The sharing economy is on the rise in China where customers are now able to rent high-priced handbags on WeChat or via mobile apps. After sharing taxis, bikes and many other products, the world’s second-largest economy has started to share luxury goods.

As per Global Times, founders of many sharing platforms think “it is more economical and environmentally friendly to rent a luxury bag as fashion accessories are replaced frequently.” As per the National Information Center, China’s sharing economy is expected to grow rapidly in the next couple of years and is projected to contribute to over 10 per cent of the country’s GDP by 2020, many business professionals thus see great potential in the share economy.

Dou Bao Bao has a WeChat account, which currently serves as the main platform for borrowers. It will also soon be launching an official mobile app. The company requires consumers to place a deposit of about 10 times the monthly rental fee of the selected bag. It also pledges that the items are authentic, knowing that a major concern for Chinese consumers is that they might be loaned fake products. In June, the company received more than 10 million yuan (USD$1,470,560) in funding from Chinese domestic investors.

Another startup, Y-Closet, or “Yi Er San” in Mandarin, is copying the business model of the New York-based designer dress rental platform Rent the Runway but adapts it to consumption habits of Chinese clients. Another innovative approach taken by Y-Closet is that it works with Zhima Credit, the credit rating service under Alibaba’s Alipay, which assesses the credit quality of a potential customer. If their credit score on the platform meets the minimum requirements, the deposit is waived for them.