Leasing luxury products involves more than just the product; it really provides a service. By leasing, consumers no longer need to commit to the hassle of ownership and can gain additional perks and benefits. For example, the Classic Car Club invites members to weekly happy hour events, offers special activities such as driving a race car around a track, and provides reciprocal privileges for renting in locations where the Club does not exist.
But even more luxury items are now available for lease. The Wardrobe company leases designer gowns from Dolce & Gabbana, Carolina Herrera, and Behnaz Sarafpour for 15% of the retail price. For frequent event attendees, this price provides quite the deal! Bag, Borrow, or Steal also allows members to rent premium handbags and jewelry. The list goes on and on, to include even renting art for a house to make it more appealing to potential buyers.
The flexibility and convenience of renting ensures customers do not have to make big decisions about big products and yet still get to enjoy a fantastic experience. In this sense, the services are becoming just as important as the products themselves. Many customers avoid serious investments and their attendant risk, but they still appreciate the experience of carrying a Louis Vuitton bag for a week or driving a different Ferrari each month.
1. What is the target market for the customers who might lease luxury products?
2. Why would a customer want to lease rather than buy?
Alice Park, “The Leasing Life,” Time, April 01, 2007.