City-based fashion and lifestyle start up Luxepick.Com today announced its foray into online rental business offering its customised products including designer jewelleries.
The company, formerly Hiflame 14 Trends Pvt Ltd, promoted by four entrepreneurs, aims to offer designer jewellery or fashion products either through sale or on rental basis. "We made a soft launch in November 2015. Over the last few months we have rented 4,302 products. It includes both customised jewellery and fashion goods." Luxepick Co-Founder and CEO, S Magesh told reporters here.
He said in India on an average 15 million wedding take place and people attend four to five big occasions like marriage or party functions every year.
"While attending such functions, instead of spending huge amount in purchasing a jewellery, a customer can get any of our costume (designer) jewellery on rental basis for which we collect a particular amount as deposit", he said.
The product is delivered to the customer at a convenient place and after use picked free-of-charge, he said.
Rental charges range from as low as Rs 45 for an earring and goes up to Rs 49,000 for a lehenga. It is valid for three days, he said.
The company, with investments of about Rs 3 crore, is in talks with a few venture capitalists to raise further funds, Magesh said, declining to reveal on how much funds the company was planning to raise.
The company has set up an exclusive studio for customers to have a feel of the product before they can be taken up on rental basis, and similar 'studios' would be set up in Hyderabad and Bengaluru in coming months, he said.
Quoting a study, he said, the online rental market for designer jewellery and fashion industry, is expected to reach USD 3 billion by 2020.
The ethnic wear industry in India is valued at USD 14 billion and was expected to reach USD 25 billion by 2020 with a CAGR of 12 per cent. The fashion accessory industry was expected to touch USD 7 billion from the present USD 4 billion, he said.
S Magesh, CEO, Luxepick, at a press conference in Chennai, on Wednesday Bijoy Ghosh
Planning to buy a lehenga for a wedding? Why spend ₹20,000 on a garment that will be rarely used when it can be rented at a fraction of the cost? This is the customer sentiment that drives Luxepick (formerly HiFlame14.com), an online luxury fashion rental marketplace.
Luxepick offers on rent fashion jewellery, designer outfits and fashion accessories from an inventory of over 4,000 products that are priced between ₹450-₹50,000, but available for rent at 10 per cent of the retail value, said S Magesh, CEO, Luxepick.
Why splurge on an expensive product just for an occasion when one can have multiple looks for the same amount of money. This is our motto, he said addressing media persons on Wednesday.
We are making luxury fashion accessible for everyone, including those in tier-II and III cities.
Magesh said every jewellery and outfit is clinically cleaned, dry washed and certified before dispatch. Every outfit will be delivered and picked up, and comes with a disposable inner-lining to ensure 100 per cent hygiene and comfort, he said.
A product that has been rented 8-10 times, will not be put up for rent again. A customer can also buy the products online. Since September, the company has rented out nearly 4,000 products. Customers are mostly youngsters, Magesh said.
The companys promoters have invested nearly ₹3 crore to built up the inventory. It plans to raise venture capital funding by the year-end, he said.