Bloomberg Businessweek - USA (2020-04-20)

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CorneliaMoore,a 31-year-oldtechconsultant,wasalway
infatuatedwithantiquejewelry butneverthought
beabletowearexpensivepiecesherself.SoinFe
whenherfriendSharonNovakintroducedBeekm
York,a jewelryrentalservice,sheeagerlyvoluntee
bea guineapig.
Fora cocktailpartyontheUpperEastSide,a com
stylisthelpedMoorefindthreebaubles—anaquamarine,
mond,andplatinumcocktailring;a moonstoneands
phirenecklace;andbaroquepearlanddiamondearrings
“Itwasfuntodiscoverthem,”Mooresays.“Thesearenot
piecesI wouldhaveevenknownabout.”
Therentalcraze,oncereservedforclothesan
cars,hasspreadtotheworldofhigh-endjewelr
SharingservicessuchasRocksboxandSwitch
whichwillsenduptothreepiecesforlesstha
$30a month,operateonthepremisethatmer
commonfolkcanplayCinderellafora nighto
two(evenif we’vegota viralversionofanevilst
motherrightnowkeepingusfromthe
Beekman’scollectionoccupiesthe
ousendofthespectrum.Itslineup,fe
over1,000piecesfromBoucheron,Ti
DavidWebb,andothers,includesgreen
monds,Burmarubies,andsapphires.Clie
usuallyworkwitha stylistatthecompa
Manhattantownhouse,butsincethearriv
ofCovid-19,Novakhascurbedin-personcon
tations.Herstylistsstillhelpclientsplanfor
dingsremotely.
Thecompanyoffersmembershipplans,
a monthor$800a year,thatallowclientsto
piecesforaslongas 24 days.Feesstartat$2
daybutcangoashighas$1,500a dayfor,sa
a SerpentinecklacefromBulgariwith 10 car-
atsofdiamonds.It’snotcheap,butwhenyou
considerthemoonstoneandsapphirenecklace
fromMunnutheGemPalacethatMooreworegoes
for$38,000,it’sa steal.
Novak’sbackgroundasa gemologistwho’scon
sultedforOscardelaRentaandBurberryGroupP
cameinhandywhenshewasbuildingthe
lection.ShejoinedwithphilanthropistChris
PHOTOGRAPHKeeseetobringona teamofprivateinvestors,wh

COURTESY

BEEKMAN

NEW

YORK

JEWELRY Bloomberg Pursuits April 20, 2020

wed hertopurchase the items in the collection outright.

thenextstep for a business model that’s found success

hingrentals, a category projected to be worth almost

onin2023. Millennials and Gen Zers are increasingly

torent goods instead of buying them, according to

arketresearch company Lab42. In a recent survey,

29%of respondents reported having rented jewelry

andother accessories such as handbags.

About 100 companies are already in the

jewelry-rental business, ranging from the

dding-focused Adorn to Haute Vault, which also

s watches. Ashwin Ramasamy, co-founder of

andy, an e-commerce market intelligence com-

pany,says those startups face more challenges than

lothing-rentalones because of the high overhead cost to

acquireitemsand a higher risk in shipping. “When you are

sellingjewelry,it’s a high margin, but when you are rent-

going to be a fraction of it,” Ramasamy says.

e,jewelry doesn’t wear and tear like cloth-

thGoldstein, fashion footwear and accesso-

analyst for NPD Group, so pieces can stay in

tion for much longer. “It ticks a lot of the

esin growing retail today,” she says. “This

targeting wealthier individuals that, even

heyhave money to spend on jewelry like

is,may want to rotate pieces.”

Wearing jewelry fit for royalty does

ndfun—until you start worrying about

ings that could happen while it’s in

wers must provide proof of coverage,

andduringtherental, Beekman places a credit card or

bankholdonthecustomer’s account for a portion of the

valueof the bling; it’s lifted after the piece is returned

andinspected. If it’s lost or damaged, you’ll have to work

that out with your insurer.

Novak acknowledges some may have trepida-

tions but points out that the auto industry does

this all the time. “When you lease a Lexus, you

don’t spend the whole time freaking out,” she

says. “That’s what insurance is for.”

aving such high-priced gems in her care didn’t

eterMoore from enjoying her night. “They quickly

ganto feel very natural,” she says, “and after being

bitcareful, I was completely at ease.” 

Jewelry rental companies attempt to replicate the success

of secondhand fashion. By Claire Ballentine

A Bling-Sharing Economy

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Top to bottom:

Tiffany earrings,

Boucheron ring,

Tiffany bracelet,

Cartier cuff links,

Chopard ring