Fashion

The Holy Trinity – Big Three

I´m obsessed with designer bags but today I´m looking at this topic from an investment perspective.

What I want to focus on here is WHY and HOW these designer bags make a great investment.

The Holy Trinity – Big Three – In fashion, there’s an unspoken rule of the “Big Three” — Chanel, Louis Vuitton and Hermes. These only go up in price and their resale value is very high.

  • Louis Vuitton’s iconic bags such as Alma, Neverfull and Speedy still sell for close to 90% of their retail price. They are durable and classics that never go out of style.
  • Chanel increases its price as much as 20% every year.
  • Chanel’s classic flap bags were reported to have increased their value by 70% in the past several years.
  • Even if you stepped into your nearest Hermes boutique to get your hands on the infamous Birkin, you can’t… unless you are a celebrity or a wife of a billionaire? Wait 5+ years, if that.

So, with these annual price increases and best resale value, how exactly are these bags considered investments?

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According to the Financial Times, “a recent study found that it can make more economic sense to invest in a Chanel 2.55 handbag than in the stock market. The JustCollecting Rare Handbag Index, which tracks investment-level bags, found that in the 12 years from 2004 to 2016, the Chanel 2.55 Medium Classic Flap bag had spiked by 230 per cent in value”.

Remember the famous Carrie Bradshaw Quote: I like my money where I can see it – in my closet.

© Glamour and City