WEBVTT - Portero's Clarbour on the Luxury Consignment Industry (Audio) 0:00:04.000 --> 0:00:08.559 Broadcasting live to New York, Bloomberg eleven to Washington, d C. 0:00:08.760 --> 0:00:14.040 Bloomberg to Boston, Bloomberg Well, Undige to San Francisco, Bloomberg 0:00:14.920 --> 0:00:17.520 to the country. See when he's exam General one nine 0:00:17.880 --> 0:00:21.400 and around the globe the Bloomberg Radio plus append Bloomberg 0:00:21.400 --> 0:00:27.480 dot Com. This is taking stock attainable luxury. It can 0:00:27.560 --> 0:00:30.280 get just a little bit harder every day as the 0:00:30.320 --> 0:00:33.519 cost of luxury goods continue to rise. With a perfect 0:00:33.640 --> 0:00:37.760 entry point for Portrero, a place where you can find 0:00:38.000 --> 0:00:42.680 pre owned luxury goods, many of them of great quality 0:00:43.120 --> 0:00:45.880 at prices that you can take advantage of because someone 0:00:45.920 --> 0:00:47.400 else has owned it for a little while, but so 0:00:47.520 --> 0:00:50.279 luxury good people take care of them. We're very We're 0:00:50.280 --> 0:00:52.519 gonna be talking to the chairman of Portrayro here, and 0:00:52.520 --> 0:00:55.400 we're also gonna be talking to Dave Coudla. He's out 0:00:55.440 --> 0:00:58.080 in the Detroit area. He's going to talk to us 0:00:58.160 --> 0:01:00.920 not only about the auto land escape, but the markets 0:01:00.960 --> 0:01:03.400 post Brexit. I'm Kathleen Hayes, my co host Pim Fox 0:01:03.440 --> 0:01:06.080 is on vacation. I'm going right to Katherine Catty now 0:01:06.160 --> 0:01:09.640 in the newsroom for a Bloomberg Business Flash. Well, Thank you, Kathleen. 0:01:09.760 --> 0:01:12.480 Consummer focused companies are helping to fuel modest games on 0:01:12.520 --> 0:01:14.720 Wall Street Today. The S and P five founded is 0:01:14.800 --> 0:01:16.360 up for a fourth day and is on track for 0:01:16.400 --> 0:01:19.640 its biggest four day rally in nine months. There's speculation 0:01:19.680 --> 0:01:21.800 at central banks will act to limit the fallout from 0:01:21.840 --> 0:01:24.720 the UK's vote to leave the European Union. There's also 0:01:24.760 --> 0:01:28.320 optimism about the U S economy. Data Today's show manufacturing 0:01:28.360 --> 0:01:31.039 gathering strength in June, expanding at the fastest pace in 0:01:31.080 --> 0:01:34.280 more than a year. Bloomberg Vinny Deal Judace has the details. 0:01:34.520 --> 0:01:38.560 The Institute for Supply Management's National Factory and dex advanced 0:01:38.560 --> 0:01:41.399 to fifty three point to last month, the high since 0:01:41.400 --> 0:01:45.560 early twentifteen, helped in part by consumer spending exports, but 0:01:45.640 --> 0:01:50.240 in the best performance since orders, production and employment up 0:01:50.240 --> 0:01:54.440 as well. Separately, the Commerce Department reports construction spending dropped 0:01:54.480 --> 0:01:56.440 in May for the second month in a row. At 0:01:56.440 --> 0:01:59.960 the Bloomberg first worked as Amphany del Judas Bloomberg Radio, 0:02:00.160 --> 0:02:02.600 we take the markets have fifteen minutes on Bloomberg Radio. 0:02:02.640 --> 0:02:04.960 Down Industrial averages up forty points, a gain of a 0:02:05.040 --> 0:02:08.080 quarter percent. Trading at seventeen thousand, nine hundred sixty nine. 0:02:08.520 --> 0:02:10.600 Smp f I founded up six points three tenths of 0:02:10.639 --> 0:02:13.200 a percent to twenty one oh five. Then AZDAC is 0:02:13.280 --> 0:02:15.520 up twenty three points again and half a percent, trading 0:02:15.520 --> 0:02:18.760 at forty eight sixty five. West Texas Intermediate crude oil 0:02:18.840 --> 0:02:21.240 up eighty seven cents a barrel, one eight percent at 0:02:21.280 --> 0:02:24.160 forty twenty. Spot gold is up at twenty one dollar 0:02:24.320 --> 0:02:27.280 ninety cents announce at thirteen forty two. Fifty ten year 0:02:27.360 --> 0:02:29.440 treasury up seven thirty seconds with the yield of one 0:02:29.480 --> 0:02:32.520 point four or four percent. Among today's top business stories, 0:02:32.639 --> 0:02:35.920 ups pilots would receive a twenty nine percent race compounded 0:02:35.919 --> 0:02:40.200 over five years under a new proposed contract. And now 0:02:40.280 --> 0:02:43.480 let's get the latest, and some other stories were following today. 