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Consigning/buying with The Real Real TRR
- Thread starter KPCoppola
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Interesting.
https://www.cnbc.com/2019/11/20/the...ll-discloses-fakes-published-on-the-site.html
The RealReal’s ‘Faux and Tell’ reports disclose fake items published on the site and returned
KEY POINTS
The company responded by saying its authentication was rigorous and constantly improving.
But its own internal documents obtained by CNBC show how deep the problems have been for some time.
The RealReal, the world’s largest online consumer marketplace for luxury items, has touted that all its merchandise is “100% authentic” handled by a team of experts. But CNBC found many of the items on the site were being authenticated by copywriters with limited training, leading to mistakes.
Two days after the story aired, CEO Julie Wainwright emailed customers saying, “we strive for perfection but we may not be perfect every single time.”
She repeated that promise in an interview with Jim Cramer on CNBC’s “Mad Money” last week. The company, in a news release, said copywriters receive a minimum of 30 hours of training and review “low risk” brands, while “high risk” merchandise such as an Hermes Birkin bag are sent to expert authenticators.
But the internal documents obtained after the CNBC investigation find the company has a long way to go.
‘Faux and Tell’
The internal documents, called “Copywriting Faux and Tell,” are “a weekly recap of TRR published and returned counterfeits.” They were sent to copywriters at the company’s warehouse in Brisbane, California.
The company did not respond to CNBC’s request for comment about the documents, other than to say in an email, “We do not share specific details on our proprietary training programs.”
A total of 227 pages from the first and third quarters of 2019 show specific examples of what are labeled “TRR fakes.” The items include purported Louis Vuitton slides in a style that was never created. Ugg boots marked with the wrong logo and bow. Moncler track pants tagged with a label that says T-shirt. A separate pair of slides from “The Row” and a Valentino scarf were supposed to be made in Italy but the label on the TRR fakes say they were “Made in China.”
These fake Ugg boots have an incorrect label, bow and sole.
These fake Moncler track pants contain a label that says “T-shirt.”
This Valentino scarf should say “Made in Italy,” but the fake says “Made in China.”
These fake Jimmy Choo shoes misspell the brand as “Jimmy Ghoo” on the sole.
The reports offer a sampling of the types of counterfeit products that slipped through the company’s vetting process. These include mistakes that may appear to be obvious. For example, an employee missed Jimmy Choo flats that misspell the company’s name on the sole. It reads “Jimmy Ghoo.”
And a Gucci belt without any branding on the leather. The “GG” is described as a “garish” gold, in one of the company’s documents.
The “Faux and Tell” reports are divided into ready to wear, handbags, accessories and shoes. Some describe “inferior screws” and “incorrect hardware on a bag.” Others specify incorrect fonts on labels, sloppy interior stitching and a “strong chemical odor.”
The CNBC investigation revealed copywriters were working under a strict quota system, which they said led to obvious errors, similar to what is specified in these sample “Faux and Tell” reports.
In her recent comments, Wainwright has not addressed the quota system. In a news release issued on Nov. 13, she said, “we stand behind our business, and importantly, if our customers aren’t happy or if they ever question one of our products, we always make it right.”
While the documents were sent to copywriters at the company’s Brisbane, California warehouse, a former employee at the Secaucus, New Jersey, warehouse told CNBC that she saw similar documents during presentations to staff. The RealReal also has a warehouse in Perth Amboy, New Jersey.
In a news release, The RealReal said its authentication team processed nearly 490,000 items and caught about 4,000 fakes in October alone. Another 139 products were rejected by the company’s quality control team before being posted.
She did not say how many fakes have been sold on The RealReal’s site or in its three retail stores. Publicly available financial reports also do not break down the number of fakes.
The company’s site said: “Online and in-store purchases may be returned online (except non-member and cash refund returns which must be made in-store). Online returns must be requested within 14 days of in-store purchase or shipment date and items must be received within 21 days of in-store purchase or shipment date. Items received after 21 days or with the security tag missing or removed cannot be returned.”
The company said it has sold more than 11.5 million items since it started eight years ago.
The RealReal has advertised on its Facebook page that it “is the leader in authenticated luxury consignment. With an expert behind every item, we ensure everything we sell is 100% real.”
The reference to “100% real” was removed from the page on Nov. 5, the day the CNBC investigation aired.
Claims of everything “100% authentic” also have been scrubbed from the company’s website.
Analysts have said that if customers don’t trust the authentication process, that would likely have a negative impact on the stock.
Wainwright has said 82% of its gross merchandise volume is from repeat buyers and 81% is from repeat consignors, indicating there is a high trust in the company.
In a research note dated Nov. 4, Cowen Equity Research was upbeat.
“Authentication has been an area of investor concern; however, we believe REAL is the only player that can currently authenticate luxury goods across various categories with scale, and REAL continues to invest behind detecting counterfeits,” the Cowen report said.
https://www.cnbc.com/2019/11/20/the...ll-discloses-fakes-published-on-the-site.html
The RealReal’s ‘Faux and Tell’ reports disclose fake items published on the site and returned
KEY POINTS
- The RealReal is an online luxury consignment store that used to differentiate itself by saying everything is 100% real. The CEO has said there are “no fakes on our site” and “every single item [is] authenticated.”
