Luxury Briefing: Stock X’s Josh Luber is betting on toys as the next era of collectible investments

On August 13, the StockX and Fanatics Collectibles co-founder will roll out Ghostwrite, a brand centered on a toy in a single silhouette that will serve as a blank canvas for beloved artists’ and brands’ designs. Each iteration of the distinct figurine, which is shaped like a kid in a crown, will be sold in ultra-limited quantities. Ghostwrite’s business model leverages learnings from Luber’s earlier companies, as well as successful collectible toy lines, especially Medicom Toy’s Bearbricks.

“All these things are the same, right?” Luber said regarding the drivers of the companies he’s founded, including Ghostwrite. StockX is best known as a sneaker reseller, while Fanatics Collectibles’ focus is trading cards. “They’re all [based on] supply and demand, collectability and resale. It’s all about: ‘What is the value of this item [being sold]?’”

After stepping away from the Fanatics business in October 2022, Luber spent eight months developing Ghostwrite’s “ghost” toy prototype, working with 14 different toy designers before pinpointing a product offering the ideal recognizable-customizable balance. 

Luber knows toys well. StockX launched collectibles, including toys, in 2019. Though Medicom Toy had been making Bearbricks since 2000, StockX quickly became the largest reseller of the toy which, prior, had primarily been sold in wholesale channels in Japan. Unlike other collectibles StockX sold, which were rooted in IP, Bearbricks’ customizable surface facilitated partnerships with “all the most important people in culture,” equating to big opportunity, Luber said. According to a 2022 StockX buying guide, the most expensive Bearbrick to sell on the site was a version developed with streetwear brands Readymade and BAPE which went for $20,799. The most expensive to sell on any platform was a one-of-a-kind iteration featuring the work of  Chinese contemporary artist Yue MinJun — it sold for $6 million. 

Luber said Ghostwrite is “very much the evolution of Bearbrick,” noting that he tried to buy the Bearbrick business at one point. “I always thought there was more you could do with this idea of the shape being the brand,” he said. “Bearbrick’s been the biggest, most, longest-running collectible toy franchise, but it’s not that big.” 

Ghostwrite “ghosts” will be offered in the same three sizes as Bearbrick collectibles: 2.75 inches, 11 inches and 28 inches tall. They’ll be sold direct-to-consumer, with brands and artists being incorporated via a licensing model — they’ll take a cut of the revenue earned. So far, Ghostwrite has licenses with the NBA, the WNBA and Major League Baseball.

Luber has a reputation for building big companies. Launched in 2016, StockX was selling 35,000 pairs of shoes per day when Luber left the company in 2020, he said. It was valued at $3.8 billion in early 2021. Meanwhile, Fanatics Collectibles earned a $10.4 billion valuation in September 2022. In January, it was reported that the company was generating north of $1 billion in annual revenue. 

Ghostwrite is hitting the market with only 20 total units, but Luber has grand plans for the company, which is made up of 11 total employees — most have worked for Luber before.

Throughout a 30-minute interview with Glossy, Luber referenced a long-term goal of building out a first-of-its-kind e-commerce platform where retail and resale coexist without distinction and blind Dutch auctions determine product pricing, thus fueling hype. 

At StockX, Luber proved the success of the blind Dutch auction pricing model, which will be leveraged by Ghostwrite. In short, a product is offered for three days, during which interested purchasers can enter a bid reflecting the amount they’re willing to spend on it. If there are 20 units of the item available, for example, the top 20 bidders will get the item, all at the price of the 20th highest bid. Luber described it as a “fair” system, adding that “the resale price ends up being more” than the sale price, which translates to “a good ecosystem for maintaining hype in the market.”

“The most important thing for me is to understand this pricing mechanism as a long-term way to sell products, because who knows how the business will iterate?” he said. “I think, at some point, we’ll allow other people to sell their products using the same [pricing] mechanism, and then we’ll become a hub for that. There’s an opportunity to build this alternative, Amazon type of marketplace that is focused on the hype economy and all these [collectible] products”

Thus far, Ghostwrite has only released two “ghost” models to a group of 200 friends and family, One wound up selling for $356, while the other sold for $417. Luber hopes that the first publicly released “ghost” will sell for $600-$700, rather than for “too much.” 

