'Rent-a-bag' biz helps fulfill dreams

Green with envy over the latest "Kelly" handbag by Hermes, but unable to cough up the thousands of dollars for the privilege - and cachet - of owning one? Help is at hand: rent the bag online.

Thanks to strong word-of-mouth and a healthy Internet buzz, there is now a number of American websites offering thousands of handbags from brands such as Yves Saint-Laurent, Balenciaga, Louis Vuitton, Marc Jacobs and Chanel, each for rent by the week or the month, with an option to buy.

The online boutiques operate much like other shopping sites, with a search function, scores of product photographs, rental prices, and a purchase basket that helps whisk you through the digital checkout line, of course with your credit card at the ready.

On the aptly named "Bag Borrow or Steal" website, a Bottega Veneta number in woven leather costs $90 per week or $229 per month for non-members - members receive a 30 percent discount.

Looking to make a more glamorous statement? A crocodile skin "Kelly" bag - named after the legendary actress-turned-princess Grace Kelly - by fashion pioneer Hermes will set non-members back a whopping $500 per week.

"Mass luxury and trading up has a largely untapped market," says Samuel Mangiere, co-founder of "From Bags to Riches," headquartered in St Paul in the northern state of Minnesota.

Since the website's debut in early 2004, Mangiere has seen business double each year, with early 2008 already showing a 57-percent increase.

"Instead of buying a $1,000 handbag, a much stronger value proposition is a rental for $100," he said.

While the renter may not enjoy the full benefits of ownership, Mangiere says "the consumer is still experiencing the core element behind a luxury brand - emotional fulfillment."

Consumers seem to agree. Mangiere says "tens of thousands" have already used the high-end service, and receive their bags via express courier.

The core customer demographic, he says, are women aged 20 to 55: "Single women with income of $60,000 per annum, married women with household income of $125,000 per annum and college students."

He admits certain celebrities use the site but won't provide names, undoubtedly to protect starlets whose reputations would plummet if fans discovered they were accessorizing on the cheap.

AFP

(China Daily 03/25/2008 page17)