Think of the best investment goods. Think of gold, diamonds and stock markets. Now take them all and put them away. In a bag, for example.

Fashion, vanity, quality, status. Like it or not, there are plenty of reasons to purchase a designer bag. Anyway, there’s one single reason that will persuade even the most skeptical among you.

Let’s proceed step by step.

A study from baghunter.com underlined how the value of some iconic handbags has dramatically increased over the years.

The Hermès Birkin bag, the most loved by the stars.

birkin bag

Every fashionista knows that there’s no life goal such as owning a Birkin. Expertly crafted, this simple-designed yet sophisticated bag is one of the greatest symbols of luxury.

There are several reasons for its incredibly high price.

First, remember that the price change is mainly due the discretion of Hermès. It is no secret that luxury brands apply stronger mark-ups on their products. In the case of the Birkin, the prices increase by between 5% and 10% annually for a new bag.

Second, the supreme quality of craftsmanship. This is a timeless bag created for longevity.

Third, scarcity. Only few handbags are produced every year, and they’re not advertised (as if they need to!)  That makes the Birkin even more coveted (hence the famous waiting list that can last for years). Get in line, ladies.

According to the study, a bag in excellent and pristine condition can fetch up to more than 120% of the money invested in the purchasing.

The Chanel Classic Flap Bag, the most iconic piece of the Parisian Maison.

chanel bag

The research pointed out how the value of this handbag has only increased over the years. Like the Birkin, we can identify several factors to explain that. For sure, raw material and labor rising costs are what mainly underlies this phenomenon. Plus, don’t forget the inflation rates.

Even though the Flap Bag has always been the most appealing and popular of the brand, Chanel has also increased the price of other products with great fashion and trend potential (i.e. the Boy Bag).

What about the other brands?

A classic designer handbag will never lose its appeal. Although Hermès and Chanel are the most impressive cases, you should not underestimate the other brands capability to create value. As said before, high mark-ups are used in luxury to increase profit and to preserve the exclusivity of a brand. From a timeless piece you can always expect a surge in value.

If I was convincing enough for you to consider this new kind of investment, keep in mind just few simple rules:

  • Choose neutral tones: black, tan, beige, nude will never go out of style. Seasonal colours can provide you profit just for short term investments.
  • Exotic and precious skins are more expensive yet more valuable.
  • Timeless bags have, are, and always will be the most appreciated ones. They will increase their value from the moment you’ll purchase them.

Do not necessarily take this article as a financial advice. Au contraire, take it as something to open your mind about high-end goods. Yes, they might mean frivolousness and ostentation, but they can be something more.

If you’re not interested in investments that’s fine. If you only care about how a beautiful bag makes you feel I have nothing against it.

Isn’t it still an investment in happiness after all?

bags

Giulia Ferretti

Photo credits:

fashnberry.com

baghunter.com

net-a-porter.com

Sources:

Baghunter

Forbes

Financial Times

Time

Daily Mail

Observer

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