Editor’s Note
This article explores the expansion strategy of The Luxury Closet, a leading Middle Eastern luxury consignment platform. With the region’s growing population, the company is actively recruiting Japanese sellers to diversify its inventory. We spoke with CEO Kunal Kapoor to understand the market opportunity and their approach.
Luxury Consignment E-commerce Site in the Middle East
TRADELUX GENERAL TRADING LLC (Dubai) operates the luxury goods consignment e-commerce site “THE LUXURY CLOSET” (TLC) in the Middle East, a region experiencing population growth. The company is currently strengthening its efforts to recruit Japanese sellers dealing in secondhand luxury goods through NS Trading (Taito-ku, Tokyo), which supports Japanese companies entering the Middle Eastern market. We interviewed CEO Kunal Kapoor about the current local situation.
Recruiting Japanese Secondhand Luxury Sellers
“Yes. I have the impression that Japan’s secondhand luxury goods distribution is excellent in terms of ‘traffic control.’ It’s not just about trust in authenticity, but also that companies have their own characteristics, like ‘this company for Louis Vuitton’ or ‘that company for condition,’ which makes transactions easier. Currently, over 80% of listings are from individuals living in the Middle East, Europe, and the US, but as we strengthen our efforts to recruit corporate sellers going forward, I’m thinking we could cover most of that with listings from Japanese companies.”
TLC’s Growth
“TLC was launched in 2012 and has been growing its total transaction volume at a pace of 150-200% annually. About half of the buyers are individuals from the UAE (United Arab Emirates). This is followed by many purchases from the US and Saudi Arabia. TLC’s average transaction price is 80,000 yen. We sell 1,200 to 1,500 items per month.”
About the Middle East Market
“Speaking of Dubai, it’s a place where all nationalities are mixed, serving as a hub for trade and tourism. It became a topic of conversation when Amazon acquired Souq.com, a major Middle Eastern e-commerce site, the year before last. That’s how high the growth potential of the Middle Eastern e-commerce market is.”
Best-Selling Items
“For bags, it’s all high-end luxury brands in general. For jewelry, it’s Bulgari, Cartier, and Van Cleef & Arpels. It’s said that over half of the population is now under 20 years old. For example, even current university students might wear Van Cleef & Arpels jewelry worth 300,000 yen per piece. It’s truly the opposite demographic trend from Japan. I want people to sense the business opportunity here.”
Comments from NS Trading
“Japan is entering a period of global attention with events like the Tokyo Olympics and the Osaka Expo. Demand for replacing luxury bags is also high overseas. I hope we can support companies that want to venture into overseas sales.” – Shuji Nara, Chairman of NS Trading (right in photo)
“We would like to recruit Japanese companies that, while already engaged in luxury goods retail or cross-border e-commerce sales, wish to build new sales channels.” – Sakura Asukabe, Manager of the Overseas Business Department (center in photo)