- In the wake of a CNBC investigation on its authentication process, the CEO said, “we may not be perfect every single time.”
- Newly obtained internal documents, call “Copywriting Faux and Tell” show hundreds of fakes the company missed.
The company responded by saying its authentication was rigorous and constantly improving.
But its own internal documents obtained by CNBC show how deep the problems have been for some time.
The RealReal, the world’s largest online consumer marketplace for luxury items, has touted that all its merchandise is “100% authentic” handled by a team of experts. But CNBC found many of the items on the site were being authenticated by copywriters with limited training, leading to mistakes.
Two days after the story aired, CEO Julie Wainwright emailed customers saying, “we strive for perfection but we may not be perfect every single time.”
She repeated that promise in an interview with Jim Cramer on CNBC’s “Mad Money” last week. The company, in a news release, said copywriters receive a minimum of 30 hours of training and review “low risk” brands, while “high risk” merchandise such as an Hermes Birkin bag are sent to expert authenticators.
But the internal documents obtained after the CNBC investigation find the company has a long way to go.
‘Faux and Tell’
The internal documents, called “Copywriting Faux and Tell,” are “a weekly recap of TRR published and returned counterfeits.” They were sent to copywriters at the company’s warehouse in Brisbane, California.
The company did not respond to CNBC’s request for comment about the documents, other than to say in an email, “We do not share specific details on our proprietary training programs.”
A total of 227 pages from the first and third quarters of 2019 show specific examples of what are labeled “TRR fakes.” The items include purported Louis Vuitton slides in a style that was never created. Ugg boots marked with the wrong logo and bow. Moncler track pants tagged with a label that says T-shirt. A separate pair of slides from “The Row” and a Valentino scarf were supposed to be made in Italy but the label on the TRR fakes say they were “Made in China.”
These fake Ugg boots have an incorrect label, bow and sole.
These fake Moncler track pants contain a label that says “T-shirt.”
This Valentino scarf should say “Made in Italy,” but the fake says “Made in China.”
These fake Jimmy Choo shoes misspell the brand as “Jimmy Ghoo” on the sole.
The reports offer a sampling of the types of counterfeit products that slipped through the company’s vetting process. These include mistakes that may appear to be obvious. For example, an employee missed Jimmy Choo flats that misspell the company’s name on the sole. It reads “Jimmy Ghoo.”
And a Gucci belt without any branding on the leather. The “GG” is described as a “garish” gold, in one of the company’s documents.
The “Faux and Tell” reports are divided into ready to wear, handbags, accessories and shoes. Some describe “inferior screws” and “incorrect hardware on a bag.” Others specify incorrect fonts on labels, sloppy interior stitching and a “strong chemical odor.”
The CNBC investigation revealed copywriters were working under a strict quota system, which they said led to obvious errors, similar to what is specified in these sample “Faux and Tell” reports.
In her recent comments, Wainwright has not addressed the quota system. In a news release issued on Nov. 13, she said, “we stand behind our business, and importantly, if our customers aren’t happy or if they ever question one of our products, we always make it right.”
While the documents were sent to copywriters at the company’s Brisbane, California warehouse, a former employee at the Secaucus, New Jersey, warehouse told CNBC that she saw similar documents during presentations to staff. The RealReal also has a warehouse in Perth Amboy, New Jersey.
In a news release, The RealReal said its authentication team processed nearly 490,000 items and caught about 4,000 fakes in October alone. Another 139 products were rejected by the company’s quality control team before being posted.
She did not say how many fakes have been sold on The RealReal’s site or in its three retail stores. Publicly available financial reports also do not break down the number of fakes.
The company’s site said: “Online and in-store purchases may be returned online (except non-member and cash refund returns which must be made in-store). Online returns must be requested within 14 days of in-store purchase or shipment date and items must be received within 21 days of in-store purchase or shipment date. Items received after 21 days or with the security tag missing or removed cannot be returned.”
The company said it has sold more than 11.5 million items since it started eight years ago.
The RealReal has advertised on its Facebook page that it “is the leader in authenticated luxury consignment. With an expert behind every item, we ensure everything we sell is 100% real.”
The reference to “100% real” was removed from the page on Nov. 5, the day the CNBC investigation aired.
Claims of everything “100% authentic” also have been scrubbed from the company’s website.
Analysts have said that if customers don’t trust the authentication process, that would likely have a negative impact on the stock.
Wainwright has said 82% of its gross merchandise volume is from repeat buyers and 81% is from repeat consignors, indicating there is a high trust in the company.
In a research note dated Nov. 4, Cowen Equity Research was upbeat.
“Authentication has been an area of investor concern; however, we believe REAL is the only player that can currently authenticate luxury goods across various categories with scale, and REAL continues to invest behind detecting counterfeits,” the Cowen report said.
I'll add that from what I (personally) have seen, yes, TRR has had fakes -- many of them and many times.
