In the fashion world, luxury bags have moved beyond accessories—they’re now considered collectibles, status symbols, and, in some cases, investment pieces. The idea of buying a designer handbag as an investment has grown in popularity lately, fueled by the rise of the resale market on platforms like The RealReal and Vestiaire Collective, where bags from brands like Hermes, Chanel and Louis Vuitton often hold or even increase in value. Birkins, for example, are reported to appreciate around 15% per year, according to The RealReal making them a standout in the market. But is this financial strategy as chic as it sounds? With price hikes from brands like Chanel—up to 100% between 2019 and 2023—and the allure of limited-edition pieces driving demand, some bags are worth a small fortune. Still are we all just buying into a glossy dream expertly marketed by the fashion elite?
The rise of the investment bag: is it all gold?
For those in the ‘buy-now, sell-later’ camp, the logic is simple: certain luxury bags, especially ones with a limited release or high demand, can increase in value over time. Hermès Birkins, Chanel Flaps, and even vintage Gucci bags have seen resale prices soar, with some even outperforming traditional investments like stocks and property. A rare Birkin could fetch £8,000 to £12,000 but on the second hand market, depending on the rarity and condition, it can fetch anywhere from £20,000 to over £150,000, with some rare editions like the Himalayan Birkin selling for over £380,000 at auctions. Similarly, Chanel’s Classic Flap Bag, which retailed for £2,000 in 2010, now has a retail price closer to £8,000, and vintage versions can sell for even more in the resale market. These staggering figures make it seem like a savvy investment for those lucky enough to snag one.
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But here’s the catch: these high-earning bags are the exception, not the rule.
Not all bags are created equal: the risk of trend chasing
The truth is, for every Birkin or Chanel that skyrockets in value, there are countless designer bags that don’t. Brands like Gucci and Dior release trendy styles every season, many of which are subject to the whim of fashion’s ever-changing landscape. What’s ‘in’ this year could be forgotten by next season, leaving you with a bag that may still be beautiful but isn’t exactly the financial windfall you hoped for.
The difference between investment bags and their trendy counterparts often boils down to rarity, craftsmanship, and timeless appeal. Not every bag can boast those qualities.
The emotional ROI: more than just Naira and Pounds
While financial returns are nice, let’s not forget about the emotional investment that comes with owning a luxury handbag. For many, these pieces hold sentimental value or serve as personal milestones—it could be your first designer purchase, a gift for a special occasion, or simply a reward for hard work. There’s an undeniable thrill that comes with strutting through the city, clutching that sleek piece of craftsmanship, and feeling like a million pounds (whether or not your bank account reflects it).
Regardless of your reason for purchase, here are 5 luxury bags with proven resale value.
Hermès Birkin Bag
Chanel Classic Flap Bag
Goyard St. Louis Tote
Hermès Kelly Bag
Fendi Baguette
So, is it worth it?
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Are luxury bags a good investment? It depends on your definition of ‘investment’. If you’re hoping for a solid financial return, proceed with caution and do your homework. But if your ROI is measured in the joy, pride, and style it brings to your life, then maybe it’s not just about the money—it’s about living your best (and most fabulous) life. And in that case, perhaps the splurge is worth every penny.