Investing in a luxury bag in 2021

Investing in luxury bags: The 2021 guide

You're looking for interesting investments and you've looked at the classics. Unfortunately, real estate, corporate stocks and savings accounts are not as profitable as they once were. However, one sector that is not well known to the general public has continued to grow in value over time: luxury leather goods.

The stock market says it all: buying a luxury bag to resell it a few years later can be a much more profitable operation than buying a property, even in Paris. Yes, really. For a few years now, luxury bags have never been so desirable. Logical, since they are cheaper to buy than to resell. 

Did you know, for example, that the Kelly bag from Hermès has quadrupled in value in just twelve years? When you think that shopping is still seen as an uninteresting activity...

If you are reading these lines, it is because you have the urge toinvest in luxury bags. A wise decision. You already have the determination and after reading this article from cover to cover, you will have all the keys in hand.

Louis Vuitton Mini White Leather and Python Capucines
Louis Vuitton Capucines Mini (Click on the image to access its file)

Why invest in luxury bags?

To think that there was a time when the Chanel 2.55 sold for 206 €... Today, it is impossible to get a new one for less than 4 500 €. In the space of a few decades, the value of this bag has soared.

You think this is an exception? Not at all. There are other examples in the luxury industry that are just as blatant. A Birkin bag from Hermès will cost you anywhere from €7,000 to over €60,000 depending on its features.

On average, the value of a prized luxury bag increases by 14.2 % per year, far ahead of the 6 to 8% annual growth of the real estate sector. Some bags climb even faster than that. However, as in any industry, not all investments are equal. To be sure to get your money's worth, you have to choose the right bag...

Top 7 luxury bags to invest in 2020

1. The Birkin by Hermès

Not surprisingly, the Birkin by Hermès tops the list. In 1981, during a flight from Paris to London, Jane Birkin shared her dilemmas as a young mother with Jean-Louis Dumas, president of Hermès. Three years later, the Birkin bag was born and the rest of the story is well known.

As soon as it was released, the Birkin by Hermès was a huge success. Today, many fashionistas are still scrambling to own one.

Birkin 30cm in black Togo leather (In break)

It must be said that its rarity and the time it takes to get one make it extremely desirable... To get a new Birkin bag, you have to join a waiting list and wait for about 1 to 2 years.

Of all the Birkins available, the most popular is the classic taurillon leather, especially if it's in clémence, taupe or blue. Due to their low availability, some used Birkin models are offered at a selling price up to 30 % higher than the new price!

2. Chanel's Timeless

If you want to invest without taking risks, the Chanel Timeless is exactly what you need.

Launched by the late Karl Lagerfeld in 1980, this bag was an instant crowd pleaser with its quilted look and rock'n'roll chains. Thirty years later, the Timeless is still proudly displayed on the arms of all fashionistas.

Chanel Timeless Jumbo black lambskin leather (In break)

New, the price ranges from €4,500 to €8,500. Fortunately, you don't have to have such a high starting capital. Indeed, it is possible to become the happy owner of a purple Timeless bag with a vintage varnished look for 2 235 €..

Because of its popularity, the Timeless bag should be used with caution. To maximize profits, it is best to look for exclusive collections or colors that stand out from the crowd.

3. The Boy from Chanel

Yet another Chanel bag imagined from scratch by Karl Lagerfeld. Half woman, half man, this bag with an androgynous look owes its name to Gabrielle Chanel's first love.

Chanel Boy M beige leather (Click on the image to access its file)

Why is it so successful? Probably because of its minimalist design that allows the finesse of its materials to be fully expressed. Taking up the codes of classic elegance, it adds a touch of madness through a chain that can be adjusted as desired.

Released in 2010, Chanel's boy still has a lot to live up to. It would be a mistake not to buy one before the prices go up...

4. The Kelly of Hermes

In 1985, when Princess Kelly was desperate to hide her rounded belly from the paparazzi, she certainly didn't expect to start a phenomenon.

