Kering Acquires 5% Stake of Vestiaire Collective
Kering, the luxury group that owns Gucci and Alexander McQueen, acquired a 5% stake in the second hand resale start-up Vestiaire Collective, which was valued at “over a 1 billion dollars”.
The purchase is part of a 178 million euros financing round announced on Monday, which values Vestiaire Collective at more than 1 billion dollars, the company says. The announce comes days after Alexander McQueen and Vestiaire Collective announced another collaboration that brought luxury brands into the second hand retailing scene.
With this investment, Kering is targeting a new audience: people that are young and more environmentally conscious; as well as providing an additional service to their current clients.
“Our innovation strategy aims at investing in brands and technologies for the next generation of consumers, focusing on disruptive business models that allow us to better serve our clients and improve our performance. The investment in Vestiaire Collective makes full sense from both perspectives.” – Grégory Boutté, Kering Chief Client and Digital Office, added.
The announcement follows a strong year for Vestiaire Collective, which transaction volume grew over a 100% year-on-year; and according to the company it gives them a solid base to continue its accelerated cycle of growing.
The pre-owned fashion sector has experiences an immense growth in the last couple of years, that has only incremented during the COVID-19 pandemic. This has been mainly because of the younger consumers that are driven by more sustainable and conscious drive. According to the 2020 Resale Report, resale is expected to be bigger than Fast Fashion by 2029.
US investment firm Tiger Global management also invested on the platform, while existing investors such as Vogue publisher Conde Nast put more money in it.
+ Words: Leila Salinas, Luxiders Magazine
Journalist | Berlin-based
Connect with her on LinkedIn or Instagram (@leisalinas)
