Designer bags are not only an essential part of the wardrobe of fashion lovers but also a real financial asset, according to experts from the consulting company Knight Frank. Moreover, you can make an expensive purchase even during an economic crisis. After all, according to analysts, specific models of a vital accessory grow in price every year, regardless of market conditions. As the handbag market grows, more people will start investing in it, increasing the handbag price. A study from the Business of Fashion said that the demand for designer bags is set to grow from $72 billion today to $100 billion by 2027. In addition, Credit Suisse stated that bags had 2.5% to 5% annualized volatilities, which means that investing in them carries the least amount of risks.
According to Baghuntet’s research in 2017 where they took the most popular Hermès Birkin bag as an example and studied how its value has changed throughout history. The results showed that since its release in 1984, the model has risen in price by 500% and even more now. Moreover, the value of Birkin bags over the past 38 years has grown faster than that of gold bars! Based on Knight Frank’s Wealth Report 2021, Hermès handbags top the Knight Frank Luxury Investment Index (KFLII) for the second year in a row making Handbags the hottest investment. According to them, the cost of handbags increases by an average of 13% per year. Nowadays, bags are treated like watches, jewelry, cars, and paintings.
However, not any bag can become an investment piece. Before investing your capital in a particular brand’s product, it is essential to consider some nuances. First, you must evaluate the design, which has to be relevant for years. The purchased bag must be in demand in the primary and secondary markets, guaranteeing its owner a mandatory price increase. Second, paying attention to its shape before investing is also essential. It is logical that if the bag risks losing its presentation after short use, it does not represent any investment value. Therefore, it is crucial to pay attention to those models that have been tested over time. Today we will answer the question: How to combine business with pleasure, and what kind of bag is worth the investment?
We believe by purchasing products of these brands mentioned below, you will not only return the amount spent after a while but also improve your financial situation. First of all, let’s understand which bags are collectible. Firstly, it is a rare, unique item. For example, bags made of lizard skin or crocodiles, as well as materials that are no longer used. Secondly, vintage models that are no longer produced are always in demand. Limited collections are something you should also look at. If the model were created specifically for some event in a limited edition, this would increase its value over time. And, of course, well-known classic models of expensive brands that have passed the test of time and remain in demand in the primary and secondary markets.
1. Hermès Birkin
This is a bag that needs no introduction. Named after the actress and singer Jane Birkin, the legendary bag was released in 1984 and made entirely by hand. All the parameters of this beautiful bag are recorded and strictly observed. The Birkin has become extremely valuable since it only comes in limited editions, and the waiting list can take up to 6 years. The level of scarcity makes them the most desirable bags. The value of the Birkin is growing by an average of 13% per year. However, in the resale market, the price range can increase by a couple of thousands as people are willing to pay more to skip the line and get the material, size, colour, and handwear they want. The price of the Hermès Birkin bag largely depends on its material. The most expensive Birkins bags are the ones made with exotic skins. The hardest to get and most exclusive version of the Birkin bag produced to date – is the famous Himalaya Birkin, which was recently sold for more than $440,000 USD. We currently have this rare Havane Porosus Crocodile Birkin 30 in stock for $38,000 CA / $29,200 USD.
2. Hermès Kelly
Here is another bag by Hermès, The Kelly bag. Hermès launched the Kelly bag in 1935. Still, it wasn’t until 21 years later that the legendary American movie star and style icon Grace Kelly used the bag to hide her pregnancy from the paparazzi. The bag of the Princess of Monaco was instantly called the “Kelly bag.” It has many ways to wear it as it has a top handle and a strap, making it very convenient. The most popular Hermès Kelly bags are the Kelly 25 and the Kelly 28. These two sizes fit everyday essentials. Hermès limits the number of items a customer can purchase per year. This commitment to maintaining exclusivity is undoubtedly paying off and creating a thriving market for the company itself and the further resale of its products. The company keeps in the strictest confidence the number of Birkin and Kelly bag models released annually. It is only known that each copy is supplied with a different serial number registered with Hermès. The brand also achieves the halo of inaccessibility through selective sales. For some time now, the fashion house has cancelled the possibility of making bags to order, so those who want to buy an accessory must wait on equal terms to receive the desired model in stores. Moreover, Birkin and Kelly are not always put on the counter. The buyer often needs to contact the seller to see the coveted model. Further, the boutique consultant decides whether you are worthy of becoming the owner of Birkin. There are no exact criteria that a person must meet. However, some believe it depends on whether the salesperson like you or you need to build your profile by buying different things offered by the boutique to prove that you are a regular customer. However, even by being selected, you should not expect to have the right to choose a bag of a specific shade. That is why it is better to buy pre-loved handbags. If you are ready to start investing, we have this rare Hermès Kelly 25. This bag is the most difficult to obtain in the boutiques and is only offered to high-spending clients. The Blue Paon will add a beautiful pop of colour to your wardrobe while remaining classic and timeless. Skip the Hermès game and buy pre-owned today!
3. Chanel Classic Flap
Coco Chanel was the first to create a women’s shoulder-carried bag on a chain belt. The bag’s name encodes the date of its creation: February 1955. Initially, the bag was closed with a rectangular clasp called a Mademoiselle Lock. Thanks to Karl Lagerfeld in the 1980s, a new version appeared with the CC Lock in the form of the fashion house logo. The remaining details of the bag exactly repeat the interpretation of Coco Chanel. Later, through the efforts of Lagerfeld, Chanel 2.55 became not only a classic but also an object of adoration for the most advanced bag lovers. Chanel handbags are made in limited editions in various colours, materials, and decor. Over the past two years, there have been five price increases for Chanel handbags, with the latest one in August 2022. We believe you can expect a 200% return on the retail price, depending on the leather and the hardware. Check out the Classic Chanel bags we offer at www.luxedujour.ca
4. Louis Vuitton Classic Styles
Classic bags by Louis Vuitton will never go out of style. Bags like Neverfull, Speedy, Alma, etc., will keep being popular and increasing their value. Although the price increases annually compared to previous bags, not much, you will at least win your money back and keep some for yourself after using your bag for years with the care and respect it deserves. If you get a bag from the collaboration collections, then the demand will be very high, and you might double the price. In 2017 the works of Van Gogh also appeared on a Louis Vuitton Speedy bag as part of a collaboration with American artist Jeff Koons. If you are interested in investing in this bag, we have it! Click here to see more information about this bag.