Why Buy a Bag You Can Rent?

Bag and jewelry rental businesses capitalize on economic downturn
By Eleanor Villforth,  Newser User
Posted Mar 25, 2008 7:09 PM CDT
Why Buy a Bag You Can Rent?
Formerly the exclusive domain of the wealthy and celebrities like Elle MacPherson, rental businesses are widening the market for luxury accessories.   (Getty Images)

The economic downturn has fueled a surge in leased luxury goods, Portfolio reports. A small membership fee or monthly payment enables designer addicts to rent It-bags and other high-end accessories at businesses like From Bags to Riches. "Instead of owning an asset you can just buy the experience," explains a CEO who thinks luxury-goods makers will move into the sector themselves.

Well-heeled customers looking for more variety—or those who wish to appear bigger than their bank account—pay weekly fees for handbags, watches and jewelry that generally rent for 10-15% of an item's retail price. That might not be much of a bargain: A Rolex rented for five months from one company could have been bought outright for the same price. (More luxury goods stories.)

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