Buy A Chanel Bag & Earn 70% Profit! Is It Worth It?
 
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Buy A Chanel Bag & Earn 70% Profit! Is It Worth It?

Jacqueline Yan
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I have a weird problem when it comes to buying bags…

Big bags become very heavy because I’ll just keep bringing more things that I might never even use. But when I buy smaller bags, I can’t fit my essentials in them.

I wonder when I’ll be able to find a bag that’s the perfect size for me.

Not to mention how much it’ll cost me since durability is also something that I look out for.

Anyone wants to make a guess for the world’s most expensive handbag in 2019?

Mmhmm, It’s this small and super shiny bag, the Mouawad 1001 Nights Diamond Purse.

lady holding Mouawad 1001 Nights Diamond Purse
Source: High Jewellery Dream

Want to make a guess how much it costs?

A word of advice, you might want to sit down for this or have someone hold your jaw for you.

If you were one of the luckiest human beings, the Mouawad 1001 Nights Diamond Purse would have cost you $5.2 million.

nicki minaj shocked
Source: giphy

Holy sh*t! That’s easily 50 condos, people.

Need to be wow-ed a bit more? Here are the 10 most expensive handbags of 2019.

Most Expensive Handbags of 2019 Price in USDPrice in SGD
(rounded to nearest 100)
Mouawad 1001 Nights Diamond Purse $3.8 million$5.2 million
Hermes Kelly Rose Gold$2 million$2.8 million
Hermes Birkin Bag by Ginza Tanaka$1.4 million$1.9 million
Hermes Chaine’d Ancre Bag$1.4 million$1.9 million
Lana Marks Cleopatra Clutch$400,000$552,200
Niloticus Crocodile Himalaya Birkin$379,000$523,200
Chanel “Diamond Forever” Handbag$261,000$360,300
Fuchsia Diamond-Studded Hermes Birkin$222,000$306,500
Hermes Exceptional Collection Shiny Rouge
H Porosus Crocodile 30 cm Birkin Bag
$203,150$280,400
Blue Crocodile Hermes Birkin Handbag$150,000$207,100

Source: FinancesOnline 

Apart from being a status symbol, durability from exceptional craftsmanship and timeless designs are some reasons why many individuals are willing to splurge on selected designer handbags.

If you’re following along, you’d have guessed that some people will view some designer handbags as alternative investments.


TL;DR – How Profitable Are Designer Handbags As Investments? 

With approximately 14% yearly appreciation for the Hermès Birkin and a 70% price increase over 6 years for the Chanel Classic Flap, it’s no wonder why some people are looking to get designer handbags as investments. 

However, just like regular investing, not every product in the same category will give you similar returns.

Well, the same theory applies to investments in designer handbags as well. 

There are some things that you should take note if you’re considering to include handbags as an asset class: 

  • Research on brands and models that have showed good historical results 
  • Choosing between classic colours or seasonal colours as long term and short term investments respectively
  • Limited edition releases and rare designs typically provide higher returns 
  • Condition of handbag affects resale value 
  • Check for authenticity when buying and selling  

Why Do People Treat Designers Handbags As Investments?

While there are wealthy individuals in the world who can afford to actually use such handbags for formal occasions and engagements, many others choose to treat designer handbags as investments.

Most handbags quickly depreciated in value, especially if used; but resale prices of selected designer handbags increased rapidly over the years. 

lady saying i've never seen anything like that
Source: giphy

Designer brands understand the power of uniqueness and rarity which drives up the value of their handbags.

Many of these selected designer handbags are usually produced in very limited quantities, sometimes, in the range of 1 to 3 pieces.

Of course, part of the price tag is also attributed to the craftsmanship and materials that went into making the handbag; not to mention the profits going to the brands.

Since there is such low supply of quality goods, the rarity value of these handbags is driven up, in turn, fetching high resale values for sellers.

How Much Have These Handbags Increased In Value?

Unsurprisingly, Hermès is one of the most invested brands for designer handbags, seeing how it pretty much dominated the list of the top 10 most expensive handbags of 2019.

