Declaring 2018 the year of the popup, luxury consignor The RealReal is building upon its retail outlet success in New York City by increasing its number of popups nationwide.
Allison Sommer, the firm’s marketing director explains that having a street level presence legitimizes the brand.
The company’s 2016 popup in New York City drew in $2 million in sales, Somers additionally noted that the order size of in store purchases is 6 fold that of the average online purchase.
Popups increase the brand’s awareness among consumers. A fact that is supported by the 500 percent increase in sales to bay area customers following their 2 month popup in San Francisco last November.
It’s a proven process comments Somers that once someone walks into the retail outlet they get absorbed by the atmosphere and become luxury loyalists.
CEO Julie Wainwright who has earned an iconic reputation within startup circles. Wainwright put The RealReal on its success path with boasting gross revenues upwards of $500 million. That’s not bad given the business was launched just 6 years ago. Today the company is positioned as one of the most rapidly expanding startups within the consignment space.
The RealReal was originally founded specializing in apparel sales. However, in 2016 the company generated $100 million in revenues from their expansion into fine jewelry and designer watches.
For their next popup, The RealReal is looking at Las Vegas with the idea of expanding geographically throughout the U.S. over 2018. Their rationale being to get a foothold in those markets where the customer base has not yet been exposed to the “popup frenzy” seen in metropolitan cities like Los Angeles and New York.
Having grown to 7 million members internationally, the firm places a premium on a customer first philosophy. This idea is expanded in their hiring practices which focus on acquiring talented sales staff that is less focused on commissions and more on customer satisfaction, bringing in high end experience from brands such as Gucci.
In answering the question as to what can be expected from the next phase of popups, Allison Sommer states that while they may not all have a flower shop and cafe, customers can expect The RealReal’s brand defining premium placed on expertise with gemologists and brand authentication experts on staff at the popups.