Best ways to open a luxury consignment shop: what to keep in mind when starting a business re-selling high quality fashion garment pieces.
On and offline, luxury consignment shops are now one of the fastest growing business models. In fact, it’s these luxury upcycled businesses that’s made wearing second-hand clothing the in thing to do. If you have a flair for fashion, opening a shop might be the thing to do. Read on to learn the pros, cons and best ways to open a luxury consignment shop.
What is Luxury Consignment?
With so much focus on living with less and extending the life cycle of garments we own, there’s never been a better time to open a high-end consignment shop. What sets these types of shops apart from traditional second-hands shops is the merchandise. Most pieces are designer, in mint condition and can net a high profit. Buyers in this niche have the money to afford the items and are usually looking for specific pieces.
Pros of Second-Hand Luxury
If you choose to open a shop, there are a lot of positives that go along with it. To begin with, there will always be people looking for high-ticket items at a reduced cost. Buying second-hand luxury items has evolved into a multi-million-dollar business, so there will never be a shortage of customers or merchandise. You’ll also be able to bet a pretty high profit margin, usually up to 50 percent or more. If have a love all things fashion, this type of business gives you the best of both worlds. You get to work in fashion and exclusively with name-brand designer pieces.
As lucrative as it can be, operating a luxury consignment business has some cons as well. It might take some time to get your business off the ground. As with any type of reseller model, people need to build trust in you and your products. If you vape and are looking for a new vaporizer, you might look to an authorized reseller to save money. Before making a final decision, you need to see what they have to offer, preferably by seeing their collections online for comparison shopping purposes.
The same holds true for a luxury reselling business. People need to be able see what you have to offer prior to purchase. For this reason, you need a website that is interactive and showcases all of your inventory. Another possible con is that similar to regular retail, consumers might not want what you are selling. Fashion trends come and go, so you need to make sure you have the right type of inventory.
As with any business, you need to research tips that will help your small business succeed and have a concrete plan of how it’s going to operate. In addition to bringing your dreams to life, you need to outline your objectives, a strategy on meeting them and most importantly, your finances. If you choose to sell exclusively online, you can be up and running a lot sooner than if you open a physical location. You also need to detail your target audience and your marketing strategy. If you plan on working with influencers, you’ll need a way to not only entice them to work with you, but also become advocates for your business.