You would have been able to get yourself a standard Hermès Birkin bag for about $2,800 when it was first introduced, but be prepared to fork out upwards of $20,000 if you are looking to get one now. 

hermes birkin bag value increase
Source: Baghunter

It seems like the more popular Hermès handbags belong to the Birkin and Kelly series, and historical figures have shown an annual appreciation of 14% – 15% for the Hermès Birkin handbags.

matte white Himalaya Niloticus Crocodile Diamond Birkin 30 with 18K white gold & diamond hardware
Source: Christie’s

Based on their projection, if you have $523,200 lying around and got your hands on a Niloticus Crocodile Himalaya Birkin, you can potentially sell it for almost double of your purchase price in 7 years time!

Please still remember us when that happens…

Apart from Hermès, another popular brand that investors buy is Chanel, specifically, the Classic Flap or the 2.55 series.

percentage increase chanel handbags classic flap 2.55
Source: baghunter

While the initial investment may not be as major as a Hermès, a 70% return over 6 years for a Chanel Classic or 2.55 does sound like a super good deal!

What To Look Out For If I Want To Invest In Handbags?

Research Brands & Models

Like we briefly mentioned earlier, not every handbag is suitable for investing.

While we are no handbag gurus here at Seedly, there are two particular series of handbags that are popular and desired choices.

However, if you’re not a fan of Hermès or Chanel, or have other brands in mind, spend some time researching on how their products have been doing over the past years.

lady holding up stack of paper saying i have done the research
Source: giphy

Have the prices for the brand been on a constant upward trend? Or were there spouts of downward trends, and how long did it take for the prices turn upward again?

Classic Colours vs Seasonal Colours

Now, you’ve already narrowed down to the specific brands and models, the next thing to do is to choose the design and colour to invest in.

A safer bet will definitely be choosing classic and neutral colours that don’t go out of style, which means buyers will still be looking for them many years down the road.

So, think colours like black, tan/beige or gold if you’re planning to hold on to the bags for a long period of time before selling.

Of course, new and seasonal colours are also sought after, though they may be a little bit harder to sell sometimes since they might be hard to match.

But if you managed to get your hands on a new colour early enough and it becomes super popular, well, you might not have an issue selling it and making a profit for a short-term investment.

Limited Edition Releases & Rare Designs

limited edition in cursive
Source: Caudalie

Now this one is a little tricky, as trends and taste can change drastically with time.

There’s simply no sure-fire way for you to determine if a limited edition handbag will be in demand a few years down the road.

But of course, taking a quick look at most expensive handbags ever sold and auctioned gives you a hint that handbags made with exotic material, precious metals and diamonds are more likely to stand the test of time.

Furthermore, limited-edition releases are typically more expensive than the regular range so you’d need to have a bigger capital to be able to stomach this.

Condition Of Handbag Affects Resale Value

This one is pretty self-explanatory…

man opening shoe box in a room full of shoes
Source: tenor

A bag in new and pristine condition will definitely fetch a higher price compared to a bag that has been used, even if it’s still kept in good condition.

If you’re buying them purely for investment purposes, just make sure to keep your handbags in a dry and clean area.

But if you’re planning to use them as well, then just make sure you take good care of it, clean it regularly and store them back in their original packaging to maintain the condition.

Also, don’t forget to keep the original boxes, accessories, and receipts, and remember where they are, for ease of reselling in the future!

These items will serve as proof of authenticity as buyers will want to make sure that they do not end up spending so much on a counterfeit product.

Purchasing & Selling The Bags

Some handbags are easier to purchase directly from the official stores, you just need to study the trends and monitor when their collections are usually released.

But for some bags like the Hermès Birkin, look to the secondary market as you’ll need to either be an important figure or have spent enough money with them before they will even offer you a Birkin bag.

A word of caution!

man in kitchen saying it's 100% real
Source: giphy

Just like how your buyer will want to make sure that they are buying an authentic product, be careful when buying designer handbags on the secondary market since there are many fraudulent bags circulating around.


What do you think of designer handbags as an investment? Will you be reallocating some of your assets for this? 

Have questions about investments in general? Ask them here!

Whether you love or hate our content... WE WANT TO HEAR WHAT YOU THINK!

About Jacqueline Yan
Full-time coffee nerd playing the personal finance game to feed her insatiable wanderlust.
You can contribute your thoughts like Jacqueline Yan here.

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