CED Tech Venture profile: aLuxuRe, looking to make consignment process easier

Ever visited a consignment shop?

Ever tried to sell something through a consignment shop?

Had trouble making the system work?

Durham startup aLuxuRe, led by CEO Collis Arrick, says it offers a solution.

“With our SaaS solution, resale store owners are able to effectively engage customers through one central platform that allows them to complete the item evaluation process, manage appointments, generate contracts and provide notification updates,” he says.

Some 90 startups and emerging tech companies will be presenting at CED Tech Venture. WRAL TechWire is publishing profiles of many of those firms in partnership with the CED.

The Q&A with Arrick:

What is the focus of your business?

äLuxuRē simplifies the consignment process, allowing consignment stores to increase their productivity and to provide consignors a better customer experience. With our SaaS solution, resale store owners are able to effectively engage customers through one central platform that allows them to complete the item evaluation process, manage appointments, generate contracts and provide notification updates.

What is the top pain point/business application you are seeking to address?

The existing consignment process is plagued by poor communications, which yields poor results – frustrated customers who give up on consigning altogether. The way that most stores engage consignors is antiquated – they schedule appointments manually and track incoming inventory using a paper log or, at best, an Excel spreadsheet. Consignors have to drive to drive from store to store, wasting precious gas and time, because they are unsure which items a store will accept. Furthermore, customers are unaware of what happens to their items once it is delivered accepted by the stores; the onus is on them to keep informed about the process. It is up to them to find out if items have been sold, when payment will be available, etc. Stores are searching for a solution to these problems, because, unlike other retailers, their customers are also their suppliers. Bad consignment experiences negatively impact their businesses.

What makes it unique?

We are the first to offer the consignment/resale industry a customer-centric solution through a centralized platform – no other current solution addresses this problem. Consignors are engaged and kept informed throughout the entire process. äLuxuRē removes the barriers that serve as an impediment to consigning, promotes transparency thereby eliminating confusion, and provides stores an inventory management tool that increased sales turnover through improved sourcing.

Why should investors be interested in your firm?

According to industry research reports, the resale industry is a $16 billion market that is expected to grow to $25 billion by 2025. There are almost 30,000 brick-and-mortar consignment stores and the number of net new stores is expected to grow at an annual rate of 7%. The total addressable market for our solution is approximately half a billion dollars.

Our business model is comprised of two primary revenue streams: (1) subscriptions that are paid to by the consignment stores – the platform is free to consignors and (2) sale of secondary market data to original manufacturers and information companies (e.g., Nielsen). Through our store partnerships, we are targeting Millennial, Gen X and Gen Y consumers who prefer the brick-and-mortar experience, prefer to shop local, and are active participants in the share economy.

äLuxuRē is a member of The Startup Factory Boot Camp and Groundwork Labs Accelerator Alumni Networks and was named a 2016 NC IDEA Grant semi-finalist. Our team has extensive business development, technology and retail experience.

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