashion, she wanted to treat herself to an Antik Batik bag. "It was worth more than 200 euros, it was out of my budget," she says. And then she discovered Vestiaire Collective. “I found the same one used, in very good condition, for 70 euros.” Rebelote a few weeks later, but this time at Vinted. “It was madness: there were unaffordable brands that were totally sold off. I opted for Michel Vivien "heels" at 100 euros, against certainly 600 in the shops. And also for an emblematic Agnès b. at 35 euros instead of around 150”, she enthuses.

With the new second-hand fashion sites on the Internet, you might think that the sales last all year round. These platforms, a modern version of the thrift store, connect individuals wishing to lighten their wardrobe and those wishing to dig into that of others (they are often the same). On arrival, a very abundant supply, prestigious brands, Chanel, Vuitton, Hermès, etc., and discounted prices for products that are far from being at the end of their life. Admittedly, the second-hand clothing market still weighs little.

The French Fashion Institute (IFM) estimated it at 1 billion euros in 2018 in France, digital and in-store sales combined. But he is progressing very quickly. Nearly a third of consumers bought second-hand this year, compared to only 15% in 2010. Conversely, the fashion market lost 15% of its value between 2007 and 2018, according to the same source. , weakening the champions of fast fashion like H&M, Kiabi and Zara. Something to arouse the appetite.

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But the battle promises to be tough. Because, for the time being, no platform has found a profitable model. The first to launch, Vestiaire Collective was created in 2009 in France, a year after the financial crisis. "We were looking to be smart in the way we consume," recalls Sophie Hersan, co-founder. Ten years later, it claims 9 million subscribers in some fifty countries, ranging from the European continent to Australia via Saudi Arabia.

Since its creation, “Vestiaire Co”, as it calls itself, has already raised 149 million euros, including 40 million in June. Another French site, Videdressing.com also started in 2009 and has an audience of 1.5 million people, primarily based in France or in neighboring French-speaking countries. Its recent takeover by Leboncoin for an amount that has remained confidential should allow it to move up a gear.

A third thief, finally, has invited himself into the dance, Vinted. This start-up created in Lithuania in 2013 and which raised 120 million euros has made a dazzling breakthrough in France where it has 9 million members, mainly via its smartphone application. And this is not the only foreign actor interested in France. The Dutch United Wardrobe has just landed there. The Americans ThredUp or The RealReal could follow with big financial means. “The marketing, personnel and delivery costs are very high in this business, you have to reach a large size to be profitable”, underlines Antoine Jouteau, the general manager of Boncoin.

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On the customer side, purchasing power is the primary motivation. The discounts offered are indeed often spectacular. The little H&M dress is available for 10 euros on Vinted. The Chanel 2.55 bag can be found at 2,300 euros on Vestiaire Collective instead of 4,000 or more, and the pair of Balenciaga Triple S, the trainer model that has been all the rage for a few months, at 400 euros instead of 700 on Videdressing.com, etc Environmental concerns come second. Admittedly, textiles are an extremely polluting industry, as the Ademe (Environment and Energy Management Agency) showed in a 2018 study. But this ecological reason should be put into perspective when a second-hand goes around the world. On Vestiaire Collective, 80% of transactions are cross-border.

The strength of these sites, compared to traditional consignment sales, is due to the abundance of the offer, i.e. thousands of items (145,000 transactions per month on Vestiaire Collective), which are quickly renewed and sometimes almost new, such as on Boxing Day when some get rid of presents. When you can't find what you're looking for, you can also be alerted when the desired item is finally offered.

Vinted, Vestaire Collective The fierce war of resale sites

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There remains the crucial question of brand authentication and product quality. At Vestiaire Collective, they pass through the platform, in Paris or Tourcoing for Europe. “Everything is literally checked with a magnifying glass,” explains Victoire Boyer Chammard, head of authentication, while one of her experts inspects the seams of a Kelly Mini from Hermès. Quality control officers take over to ensure that their condition is as promised on the ad. Packages will be shipped the next day to their recipients.

Second-hand players, however, refuse to overshadow brands. “We do not represent a cannibalization of their activity, but a complementary vision, insists Laura Peccia-Galletto, co-director of Videdressing.com. Rather, we are a gateway to their products. Our customers may not be able to afford a new item today, but eventually they will in a few years.” Nathalie Rozborski, from the consulting agency NellyRodi, agrees. “We should not think too much in terms of competition, but rather ask ourselves how brands manage to organize their own secondary market, she analyzes.

There are two strategies: either an alliance with these sites, or internalization.” Thus Vinted plans to open corners at a partner. For its part, Cyrillus allows its customers to resell their clothes via its Secondhistory.fr space. Just like Sézane, who created Demain. This year, this fashionable brand on the Net has also orchestrated a special operation with Videdressing.com to encourage its customers to re-sell on the platform the pieces they no longer wear, in exchange for a voucher.

The luxury sector, for its part, is interested in this trend, especially since 60% of luxury buyers say they are interested in second-hand goods, according to a study by BCG. "They rely on the appetite of our customers in their choice to launch reissues," observes Sophie Hersan, of Vestiaire Collective. Nathalie Rozborski completes: “This is what we call “social intelligence”.

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We use social networks to make data speak and better understand purchasing behavior.” Dior's Saddle is a good example. This iconic bag from the 2000s remained out of fashion for a long time, until its price soared again on second-hand sites. In the summer of 2018, the fashion house reissued it. The circle is complete.

Vestiaire Collective, the address for luxury or trendy labels

Our opinion: Prestigious brands and well-controlled products: you can get very good deals there despite commissions (variable depending on the price) high.

Vinted, a catch-all offer but in colossal quantities

Our opinion: We really do business there. However, beware of unpleasant surprises (counterfeits). The after-sales service is saturated but messaging between Vinties most often makes up for it. A non-compliant item can be returned within 48 hours.

Videdressing, fashionable but not elitist

Our opinion: A more general public offer than that of Vestiaire Collective. Messaging allows you to obtain information or request a price reduction. The buyer has 48 hours to return a product and get a refund.