“There are enough people that understand that if we are even slightly successful in making this a long-term company, the first [version] we ever release will be worth something,” he said. 

Under blind Dutch auction rules, the company may choose to price the 20 products for less than the 20th highest bid. Selling for higher, however, is not permitted.

Ghostwrite has linked with StockX, allowing purchasers to immediately place a product on resale without ever taking possession of it. In addition, if a shopper misses an auction, Ghostwrite will link them to StockX where they can buy it secondhand. 

Over the last year, leading up to Ghostwrite’s launch, “ghosts” have been gifted to prominent figures across pop culture serving as brand promotion. For example, the company made two units of a “ghost” modeled after the Homelander character in the Seth Rogen-produced Amazon Prime Series “The Boys” — one was given to Rogen, while Luber kept the other. In addition, 10 “ghosts” customized by Adidas and Hong Kong streetwear brand CLOT were distributed at the brands’ launch party for their collaboration, including to CLOT founder Edison Chen. And two Tiffany & Co.-branded “ghosts” were created, with one sent to Alexandre Arnault to prompt partnership discussions. “Ghosts” can be pebbled like a basketball or made in tennis ball felt, Luber said, explaining the level of customization that can be achieved. 

The time is ripe for the toy collectibles market to take off. In June, a report by market insights company Circana showed that adult collectors have surpassed kids as the toy market’s largest consumer segment. Much like sneakers and trading cards, toys have evolved from being consumer goods to financial assets, in part driven by innovations around authentication. On top of being stamped on the bottom with the date they were made and the number of units in their respective collection, Ghostwrite “ghosts” feature scannable chips that verify their authenticity. 

In addition, like for trading cards, the official, quality-based grading of collectible toys has caught on in recent years. Ghostwrite has partnered with the market’s grading authority, the Action Figure Authority, allowing anyone to send a “ghost” to the company to receive a grade. “Ghosts” are sold in clear packaging, allowing them to receive a grade without being removed from their original box. 

“Essentially, they’re like starter art,” Luber said of Ghostwrite’s “ghosts,” which he expects will appeal to the core StockX demographic. As for the 2.75-inch size options, he said they’ll be sold in “blind boxes” like trading cards — a purchaser won’t know exactly which style they’ll receive.

As for whether Ghostwrite plans to release toys beyond “ghosts,” Luber said, “Brand is brand. If we do a good job of building the Ghostwrite brand, then we can expand from there.”

If Luber’s history is any indication, “expanding from there” could translate to developing a billion-dollar collectibles giant. 

“The last two [companies] got really big, really quick — so we’ll see,” he said. “All the brands we sold at StockX accidentally became collectibles companies, and we’re thinking about [collectibility] from the very beginning: ‘What is a true long-term collectible?’ If we can focus on that, we have the possibility to grow well.”

Speaking of the convergence of retail and resale … 

Announced Thursday, Macy’s Inc.-owned Bloomingdale’s has established a partnership with Rebag, bringing the 10-year-old resale company’s luxury accessories to its e-commerce site and five Bloomingdale’s stores.  

Charles Gorra, founder and CEO of Rebag, said the partnership has great potential to be a growth driver for both companies. For its part, Rebag gains access to a broad national customer base of luxury shoppers and an expanded physical footprint. Rebag will sell 2,500 accessories on Bloomingdales.com and 500 items in Bloominggdale’s stores. Gorra called Rebag’s partnership with Bloomingdale’s “a standard concession model” but declined to elaborate.

“The partnership marks a pivotal stage in the convergence of the primary and secondary luxury markets, serving as a case study for the future of retail and resale integration,” he said. “Both teams have worked closely to seamlessly integrate the resale model into a traditional retail environment,” including by incorporating Rebag’s processes into Bloomingdale’s training and operational systems. 

Jennifer Jones, gmm of women’s accessories at Bloomingdale’s, said the partnership was a response to customer demand, adding that Rebag’s trusted authentication was a key factor in teaming with the company.

“Fine jewelry and luxury accessories have been a continued growth vector for our business, with increased demand year after year,” she said. “While we have been carrying a small assortment of pre-owned accessories for the past several years, our partnership with Rebag will [allow us to] add new categories and evolve the product to maximize growth and fulfill customer appetite.” 

