Bag, Borrow or Steal haven’t been lazing around since we first wrote about them over a year ago. The designer handbag rental firm moved from Florida to Seattle, added some very experienced people to their management team, and, oh yeah – raked in USD 8.25 million in venture capital earlier this month.
Quick summary of the service: customers pay a monthly fee, pick and order handbags online, and borrow them for as long as they like. Monthy fees range from USD 19.95 per month for the Trendsetter membership level (one bag a month from the ‘trendsetter’ collection), to USD 99.95 a month for the Diva membership, which allows access to the couture collection. This spring, Bag, Borrow or Steal will also start offering women's jewelry and watches by Tiffany, David Yurman and others.
Proving once again that imitation is the greatest form of flattery, and that new business ideas do spread around the world faster and faster, me-toos have sprung up in various markets: From Bags to Riches (US), Secret Boutique (UK), and Bag, Steal and Borrow (UK).
We're not surprised Bag, Borrow or Steal is doing well, as we still think it's a powerful concept. There's an growing tendency among consumers to believe they're entitled to have it all, and to live luxuriously. Which means that more and more 'regular' people want access to uber-premium goods. Whether it's being able to flaunt a Chloé clutch at a high school reunion, or renting an Aston Martin DB9 for a weekend in the wine country, experience trumps ownership. Find your own niche premium market, fragmentise ownership among your customers, and let the experiences be shared by many! (And the profits by you and your VC ;-)
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Bag Borrow or Steal may have a new customer service department, but they still have horrible business practices. They are raking in a lot of money by over charging for bags, not spending money on upkeeping the bags, and then charging people's credit cards 2-3 times and waiting until after the consumer consults with a legal time to get the charges removed/refunded. http://www.fashionaccessoryforum.com/general-handbag-discussion/3144-cindys-bag-borrow-steal-experience.html gives an accurate look at bag borrow or steal
This site looks good but I would not become a customer. I've looked over the prices. Most customers would think it cheaper to buy a gently used one from an auction site, buy a fake one, or buy the real one. These fees can add up.
Maria | July 14, 2006 10:14 PM