Sales
of high-end vintage attire and accessories are soaring—both in volume
and price—and a handful of small businesses are taking advantage of
market forces that are making what was old new again.
Veteran retailer Seth Weisser is in the middle of construction for
his largest, most ambitious store to date: a 3,800 square-foot flagship
just off Rodeo Drive in Beverly Hills, Calif. It will sell designer
clothes, accessories, and jewelry; he plans special
stores-within-a-store for Chanel and Hermès. “It will be extremely
elegant, with high-end marble, brass fittings, and turn of the century
Cartier showcases,” Weisser explains by phone from his office in New
York, “This is going to be the ultimate luxury shopping experience.”
There’s
one crucial difference between Weisser’s newest boutique and those
nearby, such as Louis Vuitton or Valentino: It will sell used clothing.
This will be the fifth outpost of his chain,
What Goes Around Comes Around
(WGACA), where absolutely everything for sale is second-hand or rather,
“luxury vintage.” A recent boom in enthusiasm for vintage fashion has
led to a rapid expansion for stores such as WGACA and growing profits,
even when global fashion brands are faltering. In fact, its merchandise
assortment is even more exclusive and thrilling to shoppers than many
offered by neighboring stores. That Chanel selection—“We have the
largest collection of vintage Chanel in the whole world,” Weisser
claims—will include dozens of noteworthy bags and clothes from Karl
Lagerfeld’s stint as head designer, as well as sought-after,
discontinued pieces from its costume jewelry range.
As for the Hermès "concession," the centerpiece when it opens will be a Himalayan crocodile Birkin; a similar model
sold for $185,000 at auction two
years ago. You simply can’t walk into an Hermès store anywhere in the
world and expect to be able to walk out with one of these, now matter
how much you are willing to pay.
Vintage Is Booming
WGACA isn’t the only superior second-hand operation in the area: Indeed, Ben Hemminger’s
Fashionphile
has been selling top tier, gently used designer purses by Dior and
Louis Vuitton from a jewel box-sized showroom in Beverly Hills since
2008. It’s tucked into an alleyway at the end of the same block as
WGACA, less than 500 feet from an enormous branch of Barneys. “Actually,
our showroom is right next to Louis Vuitton—our garbage can is the same
as theirs,” Hemminger laughs, speaking by phone from the firm’s
warehouse headquarters in Carlsbad, Calif..
Both firms are booming: Weisser’s plush new site is 25 percent larger
than its previous location in a busy block of La Brea, while
Fashionphile logged $3 million in sales in February 2016, its strongest
month ever, and business grew 50 percent to 60 percent year over year in
2015. They are prime examples of the new retail sector of luxury
vintage, in which barely worn bags or designer dresses are sold at
discount to women who might have shopped straight from the runway. They
occupy sites adjacent to full-price rivals; sometimes, they even supply
them. Weisser has contracts with such department stores as Lane Crawford
in Hong Kong and Barneys in Japan to supply authentic, top-tier vintage
for their sales floors.
Online Competition Is Growing
Online counterparts are jostling for the same business: Both
TheRealReal and
MaterialWorld
operate similarly, trading on the newfound cachet for used clothes. The
booming industry of prime vintage has been buttressed by the emergence
of handbag-centric auctions such as those at
ArtCurial in Paris or
Fine Art Auctions in Miami.
Christie’s was so keen to enter the luxury vintage business that in 2014 it poached the wunderkind head of
Heritage Auctions’ bag-selling department, a twentysomething Matt Rubinger. Heritage perceived the defection as such a blow that it
sued Christie's for $60 million.
It’s still startling, though, to see a second-hand store—even one
with such blue chip, red carpet credentials (Rihanna’s a regular) as
WGACA—snap up prime retail space in Beverly Hills. Stylist Lauren
Goodman suggests that this won’t be the last vintage tenant roped in by
Rodeo Drive. She points out that much like fine wine, top-tier vintage
clothes and accessories often appreciate in value. “You could buy a
vintage Versace dress from the 1990s, wear it five times and resell it,
and it’s probably gone up a little bit in value. I mean, everyone’s
obsessed with the '90s right now,” Goodman says by phone from her home
in San Francisco. (Remember the headline-making, albeit exaggerated
claim that a Birkin bag by Hermès was a better investment than gold?)
New Stuff Is More Expensive Now, Too
Goodman
adds that the lure of vintage is also driven by the rising prices of
new merchandise. Designer labels have deliberately hiked prices of core
items over the past decade or so; the cost of Chanel’s bags, for
example, rises an average 15 percent annually. “It makes vintage feel better value than ever, and it’s already survived the test of time.”
Michael Tonello, who wrote the memoir
Bringing Home the Birkin about his time as an Hermès reseller
, agrees.
“Ten years ago, a nice designer shirt was a couple hundred bucks,” he
says by phone from his home in Barcelona. “Now, you look in a store
window and every price has a comma in it—$1,000 or more.”
Other
cultural and economic shifts are helping to bring WGACA and Fashionphile
to the fore. Instagramming from the front row of a show might earn
editors a few extra followers, but it softens the excitement that once
surrounded the delivery of new clothes to a retailer, notes Goodman. “By
the time someone wears a look from the runway out to a party now, the
clothes already feel like last season. But if it’s vintage, it will
exist outside of this cycle and won't have been liked 5,000 or 25,000
times on Instagram already. It’s special, unique, and it’s yours. You
are making a bold, personal style decision.” This same impetus lay
behind Burberry’s decision to create runways with instant buying options, starting in September.
Rihanna wearing WGACA on the Ellen DeGeneres Show on Feb, 4, 2016.
The Threat of Fraud
It
might seem that the rise of luxury vintage is unstoppable, but a danger
looms that could derail the entire industry: fakes. The resale market
is lucrative and generally un-policed—charges around selling fakes are
usually pleaded down to disorderly conduct, resulting in minor fines and
no jail time—so it’s ripe for unscrupulous exploitation. The situation
is made trickier by the emergence of a new class of counterfeits known
as superfakes, essentially production overruns stolen from the factory and indistinguishable from authorized merchandise.
It’s
a threat that WGACA’s Weisser takes seriously. “We handle more of this
product than anyone’s ever seen, so we get a very good comfort level on
how to spot a fake. Our senior buyers are like scientists, and they will
get down to counting stitches or even using techniques we’d prefer not
to disclose.”