Kering Invests $216 Million USD in Resale Platform Vestiaire Collective
info@hypebae.com (HYPEBAE) Mon, 01 Mar 2021 HYPEBAE
French luxury conglomerate Kering has taken a 5 percent stake in fashion resale platform Vestiaire Collective. The deal will bring in $216 million USD in new funding for the secondhand retailer. American firm Tiger Global Management also invested in the platform, while existing backers Condé Nast and the Eurazeo Group increased their contributions.
According to Reuters, Kering's purchase valued Vestiaire Collective at more than $1 billion USD. The deal points to consumers' interest in sustainability, as well as an increased consciousness of value due to the economic effects of the pandemic. Just weeks ago, Alexander McQueen partnered with Vestiaire Collective to launch its "Brand Approved" program, an initiative that works directly with fashion houses to resell authenticated garments.
“Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers," Kering CEO François-Henri Pinault said in a statement, reported on by The Fashion Law. According to the chairman, Kering's investment aims to “seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices, [which] fits naturally with our entrepreneurial spirit, our pioneering sustainability strategy, and our modern vision of luxury.”
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