Luxury handbag investing guide
Investments in luxury Handbags are big business in the world of collectibles, and are fast becoming a popular choice for female investors. In a world where investing means buying stocks and shares, the idea of buying handbags for financial gain seems alien. Due to the Latin roots of the word ‘investment’, which mean ‘to clothe’, these wearable assets may actually be the most appropriate.
An alternative investment option for prospective investors is Luxury Handbags, according to Phoebe Chamfer, senior investment manager at Brooks Macdonald. According to her, alternatives such as bags, wine, yachts, and art behave differently from traditional investments because they tend to be more stable than traditional investments. Credit Suisse research shows that jewelry, handbags, and watches are among the most stable alternatives.
The vintage bag market is dominated by fine wines and Old Masters’ art. Pre-owned luxury goods dealers in London argue that changing consumer tastes have contributed to the growth of interest in collectible investments among handbag connoisseurs.
Increasingly, buyers are aware of the impact their consumption habits have on the environment, says Rewind Vintage founder Claudia Ricco. As eco-minded Gen Z grows, sustainability has become a more significant part of brand stories and marketing campaigns, meaning sub-sectors of fashion (like the pre-owned market) that are inherently sustainable have a head start.
In addition to reducing waste and pollution, buying second-hand handbags is an eco-friendly way to shop, says Luxury Promise’s Sabrina Sadiq. Increasing access to second-hand products contributes to the growth of the second-hand market. Vintage shopping has never been more accessible than it is today, from e-retailers to social sellers to TikTok sellers.”
WHY YOU SHOULD INVEST IN LUXURY BAG
You can make an instant profit flipping any old Handbag, but don’t expect it’s that simple. There are some bets that do not come in a gold box, and there are some bags that are not investments. The reason these investments are called collectibles [also called ‘passion’ investments] is that they require the investor to be extremely knowledgeable about what he or she is investing in.
Similar to knowing your Macallan from your Bowmore, you should know your Birkin from your Kelly if you’re investing in handbags. As a result, a recent New York Life Investments research report found that high-net-worth women are more likely to invest in ‘alternative’ investments than men, largely because women are usually more inclined to research their investment before making a decision.
WHEN ARE LUXURY BAGS AN EFFECTIVE INVESTMENT?
How should you choose your purchase? During her time at her firm, Ricco confirmed that Chanel, Hermès, and Louis Vuitton are the most frequently inquired about brands. Bag investments are more lucrative than other assets because Chanel and Hermès handbag prices increase 12 percent annually.”
Due to its intentionally elusive and limited products, Hermès has consistently been linked to the “investment bag” buzz. Supply and demand are the driving forces behind this. The scarcity of supply coupled with incredible demand in the resale market makes Channel and Hermès the most desirable bags in the category, according to Hanushka Toni, co-founder of Sellier Knightsbridge.
By 2027, the luxury leather goods industry is expected to be worth $100 billion per year, according to the Business of Fashion. The search for Hermès bags spiked during lockdown by 430 percent, and although there’s no official waiting list, some lucky owners have been holding out for years – creating the perfect investment bag.
What are the results? As well as being more accessible, buying a second-hand Hermès bag is also more economical. The Hermès Birkin is forecast to generate returns of 38 percent in 2020, based on a study by Deloitte and Credit Suisse. Himalaya Birkin’s sold for 5,96,748 AED at auction in 2018. Pre-loved items usually retail for around 36,723 AED, making the average price seem outrageous.
WHAT IS THE BEST WAY TO TELL IF A LUXURY BAG IS GENUINE?
It is important to beware of deals that seem too good to be true. Luxury Promise, Rewind Vintage and Sellier are reputable, professional resellers, but counterfeit goods have also been on the rise – so it’s critical to be cautious when dealing with private sellers.
Sadiq suggests looking for feedback and reviews from previous buyers. Additionally, look for handbags that are up-to-date and have detailed descriptions and photos. Consider the purchase as something valuable, and ask for proof of purchase and authentication documents to prove the purchase. There is no guarantee that a Picasso will be sent to you by an eBay seller. Beware of sellers who claim to be selling Chanel, Louis Vuitton, or Hermès.
Even though traditional investments have more to consider, handbags offer an entirely new demographic a chance to invest. Investing has long been a boys club, whether it is through stock markets, collecting cars, whiskey or art. Only 21 percent of UK investors are women, with this figure rising to just 24 percent globally, according to online broker comparison site Broker Chooser.
Today’s fashion tech and circularity are movements like the Avon ladies in the 1950s, who became the first financially independent women in respectable careers. According to him, marketing handbags is more than a way to lure prospective buyers to part with their money. According to Sadiq, the investment purchasing behavior of women allows them to hold onto easy-to-liquidate assets, which strengthens their financial empowerment.
While there has been a slow acceptance of these investments, as with many female-dominated industries and professions, prospective investors shouldn’t be deterred. Globally, handbags have been ranked as among the most lucrative investments by the world’s largest financial institutions. Hauschka Toni of Sellier says “there’s never a bad time to buy” because dozens of experts are at your fingertips.
