At first glance, purchasing a Chanel bag doesn’t seem like a smart financial decision. With their hefty price tags, buying luxury fashion tends to be more of a dream than a reality for the average person. After all, most people would rather invest their money in areas that seemingly give greater returns like the stock market, but would you believe me if I told you that buying a luxury bag would be safer and better than a stock investment?
As more secondhand and consignment stores gain popularity, it’s becoming apparent that vintage bags are worth more now than they would’ve been when they were first released. The Multi Pochette Accessoires, a recent hit from Louis Vuitton, is a good example that has flooded all our Instagram feeds. Unfortunately, it is no longer available in any Louis Vuitton stores and can only be found on preloved retail websites such as Vestiaire Collective or TheRealReal. As a result, its price has been inflated to more than $1,000 of its original retail price. Welcome to Marketing 101: Supply and Demand. Unlike fast fashion, luxury brands are not produced in mass quantities, meaning that, if the design turns out to be a hit, the brand will run out of stock with no plans to restock in order to retain its exclusivity. This only spikes the consumers’ desire for it as the forbidden fruit is always the most desirable.
For instance, with its outstanding craftsmanship and guarantee for life, the Hermès Birkin and Kelly Bags are essential investments that can be passed down through generations. For reference, an entry-level, firsthand Kelly and Birkin Bag amounts to $10,000 and $12,000, respectively, and their resale prices are record-breaking. In 2017, a Crocodile Himalaya Birkin 30 with 18k white gold and diamond hardware was sold for a shocking $269,000!
Whether it be a Louis Vuitton purse that retails at $1,860 or a Birkin Bag worth $12,000, it’s extremely evident that luxury bags are an excellent investment. Unlike ready-to-wear pieces, whose value decreases throughout the years, a handbag’s worth increases as the years go by. That being said, when shopping for a luxury bag, it is essential to keep an eye out for certain styles. In a world of alternating trends, you can never go wrong when betting on the classics. Classic handbags such as the Chanel Boy Bag are timeless pieces that will guarantee you a massive return in the long run.
Overall, luxury handbags aren’t just a cute accessory to flaunt around on Instagram– they’re an investment. What looks good on the street can also be a great asset to your wallet. If you find yourself heading to 5th Avenue, Bond Street, Champs-Élysées, or any other luxury avenue near you, remember that the classics will always be your best friend. Fuchsia pink might not be in style 20 years from now, but a Lady Dior black bag definitely will! So, if you’ve been looking for a sign to go out and buy the bag of your dreams, this is it. Who would’ve thought you could make a smart financial investment from inside Louis Vuitton?