We all know that women love their accessories. The accessory market industry is one of the largest in the world with millions of employees and profits that go higher and higher every year. A new way of investing is buying and selling designer handbags. Sounds crazy? Well, it isn’t since investing in designer handbags has become a trend among investors who are seeking alternative investments to diversify their portfolios. In this article, we will provide you with some basic information and help you decide if these investments are suitable for you.
The fluctuating US Dollar and the British Pound, as well as the gold price, are always a bit of trouble for investors. Experts say the best investment someone can make these days is creating a decent high-end handbag collection. Originally seen as the most wasteful buy, designer bags have now become so coveted that a decent return is almost assured to many. Just how lucrative the market was shown at auction house Christie’s in June 2017 when a blue crocodile skin Hermes Birkin, adorned with white gold and 18-carat diamonds, picked up £ 125,000, making it the most expensive handbag ever sold in Europe.
Hermes handbags are a bit of a sure thing like the record-breaking Birkin— their price is almost legendary. Yet bags from other well-known brands like Gucci, Fendi and Prada are also a sound investment, with the benefit that first-time handbag buyers can pick them up at a much cheaper price. The rise in price has been largely fuelled by Asian buyers, particularly China, and the fact that even when the economy is in a downturn, they remain status symbols for the world’s richest people, who are typically recession-proof. The average value of luxury handbags is now expected to grow by about 8% a year— a better return than any bank account. And then, of course, in the meantime, there is the possibility that you can enjoy your purchase. Vintage bags of any sort are also in demand, and a keen collector with an eye for quality can make a good profit on them.
Investing in products which perform well on the secondary market is often chosen— Chanel, Hermès and Louis Vuitton are the three which consistently sell across the board. They also know how to spot trends, with the original Dior Saddle Bags or Phoebe Philo-era Célines that they never wear while the market is hot. According to some market reports, even trendy brands such as Gucci and classics such as Goyard typically sell for about 80% of their original price (with many floating closer to the 40 or 50% mark). Nevertheless, for vendors, there are a few that are actually making cash operations. The Birkin is the leader of this elite set. Over the past three decades, Hermès’ iconic handbag has become a collector’s item on an equal footing with your father’s Audemars Piguet or vintage 911—so much so that in 2014 Christie’s dedicated a whole new house arm to luxury handbag sales. The house today has specialists in Hong Kong, London and New York— along with an intimate auction space just down the street from Rebag’s Beverly Hills outpost— who evaluate and sell handbags worth $400 to a record-breaking $380,000.
A designer handbag might not be just a handbag after all. Do your market research, check your available budget and by taking the right decisions you may succeed in having a great return on investment.