The question that everyone wants to know the answer to, is how a teenager built a fashion business worth over £5 million in just six years. Ben Gallagher, the Co-founder of Luxe Collective, deep dives into his road to success in this interview with TheIndustry.fashion.
Luxe Collective was founded by brothers Ben and Joe Gallagher as a consignment store in Liverpool in 2018. At the time, Ben was only 17 and Joe was 21, but they inquisitively predicted the future growth of the luxury resale market. Things have changed quite rapidly for the duo since then.
Now, the brand sells primarily via its e-commerce channel and through live shopping on social media platforms. Ben, who has become the spokesperson for the brand, is now a live shopping regular, often gracing phone screens describing the bag in hand with his unmistakeable Northern accent.
From rare vintage gems to cult-classic designer sneakers, Luxe Collective has become one of the go-to places for luxury re-commerce. With every designer piece guaranteed to be 100% authentic, it’s no surprise that the company has garnered a solid reputation and caught the eye of Steven Bartlett on Dragons Den, who gave the founders £100,000 for a 3% cut. With rapid growth underway, in March, Luxe Collective appointed a former Adidas Director, Andy Hamilton, as its first Chief Trade Officer.
Just yesterday, Gallagher revealed that Luxe Collective’s warehouse was broken into and £500,000 worth of inventory was robbed. This is approximately 50% of the company’s inventory. Commenting on the Tragedy, he said: “However devastating it is, this will not stop us, this will make us stronger.”
In this interview, the Co-founder discuss everything from starting the company to why he thinks every small business should go on Dragon’s Den and whether or not the future of luxury is resale.
Can you tell us about your start, what led you to found Luxe Collective with Joe Gallagher and Oliver Miller and how did you go about this financially?
I had £1,000 in savings and Joe had just taken a loan out for £10,000 for a car in which he had £1,000 remaining. We started the company with just £1,200 with no further investment.
What challenges do you face being a 23-year-old Founder?
My biggest challenge is switching off. I don’t think I have for six years, since the company started. Having your own business comes with its stresses and turbulence. It’s a lifestyle and to afford to live it, you cannot switch off or dissociate with your ‘work self’; it’s the last thing you think about before you go to bed, you dream about it and it’s the first thing you think about when you wake up – you are always on. Not that I don’t enjoy this, but being able to switch off every now and then would be nice.
LIVE shopping is a core element of your business model, why did you adopt this route?
Pattern recognition. You need to be dynamic adaptive, and open to change. To build a growing business you need to follow the attention. At the moment, lots of attention is on TikTok LIVE shopping, so we must embrace that and be a first mover to gain an advantage.
Can you tell us about your Dragon’s Den experience?
I would advise every small business to go on Dragons Den. It’s an emotional rollercoaster. You are challenged by experts, it tests your character and it’s a risk. It grows you, not only as an individual but if you have a good episode, your exposure is greater than you could ever imagine in such a short period of time.
Can you tell us about your recent pre-loved live shopping marathon with TikTok?
I featured on Made By Mitchell’s 12-hour LIVE event, where he became the first UK business to make $1 million in sales in one day on TikTok Shop. It was nice to be involved and see how a company at the top of its game operates a TikTok LIVE event. I took lots of inspiration from it, which I will be implementing into our operational procedure.
Who is your consumer? Is LIVE shopping via TikTok a way to tap into the Gen-Z community?
Our consumer ranges massively. To make it as simple as possible, our consumer is someone who wants a luxury piece for a bargain. They like nice things and love being able to afford multiple items due to a pre-loved offering.
How do you source luxury products?
We source all our items from the UK public.
What’s the biggest difference in quality you see between vintage designers and recent collections?
Massive, we have Louis Vuitton bags from the 1980s and the quality is still amazing. Bags made today will not last that long with the same usage.
Why do you think the luxury resale is increasingly popular?
Accessibility, affordability, democratisation of luxury products thanks to TikTok, domination of influencer marketing, and sustainability-conscious shoppers all play a part in this.
Would you say the future of luxury fashion lies in the resale market?
To me, this question is super complex. Because without the primary market, the secondary market won’t last forever. I am excited to see how the primary market welcomes secondary resellers over the next few years, but as of now, it’s not very open or welcoming.
