Will you buy branded bags in the future? Fashion giant announces investment in 'bag rental' for second hand market

Do you still remember that in film version of Sex and City, character Kelly was incredibly worried because assistant rented a branded bag to "support scene"? Such a scene could become new normal in near future; Kering Group, a luxury goods manufacturer, recently announced that it is investing in an e-commerce platform that provides credit for luxury handbags, expressing its interest in this fast-growing business.

The Kering Group, which owns many luxury brands such as Gucci, Bottega Veneta and Saint Laurent, recently announced that it is investing in British e-commerce company Cocoon. The company was founded in 2019 and its core business is rental of luxury brand handbags. Customers can rent new or used designer handbags starting at £49 per month.

Sanne Fernandez-Wong, founder of Cocoon, said funds from Kering will be used to expand brand's luxury handbag range, organize operations and increase staff to strengthen brand's position in rental business. The Kering Group intends to track new consumption habits and digital behaviors with this investment. Gregory Butte, group's chief client and digital leader, has made it clear that he is pleased with adoption of subscription-based consumption model in fashion. Very interested, both sides intend to deepen cooperative relations with each other.

Despite being hit by a global epidemic last year, Cocoon's business has gone through a relatively difficult time with fewer people going out and canceling events, but Sarah Willersdorf, Global Head of Luxury at Boston Consulting Group, said still very optimistic in her opinion. from. She said even as bag rentals took a hit last year, 21% of Gen Zers and Millennials still use service as usual, according to foundation's survey data. She believes that pursuit of sustainability and value will make people pay more attention to "use rights" rather than "property rights", and lease form can also be used to test youth reactions to various goods, thus achieving goal of destocking goal.

A report by Bain & Company notes that growth of a modern and sustainable luxury goods company in next ten years is likely to depend on resale of rented goods, and predicts that by 2030, income from leasing will reach as much as 10%.