Wednesday, 4 November 2009

Designer Handbags Have Become Collateral In Hong Kong – 4/11/09

Hong Kong finance firm Yes Lady Finance has caused a global sensation by offering personal loans in exchange for ladies’ designer handbags. Yes, you heard right - a second-hand Birkin equals big bucks.

According to Reuters, Yes Lady Finance is providing loans of up to 70 percent of the value of the item in the second-hand market and charging borrowers interest as low as 28 percent a year with a three-month maturity.

A Louis Vuitton handbag valued at US$2,600 in the second-hand market would fetch a US$1,800 three-month loan, we read in an AFP report. This article also suggested owners would lose the bags if they failed to settle the debt on time.

Yes Lady Finance Co-founder, Wallace Tung, said the scheme was “a good fund-raising option for some tai-tais*.”

This is a surprising first for the personal-loan market. But we doubt the idea will be adopted in Australia any time soon.

*Tai-tais is a slang term for the wives of wealthy Hong Kong businessmen.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,