Vestiaire Collective was looking for an effective way to facilitate the search for second-hand products and boost its conversion rate on its e-commerce site. The leading platform for the sale of second-hand luxury goods seems to have found it by powering its search bar with artificial intelligence. This evolution is accompanied by the arrival of two tech profiles.
From product search toresale price optimization, Vestiaire Collective, the leading consumer resale platform for luxury goods, has developed AI-based functionalities to enhance the experience of both buyers and sellers.
The platform, which celebrates its 15th anniversary this year, has no intention of stopping there, and by the end of the year plans to integrate an image search function, in line with what Google already offers.
And Vestiaire Collective clearly has the resources to match its ambitions: at the beginning of the year, it completed a financing round, raising 59 million euros, with a view to going public. The company is aiming for profitability by the end of the year.
Complex treasure hunting
Maximilian Bittner‘s mission was toreduce search times and increase the relevance of article searches. The CEO is now based in New York, while the luxury second-hand portal generates 20% of its sales in the USA , estimated at 157 million euros in 2023 (+25% on a comparable basis).
And if the company first chose to attack the search bar on its e-commerce site, it’s because the text query is at the origin of 40% of orders on the site.
Secondly, the platform discovered that 22% of first-time buyers and 17% of regular buyers experience difficulties when searching for products. It has to be said that the depth of the platform’s inventory is as much its strength as its Achilles heel. Vestiaire Collective offers some 5 million items and 10,000 established and avant-garde brands.
What’s more, the search criteria of conventional new-product customers focus primarily on a particular type of product (dress, shoe, handbag, etc.) for a specific occasion. For a second-hand product, on the other hand, the criteria are more specific, focusing on a product that has marked a turning point in fashion history.
However, in the opinion of a source contacted by e-mail by the Retail Dive media, product descriptions are often too short, or even lacking in key words, for those wishing to unearth the rare pearl.
An AI to find them all
Vestiaire Collective’s new AI-powered search engine has been precisely designed to respond to the many parameters of a second-hand item, taking into account characteristics that go far beyond a brand name or product category.
As a result, the search bar is now capable of interpreting complex queries and analyzing the visual characteristics of products offered for sale. So far, the solution has helped double the volume of cross-selling.
Vestiaire Collective now wants to implement AI in its product and price recommendation model, scheduled to go live by the end of the year, and thus boost its conversion rate.
Sellers will be able to easily benefit from a price range suggestion based on similar products already distributed by the platform. As for end-buyers, they will be able to benefit from recommendations of similar products, so as to improve discovery of the platform’s inventory via a more efficient and relevant search.
Two tech experts to the rescue
To support this AI transition, CEO Maximilian Bittner will be able to count on the arrival of two top tech profiles.
Stacia Carr, ex-Zalando and Soundcloud, has been appointed the new Director of Technology and Product. In an interview with Vogue Business, the CEO of Vestiaire Collective emphasized her mastery of the question of garment size and fit, central to any e-commerce activity, so as to reduce return rates. What’s more, the company, which has been B Corp certified since 2021, intends to promote a more circular economy, having succeeded in reducing its carbon footprint by 300,000 tonnes. The site recently banned some sixty Fast Fashion brands such as Shein, and is preparing to launch a third wave of bans.
For his part, American Jim Freeman joins Vestiaire Collective as an advisor and board member. Freeman is a digital pioneer and a champion of AI technology. He previously worked for Europe’s e-commerce leader, Germany’s Zalando, as CTO (director of new technologies) as well as director of business and products. He was also Vice President of Communications for Amazon’s Alexa connected speakers and Prime Video SVOD platform.
A technology in vogue in e-commerce
Ensuring a meticulous, personalized customer experience is at the heart of the major challenges facing luxury e-commerce, which is facing a series of headwinds. In this highly competitive market, Mytheresa seems to be one of the few platforms to be experiencing insolent growth.
Rent The Runway, the American fashion and luxury goods rental company, has developed an AI-powered search engine to enhance the shopping experience beyond keyword limits.
The UK’s Poshmark has teamed up with the Coachtopia second-hand program developed by the American Coach.
For its part, Ebay uses AI to generate product listings, display price recommendations, present real-time delivery charges and generate product backgrounds.
Finally, British platform Hardly Ever Worn It has banked on a chatbot created in collaboration with its compatriot Sociate AI. The latter claims to be the world’s fastest tagless shopping AI for fashion and the latest trends.
And the Pre-owned market, in view of the economic downturn and environmental issues, is not about to experience a crisis. According to OfferUp’s latest report, the second-hand market is set to reach $291.6 billion by 2029. In the same timeframe, resale could account for 8% of global retail.
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Featured Photo: © Vestiaire Collective
