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Andre Neveling

In the past decade alone, the price of a classic Chanel bag has risen by 100 per cent, making it an even more sought-after item not just for fashion fans, but for investors as well.
In fact, its price growth has outperformed both the stock market and gold, and shows no sign of slowing down. And it’s not just Chanel – other designer bags, jewellery and watches are all growing in price as time goes by.

So should we invest in luxury bags? Not necessarily, according to the experts.
“In most cases, the answer is no,” says Thomas Kralow, professional investor, financial markets expert and founder of an online learning platform for traders and investors. “The second an item is used, its value instantly begins to decline. Even if kept untouched, the price of a bag can be influenced by changes in fashion trends, consumer preferences, and the state of the economy.”
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Kralow continues: “Plus, the market for luxury bags is highly speculative and subject to fluctuations, so unless you have a highly desirable product made by a legacy brand, predicting whether it will retain its value over time is impossible.”
But that seems to be changing slowly in recent years. “The situation has changed, with legacy brands having increased their prices dramatically. Higher price tags typically mean fewer are sold and, with time, this scarcity pushes up resale prices,” he added.

Over the past decade, the stock market has increased by 10 per cent and gold by 21 per cent, but a Chanel bag continued to increase in value, up to 100 per cent, even after they swapped their 24-carat gold buckle for cheaper materials. In 2005, one of the brand’s classic bags costs US$1,650, and these days they’re worth over US$10,000.
“Just recently, actress Christina Ricci sold her collection of Chanel bags to fund her divorce, making use of her luxury goods as a true investment piece rather than accessories,” Kralow revealed.

“And it isn’t just Chanel that’s in demand. In 2000, you could grab a Hermès Birkin for US$4,000 and now you would have to fork out over US$11,000. So yes, luxury bags can be a great investment, but it really depends on the brand and product,” he added.
If you’re determined to invest in your favourite fashion brands, consider keeping these tips in mind ...
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Not sure which brands or bags to invest in? Kralow shares his insights:
1. Choose a timeless staple. For example, the Dior Saddle Bag is trendy once every 20 years, while the classic Chanel Flap Bag never goes out of fashion. If you invest in a trendy item, chances are that you won’t be able to sell it for years, if not decades.
2. On the flip side, unique and limited edition luxury pieces can still grow in value, such as the Himalaya Birkin, one of the most expensive bags of all time, which has sold at auction for over US$440,000, or the Ombré Birkin. The prices of these bags will cost you upfront though.
3. Stick with neutral designs and colours, as these are always in demand. It’s a safer bet, as there’s no risk that a specific colour or pattern will go out of style and make selling your investment difficult at a later stage.
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4. Be sure to keep the certificate of authenticity and the original packaging, which might help you prove the legitimacy of your item when reselling. Store them away safely and take good care of them, too.
5. Be true to your budget and only buy items that you can afford, even if you’re certain you can make a fortune reselling them. “Bags are a consumer good, and even the price of a Chanel bag won’t always grow exponentially,” says Kralow. “Only spend the money that you have ⁠ – the last thing you want to do is to spend decades paying off a bad debt.”
6. Also consider investing in other luxury accessories like jewellery and watches. Brands like Rolex and Patek Philippe constantly grow in value, but be prepared to splash out at least US$7,000 to US$10,000.
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7. Of course, luxury bags should never be your primary financial investment. They’re a great alternative to stocks and bonds, but they should ideally be a part of a wider and diverse investment portfolio.
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Fashion

Are luxury bags really a good investment? 7 expert tips, from buying legacy brands like Dior, Chanel and Hermès, to diversifying your portfolio with Rolex, Patek Philippe – yes, and stocks and bonds

A model carries one of the most valuable handbags in the world, a matt white Himalaya Niloticus crocodile diamond Hermès Birkin with 18k gold and diamond hardware. Photo: AFP

A Chanel leather bag is attractive not only to fashionistas, but investors, too. Photo: Chanel

Legacy fashion brands such as Chanel are more likely to retain value. Photo: Shutterstock

Christina Ricci attends HBO’s Official Golden Globe Awards After-Party at Circa 55 Restaurant in Los Angeles, California, in January 2019. Photo: AFP

Tourists shop in luxury stores on Canton Road in Tsim Sha Tsui, Hong Kong on the first day of full border reopening as all checkpoints between Hong Kong and mainland China reopen, free from Covid-19 restrictions, on February 6. Photo: Jelly Tse

A rare matt Himalaya Niloticus crocodile diamond Hermès Birkin can still grow in value. Photo: Christie’s

One tip is to keep the original packaging of a bag if you’re thinking of reselling. Photo: SCMP

The Rolex Perpetual 1908 is the newest design Rolex released at Watches and Wonders 2023 in Geneva, Switzerland. Photo: Rolex

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Tennis legends Rafael Nadal and Serena Williams wears a Richard Mille RM27-04 and Audemars Piguet Royal Oak Black Panther, respectively. Photos: @rafaelnadal, @serenawilliams/Instagram; Richard Mille; Audemars Piguet

