Handbags are serious business – I mean a business beyond just buying and selling. Consider these recent news items – the first is, you can get cash loans in exchange for handbags from leading international houses, such as Louis Vuitton, Hermes, Chanel etc. Considering that some bags can actually run into lakhs of rupees, this is a very viable opportunity. Certainly this concept is targeted at the upwardly mobile women who would have multiple branded bags at their disposal. The question could then be why wealthy women would actually need cash loans – answer could be that they would have less free cash reserves owing to myriad investments. Conversely, it is also a good way to put to use those many bags and maximise your return on investment! Certain financial houses have been quick enough to spot this niche segment to cater to – such as the Yes Lady Finance Co., from Hong Kong. There are reports that Yes Lady sanctioned a loan of USD 20,000 for a Hermes Birkin. The only control in place is to check for fake bags, otherwise, income proofs are usually not required.
Image Courtesy: theguardian.com
The other is a not-so-recent development – handbag insurance. Again, with some bags quoting astronomical figures, insurance seems an intelligent choice. In India, Tata AIG and Bajaj Allianz offer insurance for luxury goods, including handbags. Both the above are fledgling concepts and would take time to grow their roots deeper and stronger. Especially in developing countries such as India, it would be quite a while before some traction is witnessed.
Featured Image Courtesy: foxbusiness.com
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