0:02:45.040 --> 0:02:48.000 Thank you, Catherine from the Bloomberg news Room. I'm Jill Schneider. 0:02:48.240 --> 0:02:50.080 This news update is brought to you by the Jeep 0:02:50.120 --> 0:02:53.840 Grand Cherokee, the most awarded suv ever. The Grand Cherokee 0:02:53.840 --> 0:02:56.880 continues to raise the bar with its luxurious interior and 0:02:57.000 --> 0:02:59.960 legendary four by four capability. Drive one at your local 0:03:00.080 --> 0:03:03.000 Jeep dealer. Today, a group of as many as nine 0:03:03.040 --> 0:03:06.600 gunmen is holding several people hostage. Inside a Bangladeshi restaurant 0:03:06.680 --> 0:03:10.040 popular with foreigners. Local news reports say the attackers entered 0:03:10.080 --> 0:03:13.200 a bakery in the capital city Daca in Washington. A 0:03:13.280 --> 0:03:16.480 State Department spokesman says the US Embassy in Daca has 0:03:16.520 --> 0:03:19.720 accounted for all American citizens who are under the authority 0:03:19.919 --> 0:03:22.880 of the Diplomatic Chief of Mission. The attack on the 0:03:22.880 --> 0:03:26.359 airport in Istanbul has raised questions about security in the US. 0:03:26.720 --> 0:03:29.080 A former t s A official says law enforcement at 0:03:29.120 --> 0:03:33.799 American airports is insufficient to protect against similar attacks. Former 0:03:33.840 --> 0:03:37.360 T s A Deputy administrator John Halinsky says those agencies 0:03:37.360 --> 0:03:41.560 are understaffed and underfunded. President Obama says a vaccine for 0:03:41.600 --> 0:03:44.640 the zico virus could be developed in quote fairly short 0:03:44.760 --> 0:03:47.320 order if Congress acts quickly to pass a bill to 0:03:47.360 --> 0:03:50.720 prevent the spread of the disease. It is absolutely critical 0:03:51.800 --> 0:03:56.640 or the United States government, working in a concert with 0:03:57.520 --> 0:04:01.760 other governments in the hemisphere, to be pushing hard right 0:04:01.800 --> 0:04:07.120 now to get this situation under control. Non millionaires are 0:04:07.120 --> 0:04:09.960 having an easier time finding apartments to buy in Manhattan 0:04:10.200 --> 0:04:12.840 after years of being dominated in the city's real estate 0:04:12.880 --> 0:04:16.120 market by ultra wealthy investors. Those with limited funds are 0:04:16.120 --> 0:04:18.839 finding more options than they've had since two thousand twelve. 0:04:19.240 --> 0:04:21.800 Global News twenty four hours a day, powered by more 0:04:21.839 --> 0:04:24.800 than twenty six hundred journalists and analysts in more than 0:04:24.839 --> 0:04:27.640 one hundred twenty countries. From the Bloomberg news Room. I'm 0:04:27.720 --> 0:04:32.080 Jill Schneider. This is Bloomberg Katherine. Thank you. And here's 0:04:32.080 --> 0:04:34.919 a quick check of the equity Banchmark style industrial laboratory 0:04:34.960 --> 0:04:37.440 main entire up at thirty four points at seventeen thousand, 0:04:37.520 --> 0:04:40.159 nine hundred sixty three smp F, I founded up five 0:04:40.160 --> 0:04:42.800 point at twenty one oh four, NaSTA twenty two point 0:04:42.839 --> 0:04:47.320 at forty eight sixty four. And that's a Bloomberg business flash. 0:04:47.839 --> 0:04:54.680 Bloomberg taking stock the Lutch Life, Jews properties valuable nature 0:04:54.880 --> 0:04:57.960 in a front house. Can I be your financial adviser? 