Arm Candy to Alternative Investment: Buying the bag of a lifetime
Handbags are often purchased for status, latest fashion trends, or simply appreciation of the quality and craftsmanship. Over the years, however, more designer handbags being purchased as an alternative investment.
Similar to purchasing a car, many bags will immediately begin to lose their value the minute they leave the shop. There are, however, few exceptions to this rule and, similar to high-end vehicles, it is always the classics that have stood the test of time. So which brands will increase in value? What factors to consider when making an investment purchase?
The most obvious factor is value increase, and the two brands that stand true to this are Hermes and Chanel. The infamous long waiting lists for one to get their hands on these coveted bags, coupled with huge demand, has meant the prices these achieve on the secondary market are similar to the retail price. However, simply purchasing any bag from these brands won’t guarantee a higher resale value; there are crucial factors to look out for such as the colour and material, and the condition.
Colour and material are the prime factors to consider when purchasing a designer bag. Whilst bright vibrant colours such as pink or blue might look eye-catching, they do not always retain their popularity. Instead classic colours such as black have seen a steady increase in value over the years. Furthermore, Chanel flap bags made of lambskin leather are more sought after than their caviar leather counterparts, whilst Birkin bags made of crocodile leather have consistently achieved higher prices.
Likewise, handbags in pristine or excellent condition always sell higher price than those with scratches or wear to them. Also, keeping the accessories is as equally important, as bags with their original box, purchase receipt, and dust-bag will almost always sell for higher than those without.
There are many other factors to consider too such as limited-edition bags and waiting several years for your bag to increase in value. It is also worth noting that pre-loved bags can also make for an extremely savvy choice. Purchasing that second-hand bag in good condition at a reasonable price could be the best investment opportunity you have ever made.