Podcast Summary: Bloomberg Talks – The RealReal CEO Talks Luxury Brands and Consumers
Date: December 24, 2025
Host: Bloomberg
Guest: Rati Ledeck, President and CEO, The RealReal
Overview
This episode features an in-depth conversation with Rati Ledeck, President and CEO of The RealReal, the world’s largest online marketplace for authenticated, secondhand luxury goods. The discussion centers on the rapidly growing luxury resale industry, changing consumer behaviors, competitive landscape, pricing trends, and The RealReal’s evolving business model—including physical stores and their impact.
Key Discussion Points & Insights
1. Resilience of the Secondhand Luxury Market
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Consumers Remain Strong: Despite broader economic uncertainty and tariffs, The RealReal’s buyers are described as “quite resilient.”
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Gen Z & Millennials Lead the Trend: Younger generations are embracing luxury resale, making it increasingly mainstream.
“Resale is becoming more mainstream...definitely seeing that led by the Gen Z and millennial consumer.”
— Rati Ledeck [00:51] -
Shifts in Gifting Behavior: Gifting pre-owned luxury no longer carries a stigma; nearly 60% of consumers now prefer the secondary market.
“Almost 60% of consumers now say they prefer the secondary market outright.”
— Rati Ledeck [01:19]
2. Supply and Growth in the Market
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Untapped Inventory: There’s an estimated $200 billion worth of unworn luxury items in U.S. closets, growing by $80 billion annually.
“There’s $200 billion trapped in people’s closets...$80 billion gets added every year.”
— Rati Ledeck [01:52] -
New Seller Growth: Many consumers are consignment first-timers, contributing to double-digit increases in new sellers.
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Behavioral Shifts: More customers check secondary market prices before buying primary market goods, indicating new shopping habits.
3. Pricing Dynamics & The Circular Luxury Economy
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Prices Rise in Tandem: As primary market prices surge (e.g., Chanel bag price doubled since 2019), resale prices also climb.
“Any time the price increases in the primary market, our pricing goes up too.”
— Rati Ledeck [03:01] -
Circular Economy: Sellers often use RealReal earnings to buy new luxury items, then consign more items, fueling a cycle.
“They get that first paycheck for the bag, and then they go back into the primary market with their check… and then they’ll consign two or three things instead.”
— Rati Ledeck [03:18]
4. Consumer Preferences: Value, Luxury, and Unique Finds
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Intersection of Value & Luxury: Customers seek unique, one-of-a-kind pieces unavailable elsewhere and are drawn by the mix of value and exclusivity.
“Most of our items you can’t buy anywhere else...It’s the badge of honor to wear something very unique from The RealReal.”
— Rati Ledeck [04:09] -
Vintage & Condition: Vintage remains a top category. Buyers frequently prioritize value, sometimes choosing “fair” over “pristine” condition goods for lower prices.
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Key Categories: Fine jewelry, watches, and handbags remain most in demand.
5. Competitive Landscape
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Depth & Breadth of Offerings: The RealReal differentiates from competitors by the wide variety of categories offered (e.g., handbags, jewelry, textiles, silverware).
“We offer very depth in product...And then we give you cash up front and that’s really important.”
— Rati Ledeck [04:57] -
Trust & Member Base: With almost 50 million members and strong trust signals (pricing algorithms, authentication), The RealReal claims sellers “earn the most with us.”
6. Role of Physical Stores
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Contribution to Bottom Line: Stores are more than a marketing tool—they “pay back very quickly,” boost supply, and enhance customer engagement.
“Stores pay back very quickly actually. And what we see is a halo impact.”
— Rati Ledeck [05:54] -
Convenience & Expertise: Stores meet consignors “where they are”—through drop-offs or on-demand pickups. Access to in-person experts (gemologists, watchmakers) increases the value and volume of consigned goods.
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Driving New Customers: A quarter of new consignors come through retail locations, evidencing the effectiveness of physical presence.
Notable Quotes & Memorable Moments
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On Resale Normalization:
“Almost 60% of consumers now say they prefer the secondary market outright.” [01:19] -
On the Untapped Market:
“There’s $200 billion trapped in people’s closets...and so many people have never consigned anything before.” [01:52] -
On Changing Shopping Habits:
“People are really starting to change the way they shop, and they’re checking the price in the secondary market before they’re even purchasing in the primary market.” [02:22] -
On the Circular Economy:
“They get that first paycheck for the bag, and then they go back into the primary market with their check… and then they’ll consign two or three things instead.” [03:18] -
On Unique Inventory:
“It's a badge of honor to wear something very unique from The RealReal.” [04:09] -
On Store Performance:
“Stores pay back very quickly actually… for a quarter of our new consignors come from the stores.” [05:54]
Timestamps for Key Segments
- (00:24) — Introduction and context on The RealReal and luxury resale market
- (00:51) — Market resilience and Gen Z/millennial trends
- (01:40) — Supply dynamics; $200B in idle luxury goods
- (02:35) — Pricing dynamics, the circular economy, and the impact of luxury price inflation
- (04:03) — Consumer motivations: value, uniqueness, condition
- (04:51) — How The RealReal competes with other resale platforms
- (05:54) — Physical stores: operational impact, revenue, and customer acquisition
Conclusion
This episode sheds light on the transformation of luxury consumption, with The RealReal helping reshape how people buy, sell, and value high-end goods. The secondhand luxury market is more robust and mainstream than ever, fueled by younger consumers, shifting perceptions, the circular economy, and innovation across both digital and physical channels.