HANDBAGS THAT RETAIN THEIR VALUE
There’s undoubtedly an overabundance of styles to choose from, even when it comes to luxury designer handbags. Among the plethora of well-known styles, coveted luxury designs, new launches, older styles that are being rereleased, and second-hand designer bags, how does one even choose? Beyond your personal style preference or the next must-have designer handbag you want to add to your collection, another thing you should consider is the bag’s post-purchase value. Down the line or even just in a few years time, will the bag retain its value or will it perhaps even increase?
They say that cars lose half their value the moment you drive it out of the lot. Luckily, this isn’t the case for many handbags. In fact, there’s not only a lot of value to be gained but also a lot of actual money to be made both by brands and consumers alike from designer handbags. As such, whether you’re making a personal purchase for yourself, intending to buy and resell now for a quick profit, or looking at a long-term fashion and financial investment, there are notable considerations to be made when shopping for designer handbags.
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The luxury market itself has changed drastically over recent years, while achieving tremendous growth in the last two to three years alone. And there’s no stopping it as the market continues to grow and evolve. According to no less than Forbes, the secondhand market in particular is not only growing but is doing so at a much more rapid pace than the primary retail market. In fact, it’s at a pace that’s eleven times faster. This presents endless opportunities for brands, retailers and, of course, consumers. That being said, there’s a lot for consumers to carefully examine, especially in terms of spending money on handbags that will actually retain if not increase that monetary value.
There are actually those special handbags that retain or increase in value even after many years. This future value could depend on either the brand of the bag or the style of the bag itself. It’s also, of course, affected by major fashion trends, pop culture, and current events.
Consider the resurgence of 90’s style and the return of hugely popular shows like Gossip Girl and Sex and the City in relation to the increasing demand for handbags like the Fendi Baguette and Dior Saddle bag that we’re seeing at the moment. If you had purchased one of these bags in the 90’s then you’re in luck because these styles have an even higher price tag now than they did back then. Talk about return on fashion and financial investment. So, which are the must-have investment bags for 2021?
When it comes to luxury fashion houses and those that are viewed as most valuable, at the pinnacle of the fashion pyramid is the luxury trinity of Hermes, Chanel, and Louis Vuitton. Handbags from these three fashion houses are the ones that retain their value the most with Hermes Birkin, Kelly and Constance handbags able to retain up to approximately 90% of their worth. Louis Vuitton, on the other hand, sees an average value retention of 80% and Chanel holds its own at approximately 75%. This means that if you purchase a Louis Vuitton Neverfull bag, Louis Vuitton Speedy bag or a Chanel double flap bag, ten years from now, they’ll most likely be nearly as valuable as they were when you bought them. In fact, with the recent price increases of many fashion houses, it’s safe to assume that their value will only increase in the years to come.
Whether a bag will still be a prized possession in the future also depends on the actual style of the bag. Of course, it should come as no surprise that styles from the aforementioned luxury trinity are among those with some of the highest value retention. However, there are also specific styles that are doing especially well and will generate above market value. Among these styles is the new Chanel 19, which could be considered a contemporary sibling of the timeless Chanel 2.55, the classic Louis Vuitton Neverfull, and the Bottega Veneta Mini Jodie bag, just to name a few. Bottega Veneta itself has had a major resurgence over the last number of years and has been enjoying widespread popularity. As such, Bottega Veneta bags have been extremely sought after, contributing to the considerably high value retention of the brand’s key styles.
All this means that the next time you purchase a designer handbag,even if a second hand one, consider the styles from the top tier luxury fashion houses and prominent designs that are highly sought after. It’s safe to say that these will be your MVPs or Most Valuable Purchases and when it comes to these handbags, you’ll definitely want to hold on to them like the prized possession they are. They will generate a satisfying return on investment both fashion wise and finance wise