Japanese c-to-c luxury goods consignment marketplace Reclo secured $33.6 million in funding from China’s CITIC Bank. SBI Investments and SBI Securities in late August. In a statement, Reclo’s owner Active Sonar said the fresh investment would be used to further expand its presence in China, where the luxury brands market is now worth over $100 billion U.S.
Reclo first launched a Chinese version in October 2016, and established a local subsidiary in Shanghai last year, but its footprint in China is limited, particularly on social media platforms like Weibo and WeChat.
Reclo allows owners of luxury brands to resell their items, employing experienced appraisers to price and verify all listings. Similar domestic platforms in China include rising market leader Plum, Secoo’s luxury auction site Wo Mai Wo Pai, 52Panghu.com and Hangzhou-based Admall (AKA, Aidingmao.com) — which was created by former executives for Taobao parent Alibaba Group Holding Ltd. (NYSE: BABA).
Of these, Plum is finding the most traction, both with Chinese consumers and with investors, having completed two major funding rounds in the past three months. Chinese CITIC’s investment in Reclo mirrored that of Japan’s Recruit Holdings in Plum earlier this week, in a funding round which raised $20 million U.S. According to Plum founder Yu Wei, the platform has recorded a five-fold increase in users and in gross merchandise volume (GMV) over the past six months.