Fashion e-commerce platform GOAT Group has agreed to acquire clothing retailer Grailed, combining forces amid a projected boom in second-hand luxury sales.
The companies announced the cash-and-stock deal in a press release on Monday (Oct. 17), noting that it creates a community of 50 million members in 170 countries.
Based in New York City, 9-year-old Grailed sells a curated collection of products from brands like Gucci, Prada and Saint Laurent. GOAT Group previously invested in Grailed, contributing to the company’s $60 million Series B funding round last year.
Read more: Menswear Marketplace Grailed Notches $60M Round Led by GOAT Group
The acquisition comes at a time when several luxury brands, including Gucci, Burberry and Balenciaga, are entering the second-hand clothing space amid a surge in resale or trade initiatives.
See more: Luxury brands take a second look at second-hand sales
“Gucci retakes the No. 1 spot, while must-have bags and celebrity influence push Dior and Balenciaga up the charts,” designer resale platform The RealReal’s Luxury Resale Annual Report, which points to a 24% increase in demand for Gucci. branded items over the past year that had pushed Louis Vuitton from the No. 1 spot.
But as PYMNTS pointed out in September, instead of letting third-party platforms benefit from growing resale demand, both Gucci and Balenciaga have advanced their own reCommerce-as-a-service offerings to keep those sales inside.
Karen Webster of PYMNTS predicted the boom in luxury retail earlier this year once it became clear that inflation would continue to dominate the news.
“Savvy luxury retailers will put aside their disdain for democratizing their luxury brand and use it as an entry point to build the next generation of brand loyalists, on their terms,” Webster wrote.
That prediction has come true as luxury brands increasingly lean toward resale. A report last month by The Wall Street Journal pointed to findings by Bain & Co. that say second-hand luxury goods sales are set to rise about 15% annually over the next five years, twice the anticipated rate of growth. new sales.
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See more at: acquisitions, apparel, e-commerce, GOAT, Grailed, Luxury, News, ReCommerce, Retail, used, What’s Hot
Source: www.pymnts.com