Investing in a luxury bag: what you need to know
Many people are amazed when it is made clear to them that investing in a luxury bag can pay out as much as real estate.
Indeed, it is possible to buy a luxury bag and offer it for resale several years later to earn a large profit margin. A few tips for a successful investment and the added value you could derive from it.
Tips for investing in a luxury bag
Here are some tips for making the right investment in a luxury bag to reap the greatest benefits a few years down the line:
- Choose the major leather goods houses
Of course, it is possible to turn to brands less known to the public and succeed. Only, tell yourself that you are not an expert and to avoid any disappointment, opt for popular brands with a safe bet.
Major brands such as Chanel, Hermès and Louis Vuitton are enjoying ever-increasing success and demand is still growing over the years. Admittedly, these are luxury bags that cost several thousand euros, but they will certainly be worth 3 to 4 times more in a decade or so later.
- Do you want to wear it?
To make business useful, you can wear your bag for several years before reselling it. You have to ask yourself the right questions: should I wear it for 5, 10 or 20 years? Will this bag still be fashionable for a long time? Is the color compatible with my wardrobe? When can I wear this bag?
You must therefore establish your needs to target the real luxury bag that you must buy. The goal is to invest in a luxury bag model that will make you happy when you go out and resell it for much more later.
- Set your budget
The goal is not to ruin yourself to buy a luxury bag in 2021. It will therefore be necessary to establish a budget according to your income. Even by investing little, it is possible to draw more than 1000 euros many years later.
If you are in the category between 500 and 1000 euros, turn to brands like Stella McCartney, Louis Vuitton or Jacquemus. In case you are willing to pay more than 3000 euros, there are models from big houses like Hermès or Chanel.
An example of added value
Take the case of the emblematic Chanel 2.55 bag which in 1955 was worth only 195 euros. In 2010, this same bag was worth around 2,800 euros and today, it is difficult to get it for less than 4,800 euros new in Chanel boutiques.
Suppose you bought it in 2010 and you want to resell it today in 2021. You will make a capital gain of 2000 euros! To have a higher margin, some people do not hesitate to buy several models from major brands. This is without counting the recent increase at Chanel of Timeless models which took on average 1000€ in one night.
And right now, they can multiply by 5, 10 or 20 their initial investment on luxury bags.
