In The Bag: Are Luxury Bag Brands Worth Investing In? - Objects of luxury

How acquiring these luxury assets and keeping them in mint condition may be a fun opportunity for investors.

A recent Bloomberg article by Mark Ellwood cites a study from the Business of Fashion reporting that 40% of US consumers bought or were planning to buy luxury designer handbags as an investment commodity, which helped boost the category from a global market of $72 billion this 2022 to $100 billion by 2006, in a prediction by Business of Fashion.

“The Birkin bag was designed by Jean-Louis Dumas, manager of Hermes (1978-2006) following a flight shared with Jane Birkin, from Paris to London. The actress could not find a bag to suit her needs as the mother of a young child. Jean-Louis immediately designed a tote bag for her, rectangular in shape, flexible, and spacious, with a polished wedge and saddle stitching,” according to Instagram @hermes.
Photo from Instagram @hermes

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Elwood writes, “Buy them to store and trade, rather than tote, and that as-new purse could offer an impressive return on investment: In June a study from Credit Suisse Group AG showed that Chanel bags rose in value 24.5% from the previous year.”

The article further states that “those by the house’s late designer Karl Lagerfeld are especially coveted.”

So just how can one look forward to a return on investment when investing in luxury assets such as designer hand bags?

Per Elwood, they “canvassed the world’s best secondhand bag dealers, asking for recommendations for investment-worthy totes in two categories: first, a bag that’s already proved bankable on the secondary market; and second, a bag you can find in retail boutiques right now that the experts expect to offer impressive returns in the future.”

The Fendi First bag returns refreshed in pale green says an Instagram post by @fendi | Photo from Instagram @fendi

Additionally, he shares that “to get the best price, which is well above average, a bag must be in absolute mint condition, preferably with tags on.” Furthermore, “to increase in value, rather than just hold it, a bag must have been rare at retail—sold in limited quantities or made from a sought-after material.”

“A transparent new Keepall from the next Louis Vuitton Men’s Collection by Virgil Abloom creates a checkerboard motif out of Monogram squares,” says an Instagram post @louisvuitton. | Photo by @louisvuitton on Instagram

Investment-worthy designer bags highlighted in the article were: So Black Birkin, Gucci Jackie, Balenciaga City, Louis Vuitton Monogramouflage Speedy, Bottega Veneta Mini Jodie, Fendi Baguette, Chanel Classic Flap, Hermès Kelly, and Louis Vuitton Monogram Illusion Keepall. It is noteworthy to include that the Hermès Kelly began as the Sac à dépêches in the 1930s but earned its nickname in 1956 after the expectant Grace Kelly used the bag to disguise her baby bump. Today these vintage models can sell for as high as $60,000 according to Clare Richardson, a stylist from Vogue. Elwood writes that the bag is estimated by Rebag, Richardon’s new consignment platform, to fetch from $9,770 to $14,995 for a vintage black Hermès Kelly 35.

Banner photo via Instagram @hermes @gucci.

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