Women love bags. Bags are not only useful, they also complete an outfit. Bags are included in the basic fashion must-haves. They can also serve as statement pieces. But did you know that designer handbags can be part of your investment portfolio too? Yes, you have read it correctly: designer handbags as investments.
Although there are many different styles and brands to choose from, more and more women dream of owning at least one designer handbag that will make their outfit look so much better and make them the center of attraction.
The shoes make the man…the handbag makes a woman.– Milton Pedraza, Chief Executive Officer of the Luxury Institute of New York
Unfortunately, not everyone can afford to buy designer handbags. Characterized by certain features like timeless appeal, impeccable style and quality materials used that are meant to last long; designer handbags come with a huge price tag. That is why some women opt to settle for knock-offs thus, making the counterfeit bag market a billion dollar industry.
Yes, luxury bags are expensive but did you know that some handbags can be considered as investments? Based on a study made by an online bag seller BagHunter.com; luxury handbags have gained value faster than the stock market.
Take the Hermes Birkin bag for example. The famous Birkin bag has increased in value by more than 500% ever since it was first produced in 1981, outperforming both the stock market and other precious commodities such as gold. Not everyone can buy an Hermes Birkin Bag. It is considered a limited edition bag because it is only available for purchase to special clients of Hermes. Thus, it has now become the new status symbol for women.
In most cases than not; the value of your Birkin bag will increase as soon as you walk out of the Hermes store. Why? Because it is so difficult to buy one. Even if you are fortunate enough to be considered eligible to buy a Birkin bag, Hermes still puts a limit on how many you can buy in a year. That’s how exclusive the bag is. The limited supply fuels the price growth, which is predicted to double in the next 10 years.
Another bag that beats the performance of the S&P 500 and the real estate prices in the last few years is the Chanel 2.55, the famous Medium Classic Flap Bag by French luxury fashion brand Chanel. First sold at US$200 in 1955, it now sells at US$6,900. Just a month ago, Chanel announced that it is putting a limit on the number of purchases for their popular bags. The One Bag Per Person Per Year policy will surely jack up the price of the Chanel classic flap bag in the second-hand market.
Keep in mind though that while designer handbags are all of good quality, not all of them are worth purchasing…at least investment wise. Like other luxury items, the monetary value of the majority of luxury handbags depreciates as soon as you leave the store.
IF you want to purchase one as an investment piece, like any investment vehicle, you need to do due diligence first before buying your first investment bag. Follow the investment rules. Do your research first.
If you want to own a designer handbag for personal use, it is best to buy a classic and timeless design, something that will never go out of style. A bright blue bag may be popular now but do you think that color will still be fashionable a few years from now? If you take care of your timeless piece properly, who knows, its value might appreciate later on.
Feature Photo by Anne R from Pexels
Updated Version. First Published in Pinoy Smart Living on 10.17.2016