Initially named "dispatch bag" when it was created in 1892, the Kelly is one of the most popular bags on the market. According to observers, its price climbs from 20 to 30 % per year!

Genuine Kelly 35 in black crocodile leather
Kelly 35cm black crocodile leather (Click on the image to access its file)

Like the Birkin, it is only available by signing up for a long waiting list. And like the Birkin, the Kelly sells for a premium on the used market because it can be obtained without waiting.

Even in second hand, expect to pay several thousand euros for a Kelly in good condition. This is for example the case of this Hermes Kelly in white leather 32 cm authentic sold at 7 000 €. This may seem expensive, but remember that when new, you have to multiply this price by three and that some editions are even estimated at € 450,000.

5. The 2.55 by Chanel

A fan of minimalism, Coco Chanel decided to take inspiration from the military bags of the time to create a truly comfortable bag. It is from this thirst for independence that the iconic 2.55 was born.

Why 2.55? Because it was born in February 1955. The 2 symbolizes the month of February and 55 represents the year. Decidedly, Gabrielle Chanel was a true purist...

Chanel 2.55 Reissue (Click on the image to access its file)

Thanks to Coco's innate sense of elegance, despite the passage of time, the Chanel 2.55 has never lost its value. On the contrary, year after year, it increases in value. Want to invest in Chanel? With its refined color and promotional offer, this bag Chanel 2.55 Reissue in taupe leather is an opportunity to be seized.

6. The Speedy by Louis Vuitton

Its fabric covered with monograms is recognizable among thousands. The ultimate symbol of travel, change of scenery and adventure, the Speedy by Louis Vuitton is a luxury bag that is not likely to go out of style any time soon.

Speedy 30 monogram (Click on the image to access its file)

Adored by Audrey Heypburn, brought up to date by Marc Jacobs, the Speedy 30 is one of those bags whose value always goes up. If you don't want to miss out, buy this Louis Vuitton Speedy 30 checkerboard azure pre-loved before it's too late.

7. The Alma by Louis Vuitton

This ranking ends with another Louis Vuitton. It is in a canvas painted in 1934 that this masterpiece draws its inspiration.

Originally, this delicately contoured bag was named "squire bag. For a moment, it will answer to the sweet name of "Champs-Élysées. Later, seduced by the mischievous charm of the Alma Bridge, Louis Vuitton decided to rename its flagship piece in its honor.

Louis Vuitton Alma checkerboard ebony (Click on the image to access its file)

Available in checkerboard or monogrammed versions, Louis Vuitton's Alma has managed to stand the test of time thanks to its timeless allure. If you haven't done so yet, now is the time to invest in a Louis Vuitton Alma custom black.

How can you be sure that a luxury bag will be profitable?

When it comes time to resell your luxury bag, the key is to prove that it is original. Counterfeiters are becoming more and more talented and better equipped. It is not uncommon to see copies of Speedy that have almost nothing to envy to the original.

That is why, in order to make the resale of your bag easier, it is recommended to follow these three tips.

1. Keep the invoice carefully

Would you buy a €7,000 Birkin from Hermès when it has no original invoice? Probably not. Even if you dream of acquiring this iconic piece, you wouldn't risk spending that much money on a hypothetical copy. Your future customers think exactly the same way.

In addition to the invoice, having a certificate of conformity will reassure future buyers. Indeed, invoices do not necessarily have a serial number to attest the authenticity of an item.

Another optional but much appreciated detail: keep the original box and the dust bag of your bags.

Chanel 2.55 Jumbo Classic patent leather (Click on the image to access its file)

2. Attention to auctioneers

You might be tempted to sell your luxury bag at an auction, but beware... Unfortunately, not all auctioneers are reliable. And if something goes wrong, you often have little or no recourse.

3. Favour direct sales

The ideal is to sell directly to individuals. If your schedule does not allow you to do so, contact reputable structures in the field of vintage leather goods such as IconPrincess.

By following these tips, you should be able to sell your bag faster than you expect and at a very good price.