Before founding The Edit LDN, Moses Rashid frequented sneaker festivals and expos to purchase limited edition shoes. But Rashid, a self-described “big sneaker guy,” often finds himself frustrated by the shopping experience. “I find it crazy that I’m dropping $850 on a pair of sneakers but I don’t even get a bag to bring them home with!” he said. Two years ago, The Edit LDN started from his home to give other sneakerheads the kind of premium experience they expect from luxury brands like Louis Vuitton or Dior.
Rashid now sees The Edit LDN’s revenue growing 525% year-over-year to $12 million by 2022. The London-based platform, which previously featured sneakers, streetwear and collectibles from vetted sellers, announced today that it has raised $4.8 million. Seed funding. The round will be used to expand into the United States and the MENA region and was led by Regah Ventures, with participation from sports players such as New York Giants captain Xavier McKinney, Philadelphia 76ers PJ Tucker and Premier League club Nottingham Forest’s Jesse Lingard. .
Rashid Edit compared LDN to designer clothing and handbag platform Farfetch because both work with premium retailers and have an audience of consumers willing to spend big on fashion. Edit LDN Services plans to expand UK same-day shipping to five more countries this year and includes a private marketing team that helps customers find sneakers, pre-order apparel and accessories. Rashid said The Edit LDN was able to find hard-to-find items like the Off-White X Air Jordan 1 High Chicagos signed by designer Virgil Abloh and Louis Vuitton Air Force 1s, which were obtained three months before their release. .
In the year By 2022, The Edit LDN had sold 20,000 pairs of sneakers and had 3,500 active sellers, who often have more than 50 units for sale at a time and can get products in advance, Rashid said. LDN’s key demographic is ages 18 to 40 and is split evenly between men and women. Customers shop up to five times a month, with an average order value of $425 per transaction. The startup’s goal is to double revenue by 2023 and grow to more than $100 million over the next three years, with a partial exit planned for 2026.
The Edit LDN has proprietary technology, including a feature that automatically applies margins to products, to enable sellers to sell faster. When resellers use LDN’s selling app, it suggests prices based on historical sales data and market monitoring by AI algorithms. It also performs inventory tracking to increase sales, and suggests products that a salesperson should stock. Resellers’ performance is monitored, including sales, shipping time and fulfillment levels, and how they’re doing can unlock new benefits like lower reseller rates, free storage and fulfillment, and access LDN’s discount stores at higher levels. department stores.
As with other high-priced collections, an important part of selling premium sneakers is certification. LDN’s in-house verification team uses techniques such as visual inspection, material and packaging inspections, smell and UV/black light. Rashid says they can check a product every three minutes.
The platform’s competitors include StockX and GOAT, other designer sneaker and streetwear marketplaces that have raised capital funds.
“Customer Battlefield is providing a premium retail environment, user experience, product anticipation, speed and service,” said Rashid. He added that sellers can charge 10% to 20% more for a product on EditLDN than on other platforms, because its personal shopping service offers administrative support, storage and fulfillment options, and marketing.
LDN Edit’s plans include expanding its product range and working with more retailers for physical locations. It currently has deals in Galeries Lafayette, Harvey Nichols and Harrods.
In terms of geographic expansion, the US was chosen because items can be shipped within 24 hours from the UK for a $30 shipping fee. Rashid said the platform has been well-received among popular customers there, and 15 percent of its revenue now comes from the US, albeit with less traffic. MENA is the target for expansion because it has fast growing new markets. Edit LDN will launch next month at Galeries Lafayette in Doha and Harvey Nichols in Riyadh.