Kara Richter had one goal in mind when she co-founded From Bags to Riches in 2004: bringing high fashion to people in the not-so-high income brackets.
So she and partner Sam Mangiere created a Web site (www.frombagstoriches.com), through which fashion-conscious women can rent handbags by top designers like Gucci, Fendi and Louis Vuitton for as little as $15 a month.
The company began by using pay-per-click advertising on Google and Yahoo!, “the best way to get visibility for a Web-based business,” Richter said.
On Google, for example, the firm ranks No. 2 on paid listings and No. 4 on unpaid listings using the keywords “handbag rental.” The company also uses terms like “designer handbag.”
From Bags to Riches has amassed a database of about 8,000 customers to whom it sends biweekly newsletters focusing on the latest trends and fashion offerings. The site also has a frequent renters club. Customers range in age from 15 to 85, but most are between 25 and 45.
Many come from the East and West Coasts but a surprising number are from Texas, where Neiman Marcus is headquartered, Richter noted.
The company is exploring the possibility of teaming with retailers so potential customers can actually touch and feel the bags before they rent them. At present only pictures are posted on the Web site.
Richter thinks the company will stay with handbags because other possible rental items — jewelry, for instance — don't create as much demand since they're used mostly for special occasions like weddings.
