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Thu, Apr 29, 2010
Urban, The Straits Times
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Bag it online
by Nora Farhain

Despite all the designer boutiques springing up around town, some fashionistas are still not getting their luxe fix fast enough.

Enter two online luxury concierges that promise to snag limited-edition wares from European shops at cheaper prices.

The Happiness Store (http://the-happiness-storefront.com) has been operating for a year. Last month, another such service called Forty31 (www.forty31.com.sg) was launched.

The concierge operators buy items to order - for a fee - via trusted contacts overseas. The items are then brought back here by hand, in the case of The Happiness Store, or sent by post, as with Forty31.

Customers get to pick up items hot off the runway, such as Hermes Birkin bags, from the world's fashion capitals.

The items are cheaper in Europe because they are subject to lower import taxes, distribution costs and third-party mark-ups there.

Also, the concierges' buying contacts can obtain rebates on goods and service taxes.

This works out to considerable savings, as tax rebates in France amount to 11 per cent, depending on the brand and the service charge of the French tax collection house, Detaxe.

Carolina Ng, 33, who owns The Happiness Shop, says clients save at least 10 to 12 per cent on regular designer togs and 20 per cent on big-ticket items such as Hermes bags.

This is after the deduction of her service fee, which is 7 per cent of the boutique price of the item in Europe. She also keeps the tax rebates.

She notes, however, that the savings depend on currency fluctuations.

For example, a stronger Singapore dollar and a falling euro will mean extra savings for fashionistas here as the designer goods will cost less overseas.

So far, Ng's team has made six trips to Europe over the past year, with the bulk of orders comprising Hermes and Chanel bags and limited-edition accessories.

She gets two friends, Singapore-based Kelvin Koh, 34, who owns a photography studio, and Paris-based Jas Chong, 33, who works in talent development and resourcing, to do the shopping at luxury boutiques in Europe. Customers make full payment on delivery.

Ng, the head of copy at an advertising firm, says: 'Call it an anti-establishment streak of mine. I detest being charged heavy mark-ups by the luxury conglomerates here. Also, the stocks and colour variation of bags in Singapore are limited.'

According to Ng, such mark-ups - the profit margin on top of distribution costs and import taxes - can be as high as 20 per cent compared to prices in boutiques in Paris and London.

Teresa Chan, 27, who runs Forty31, says: 'We want to offer those who cannot find the time to travel an opportunity to enjoy the savings that overseas shopping provides.'

The sales and marketing executive operates her website with two friends and charges a fee for this service that amounts to 10 per cent of the price of the item purchased. She delivers the bags via SingPost.

Customers have to pay a 50 per cent deposit - unlike Ng's service, where no deposit is required - and transactions are done through money transfers via ATM, cheques or PayPal.

One satisfied Happiness Store customer is lawyer Gloria James, 40. She signed up for it to get bags and accessories unavailable here and also to save money.

She says: 'I get advice on whether a purchase is worth the price and Carolina is very patient. I trust her service and I don't have to pay a deposit.'

However, legal experts and luxury goods representatives that Urban spoke to warn of potential risks.

Says lawyer Bryan Tan, director of Keystone Law Corporation: 'First, there is no contract between the customer and the manufacturer. Second, if the goods are damaged in transit, you may not have a claim against the concierge unless there are express terms - meaning that the concierge specifically agreed to be liable for that.'

On this, Ng of The Happiness Store points out that all items are hand-carried by Koh and once here, are personally delivered by her to customers. This minimises the chances of damage along the way, she says.

Chan of Forty31 signs up for shipping insurance which covers damaged goods.

BUYER BEWARE

Retailers also warn that consumers might not get the real deal.

Madeleine Ho, marketing director of French luxury brand Hermes, says: 'We advise consumers to buy at the store itself. There have been several instances where bags sent for maintenance turned out to be fakes, although they were bought by trusted friends.'

Ng, meanwhile, stresses: 'We are very transparent about the prices; we will present the customer with the original receipts.'

However, as Christin Lim, marketing services manager of Italian luxe label Salvatore Ferragamo, says: 'If you can afford luxury goods, why not just pay for a plane ticket and shop to your heart's content?'

Ng, though, says her concierge service adds a personal touch.

She once advised a young customer in her 20s not to buy a seasonal bag from a top French label because she thought it was not worth spending the money on something that would soon go out of fashion.

'It is about building relationships, something that is often missing in the mercenary business of retail,' she says.

'I am always carrying on a conversation with customers about colour choices, bag specifications and pricing.'

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This article was first published in Urban, The Straits Times.

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