The "Vasari" clutch unveiled in the men's fall 2012 collection, is made of durable coated paper.
"It repels water, but it's not completely water proof," a Jil Sander spokeswoman told The Local.
That hasn't put off would-be fashionistas. A company spokeswoman said the bag was already sold out in Germany.
The "Vasari" features stitched seams, metal eyelets for ventilation and a Jil Sander logo. Another variation made of black leather was priced at €470.
The fashion magazine W gave the leather version an enthusiastic review, calling it "perfectly in sync with the fashion house's minimalist roots."
Those who prefer the original will be relieved to know a packet of 40 of brown paper lunch bags can be bought for just a buck on the website of US discount retailer The Dollar Tree.