Neiman Marcus Enters Pre-Owned Market
Neiman Marcus is acquiring a minority stake in Fashionphile, a pre-owned e-commerce company focused exclusively on ultra-luxury handbags and accessories. With this investment, Neiman Marcus Group becomes the first major luxury retailer to directly invest in pre-owned, an attractive and fast-growing segment projected to grow to $23 billion by 2023.
Together, Neiman Marcus and Fashionphile will create an elevated pre-owned experience for their consumers by matching the physical footprint and loyal customer base of Neiman Marcus with Fashionphile’s digital inventory of 15,000 ultra-luxury items. With limited overlap between buyers and sellers in the pre-owned luxury market, the exclusive partnership will serve as a catalyst for Neiman Marcus to enable its existing customers to participate in pre-owned, while also reaching new, younger shoppers ahead of their peak spending years.
“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, CEO, Neiman Marcus Group. “Over half our customers already engage in pre-owned luxury, and this exclusive partnership exemplifies our commitment to providing our customers with services and offerings they want and need.”
Founded in 1999, Fashionphile is an ultra-luxury pre-owned leader offering one of the largest inventories, best-in-class authentication and a direct buyout model. Ranked as one of the top most-searched fashion brands on Google in 2018, the company is well-established, profitable, and poised for growth.
“Neiman Marcus is the perfect partner for Fashionphile as we pursue more innovative ways to engage with customers,” said Sarah Davis, founder and president of Fashionphile. “Since our launch two decades ago, Fashionphile has expanded to become one of the leading and most trusted destinations for pre-owned luxury. I am excited about our future as we enter this new stage in the company’s growth.”
"Customers are approaching luxury in new ways, and pre-owned is at the center of that shift,” said Ben Hemminger, Fashionphile’s co-founder and CEO. “Fashionphile is ideally positioned to benefit from this trend, and we look forward to leveraging the resources, capabilities and expertise of Neiman Marcus to help us scale more quickly.”
As part of the partnership, Neiman Marcus and Fashionphile will be launching new ways for both buyers and sellers to more easily participate in pre-owned. For instance, at select Neiman Marcus stores, customers will be able to not only receive an immediate quote for their items from Fashionphile, but also immediate payment they can use that day to reinvest in new luxury fashion items at Neiman Marcus. Pre-owned merchandise will continue to be sold exclusively through Fashionphile.com.