NEXT GENERATION SHARING MODEL
Case study: Haute Vault
Haute Vault is an exclusive lifestyle brand, which offers rental services of high-priced and luxury jewellery and timepieces to members who wish to wear a piece or set of jewellery without the burden of a full financial commitment. Haute Vault offers signature brands as well as their own private label bridal and couture creations on their online platform.
The company seeks to address “buyer’s remorse”, which customers often experience after spending a significant amount on luxury items.
Customers are able to choose from a large selection of watches, bracelets, necklaces and even tiaras, and are given the option to rent, purchase or rent-to-purchase.
Varied access to product rental catalogue
- Haute Vault offers membership tiers where customers pay an annual fee to receive discounts and rent more items
- Depending on the membership level, rental items are capped at different valuation amounts. For example, the highest membership level of being a diamond member enables customers to rent items valued up to US$150,000
Quality assurance process for rental returns
- Upon completion of rental period, returned items are inspected to ensure that conditions are appropriate and ready for subsequent rentals or purchases
- A 30% security deposit of the item’s retail value is charged if items are deemed to be in unacceptable conditions
Short-term and extendable product ownership period
- Customers are able to extend the rental period, if items are not booked by another customer
- Customers can also choose to purchase the items after their rental period and the initial rental fee paid will be deducted from the retail price
- Customers can use the wish list function which triggers automatic email notifications when previously booked items become available for rental or purchase
Source: How It Works – Haute Vault, 2015