Have you ever wanted to purchase something so badly but you just can’t justify the price? Whether it's a piece of clothing or an accessory, most people don't have the necessary means to drop thousands of dollars on one item, so by nature, they settle for cheaper items. Because these cheaper items are well, cheaper and more tangible, you may find yourself purchasing multiple iterations of said items. For example, a knock-off Bottega Veneta Cassette Bag on Amazon will only cost you $20 give or take, and because that price is so low, you might want it in more than one color. So you purchase 2 of the same exact bag. Not only does this attitude add to the fast fashion build up (92 Million Tonnes per year), but it also enables an attitude of impulsive buying.
At appreciate, we believe in investment over impulse, meaning we encourage our users to interact more with the luxury items they have and resist making those unnecessary, impulsive purchases. So, if you want to make the jump, purchase a designer bag, and ensure you are making a financially wise decision, here are bags with the best return on investment (ROI).
Some brands are well known for having great ROI for certain bags they make – Louis Vuitton, Hermés, and Chanel are the most notable. According to an article by CPJ, purses from Louis Vuitton, Hermés, and Chanel have received an average 83% valuation spike in the last ten years; AKA, if you want to purchase a bag with the mindset of potentially reselling it one day, you should primarily focus on these three brands. Let’s take a look at your options.
The Hermés Birkin bag, A classic and one of the most sought after lines of purses, often by celebrities such as Jennifer Lopez (JLO), Kylie Jenner, Kate Moss, Kim Kardashian, and many more. Due to the craze around this infamous bag, they can retail anywhere from $9,000 to $150,000, with resale prices reaching up to $223,000 and more.
The Chanel Classic Flap Many of Chanel’s bags have an amazing resale value, so much so that they had to step into the resale market. In an article written by our very own Zainab Khan about Chanel’s marketing strategy, she states, “Recently, Chanel has adopted a new marketing strategy. Executives have long denied a quota system but there have been rumors about a quota system being introduced for certain Chanel bags. What does this mean? As of this year , Chanel has introduced a limit of two Chanel Classic Flap bags per customer. This strategy is to be implemented globally and aimed at restricting people from buying and reselling.” If you want to read more about this topic, check out the rest of her article here!
On average, the Chanel medium flap with caviar leather used to cost $1,600, today it retails for $4,900. This purse has a 206% ROI – no wonder the company is implementing a new strategy for the resale of these purses, that is insane!
The Hermés Kelly First created by the son-in-law of Emilie Hermés, Robert Dumas, it gained notoriety from famous actress Grace Kelly as it is believed that she was using the bag to conceal her pregnancy in the 1950’s. Thus, the name for the bag was born and renamed in her honor. The Hermés Kelly never decreases in value; it continues to see a steady resale growth over time. For example, you could buy it at its retail price for around $8,000 and resell it for more than double that…crazy!
The Louis Vuitton Neverfull No one could ever be full of the Neverfull. It is one of the fastest selling luxury purses ever, and its practicality is very appealing. The traditional Neverfulls tend to retain 85% of their resale value, while limited edition ones can see a doubling or even tripling in value.
The Chanel Boy Bag Although this Chanel bag has only been around for a short period of time in comparison to the other purses on this list, it is one of the most popular bags at Chanel. The investment price began at $2,500 but now can get up to $5,100 and continues to rise. At minimum, this bag retails for 90% of its retail value.
If you are in the mindset of reselling your luxury bag, make sure to store it in a good environment and use the dust bag! Preventing dirt, dust, and light from getting to the bag will protect the materials it's made of as well as preserve the color. It is also widely known that neutral colors sell best, so keep that in mind when looking for your perfect bag. Check out our blog to get more information on how to spot a fake bag, see our first time buyers guide, and more. Happy shopping!