0:04:58.160 --> 0:05:01.480 It's good to be keen. I thought of your right 0:05:02.120 --> 0:05:04.320 and then I've got out in. Remember how much I 0:05:04.360 --> 0:05:08.000 wanted a big backyard with Grecian statue sh shaped hedges 0:05:08.040 --> 0:05:11.680 and three going cool. Well I got that. Bloomberg taking 0:05:11.720 --> 0:05:16.240 Stock the lux Life on Bloomberg Radio. A born and 0:05:16.279 --> 0:05:19.799 bred New Yorker, our next guest began her career in finance, 0:05:19.839 --> 0:05:24.280 working as a Nasdac trader, luxury has always appealed to her. 0:05:24.320 --> 0:05:28.159 In fact, whenever first Luxury Splurges was a Todd's bag 0:05:28.279 --> 0:05:33.279 many years ago. Now she is the chairman of Portero Inc. 0:05:33.880 --> 0:05:38.400 She is set up a curated marketplace more than ten 0:05:38.480 --> 0:05:43.279 years ago for authentic, pre owned luxury goods. Alexis Clarbert 0:05:43.360 --> 0:05:45.760 joins us now here in our New York studio. Welcome, 0:05:46.000 --> 0:05:48.880 Thank you for having me. So what first? When did 0:05:48.920 --> 0:05:50.520 you get interested in luxury? And growing up in New 0:05:50.560 --> 0:05:52.839 York just luxury all around you, right? Is that what? 0:05:52.960 --> 0:05:56.960 It was? A family connection? What really entice you to luxury? Well, 0:05:57.040 --> 0:06:01.880 it was the idea that people really love, the idea 0:06:02.000 --> 0:06:05.960 of of luxury. And I started working for a company 0:06:06.000 --> 0:06:11.480 called water Works, which is a very high end luxury fittings, fixtures, 0:06:11.600 --> 0:06:15.159 bathroom company, and I learned a lot about those kinds 0:06:15.200 --> 0:06:19.720 of customers and what their expectations were. And the reality 0:06:20.040 --> 0:06:23.480 is is that there is value to be found in 0:06:23.480 --> 0:06:27.360 in many different things. And I really gravitated towards the 0:06:27.440 --> 0:06:30.760 luxury markets and the luxury customer. So how did you 0:06:30.800 --> 0:06:35.240 go from the NaSTA to water Works? Good question? Through 0:06:35.279 --> 0:06:39.719 a family connection. My mother worked in materior design magazines 0:06:40.320 --> 0:06:43.920 and I just loved that whole world. And but I 0:06:44.000 --> 0:06:47.320 learned a lot from water Works about branding, about marketing 0:06:47.320 --> 0:06:50.279 and luxury good So then if you set this company 0:06:50.320 --> 0:06:53.200 in two thousand four, so what how did you get then? 0:06:53.360 --> 0:06:56.200 I mean, what was it you just said, bingo, everything 0:06:56.279 --> 0:06:59.080 is going online e commerce or was it just what 0:06:59.200 --> 0:07:02.120 was it? Right? Well, Portero was set up before I 0:07:02.160 --> 0:07:05.839 said that Portero has is really the pioneers of the 0:07:05.920 --> 0:07:09.880 pre owned luxury marketplace. I came in about three years 0:07:09.880 --> 0:07:15.360 ago and recognize that we had more work to do. 0:07:15.680 --> 0:07:19.480 The reality is is that the Portero customer is a 0:07:19.640 --> 0:07:25.120 very astute customer. Are average dollar transactions about two thousand dollars, 0:07:25.120 --> 0:07:27.680 which not many of those other websites that you might 0:07:27.760 --> 0:07:31.240 know that sell pre owned goods can say, um, So 0:07:31.320 --> 0:07:34.560 we really focused on the best of the best. We 0:07:34.680 --> 0:07:38.800 leave the rest to others, and we're very highly curated. 0:07:38.920 --> 0:07:42.360 So when we say an item's an excellent condition, it 0:07:42.440 --> 0:07:45.320 means it's really probably even worn a couple of time. 0:07:45.560 --> 0:07:47.960 Who you got two groups of people I'm interested in. 0:07:48.320 --> 0:07:50.200 One of course is your customer, But the other side 0:07:50.200 --> 0:07:53.080 of it, who are the people who come to you 0:07:53.120 --> 0:07:58.360 to consign their their vintage handbads. They're very high and goods. Well, 0:07:58.560 --> 0:08:02.040 these are people that have done their homework. They recognize 0:08:02.160 --> 0:08:05.480 that Portero is a place where they can get the 0:08:05.560 --> 0:08:09.280 fair market value for the item. There are other websites 0:08:09.320 --> 0:08:14.080 that almost have a liquidation type mentality, but we really 0:08:14.280 --> 0:08:17.360 want to um, you know, value the bag and want 0:08:17.400 --> 0:08:21.400 and want to preserve the integrity of the secondary market place. 