Reflaunt calls it “positive consumption,” and by offering RaaS, brands help their customers participate in the circular economy by bringing used items back to the store and getting credit or cash to initiate another customer journey. That is a value proposition that brands understand as their customers are awakening to the circular economy and wanting to tap the existing value in their own closets. Reflaunt broadens a brand’s existing customer journey to include resale. The REAL requires customers to go on a separate customer journey. And while The REAL has done some brand partnerships, like the one just announced with Jimmy Choo for National Consignment Day, those have been add-ons and not core to the business model. Reflaunt’s brand partners already have them built in. The REAL has to go out and source customers and consigners. There’s a world of difference between the two. The key difference between the two companies are their customers: For The REAL, it’s consumers for Reflaunt, it’s brands. On that score, Refluant has the advantage. The business model defines the value-add of the company from which profits are made. But a company’s business model can make the difference. The ecosystem for luxury resale is still in its infancy and there will clearly be winners and losers.
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