The RealReal: Luxury Retail Platforms and the battle for a profitable business model

The case taps into several contemporary and classical issues in the realm of competitive strategy. Set in the luxury resale business, it explores the business models adopted by The RealReal and several of its competitors, such as Vestiaire Collective, in providing a good foundation for exploring the evolution of different paths to profitability in an intensely competitive environment. In exploring the fortunes of key players in this business, the case helps students to apply core strategy tools such as the Business Model Canvas, and activity mapping to understand the process of creating and sustaining competitive advantage. Focused on The RealReal, the case offers the instructor the requisite details to explore the economics of a business model starting from conceptualization, piloting, and scaling, with particular emphasis on the challenges that firms often encounter at each stage. It touches on a wide range of contemporary issues such as the monetization of AI-based insights to reduce operating costs, digital authentication of valuable luxury products, and promoting circularity and sustainability, in addition to the dynamics of platform models.