Burberry and The RealReal on Monday announced a partnership, which encourages customers to sell the designer's pieces on the luxury consignment marketplace. In return, the companies will offer customers "exclusive" access to a personal shopping experience in select U.S. Burberry stores.
Consumer demand for Burberry goods has increased by 64% year-over-year, according to a company press release, adding that millennial and Gen Z customers are leading the search for the luxury house's merchandise.
The partnership is part of the companies' efforts to promote "the benefits of a circular economy for fashion by encouraging customers to extend the life of their products through resale," per the release.
While both companies indicated they value sustainability in fashion, it appears as though this partnership can be a model for The RealReal to collaborate with the brands it's tasked with authenticating on its platform.
"A brand as storied as Burberry embracing the circular economy demonstrates the power of resale's impact on both the luxury market and the planet," The RealReal CEO Julie Wainwright said in a statement. "I hope together we'll be a part of pioneering a future in which circularity is a consideration for every luxury brand."
The partnership is yet another sign of the resale sector's viability. For the luxury market, operating margins for rental, subscription rental and recommerce are 61%, 30% and 39%, respectively, according to a report from Accenture Strategy and Fashion For Good.
Meanwhile, ThredUp, an online resale marketplace, projects that the resale market will grow to $51 billion by 2023. The online resale marketplace has recently partnered with Macy's and J.C. Penney to sell used clothing at the retailers' stores. Even the Kardashians-Jenners are getting into the resale market with the launch of Kardashian Kloset.
Though the resale retailer has launched its partnership with Burberry in hopes of buoying fashion sustainability, Chanel last year accused the marketplace of selling counterfeit goods, to which the company at the time said it "unequivocally rejects Chanel's claims." Additionally, Burberry announced last year that it would stop destroying products after an annual report revealed that it physically destroyed approximately $37.1 million worth of goods it couldn't sell.
But, for Burberry, its efforts with The RealReal seem to be part of its overall sustainability strategy.
"Leading the way in creating a more circular economy for fashion is a key element of our Responsibility agenda," Burberry Vice President of Corporate Responsibility Pam Batty said in a statement. "We know that the enduring quality of Burberry pieces means their appeal and value is long-lasting."
The RealReal saw a sharp increase in its share price after launching its IPO in June.