Netflix of Purses?

A new company named Bag, Borrow, or Steal has come out onto the market. Using Bag, Borrow, or Steal allows the borrower to sign up, borrow the purse of their dreams, and return it. They are calling it the “net flix” of purses. When the new company came into existence, it began booming with people. Why buy a purse for $1,250 when you can borrow it?! And then exchange it for a better one!? Membership costs $9.95 but the rental fees depend on the bag, some of which cost $2,500 retail. With only about one other contender on the market, From Bags to Riches, their company is swarming with business. The CEO of the company, Mike Smith, says there are about 100,000 bags out on circulation, and they plan to add more merchandise to the company such as jewelry. The purses are cleaned, shined, and polished between users. “Our goal is for you to not be able to tell whether it’s been used before or not,” says Smith. The company is now looking for ideas to expand their horizons in order to make it better.

Do you think that this company will cause the purse market to fall if members can borrow instead of buy? What about the designer bags? Do you think they’ll lower their prices in hopes of getting back their buyers?