// Kering purchases 5% stake in Vestiaire Collective
// Vestiaire Collective was valued at “over $1 billion” on Monday
// Kering’s interest grew after the online resale market boomed during Covid-19
Gucci owner Kering has invested in Vestiaire Collective in an effort to attract younger and more environmentally-conscious consumers.
The French-based multinational corporation which also owns Balenciaga, has acquired a five per cent stake in the pre-owned fashion retailer – which was valued at “over $1 billion” in a €178 million fundraising round announced on Monday.
“We recognise that this is a fundamental shift that’s happening in the way clients are relating and engaging with luxury fashion, so we don’t want to close our eyes and pretend it’s not happening,” Kering digital chief Grégory Boutté said.
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“On the contrary, we want to embrace it because we think it’s a big opportunity for us to provide an additional service to our clients.”
Kering’s interest in Vestiaire Collective grew after the online resale market boomed during the Covid-19 pandemic.
Vestiaire Collective said its transaction volume had grown more than 100 per cent year-on-year, and that it now had some 11 million members.
People can sell on the platform from 50 countries, and buy from 70.
Chief executive Maximilian Bittner said the fundraising would be used to expand in new markets, as well as hire more technology experts and programmers.
It will also go to develop a new way of working directly with brands to help them put in place “resale as a service” in their stores and with their customers.
Last month, Vestiaire Collective partnered with luxury British fashion label Alexander McQueen for a sustainable resale deal that they describe as a “pioneering collaboration”.
The collaboration will see Alexander McQueen becoming the online second hand fashion retailer’s first brand to join its new Brand Approved scheme.
Unlike the usual Vestiaire Collective process that sees it authenticating items received by clients, the new scheme means items will be received and authenticated by Alexander McQueen first before being added to Vestiaire Collective’s range.