Page 43 - IAADFS Summit 2023 Special Edition

INSIDER

LXR pioneered the first pre-owned luxury boutique
in the Loop Duty Free store at Canada’s Montréal-
Trudeau International Airport in September 2021.
“It was the first luxury vintage concept to launch in
an airport in North America,” says Laura Swan, Co-
President and Chief Revenue Officer of LXR.

Sustainable fashion and the circular Swan explains that there is a growing that anything we sell is real, including a
economy acceptance for “luxury second-hand”, with multi-step authentication inspection by a
With these prices, pre-owned is shoppers actively searching these brands. team of highly skilled buyers,” says Swan.
obviously still luxury, but in a more “There is so much demand for these LXR is also intensely customer-
sustainable form. pieces that we have partners who send us focused with NPS scores in the mid 70’s,
“I am not sure everyone really lists of brands and styles that they want. and product return rates below 10%, she
understands luxury resale yet,” says Swan. There is a customer who embraces luxury adds.
“Our mission at LXR is to expand the and re-sale and has adopted the idea of
circular economy. We want to put these circular fashion.” Enhancing retailer’s sustainability
iconic beautiful hand-bags into the hands “Consumers see the inherent value position
of a new owner. We want to continue that of each piece, where you are getting Introducing pre-owned luxury can
sustainable fashion.” something very special at below the benefit a retailer beyond the sales aspect,
LXR says that its value proposition original cost, and helping promote circular says Swan.
encompasses “Scaleable Sustainability.” fashion and sustainability.” “By launching a resale luxury shop
“LXR owns our products – as opposed Pre-owned is also a gateway for you immediately enhance the shop’s
to selling on consignment – which gives us luxury buyers, she says. position on sustainability. Even if you
strong creative direction and control over “We are seeing a generational shift do not have space for a full shop, a few
merchandising strategy and the authenticity among our shoppers. Younger buyers shelves will suffice in the beginning,” she
of our inventory. We have a steady source appreciate luxury brands, but are also says.
of high quality luxury handbags and attracted to the sustainability aspect, as LRX can deliver turn-key results and
accessories primarily from Japan, Europe well as the affordability. We are also seeing execute a launch in less than 30 days. For
and North America and this gives us the buyers who are collectors. Both categories a typical cruise ship, or airport shop, LXR
ability to scale in depth within brands and of buyer are key drivers for the growth of would provide not only the product, but
SKUS. the concept,” says Swan. also supply branded marketing assets, as
“We have a team of buyers located well as staff training and merchandising.
in Tokyo, and a team of buyers in North Authenticity assured “There has not been one new partner
America with deep product knowledge To allay any worries that the luxury that we worked with where we didn’t
capable of fully authenticating styles from goods on offer might be counterfeit, LXR increase the order after launch.
the top 20 luxury brands. We buy each offers a 100% customer indemnification “We see so much opportunity within
piece, which is why we can scale with and authenticity guarantee on every sale. travel retail, where luxury resale is still
multiple cruise ships and why we can “We receive supplier certification virtually untapped, and we know we are the
replenish them when they come into port. followed by full internal authentication, strategic partner to deliver the best results.”
If the bags are selling you want to keep the and implement a rigorous process within
shelves supplied.” our Tokyo and Montreal facilities to assure

43 April 2023 Summit of the Americas