Don’t try to find places where you can capitalize on an existing market, but where you can create a new market where there wasn’t one before. “Finding money” that otherwise wouldn’t be there.
RealReal is a luxury fashion consignment site based in the San Francisco Bay Area. Founder and CEO Julie Wainwright started the company in 2011 because she believed people wanted high-end fashion at affordable prices. In 2014, the company had 3.5 million members and was generating $100 million in sales. Last year, the company brought in around $200 million in sales and expects to be profitable this year. In an interview with APM’s Marketplace in December 2015, Wainwright said, “Fifty percent of our consigners have never consigned before.” That means that there are millions of customers generating tens of millions of dollars in revenue that did not exists before RealReal. The company has created an entire market out of a need many people probably didn’t even know they had.
Where can you tap into money that’s being left on the table?
Also published on Medium.