But with regard to the report, I'm not convinced that the Uggs shown in the example above are fake.
They claim the soles are incorrect but from what I see, the soles are from different timeframes. Ugg/Deckers has changed sole designs many times over the last 10 years and both styles shown have been used.
The other examples, I'm not sure of.
But with regard to the report, I'm not convinced that the Uggs shown in the example above are fake.
They claim the soles are incorrect but from what I see, the soles are from different timeframes. Ugg/Deckers has changed sole designs many times over the last 10 years and both styles shown have been used.
The other examples, I'm not sure of.
Those "Jimmy Ghoo" flats made me laugh. Exactly how many seconds did their "authenticator" spend on those? Ten? Goo indeed.
While most of the items I see on TRR appear authentic (at least of the brands I'm familiar with and the orders I've received from them so far), there definitely are fakes lurking around. E.g. these FAKE Louboutin shoes:
https://www.therealreal.com/product...stian-louboutin-leather-round-toe-pumps-5vul2
fake version of the CL "Bruges" style
https://www.therealreal.com/product...ouboutin-fringe-trimmed-knee-high-boots-66ptn
fake version of the CL "Forever Tina" style
https://www.therealreal.com/product...stian-louboutin-leather-round-toe-pumps-5vul2
fake version of the CL "Bruges" style
https://www.therealreal.com/product...ouboutin-fringe-trimmed-knee-high-boots-66ptn
fake version of the CL "Forever Tina" style
how did those boots even get approved!! Even a Louboutin newbie could (hopefully) tell that they are fake!
I finally got a reply to my emails. They took responsibility for their mistake and accounting errors and fiddled with my account to reflect the changes - I see that I will be paid out on 12/15 (should have been 10/15) and they have everything correct now in my account. They are paying me out what the bag sold for, not what the lost price is. And they offered a very generous 300 credit as well for my troubles with them which is in my account already. Hopefully, all is resolved. Sadly, you have to hound them for answers and be your own advocate. I wonder how they get back the money they paid to someone else already - I guess that's their problem, but what a mess they create with errors.
For sure you have to HOUND them when they have made these types of errors; god knows .. they did the same to me and it took them 3 months to resolve, but then I had to "essentially" wait another month for the payment. I also got a credit, but it was a measly $100. Just today, I noticed that they inaccurately have a Balenciaga City bag noted as the "Town" style .. so much for their "authentication" BS!!!!
After reading that article and watching several youtube videos on super fakes, I pretty much decided to cut out the middle man and buy fake bags that are over my budget. I can rock a fake birkin and still be cute damnit.
I have bought in the past from them, mainly items I couldn't find anywhere else (vintage editions of DvF mainly, I don't like her 70's wallpaper style but some of the older, less "busy" prints and silks are nice, so if I had a dress I liked and wanted a backup or a different colour) no issue with authenticity but then that would hardly be worth faking, but stuff they declared as in very good condition was everything but and my main complaint was the horrendous smell, every item had a sort of musty, moldy smell, like a cellar but so pungent. Their pictures tend to be quite misleading and regarding higher end items, I have seen a few that definitely were not authentic listed.
Having worked in the fashion industry, yes, certain stuff I can easily authenticate myself, but those are brands I have worked with and/or like myself, to expect a copy writer to authenticate over 100 items a day without proper training, that is a bit nuts.
But I think badly trained staff is normal with a lot of the resellers, I used to sell with Rebelle, the German company but their checking is totally and utterly random, possibly depending on the lunar cycle and on which side of the bed they woke up. As for their expertise, that is a bit laughable, I got rid of a vintage DvF dress that I never wore, their "expert" (whatever his or her expertise is in, fashion it most likely isn't) declined it as apparently an "authentication hologram was missing, now you really don't need to be an expert to know that the vintage dresses and even some of the modern ones don't all have one, some have only a tag with the name of the dress and the number, the very early ones are made in the US and carry the NYC address, yet Rebelle has a sky high commission, terrible customer service and an arrogance that is pretty hard to swallow and some really shady underhand methods of trying to squeeze more money out of you (trying to get you to pay for insured sending, etc) and have seemed to concentrate on buyers who believe they can high end items for the price of a discounted WalMart t-shirt who will claim to have seen a Chanel jacket for 150 discounted in a shop and therefore you should sell it to them for 50 and other such nonsense. They have also for some brands a "service" where they claim to give you the approximate price new, the prices are so off and ridiculously low, that I once asked them to tell me where I can buy new BV shoes for 150....
Oddly enough they also used to be really good and reasonable but went downhill like the proverbial lead balloon, I think it is the same problem as TRR - they grew too fast too quick and are imploding.
I just got a bag that was described as gray-brown and the photos showed something off-white. Well, the bag is actually green (granted, not bright green)! It looks way better than the photos and I love it, but still...
So apparently my account on therealreal has been hacked and someone has placed orders using my saved payment methods . Recommend checking your accounts
I deleted my saved payment methods and continue to do so every time I make a purchase. I just don't want this information stored on sites.