Have you ever wondered if there was a way to invest in something that you love and also make a profit? Well, luxury handbags may be the answer. In recent years, the world of high-end fashion has seen a surge in popularity, with designer brands becoming increasingly sought-after.
This has led to a corresponding increase in the prices of luxury handbags, making them a sound investment for those looking to diversify their portfolio. But before you get too excited, here’s an overview of how to invest in luxury handbags for beginners and collectors.
- What is a luxury handbag?
- Which luxury handbags should you buy?
- 3 Smart ways to invest in luxury handbags
What is a luxury handbag?
A luxury handbag is a high-end purse made with expensive materials and craftsmanship. They are often seen as a status symbol and can be pretty costly. Moreover, they are usually designed by well-known fashion houses like Hermès, Louis Vuitton, and Gucci and are made with superior quality leather and animal skin.
These popular designers often create limited edition luxury handbags, which makes them even more desirable. With proper care, a luxury handbag worth ₱100,000 up to a million pesos can last for many years and still retain its value.
Which luxury handbags should you buy?
There are a few different factors to consider when choosing a luxury handbag. Firstly, you need to consider what you will use the bag for. If you are looking for an everyday bag, then you will need something spacious and practical with a classic design.
However, if you are looking for a bag to take on special occasions, then you might want something smaller and more glamorous like a Wallet on Chain (WOC) and purse you need to think about your personal style.
Do you prefer classic designs or more contemporary styles? Once you have considered these factors, you can start to narrow down your options.
Here are five of the best luxury handbag brands to invest in:
- Chanel – it’s one of the world’s most iconic luxury fashion brands. Its signature handbags, such as the Classic Flap Bag, are timeless classics that will never go out of style. Chanel bags are also incredibly well-made, using only the finest leather lambskin, caviar, and patent, to name a few.
- Louis Vuitton – this another legendary luxury brand with a long history of crafting beautiful handbags almost the age of your great great great grandmother. The bags are instantly recognizable thanks to their unique LV monogram print. Louis Vuitton bags are perfect for those who want a stylish bag that will make a statement.
- Hermès – the brand is renowned for its luxurious and high-quality handbags. Their Birkin bag has been seen in the arms of celebrities and socialites all over the world. Hermès handbags are definitely an investment piece and are worth their beauty and durability.
- Gucci – is one of the hottest luxury brands known for its bold and fashionable designs. Its GG Marmont handbag is particularly popular with its iconic monogram logo and has become a must-have item for many fashionistas. Gucci handbags are the perfect way to add some edge to your outfit.
- Prada – is another high-end fashion brand renowned for its impeccable construction. Each bag is handmade by skilled artisans, and every detail is carefully considered. Everything is executed with precision and care, from the stitching to the lining. This attention to detail ensures that Prada bags stand the test of time.
3 smart ways to invest: buy, hold, or sell
Buy: Find the perfect bag for you
When it comes to investing in luxury bags, timing is everything. Certain brands hold their value better than others, and you can maximize your return on investment by paying attention to the current market trends.
For example, Hermès and Louis Vuitton are always a safe bet, as their classic styles remain in high demand regardless of current fashion trends. However, other brands may be more volatile, so it’s important to do your research before making any purchase.
Pay attention to fashion blogs and magazines to get an idea of which brands are currently in style, and keep an eye on legitimate second-hand resellers to see how much similar bags are selling for. By being strategic about when you buy and sell, you can easily make a profit on your luxury bag investment.
Hold: Care for the bag
Luxury bags are a great investment. Not only do they hold their value well, but they also offer a lifetime of enjoyment. Of course, like any investment, there are certain things you need to do to care for your bags.
First and foremost, always store your bag in a cool, dry place. Extreme temperatures can damage the material and hardware. If you’re buying bags made of vachetta leather on handles and piping like the iconic Louis Vuitton monogram bags, be careful of the water stains, which can affect the color of the leather.
Use a soft cloth to dust or polish the bag regularly. You might need to invest in cleaning items like leather lotions and creams to make the bags look pristine, which will help keep them looking new.
If that’s not enough, you can take the bag to a professional for necessary cleaning and repairs. Following these simple tips, you can enjoy your luxury bag for years.
Sell: Wait for the right time
When it comes to selling luxury bags, timing is everything. If you sell the bag at the right time, you can maximize your return on investment.
Assess the current market condition. Is the luxury bag market strong or weak? If it’s weak, you may want to hold onto the bag in the meantime in hopes that it will appreciate in value.
On another note, classic bags are always increasing in value since they are high in demand. If you have Hermès Kelly, Louis Vuitton Speedy, or Chanel Classic Flap, you can earn more as they are extremely sought after in the secondary market.
To give you an idea, did you know that a Hermès Kelly was only worth ₱196,000 ($3,500) in the mid-1990s? In 2017, it was worth ₱415,000 ($7,400), and as of 2022, it’s worth ₱814,000 ($14,500). Imagine if you bought one 20 years ago. The ROI is incredibly reasonable.
In 2007, when the Louis Vuitton Neverfull GM Monogram model was released, its price was just ₱36,000 ($655). Fast forward to 2022, it’s now worth ₱117,000 ($2,100), which is more than triple its price.
That said, a well-maintained bag will always be worth more than a bag that’s been well-worn. If your bag shows signs of wear, it’s probably not the best time to sell.
Luxury designer bags categorized as limited edition and discontinued may even have a higher value in the secondary market. That means you can get the most bang for your buck. It’s best to compare the prices before selling it directly to customers or consigning it to sellers.
A luxury handbag, as the name suggests, is a bag that is meant to elevate your style and is a staIt’ssymbol. It’s an investment piece – something you buy with the intent of using and enjoying for years to come.
But with so many options on the market these days, it can be tough to know which luxury handbags are worth your hard-earned money. We hope that this post has shed light on the basics of how to buy luxury bags not just for personal use but also for investment.
But above all, before you invest at this stage, ensure that you have established your emergency funds and have a stable cash flow. If you can afford it, why not? But if you’re still on your way to becoming moneysmart, better to save first and splurge later.