Kering, the luxury fashion conglomerate behind iconic brands like Gucci, Bottega Veneta, and Saint Laurent, has recently acquired a 5% stake in Vestiaire Collective, a leading online fashion resale platform. This investment comes as part of a new financing round worth €178 million ($216 million) and includes funding from Tiger Global Management and other prominent investors.

The move by Kering highlights the growing significance of fashion resale within the industry. François-Henri Pinault, Chairman and CEO of Kering, emphasized the increasing popularity of pre-owned luxury goods, especially among younger consumers. He expressed the company’s eagerness to seize this opportunity to enhance the value it provides to customers while driving innovation and sustainability in the fashion sector.

For Vestiaire Collective, having Kering as a shareholder is a substantial endorsement of the resale concept and its potential within the luxury fashion market. The platform aims to accelerate its growth within the secondhand market and contribute to a more sustainable fashion industry with the support of this new funding.

Vestiaire Collective has experienced remarkable growth in recent years, with its transaction volume increasing by over 100% annually. This performance has earned the company the coveted unicorn status, reserved for privately-held startups valued at over $1 billion. With the latest financing round, Vestiaire Collective is well-positioned for further accelerated growth.

Apart from Kering and Tiger Global Management, other noteworthy investors joining the funding round include Bpifrance, Condé Nast, Eurazeo Group, Fidelity International, Korelya Capital, Luxury Tech Fund, and Vitruvian Partners. Their participation in this round reflects their confidence in the promising future of the resale market.

Vestiaire Collective reports that the pre-owned fashion sector has seen rapid expansion in recent years, a trend further accelerated by the COVID-19 pandemic. Millennials and Gen Z consumers, in particular, have displayed a strong interest in sustainability and social shopping, leading to increased demand for secondhand fashion. The company predicts that the share of secondhand clothing in people’s wardrobes will rise from 21% in 2021 to 27% in 2023, with the resale sector projected to be worth over $60 billion by 2025.

Max Bittner, CEO of Vestiaire Collective, highlighted the company’s continued success in challenging conditions and the rapid growth of the resale sector. He expressed enthusiasm for the partnership with Kering and Tiger Global Management, recognizing their crucial roles in advancing the company’s mission to create a more sustainable fashion industry and expand its global community.

Kering’s investment marks a significant shift within the fashion industry, cementing the significance and potential of the resale market. As sustainability and conscious consumerism increasingly shape consumer preferences and behaviors, fashion brands and platforms must adapt to align with these evolving trends. By embracing fashion resale, Kering aims to provide value to its customers while contributing to a more innovative and sustainable future for the industry.

Useful links:
Vestiaire Collective’s Vision
Kering x Vestiaire Collective: Creating a More Sustainable Fashion Industry