In 2020 a report was published which showed that designer handbags are now the most profitable investment. Over the past ten years, prices for bags have more than doubled, with a 108 per cent growth recorded. Bringing handbags up to the same lofty levels as rare vintage cars as an investable item.
The value of designer handbags has risen by 13 per cent over 12 months. A recent sale of a Hermes Birkin bag fetching $125,000 demonstrated just how great an investment a good designer bag can be.
So, what should you be considering when investing in a future classic? Well, right now, classic 90’s bags are seeing a resurgence. The Dior Saddle and the Fendi Baguette have seen a huge increase in popularity pushing used bag prices up higher than ever. The Dior Saddle has seen its average selling price increase by 191% year on year and the Fendi Baguette by 178% year on year.
Iconic design mixed with impeccable craftsmanship is clearly the winning combination for an investment bag, but so too is rarity, so don’t be afraid to buy outside the box and choose unusual designs.
While Hermes dominates the investment market for bags, Chanel, Louis Vuitton, Celine, Mulberry and Gucci are all seeing big market interest for their iconic designs. The Gucci Marmont and the Chanel Boy Bag are both strong investable designs right now.
It was reported, by Racked, that all designer bags in box fresh condition can retain 63% of their retail value, however, it’s the rare and limited-edition numbers that increase the most.
The next time you are worried about splashing out on a new designer bag know that you are probably choosing to buy something that will give a financial reward for generations to come.
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