Cirqular - June 1, 2020
Breakit: Cirqular Challenges the Market for Second-hand Luxury Fashion
On May 31, 2020, News platform Breakit.se published an article about our founders Fred Nachemson and Johan Stubert, written by reporter Tobias Blixt. We have summarized it here in English.
Challenging Sellpy and Yaytrade
Cirqular is a marketplace for the second-hand market aiming to increase the circular trade within luxury fashion and accessories. In this sense, we are are challenging actors such as Sellpy and Yaytrade, however, we are focusing on exclusive items within the premium and high-end segments.
Our founders Fred Nachemson and Johan Stubert has known each other since childhood. Fred's background is within investment banking, however, he dreamt about doing something entrepreneurial within the field where tech meets consumers. Johan worked with business development at a German startup, Freighthub (now called Forto), when Fred and him started to build on the idea of Cirqular.
"Fred reached out during fall 2019 and I directly felt like this was an opportunity to build something with an enormous potential and positive environmental impact. We teamed up and started Cirqular around newyears." - Johan
Black Leather Bag by Balenciaga
Pre-seed round completed
Our founders have just completed their first pre-seed round with well-known investor profiles such as Leo Nilsson, product manager at iZettle, Mikael Ahlström, founder of Procuritas, and the business man Mikael Nachemson.
Fred says: "Our general vision is to activate circularity on a larger scale among consumers. It is a topic that is bubbling up, and we see that, through an attractive and user-friendly customer journey that makes it easy for all actors involved in the value chain, we can create a product that even can compete with the first-hand market."
The marketplace allows consumers to resell their belongings, but we also hope to enter partnerships with brands on the first-hand market. Something that will make it easier to resell their brands.
Johan explains: "There is a demand among consumers today for circular services, and there is a positioning value for brands to take control of their resale market themselves. It is an opportunity to strengthen customer loyalty among current customers but also to gain exposure towards a new target group. The people who buy second-hand today are often not the same type of customer who buys in the luxury first-hand market."
The vision of engaging brands is the big plan for the future. We are already in dialogue with several brands in Sweden and hope to launch this solution later this year.
"We are planning for our next seed-round now with the goal to establish the Cirqular brand as a well-known destination for luxury resale, as well as further developing the functionality of the platform to really attract brands in the first-hand market." says Fred Nachemson.
Collaborating with Lyxloppis
Our service have been up and running now for two months and we are really starting to see some great results. We have a partnership with the facebook group Lyxloppis which is a Swedish buy- and sell-group.
"Lyxloppis is our strategic partner. The group enables us to market our product and brand, but also individual products, which has worked very good." Johan says. "It is also a valuable channel for us to get feedback from actual users who are interested in these kinds of products."
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This was a summary of the Breakit-article Cirqular vill utmana med sin marknadsplats för begagnat lyxmode by Tobias Blixt (2020).