Is Your Wife's Designer Bag Collection Actually an Investment?
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The idea of splashing out on a six-figure handbag sounds, to be frank, absolutely insane. Sure, a handbag might be a pretty accessory, but is it really worth the money? What value does it bring just sitting pretty inside a closet, or worse, packed in a dust bag, hidden from the world? The answer to that is, actually, a lot.
For the married men out there, the designer handbags your wife loves to collect might seem like a lofty purchase, but there’s more to it than meets the eye. In fact, some bags are valued exponentially higher than stock investments or pieces of art.
More and more collectors are investing their money in the pinnacle of luxury handbags—the exotic, crocodile skin Himalayan Birkin, owned by the likes of Heart Evangelista, Victoria Beckham, and the Kardashians.
Because as women know, it’s not just a bag, it’s a Birkin.
Also read:
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The Himalayan Birkin, produced by luxury design house Hermès, has long been considered the most collectible handbag in the world, with an annual value growth rate of 14 percent. In fact, the most expensive bag ever auctioned at Christie's was a Matte White Niloticus Crocodile Himalaya Birkin 30 with diamond hardware. It sold on November 2017 for a whopping $384,285 (roughly P20.9 million). No big deal.
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Many designer handbags from renowned fashion houses like Hermès, Chanel, and Luis Vuitton have established their own ‘it’ status, especially in the bag collection scene. According to Art Market Research (AMR) in 2020, some of their bags earned a valuation spike of 83 percent in the last ten years. This means the investment potential of handbags now outperforms watches, the presumed king of investment fashion pieces, which increased by 72 percent.
The AMR report also states that more than 3,500 designer handbags were auctioned in 2019, raking in a staggering amount of $32.9 million (P1.7 billion). In 2022, the handbag department at Sotheby’s—one of the world’s largest and oldest auction houses and brokers of art, jewelry, collectibles, and more—closed out the year with more Hermès biddings than ever.
Most notable among the lot was a rare Neige Faubourg Birkin 20, which was sold for $302,400 (P16.4 million). This version of the highly-coveted Faubourg Birkin features a matte Alligator body and pristine leather details that capture the architectural essence of the brand’s flagship boutique in Paris.
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On the subject of rare arm candy, it would be a crime not to mention the Hermès Kelly, which value boost has soared by 129 percent over the decade, Forbes reveals. It even surpassed Birkin’s 93 percent gain. Similarly, Chanel flap bags, like the must-cop vintage Classic Handbag, have risen by 132 percent.
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Dior and Bottega Veneta handbags are also having a renaissance moment in today’s fashion zeitgeist. Rebag’s Clair Report (Comprehensive Luxury Appraisal Index for Resale) back in 2020 stated that Dior’s revival of the Saddle Bag has earned itself a place in the list of hottest investment handbags to take note of. The same goes for Bottega Veneta, which value started improving under the leadership of Daniel Lee.
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While the market valuation of household name bags will only continue to grow because of their reputation as status symbols, there are still many things to keep in mind when considering making an investment. Yes, designer handbags can be immediately resold at double (or even triple) their market price. But this largely still depends on the exclusivity and longevity of the style and model.
The average auction value of luxury bags may also fluctuate depending on existing fashion trends. Did you know size matters in handbags now, too? Currently, mini-Kelly 20 IIs are valuated higher than Sellier Kellys. The type of leather and hardware used to make the bag is also something to think about. Then, there are the colors to consider. In 2021, pink bags averaged 20 percent higher than the second-most popular color: white. There’s a science to this, people.
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But the most important matter to consider when buying a designer handbag is, of course, the brand. There’s still a hierarchy in high luxury. For instance, going for brands like Hermès, Goyard, or Fendi is more advisable than Gucci, Mikael Kors, or Kate Spade. It’s all about choosing that will stand the test of time and gain higher value in the future.
If men see the value in investing in watches and sneakers, women see the value in investing in luxury handbags. Handbags may not be the most obvious first choice in the era of stocks, bonds, and real estate, but it’s certainly something worth considering. Not only does it offer a relatively fast return on investment, but it can also score you some extra brownie points from the missus. What’s there to lose?
