Can Luxury Handbags Be An Investment?

Categories: Designer Handbags.

They are called investment pieces for a reason. For R60,000 you can get a CHANEL medium flap bag – this kind of luxury holds value throughout its life span. Therefore, the market for used designer goods is the most attractive category for online consignment. It is also not paradox to invest in luxury today, to be able to afford luxury tomorrow. But with so many brands to choose from, how do you know which are investments?

The 411 for name brand lovers

A few years ago, a Hermès Himalayan Nilo Crocodile Birkin bag was sold at auction in Hong Kong for over $300,000. Today it would roughly equate to nearly R4,500,000. That, of course, is at the very top of the “super handbags” category. Many people do not realise that their signature handbag could increase in value and become investment assets. The JustCollecting Rare Handbag index shows that in the past decade investment-grade bags have increased in value by nearly 8% annually, which is due to a surge in appreciation for the bag’s timeless style.

Exotic skins, special material, gemstones and embroidery, however, can add to a bag’s value. The artistic merit of the bag and associations with fashion icons (the famous Birkin and Kelly bags from Hermès speak to that) are additional key factors. And, finally, condition is everything. The solution to the latter, of course, is to treat handbags like you might any other valuable possession – with love and care.

The Only Bags Worth Investing in Right Now

When it comes to investing in a luxury handbag, you need to educate yourself on which handbags hold their value and never go out of style. A very high-end and exclusive handbag, like the Hermès Birkin, is forecasted to double in value in the next 10 years. Best advice is to invest in the ‘holy trinity’—CHANEL, Louis Vuitton and Hermès, these iconic styles have the most resale value.

The Birkin specifically is the most sought-after handbag of all time. Luxity stylists are constantly searching for them for their customers. Birkin bag retail prices range from R100,000 to R250,000 and can see resale prices up to R350,000.

In 2015, you could have purchased a CHANEL medium flap in caviar leather for about $1600. The same bag 10 years later, could retail for $4900. Another investment piece is the CHANEL Boy bag. Five years ago, it retailed at $2500, today its standing at $5100.

Finally, you might want to consider Louis Vuitton and its ever popular Neverfull. At Luxity, this style continues to be one of the fastest-selling handbags. The Neverfull remains sought after, and is one of Louis Vuitton’s all-time classics. It retains at about 80% of its resale value unless it is a limited-edition bag, which can have an even higher resale value.

Invest in The Right Bag

These bags can last and look good for years without really going out of style. Certain labels and styles create classics, and to hold value in the resale market, they need to be well taken care of. Additionally, many high-end hand bag makers offer repairs, refurbishments, and warranties on their goods. So, it’s up to you if you prefer one bag at R15,000+ that can last 20-30 years, or a different, cheaper bag every few months? In the end, it is a matter of how much you value craftsmanship, quality, and keeping up with trends.