Which luxury handbag is the best investment?
While ordinary handbag value depreciates rapidly, designer handbags tend to hold their value or appreciate over time. A 2016 study by Baghunter showed that the Chanel Medium Classic Flap Bag has appreciated 70% in the past 6 years--that’s a bigger jump than the stock and housing market! A similar study showed the Birkin bag was a less risky investment than gold.
We’ve put together our top picks for luxury handbags most likely to retain or even gain value over time.
01 HERMÈS KELLY
Designed in 1930 by Robert Dumas
Aspirational, bold and timeless, the Hermès Kelly bag is one of the most coveted handbags in the world. It has one handle and a shoulder strap, sizes range from 15cm to 40cm and it comes in a variety of colours and skins. When investing in a bag, keep in mind that exotic skins and certain colours such as gold, black, and etoupe will increase in value at a faster rate than regular bags. Hermès doesn’t sell these bags in an open store to retain its exclusivity, there's a waiting list which you could be on for years and prices start at over $10,000. Instead, it's more sensible to buy it second hand. From 1950 to 2010, the bag saw an over 1000% appreciation rate and is on the incline to keep rising.
02 HERMÈS BIRKIN
Designed in 1984 by Jean-louis Dumas
The pinnacle of luxury handbags; the Hermès Birkin is a safer investment than the stock market. It is deep, supple and designed to fit a lot so the bag is practical and chic. While the Kelly has a shoulder strap, the Birkin does not as it was designed to be held with two handles and an open flap. Sizes range from 25 to 50cm, the most popular sizes are 30 and 35 cm, although 25cm Birkins have also spiked in popularity recently. When buying a Birkin that’s 35cm and over, neutral tones are the safest while on Birkins that are smaller than 30cm, fun pops of color are preferable. It isn’t easy to get a Birkin, Hermès has a long waiting list and has a tendency to deny people the chance of even being on the list! Prices start at around $10,000 but ones with exotic skins can reach six figures. Due to the exclusivity of the waiting list, the second hand market for buying Birkins is very large as people often sell theirs, given that the bag has a 13.4% appreciation rate.
03 CHANEL 2.55
Designed in 1955 by Gabrielle Chanel
One of the first shoulder bags, the Chanel 2.55 will forever remain iconic. When purchasing this bag, one should remember it underwent several changes. The original 1955 bag’s strap was only made of metal and is now made of metal and leather. Chanel double C was added by Karl Lagerfeld in the 80s, the original had a simple metal clasp. The flap bag also comes in four different sizes now. For the best return on a long term investment, you can’t go wrong with a classic black bag made in lambskin or caviar leather. Unlike the Hermès bags, it's much easier to get your hands on this flap bag, prices range between $4,000 - 6500 but given that the bag has appreciated 70% over 6 years, you can’t go wrong by investing in this timeless and practical Chanel bag.
04 LOUIS VUITTON SPEEDY
Designed in 1956 by Georges Vuitton
The Speedy was the first handbag made by Louis Vuitton at Audrey Hepburn’s behest. Given that the company used to make travel bags, the speedy was constructed to be durable, it is made in coated canvas and is waterproof yet supple. The original was 30cm long but now it exists in 25, 35, 40 cm. The original 1956 bag used to be a checkerboard pattern but the bag was copied so much they added their iconic monogram pattern because it's more detailed and therefore harder to copy. A brand new simple speedy 25 without the strap starts at around $1,100 while a second hand bag can cost around $600. However, given that the Speedy is the most counterfeited bag in the world, be wary when purchasing a second hand bag. Between 2014-18, the Speedy’s value increased by 25% and the fashion house just increased their prices last month. The Louis Vuitton Speedy seems to be on the incline to keep rising and could be a great investment.
05 CÉLINE LUGGAGE TOTE
Designed in 2010 By Phoebe Philo
The Céline Luggage Tote elevates a cotton tote into a luxury handbag. It has a masculine and business touch to it while being spacious, making it perfect for the city life, the fact that the bag has two handles along with a shoulder strap makes it even more practical. The tote is available in solid colors, tricolor leather, suede and exotic skin while also being available in five sizes. A new Luggage tote costs around $2700- 4000, while a second hand one retails for around $1000. A large reason why the Luggage tote is a great investment is the fact that when Céline switched creative designers from Phoebe Philo to a less celebrated director, everything she designed for Celine rose in value overnight and suddenly there was nothing to buy on the second hand market. This is a great reminder that when major fashion houses change creative directors, pieces by the former director tend to raise in value.
