Podcast Summary: "How The RealReal's Founder Julie Wainwright Built a Billion-Dollar Business and Disrupted Luxury Resale"

Podcast Information:

• Title: Let's Get Dressed
• Host: Liv Perez
• Episode Title: How The RealReal's Founder Julie Wainwright Built a Billion-Dollar Business and Disrupted Luxury Resale
• Release Date: June 9, 2025

Introduction

In this enlightening episode of Let's Get Dressed, host Liv Perez welcomes Julie Wainwright, the visionary founder of The RealReal. Julie shares her remarkable journey from leading Pets.com during the infamous dot-com crash to establishing a billion-dollar luxury resale platform that has revolutionized the fashion industry.

Julie Wainwright's Career Journey

Julie begins by recounting her early career, highlighting significant milestones and setbacks:

• Berkeley Systems (1995): Julie joined as Vice President, leading the company from failure to success by introducing the bestselling game "You Don't Know Jack." "[...] I turned it around. We introduced this best selling game called You Don't Know Jack," Julie explains ([15:07]).

• Reel.com (1997): Serving as CEO, Julie navigated the fledgling online movie sales platform during the early days of e-commerce. Despite growing the company to around $40 million, Reel.com was eventually sold to Hollywood Video ([16:00]).

• Pets.com (Late 1990s - 2000): As CEO, Julie faced the tumultuous period of Pets.com's rapid rise and subsequent collapse amid the dot-com bust. The experience was a profound personal and professional setback, culminating in her divorce on the day the company shut down ([17:00]).

Julie reflects on these experiences, emphasizing resilience:

“Sometimes timing's everything. Sometimes you're too early. Sometimes you're not.” ([18:54]).

Founding The RealReal

At 52, Julie reinvented herself by founding The RealReal, a luxury consignment platform designed to make high-end fashion accessible and sustainable. The inspiration struck in 2010 when Julie observed her venture capitalist friend’s preference for a beautifully displayed consignment section in a boutique. This observation led to her "aha" moment: creating an online platform that would simplify and upscale the consignment process ([22:26]).

Innovations and Business Model of The RealReal

Julie delves into the unique elements that set The RealReal apart:

• Personalized Consignment: Instead of requiring consignors to visit physical stores, The RealReal sends appraisers to clients' homes to handle consignments, ensuring convenience and maintaining the brand's luxury appeal ([22:53]).

• Rapid Inventory Turnover: The platform aims to move 90% of its inventory within 90 days to avoid overstocking and maintain fresh, desirable listings. "Our goal really was to help people make the right decision as fast," Julie notes ([25:03]).

• Expert Advisory: Consignors receive personalized advice on what to sell and when, minimizing returns and maximizing the value of their items. This advisory role helps maintain high standards and customer satisfaction ([22:53]).

Challenges with Counterfeits and Authentication

A significant focus of the conversation is The RealReal's stringent authentication process to combat counterfeit goods:

• Advanced Authentication Systems: Handling 7-9 million products annually, The RealReal employs a combination of machine learning and expert human authenticators to detect fakes. Julie recounts a harrowing incident where counterfeiters threatened her personally:

“So it's in the book. It was a terrifying moment.” ([34:07]).

• Continuous Vigilance: Counterfeiters constantly evolve, pushing The RealReal to stay ahead with sophisticated detection methods. Julie shares an example of a socialite attempting to consign fake Chanel goods, which led to her blacklisting the individual permanently ([35:27]).

Personal Favorites from The RealReal

Julie expresses her personal affinity for items she acquired through The RealReal, highlighting the platform's ability to offer luxury at a fraction of the cost:

• Cartier Jewelry and Louis Vuitton Duffels: Julie mentions owning several high-end pieces, including Bottega handbags and Louis Vuitton duffels, praising their quality and durability.

“If I think it has to go anywhere away from my body, you know, it can't be in the overhead. I will never travel with those except in my car, because I don't want it damaged. It's too gorgeous.” ([37:20]).

Advice for Female Entrepreneurs

Julie offers invaluable advice for aspiring female entrepreneurs, drawing from her diverse experiences:

1. Surround Yourself with the Right People: “Find your creative people. Whether it's creative, and I don't care what it is. Find your people,” Julie advises ([42:26]).

2. Value and Execute Ideas Quickly: She stresses the importance of treating ideas as precious while swiftly moving to execute them before someone else does.

3. Resilience and Long-Term Vision: Julie emphasizes playing the long game and viewing every failure as a learning opportunity:

“Every failure is a learning opportunity. Everything that comes at you is something that will add to you. It won't stop subtract from you at all.” ([43:47]).

Announcement of Julie's Memoir

Towards the end of the episode, Julie announces her forthcoming memoir, "Time to Get Real: How I Built a Billion-Dollar Business that Rocked the Fashion Industry," set to release on June 10th via Amazon and Barnes & Noble. Liv Perez expresses her excitement and encourages listeners to check it out, highlighting its detailed account of Julie's entrepreneurial journey ([44:24]).

Notable Quotes:

• Julie Wainwright on Overcoming Failure:

  “Sometimes timing's everything. Sometimes you're too early. Sometimes you're not.” ([18:54])

• Julie Wainwright on Entrepreneurship:

  “Every failure is a learning opportunity. Everything that comes at you is something that will add to you. It won't stop subtract from you at all.” ([43:47])

• Julie Wainwright on The RealReal’s Mission:

  “Our goal really was to help people make the right decision as fast.” ([25:03])

Conclusion

Julie Wainwright's journey from the highs and lows of the dot-com era to founding The RealReal offers a compelling narrative of resilience, innovation, and leadership in the fashion industry. Her insights into sustainable luxury, combating counterfeits, and empowering female entrepreneurs provide valuable lessons for listeners aspiring to make their mark in the business world.

Where to Find Julie's Memoir:

• Title: Time to Get Real: How I Built a Billion-Dollar Business that Rocked the Fashion Industry
• Release Date: June 10th
• Available at: Amazon and Barnes & Noble

This episode not only sheds light on the intricacies of building a successful luxury resale platform but also inspires with stories of overcoming adversity and championing sustainable fashion.