It seems like the bubble is bursting: While it seemed like a great idea to invest in luxury handbags and watches during the pandemic, where demand for resale Rolex watches and Chanel bags was exploding, the market seems to be slowing down. This doesn’t mean that there’s no money to be made – but you need to know the tricks.
Florence Low – founder of Luxlexicon, a resale platform that specialises in Hermes handbags – shares her tips on how to make the most of a handbag investment.
Choose the right brand:
“Scarcity is a huge factor that drives up value. The brands with the most gravitas at this point would be Hermes, followed by Chanel. For Hermes, I would advise anyone to invest in a Kelly Pochette, closely followed by a Kelly 20 and a Birkin 20 – if they can get their hands on one. For Chanel, a classic flap would reign supreme.”
Consider the size:
“We need to bear in mind that these are still fashion items, and they’re very trend-driven. The emphasis right now is on micro-bags, so the bigger they are, the weaker the resale value. Smaller bags also cost less to purchase, and yet, they resell for the highest in the secondary market. They’re going to give you the highest yield.”
Admire, but don’t use it:
“You can expect to shave off 20 per cent of your resale value as soon as you use your bag – even if you’re very careful with it. So I would advise pure investors to admire the bag, but not use it.”
Be smart:
“Look first at basic investments like your term deposits, bonds, treasury bills, commodities, etc. If you still have spare change after that, then you can start considering what we call alternative asset classes like bags, wine, or collectables.”
