Neiman Marcus invests in luxury resale with Fashionphile
Neiman Marcus has announced its acquisition of a minority stake in Fashionphile, a fashion resale e-commerce company focused exclusively on luxury handbags and accessories.
The deal between the two partners makes Neiman Marcus the first major luxury retailer to directly invest in pre-owned, a market segment projected to grow to $51 billion by 2023, according to resale company ThredUp's 2019 Resale Report.
According to Neiman Marcus, the acquisition will enable it to leverage its existing customer base and physical presence to offer its customers access to Fashionphile's inventory of 15,000 pre-owned luxury items, while also attracting new, younger customers interested in the pre-owned luxury segment to the retailer.
Founded in 1999, Fashionphile was ranked as one of the top most-searched fashion brands on Google in 2018. The acquisition comes as Neiman Marcus continues to execute strategies meant to modernize the retailer's image.
“Our investment in Fashionphile is an exciting step in Neiman Marcus Group’s transformation into a luxury customer platform, as we work to better serve our customers, continue to shape the future of luxury and position Neiman Marcus for long-term and sustainable growth,” said Geoffroy van Raemdonck, chief executive officer, Neiman Marcus Group.
“Over half our customers already engage in pre-owned luxury...with Fashionphile, we will engage with customers participating in the secondary market and introduce Neiman Marcus to younger and aspirational shoppers already devoted to luxury brands."
As part of the partnership, customers will be able to receive an immediate quote for their items from Fashionphile at select Neiman Marcus stores, and also receive immediate payment that can be used to buy new luxury fashion items at Neiman Marcus.
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