Rebag’s products will have floor space on Bloomingdale’s accessories floor, selling alongside new products. And Bloomingdale’s customers will be able to sell their luxury accessories to Rebag in-store, using the proceeds to shop at Bloomingdale’s. 

Luxury e-tailers are diversifying their business models by opening stores

On Tuesday, Revolve Group reported its second-quarter 2024 earnings, revealing a 4% boost in year-over-year net sales for its contemporary-level Revolve retailer, while its luxury-focused FWRD company saw a 4% decline. 

Based on strong “traffic, sales and customer engagement” at the Group’s co-branded Revolve and FWRD store in Aspen, which started as a pop-up in December, the company sees potential in the “new market opportunity” that stores present, according to Michael Mente, Revolve Group co-founder and co-CEO. The company is now exploring retail expansion, having enlisted a respected retail advisory firm that has overseen store expansions for Apple, Lululemon, Abercrombie & Fitch and Restoration Hardware. 

Meanwhile, on July 22, Italy-based LuisaViaRoma opened its first physical store outside of Italy, in NYC’s NoHo neighborhood. Tommaso Andorlini, the company’s CEO, spoke with Glossy about the strategy. 

Why is it important for a luxury retailer to have a physical presence?
“LuisaViaRoma has been successful as a global e-commerce business for many years, but the future of this industry will combine the access and immediacy of digital convenience with a comprehensive tactile environment. Having a physical store allows us to give our clients a full-service, true luxury experience.”

What are LuisaViaRoma’s differentiators among multi-brand luxury retailers, and how are those represented in the new store?
“Not all of our multi-brand competitors have physical stores, and even fewer of them are able to present product at the level of quality befitting true luxury. Our competitors that do have a physical presence are often lacking in their digital capabilities. Our strength in both of these key areas, combined with the quality of our product curation, makes LuisaViaRoma stand apart as a holistic offering. … The digital touches like our large touch screens throughout the store remind consumers that we can deliver a large offering of luxury goods to them anywhere in the world.”

Any early indications that the U.S. store will prove successful on a long-term basis?
“We have already received many visits from our neighbors and from [fashion] leaders and designers at the partner brands we work with. The response has been positive, and as we continue to refine the environment, LuisaViaRoma New York has a real opportunity to become a cultural institution here.”

Also this week

• Gucci opened its largest store in New Jersey — a two-story, 10,000-square-foot store in American Dream mall. In celebration of the opening, Gucci’s pre-fall 2024 collection by its buzzy new creative director, Sabato De Sarno, is currently featured. 
  
  The mega shopping center, which has notoriously experienced challenges, currently boasts 87% occupancy. Glossy first reported that Gucci had planned to open a two-story store at the mall in early 2022. American Dream’s The Avenue luxury wing also features flagship stores of Hermès, Balenciaga, Saks Fifth Avenue and Watches of Switzerland, among other brands. 
  
  According to Bryan Gaus, svp and gmm of American Dream, the Gucci store is one of the brand’s largest stores globally and “further elevates” the store collection of The Avenue, which has become a “top luxury destination.” 
  
• Despite being absent from the CFDA’s official New York Fashion Week schedule widely shared in July, Christian Siriano will indeed be showing a collection on the NYFW runway next month. According to a source close to the company, its show will take place on September 6 at 4:30 p.m. ET. 
  
• This weekend, Brandon Blackwood, best known for its accessibly priced handbags, will host its first-ever pop-up, in Brooklyn’s Bed-Stuy neighborhood. Shoppers can browse Studio by Brandon Blackwood, which is the brand’s new apparel collection, as well as shoes and bags from the brand’s spring 2024 collection. 
  
• Founded in 2023 by influencer Pia Mance, accessories brand Heaven Mayhem introduced brooches to its product assortment on Thursday. The launch comes less than a month after the brand, best known for its vintage-inspired earrings, debuted a line of luxury-look watches. According to Mance, the watches’ release day marked the brand’s biggest sales day to date, excluding BFCM weekend. Specializing in “everyday luxuries,” Heaven Mayhem aims to make high-end styles accessible. YSL’s brooches sell for $500, Heaven Mayhem’s versions top out at $100.  

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