RECLO

About RECLO

RECLO operates as an online consignment and resale platform specializing in luxury branded goods. The company, originally founded as Active Sonar in November 2012 by Koji Aoki, underwent significant structural changes over the years. Aoki, a serial entrepreneur with a background in building businesses in the mineral water delivery sector, established RECLO to address the inconveniences he perceived in the consumer-to-consumer (C2C) marketplace, such as authenticity verification and the hassle of managing sales. The service officially launched in April 2014, with the name RECLO being a portmanteau of "Re-Closet."

The firm's business model is centered on a CtoBtoC (Consumer-to-Business-to-Consumer) framework, which manages the entire resale process for individuals looking to sell their high-end items. This includes professional appraisal by expert authenticators, pricing, photography, listing on its platform, and handling the final sale and shipping. This concierge-style service is designed to provide a hassle-free and secure experience for sellers, a key differentiator from peer-to-peer auction and flea market sites. Revenue is generated through the consignment sales of luxury items, such as handbags, apparel, jewelry, and watches, from approximately 1,000 high-end brands. For buyers, RECLO offers a curated inventory of authenticated pre-owned luxury goods.

A significant aspect of RECLO's strategy has been its focus on international markets, particularly in Asia. By 2019, its overseas sales ratio had already surpassed 50%, with a strong presence in China. The company leveraged the high reputation of Japanese appraisal standards, marketed as "Checked in Japan," to build trust and drive sales globally. The company has secured significant funding, including a notable Series B round of $33.8 million in August 2019, to fuel its global expansion. Over its history, the RECLO brand and operations have undergone several ownership changes. In December 2020, the business was acquired by ULTRA WIDE. Later, in April 2024, KOMEHYO Holdings announced that its subsidiary, K-Brand Off, had acquired 100% of RECLO's shares for approximately 358.8 million yen. This was followed by a planned merger where RECLO would be absorbed into K-Brand Off, effective July 1, 2024, though the RECLO brand continues to operate.