Luxury goods, particularly designer handbags, are becoming in demand as an investment due to the volatile stock market. A survey from Credit Suisse Group AG in June revealed that Chanel bags increased in value by 24.5% over the previous year. If you purchase them to keep and trade rather than tote around, they might provide an amazing return on investment. Particularly sought are those created by the late designer of the brand, Karl Lagerfeld. The luxury bag industry as a whole was singled out, rather than other categories such as cars or wine, for its risk-reward proposition. According to Credit Suisse, handbags had annualised volatility of 2.5% to 5%, with returns in the mid-single digits.
While they’re not going to replace your BlackRock ETFs—retail prices can range from around $2,000 for an entry-level Balenciaga bag to more than $50,000 for some of Hermès’ rarer, exotic-skin Birkins. They do, however, provide an opportunity for investors of all levels to participate in a fun game.
Bags that have previously demonstrated their bankability on the secondary market:
Hermès Kelly
Source: Rebag
What originally began as the Sac à dépêches in the 1930s earned its name Kelly after Princess Grace Kelly used one to shield her baby bump from the paparazzi in 1956. The Kelly Sellier in Epsom leather is currently Clare Richardson, a Vogue stylist, personal favourite. The bag is easy to style, scratch-resistant, and finely grained. Black with gold hardware or the brownish étoupe, also with gold, are the colours to search for.
Chanel Classic Flap
Source: Fashionphile
This bag was nicknamed “Chanel Diana” after how often the Princess of Wales was seen with it and cost a few hundred pounds when it was first introduced in 1989. The key models of the bag to look for involve black with 24-karat gold hardware and lambskin leather. The bag was initially pretty flat and light until it was revamped in 2015 with 10 stitches per quilt edge to create a puffier effect than the original 12 stitches.
Gucci Jackie
Source: Gucci
From Harry Styles to Kate Moss, people have carried the 1961 hobo-style model since the former first lady used it as a shield from the paparazzi in the 1970s. Gucci creative directors such as Tom Ford, Frida Giannini, and Alessandro Michele have reinterpreted this bag. According to Sophie Hersan, co-founder of Paris-based online consignment store Vestiaire Collective SA, “It’s the perfect investment piece, most vintage Gucci bags have plus-100% retention values.”
Bags you can currently purchase at retail shops that experts predict will provide outstanding returns in the future:
Fendi Baguette
Source: Fendi
Everything old is new again thanks to the growing re-edition trend, notably handbags. With the rising appeal of Y2K culture to Gen Z, previously released bags are being introduced again, frequently in new materials or colours. Among these, the Fendi Baguette—a Sex and the City staple—stands out as the best potential acquisition, according to Hanushka Toni, co-founder of London-based online retailer Sellier Ltd. The Fendi Baguette 1997 in lilac sequins is the most ideal.
Louis Vuitton Monogram Illusion Keepall
Source: Louis Vuitton
Some variants of the bright eye-catcher are already being sold again for close to twice the initial retail price less than a year after it was first released. It’s a parody of the company’s soft travel bag, which was created during the late fashion designer Virgil Abloh and debuted in the 1930s. Virgil added character to an otherwise simple travel bag.