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Can't afford that flashy handbag -- rent instead

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 are now a number of US Web sites 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" Web site, a Bottega Veneta number in woven leather costs US$90 per week or US$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 US$500 per week.

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

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

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

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

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

The core customer demographic, he said, are women aged 20 to 55.

"Single women with income of US$60,000 per annum, married women with household income of US$125,000 per annum and college students," he said.

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.

The most coveted bags this year? A padded Chanel (US$299 per month), a Louis Vuitton carry-all (US$139) and an evening handbag by Gucci (US$85).

Other online bag rental sites have had difficulty satisfying demand, with "waiting list" signs next to popular models.

Upon return of the bag, experts undertake three separate screenings to make sure it has not been replaced with a fake.

Counterfeiting has crippled the luxury consumer goods industry, but Mangiere "guarantees" his bags are the real deal.

An e-mail reminder is sent a few days before the bags are due to be sent back and clients risk another charge to their credit cards if they don't return the loaned items on time.

But women have been known to develop an affection for their handbags, and could find it nearly impossible to be separated from the "Kelly" of their dreams once the rental period comes to an end.

Purchased bags make up 15 percent of "From Bags to Riches" total revenue, Mangiere said.
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