Naomi Osaka became the ambassador of Tag Heuer in 2021. Photo: @naomiosaka/Instagram

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Tennis player Maria Sharapova of Russia poses at a publicity event in New York, US, in 2005. Photo: Reuters

Carrera Lady was Maria Sharapova’s favourite Tag Heuer watch. Photo: Tag Heuer

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The Rado HyperChrome Automatic Chronograph is elegant and sporty simultaneously. Photo: Rado

World champion Novak Djokovic has worn his Hublot Big Bang Meca-10 many times on the court. Photo: @hublot/Instagram

Hublot Big Bang Meca-10 has a power reserve of 10 days. Photo: Hublot

The Rolex Daytona Orange is a coveted timepiece by the Swiss watchmaker. Photo: Rolex

Serena Williams became Audemars Piguet’s ambassador in 2014. Photo: @serenawilliams/Instagram

Audemars Piguet’s Royal Oak Black Panther Flying Tourbillon is a collaboration between the brand and Marvel. Photo: Audemars Piguet 

Spanish tennis player Rafael Nadal is world famous and works with Richard Mille to create bespoke watches for him to wear during matches. Photo: @rafaelnadal/Instagram

Richard Mille’s RM27-04‘s suspended tourbillon calibre made a new resistance record at the brand. Photo: Richard Mille

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The logo of LVMH is seen before a news conference to present the 2022 annual results of LVMH Moët Hennessy Louis Vuitton in Paris, France, on January 26. Photo: Reuters

Bernard Arnault, chairman of LVMH Moët Hennessy Louis Vuitton Group, poses before a press interview at a Hong Kong hotel, in 2004. Photo: AP Photo

A pedestrian wearing a protective mask walks past an LVMH Moët Hennessy Louis Vuitton SE store in the Causeway Bay district of Hong Kong, in February 2020. Photo: Bloomberg

Italian fashion house Fendi (upper) closed its store in Time Square, Causeway Bay, in Hong Kong. Louis Vuitton’s (bottom) shop on the mall’s first floor was also boarded up, in March 2021. Both Louis Vuitton and Fendi are part of the LVMH group. Photo: May Tse

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This viral US$20 bag is the hottest fashion item of 2023 so far – the affordable ‘quiet luxury’ Uniqlo accessory is a hit across TikTok and social media, dethroning Gucci and Prada on Lyst’s ranking

A Uniqlo bag has been named the hottest product of the year so far by the fashion search platform Lyst. Photos: Uniqlo

Uniqlo’s bag has been named the hottest product of the year so far. Photo: Uniqlo

Uniqlo’s Round Mini Shoulder Bag. Photo: Karrie Kendel/YouTube

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A peek at the chic Uniqlo bag. Photo: Kaya-Quintana/YouTube

Uniqlo is known for its understated, minimalistic appeal. Photo: Lilac Moonlight/YouTube

The Uniqlo bag comes in many different colours. Photo: Uniqlo 

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YanYan knit bag pays homage to the designers’ Asian heritage. Photo: YanYan

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A jeweller displays natural pearl earrings at the House of Pearls shop in Manama, on February 2. Photos: AFP

Faten Mattar of Mattar Jewelers displays an ant-shaped brooch made of natural pearls and 18k yellow gold at the House of Pearls shop in Manama, on March 19. 

Faten Mattar of Mattar Jewelers looks up information for an item on her computer monitor, while behind her is shown a framed picture of her grandfather, Khalifa bin Ibrahim bin Salman Mattar, during an interview at the House of Pearls shop in Manama, on March 19. 

Faten Mattar of Mattar Jewelers displays natural pearls earrings at the House of Pearls shop in Manama, on March 19. 

An ant-shaped brooch made of natural pearls and 18k yellow gold on display at the House of Pearls shop in Manama, on February 2. 

A view of a choker of baroque natural pearls, emerald drops and diamond baguettes on display at the House of Pearls shop in Manama, on February 2. 

A technician examines a gemstone at the laboratory of the Bahrain Institute for Pearls and Gemstones (Danat) in Manama, on March 16. 

A technician X-rays a pearl during an examination at the laboratory of the Bahrain Institute for Pearls and Gemstones (Danat) in Manama, on March 16. 

Laboratory technician Fatema Almahmood gives an interview at the gemmological laboratory of the Bahrain Institute for Pearls and Gemstones (Danat) in Manama, on March 16. 

Noora Jamsheer, CEO of the Bahrain Institute for Pearls and Gemstones (Danat) uses her computer during an interview at their gemmological laboratory headquarters in Manama, on March 16. 

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Luxury

Luxury fashion items like handbags, jewellery and watches have seen their value grow over time, prompting investors to investigate their potential – but don’t sell all your stocks just yet
Classic Chanel Flap Bags and Hermès Birkins tend to appreciate in value, but expect to pay more upfront – and if in doubt on what to choose, try timeless staples and neutral colours


Luxury bags as investments? As long as they are timeless and limited-edition ... read on for expert insights on choosing an accessory with long-term profit
