Tiaras on tap: Jewellery rentals tap into the circular economy zeitgeist

Sophie Fulford, a sixth-generation jeweller who was in line to take over her family’s business, was set a challenge as part of a course at the Gemological Institute of America in 2005: create a business plan. Her idea? Luxury jewellery rental. It was an alien concept at the time, but one that is gaining mainstream interest as the circular economy reshapes fashion.

In 2009, Fulford set up Rent Your Rocks as a separate business alongside her family-run jewellery store, Winsor Bishop, in Norwich. She bought a dedicated collection for hire — jewellery that would appeal to brides or upmarket partygoers. “We were looking for amazing showpieces that had great durability because, when you hire something for either of those events, you’re going to be flying around a dance floor,” Fulford recalls. She says a strong clasp would trump top-quality diamonds when buying for Rent Your Rocks.

That early strategy still rings true. In May, Signet Group, which acquired decade-old jewellery rental subscription business Rocksbox in 2021, launched a co-branded jewellery rental service at 28 of its Zales stores in the US. The collection is crafted from 10ct gold and lab-grown diamonds, which provide sparkle at relatively low cost.

Back in the 2000s, Rent Your Rocks launched to much fanfare: members of the Spice Girls were among celebrities who wore its pieces on nights out. To keep up with demand, the business kept 80 pieces of jewellery in stock at any one time; about 20 per cent would be rented out repeatedly, while the rest provided what Fulford describes as an essential breadth of choice to support the star designs.

But, in spite the publicity, Rent Your Rocks did not last. First, it transitioned into the Winsor Bishop business as a sales tool for engagement ring sales (brides could rent three pieces free of charge for their wedding day). Then, it closed down completely, as Winsor Bishop — which Fulford sold two years ago — focused on more profitable ventures. “People weren’t [sufficiently] ready for luxury hire at that point to make it a standalone business,” she says.

Today, the climate is very different, as jewellery customers explore rental or second-hand options. Consultancy McKinsey estimates the luxury resale market is worth between $25bn and $30bn, and is expected to grow at 10-15 per cent a year. In fashion, platforms such as Hurr and By Rotation are using slick marketing to make renting attractive, while brands including Ralph Lauren and Anya Hindmarch, as well as retailers such as MatchesFashion, have their own rental schemes. Analytics company GlobalData estimates apparel rental was worth £142mn in 2022 and expects it to grow by 164 per cent by 2026.

Could luxury jewellery follow suit? British heritage jeweller Garrard believes so.

In June, it launched its own rental offering, Something Borrowed, aimed at brides. Women getting married — who do not need to already be Garrard customers — can rent tiaras and jewels from a dedicated 19-piece collection. Each design has been set with a blue sapphire to tick the “something blue” bridal box and as a nod to Garrard’s history as the maker of the famous sapphire engagement ring first worn by Diana, Princess of Wales.

Other jewellers, including Bentley & Skinner, Susannah Lovis and Hancocks of London, offer similar rental services, but what Garrard chief executive Joanne Milner believes makes her offer stand out is the limited financial outlay required.

Often, rental services require 100 per cent of the retail price of the jewel as a deposit. This excludes some people immediately,” says Milner, who last year completed a Cambridge university course on business management and sustainability that she describes as a key motivator for Something Borrowed. “While we have to ask for a substantial deposit, we try to make it so that it’s not a block,” she says. It is set at 15 per cent of the retail price of the jewels, which range in value from £3,400 to £62,000. Rental prices to be paid on top start at £250 for a piece of jewellery or £2,500 for a tiara. However, customers can recoup this charge as a discount on a piece of Garrard jewellery, should they chose to buy something in the 12 months after the rental.

Signet’s rental trial at Zales asks for no deposit at all — although the jewels are of a lower value, at between $1,000 and $10,000. It will loan the jewels out for 14 days for 5 per cent of the retail price, with a credit card guarantee so that the full price (minus the rental fee) can be charged should the jewels not be returned.

Other jewellery rental strategies include subscription models. For example, for $21 a month, Rocksbox allows you to borrow any combination of three pieces at any one time, with that fee adding up as credit against any purchases. Covett also offers subscriptions, starting at £360 a year, although founder Cynthia Morrow says demand for co-ownership of jewels — where multiple owners share the cost of a jewel in a model akin to a timeshare — far outstrips that for subscriptions. Luxury jewellery rental specialist Beekman New York gives preferential rental terms to those with a subscription that costs $860 a year, which also opens up extra benefits such as stylist support and access to events.

The mechanics required to make high-value jewellery rental possible are not insignificant: background checks, secure delivery, potential repairs, storage and insurance, for instance. “It is a challenge and that’s why I think a lot of people don’t do it, but every new business model needs a first, so we’ve spent a lot of time breaking down those barriers,” says Milner, who explains that Garrard works with a third-party rental specialist that can handle such logistics.

Insurance is perhaps the biggest headache. Fulford describes finding an insurer that would back Rent Your Rocks as “a game-changer”, and acknowledges it might not be as easy today. For Keira Wraae-Stewart, owner of Edinburgh jewellery store ætla, a conversation with her insurance broker dashed hopes of trialling a rental service over Christmas 2022. “They anticipated a great deal of logistical issues with broken pieces, losses, repairs . . . the list goes on,” she says.

Guy Burton, a director of Hancocks, has swerved the issue by putting the onus on the client. “When we do lend to clients, they arrange their own insurance and we can recommend a specialist company to them, if necessary,” he says, noting that all of Hancock’s rental stock is currently sold out as its shoppers have preferred to buy tiaras rather than rent them.

Despite the challenges, Milner is optimistic. She describes Something Borrowed as a “serious” rental business in its own right, rather than a marketing gimmick for Garrard’s main offer. “I feel that this is the right moment [for rental],” she says. “The sentiment has materially shifted in the last 12 months.”

Fulford is similarly enthusiastic about the potential of rental models. “It seems slightly crazy to me that it’s not being done [more widely], as there’s rental in every aspect of our lives,” she says. “For the jewellery industry, it is a fantastic way to bring in income, loyalty and a more diverse customer base. It opens so many doors.” She adds a caveat, however: this still-complicated business model, with its myriad pitfalls, is “not for the faint of heart”.