0:08:21.520 --> 0:08:23.200 Tell me about the bag you have in front of 0:08:23.320 --> 0:08:26.480 us today here in York. Sure, this is a beautiful 0:08:26.680 --> 0:08:31.960 vintage crocodile Kelly bag. Um. This was purchased back in 0:08:32.000 --> 0:08:36.560 the eighties for about in Paris. We are selling it 0:08:36.600 --> 0:08:40.360 on our website for twelve thousand dollars. WHOA so? How 0:08:40.480 --> 0:08:42.320 much with the customer, the person who's consigned it to 0:08:42.320 --> 0:08:43.960 you get out of that? What's the what's the fee 0:08:44.080 --> 0:08:47.200 or what's the um? Well, if an item is over 0:08:47.360 --> 0:08:52.000 ten thousand dollars, we take a commission so they get 0:08:52.080 --> 0:08:55.920 se of the value. That is highly competitive. If the 0:08:56.040 --> 0:09:00.600 item is under ten thousand dollars, they actually get um 0:09:00.760 --> 0:09:03.800 seventy percent of the value. How big is the business now? 0:09:03.800 --> 0:09:07.880 How big can it get? Oh? The secondary resale market 0:09:08.080 --> 0:09:11.800 is a billion dollar industry. It is, and it is 0:09:11.840 --> 0:09:16.840 growing everyday. Portero for example, this year we're up. We 0:09:16.920 --> 0:09:20.439 do not see the momentum slowing at all. I think 0:09:20.480 --> 0:09:23.600 that people look at set at the secondary market and 0:09:23.679 --> 0:09:26.440 understand the value that that they can buy in the 0:09:26.640 --> 0:09:29.120 in the market and also that they can sell or 0:09:29.200 --> 0:09:32.680 consign in the secondary. Are your customers and your consigners 0:09:32.840 --> 0:09:35.680 or consignments are they mainly in the United States? Is 0:09:35.679 --> 0:09:39.800 it global? It's global. I mean, we focus our consignment 0:09:39.840 --> 0:09:42.760 program in the United States, but we because we are 0:09:42.800 --> 0:09:47.080 a global marketplace, we do get inquiries all you know, 0:09:47.200 --> 0:09:49.800 from all over the world. A lot of our buyers 0:09:49.800 --> 0:09:53.040 are all over the world. Um actually right now it's 0:09:53.040 --> 0:09:57.719 about seventy US thirty percent international. You see a lot 0:09:57.840 --> 0:10:01.959 of demand in Asia and duh. So if somebody wanted 0:10:02.000 --> 0:10:04.960 to uh actually just send you something to sell or 0:10:05.000 --> 0:10:07.559 buy something, what do they do? They go online to 0:10:07.720 --> 0:10:11.360 poor terot dot com and uh, actually, we're having a 0:10:11.400 --> 0:10:16.480 great Independence Day sale right now off of select items. 0:10:16.520 --> 0:10:18.880 So it's a great time to shop our site. Just 0:10:18.920 --> 0:10:21.199 really quick. What's one of the least expensive items for 0:10:21.280 --> 0:10:23.640 people who are still striving to the top of luxury 0:10:23.960 --> 0:10:27.880 the most expensive. Well, I'm gonna focus on handbags. Um 0:10:27.880 --> 0:10:30.199 I would say on handbags you can get a great 0:10:30.280 --> 0:10:33.600 value Louis Vuitton for about fifty percent off, and then 0:10:33.640 --> 0:10:36.320 you have your holy grail of the rez Birkins, which 0:10:36.640 --> 0:10:39.720 can run you six figures. But that's for a pristine 0:10:39.760 --> 0:10:43.120 bag meaning unused. Alexis Clarbor, how fast. What a great 0:10:43.200 --> 0:10:45.400 job it is. It's a lot of fun. Come over 0:10:45.440 --> 0:10:48.720 and see us sometime. You bet. She's chairman at poor 0:10:48.960 --> 0:10:52.559 terot Egg based here in New York City. I'm Kathleen Hayes. 0:10:52.880 --> 0:11:01.320 This is taking stock and this is Bloomberg. Where do 0:11:01.320 --> 0:11:03.840 you put your money now? A post brexit and ahead 0:11:03.880 --> 0:11:06.800 of the US jobs report? What should you be watching 0:11:06.920 --> 0:11:08.480 if you try to want to make some money in 0:11:08.559 --> 0:11:11.280 bonds and stocks? That's coming up ahead of the market 0:11:11.320 --> 0:11:13.560 closed right here on Bloomberg.