Luxury handbags market: the new refuge value - elEconomista.es

Buying a luxury bag is a safe investment. With a strategy of reducing supply and raising prices, the appetite for the luxury bag skyrockets.

The luxury handbags market continues to grow and, beyond its status as an object of desire and unequivocal symbol of status, it has established itself as one of the main and most solid investment values. The strategies of price increases and supply reduction of some iconic brands are unleashing the appetite of collectors and investors, and fit like a glove in the so-called 'Veblen goods', those whose demand curve increases as their price increases .

Chanel has just announced a strategic change in its sales policy to limit the purchase of its bags on online platforms and avoid reselling on the "grey market", especially in Asia, focusing on sales limited to units per product and year for your customers. For now, the limit applies to the Classic Flap Bag and Coco Handle. Hermès had already recently decided to introduce limits on the sale of its bags, restricting its customers to two units of some of its iconic products.

#health How to Do Advanced Computer Yoga - Computer yoga is an easy and enjoyable way of unwinding at the desk, he... http://t.co/WDEJxgn6sU

— Angola Bee Wed May 08 22:27:18 +0000 2013

The Clair report prepared by the Rebag platform for buying and selling luxury bags confirms the leadership of Hermès over the last year, followed by Louis Vuitton and Chanel. Serving as a comprehensive luxury appraisal index of brand value in the resale market, the report points to the important role of its historic legacies and also companies' control over prices and inventory. According to the report, Hermès bags retain an average of 90% of their retail value at the time of resale. It is a higher value than Rolex, leader in the watch sector, which retains 82% of its retail prices.

Lux-Price-Index

For its part, Collector Square, a consulting firm specializing in luxury goods, has enabled a tool on its website, Lux-Price-Index, which records the revaluation of luxury goods, including handbags, in the secondary market by tracking more than 300,000 auction results in the main international houses. Some examples: the average price of the Hermès Constance has multiplied its price by 13 in the last eight years, that of the Kelly has multiplied by six in eleven years and the Chanel Timeless has multiplied by 4.2 in the last decade. Regarding retail prices, according to Privé Porter, one of the main resale centers, large firms have increased them between 50% and 100% over the last year. The platform has become a reference and a reliable source for buyers and sellers of Hermès bags, especially the Birkin model. Not your usual premium and luxury resale center, they are dedicated to providing coveted brand name items to collectors around the world, especially those hard to find pieces. In 2019 they sold their most expensive piece to date: a 12-inch Diamond Himalaya Crocodile Gray Cendre with 18-karat gold hardware and diamond encrustations, for half a million dollars, nearly three times the Hermès asking price.

Most Coveted Brand

Hermès continues to be the most coveted brand across direct sales, secondary markets and auctions. Their prices have far exceeded those of other luxury items during 2020, according to the latest report from the Knight Frank consultancy, with an increase of 17%, compared to luxury assets such as wine or collector cars, which have increased by 13% and 6% respectively. And its Kelly and Birkin models, the most exclusive in the world, the most coveted, are the ones that are most appreciated. Their extremely limited production and a waiting list of around five years have made them a legend. Among the safe investments, the Himalaya Birkin, known as "the rarest bag in the world", and the limited edition So Black Birkin collection, which reach astronomical figures at auction. Major houses like Christie's and Sotheby's advertise their own "collection lists" with models by Chanel (like the 2.55 Flap or the Boy), Valentino (My Rockstud Tote), Bvlgari (Serpenti Forever), Givenchy (Antigona), Fendi (Peekaboo ), Louis Vuitton (Capucines)

According to the Clair de Rebag report, there is a brand worth keeping track of due to the sustained increase in prices since 2019: Bottega Veneta. The Pouch Intrecciato Nappa 20 has experienced a 45% price increase since 2020 on the secondary market. Million Insights points to three brands, Gucci, Tumi and Valentino.

Where to buy

Among the main luxury handbag resale platforms, Farfetch, Matches Fashion, My Theresa, Net-A-Porter, Bestiaire Collective, Rebag, 1stDibs and Mightychic with an extraordinary offer of limited edition handbags also by Kelly and Birkin, and the private sale section of Sotheby's and Christie's, with exceptional pieces available for immediate purchase.