Tiktok Shop Wants to Be Part of the Ai Revolution in Luxury Resale
As the luxury resale market grows, so does the technology to authenticate products. In 2023, the market was valued at around $50 billion, with key players like The RealReal and Vestiaire Collective leading the charge. These platforms promise to provide high-quality, authentic products, though even seasoned players like The RealReal have faced criticism for selling counterfeit items.
Enter Entrupy, an AI-powered platform using computer vision to detect fake luxury items. Founded in 2016, Entrupy has raised millions and is gaining popularity among retailers and online resellers. It also partners with TikTok Shop as the official authenticator for pre-owned luxury handbags and sneakers.
Co-founder and CEO Vidyuth Srinivasan told Retail Brew that Entrupy aims to create a comprehensive B2B solution on a global scale. The platform allows businesses, like pawnshops and online resellers, to authenticate products on demand by uploading images and metadata. These are processed by machine learning algorithms that determine if an item is authentic, with certificates provided for verified products, backed by a financial guarantee.
While AI simplifies the authentication process for resellers and retailers, its reliability compared to traditional methods that involve physical inspection by experts is still debated. John Harmon, a senior analyst at Coresight Research, noted that AI can detect patterns and inconsistencies that human experts might miss. However, it cannot assess the texture of materials, so combining AI with physical analysis could be ideal.
Srinivasan believes Entrupy stands out even within the AI space, with a proven track record of authenticating millions of products and securing billions of dollars’ worth of inventory. He emphasized that Entrupy’s growing database of both authentic and counterfeit items continually enhances the system’s accuracy.
One of Entrupy’s most significant endorsements is its partnership with TikTok Shop, which began with authenticating luxury handbags and now includes pre-owned sneakers. Though TikTok Shop only launched its “preowned luxury” category in April, it has been generating revenue for resale businesses since last year. According to Claire Tassin, a retail and e-commerce analyst at Morning Consult, influencers on TikTok hold significant trust with their audiences, helping bridge the trust gap that exists on some resale platforms.
With TikTok targeting the resale market, Entrupy has proven to be a fitting partner. Srinivasan hinted that the partnership is set to grow, though he didn’t disclose any specifics.