06 DIOR LADY DIOR
Designed in 1995, commissioned by France’s First Lady, Bernadette Chirac
The Dior Lady Dior bag was popularised by Princess Diana, the bag features all the hallmarks of Dior leather goods: soft lambskin topstitched with the iconic Cannage motif, rounded handles and D.i.o.r charms. The chic bag exists in multiple colours but there are several special edition materials you can buy the bag in. However, it is important to choose material, colour and hardware wisely given that some combinations will appreciate at a faster rate than others. If unsure, going for a classic medium sized bag in a black, beige or dark blue palette, given that those are the most popular varieties and have a good chance at retaining their value. Dior doesn’t sell these bags online and can only be bought brand new in one of their boutiques where prices start at $3,400. Between 2014 and 2016, the value of the bag appreciated by over 14% and is on the incline to keep increasing as the bag becomes older.
07 STELLA MCCARTNEY FALABELLA
Designed in 2010 by Stella McCartney
The Stella McCartney Falabella was one of the first high-end designer bags which is completely vegan, making it very appealing to the new generation of eco-conscious millennials. The bag is sewn to the chain and has two handles along with a shoulder strap, making it very versatile. The bag is available in all conceivable colours, four sizes and several artificial leathers, with the most popular being called “Shaggy Deer”, which looks like a glossy, pebbled suede. Given that vegan and eco-friendly fabrics are the most desired material at the moment, it would be a safe bag to invest in. The bag retails between $700 and 1200 depending on the size. However, you could get it cheaper when there is a sale and you’re quick enough. The bag is also available second hand, its price ranges $500 - 800, so it holds its value pretty well
08 GIVENCHY ANTIGONA
Designed in 2011 by Riccardo Tisci
The combination of masculine and femanine aesthetics within the classic bag shape has enabled the Givenchy Antigona to become the perfect business bag. The bag is deep enough to hold your belongings and it has two handles along with a detachable shoulder strap making it rather versatile. The Antigona is a very minimalist bag, it has three sizes and it's best to buy it in more neutral colours such as black, nude, and light pink for a long term investment. However, the bag is also available in special exotic styles. A new bag retails between $1300 and 2500 while the smallest size on the second hand market costs a bit over $1000.
09 CHANEL BOY BAG
Designed in 2011 by Karl Lagerfeld
Bold and iconic, the Chanel Boy Bag is a staple accessory needed in everyone's wardrobe. The shoulder bag comes in three sizes and has been fashioned in a lego- brick shape with a coarse chain handle to be more bulky than the 2.55 bag from Chanel. Chanel increases the price of the boy bag around three times a year and black is the most in-demand colour, so when investing in this bag, it's safe to say you should go for the classic black caviar medium size with silver or gold hardware. Prices for the boy bag start at $4,000, however, Chanel has not been afraid to experiment a lot with the bag, whether that's in terms of size, colour, embellishments, quilts and materials. By making these special editions in limited quantity, prices can reach up to 5 figures. In 2019, the Boy Bag appreciated by 2% in the US and 7% in Europe, so it's important to note which country you buy the designer bag from.
10 LOUIS VUITTON NEVERFULL
Designed in 2007
Perfect for a fancy dinner out as well as traveling, the Louis Vuitton Neverfull bag remains to be the go-to bag for working women. The canvas treated fabric bag has two sturdy straps which help make the tote durable, chic and timeless. The Neverfull comes in three sizes, the medium size is the most popular while the largest size can hold up to 90kg. The Neverfull tote is available in the classic monogram canvas, damier (French for checkerboard pattern) ebene, damier azur, durable epi leather, and also limited editions. After 2014, Louis Vuitton added a detachable clutch to the inside of the bag which can be used for additional storage, or it can be used on its own as an individual pochette. Retail prices start at around $1,500 which may seem rather daunting at first, but is rather reasonable when considering how durable and versatile the bag is, which is why the Neverfull is Louis Vuittons best seller. On the second hand market, the average Neverfull retains around 85% of its original price while limited editions tend to appreciate rapidly.
