The only time I made a goodly amount of money was when I sold 4-5 Chanel bags from the early 1990s on consignment circa 2000-2010 or so . I paid less than or around $1000 for each of them, and sold for more than I paid for them new. They were very very rarely used.
Buying Bags For Investment
- Thread starter SparklehorsetteMadeleine
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The majority of luxury youtubers I watch have explained that what they mean by investment is that they're investing in the quality and a classic style they like so the cost per wear may be potentially lower in the long term than a trendy piece which they may only wear for a few months. I 100% agree with the above comments saying that real investments are more in property and shares etc
M
MagpieInTraining
These posts originate from a study done by Baghunter that compared the price increase of a Birkin vs. the S&P500 and found that, if I remember correctly, the profit made off reselling a Birkin was higher than simply holding the S&P500 portfolio for 35 years if you assume that the bag will fetch exactly the price of a new Birkin (i.e. they compared the increase in price of the Birkin to the return from the S&P500). The caveats of course, are that Birkins exploded in price and popularity between the 80s and today, and that they are presuming you will personally get exactly the price of a brand new, from the store Birkin when you sell your vintage bag. This is an unlikely set of circumstances at best and complete nonsense at worst. That kind of meteoric rise in price is extremely unlikely to repeat itself. Lets not forget that Baghunter is a luxury handbags reseller and may presumably have some conflict of interest here. Talking about the Chanel Flap, another study by them claims that the price increased by 70% between 2010 and 2015, making it a solid investment. I would say the same caveats apply here as well.
Bags are not an "investment" in the true sense of the word. If they appreciate its a nice bonus, but I doubt that people who are reselling their Birkin or CC Flap bags bought *today* are going to see a lot of profit after commission, fees etc. The Birkin is already a 5 figure handbag.
I don't think there's anything wrong with buying luxury bags or anything, if you have the funds for it, but in my head they are consumption goods only. I would buy the bags that I like and not get pressured into buying bags I don't really love. Luckily for me, I've never been a huge fan of the Birkin as a bag itself, so I've never felt pressured to buy one. My mum has one - my dad got lucky at an Hermes boutique several years ago when they weren't so difficult to get a hold of - and she rarely uses it because she finds it heavy and awkward. I tend to agree with her tbh. Chanel is another story, but if I buy a Chanel bag its because I love it and I want it to use it. I don't buy them thinking I'll recoup my money and then some at some future point when I sell them.
For me when I say "invest" I mean I invest in my wardrobe, collecting non-mass produced high quality items that are not trendy so I can wear them season after season.
Bags and bling, I doubt I can make a profit off them. I'd be lucky if I don't incur a huge loss.
As for keeping Chanel and Hermes pristine to sell for a small profit.... I don't know if they will retain their popularity. Things I remember I coveted in the past (go back 30 years please), no one even remembers or knows of them today. Already there is a shift today; brands like Rolex, Chanel and Hermes are known as luxury for the older set.
Bags and bling, I doubt I can make a profit off them. I'd be lucky if I don't incur a huge loss.
As for keeping Chanel and Hermes pristine to sell for a small profit.... I don't know if they will retain their popularity. Things I remember I coveted in the past (go back 30 years please), no one even remembers or knows of them today. Already there is a shift today; brands like Rolex, Chanel and Hermes are known as luxury for the older set.
Some excellent thoughts here! This is turning out to be a really good discussion.
I should say that only a small portion of luxury youtubers act as if you can make money off goods. However, these users tend to have larger subscriber bases and more views than youtubers that differ in opinion. Sometimes I'm just watching a haul video, and the creator will say 'oh its an investment.' I, like many on this thread- was under the impression that fashion investments were items that you wear alot over time. However, the youtuber will then talk about 'the value' of the bag increasing over time and it turns out, we have wildly different ideas. Suddenly, youtubers who are influenced by other bloggers begin to sprout the same line. It changes how you look at bags- you no longer see them fitting into your own personal world, but instead, you view them as financial investments. It's no longer exciting and fun.
And my point is there a moment where misguided advice turns into free advertising for Chanel and Hermes as well as reseller sites. Because people are under the misguided notion that they'll make money, I find it to be unethical and misleading, bordering on reckless and financially dangerous.
I also think people underestimate what great of an influence YouTube can have on consumer decisions. There is a reason why companies partner with them. You may not be consciously thinking 'hey I'm buying this Birkin because this youtuber said I should.' It's more subconscious and subtle. Perhaps you were considering buying a Birkin, but you didn't take the plunge until you heard a 'success' story and watched an unboxing. Marketing isn't about changing minds instantly, but about slowly persuading you into being a lifelong customer.
I believe fashion can be fun and artistic, and we can help each other to make decisions that will enhance our own personal style. But there are times when we have to be critical of the messages we receive considering we pay a premium.
I'm only 24 and have just started my luxury collection. The thought of making 'investment' purchases stresses me out so much. What doesn't stress me out is curating a collection full of pieces that I love, cherish and use. Okay this post is getting long- I just have alot of thoughts.
I should say that only a small portion of luxury youtubers act as if you can make money off goods. However, these users tend to have larger subscriber bases and more views than youtubers that differ in opinion. Sometimes I'm just watching a haul video, and the creator will say 'oh its an investment.' I, like many on this thread- was under the impression that fashion investments were items that you wear alot over time. However, the youtuber will then talk about 'the value' of the bag increasing over time and it turns out, we have wildly different ideas. Suddenly, youtubers who are influenced by other bloggers begin to sprout the same line. It changes how you look at bags- you no longer see them fitting into your own personal world, but instead, you view them as financial investments. It's no longer exciting and fun.
And my point is there a moment where misguided advice turns into free advertising for Chanel and Hermes as well as reseller sites. Because people are under the misguided notion that they'll make money, I find it to be unethical and misleading, bordering on reckless and financially dangerous.
I also think people underestimate what great of an influence YouTube can have on consumer decisions. There is a reason why companies partner with them. You may not be consciously thinking 'hey I'm buying this Birkin because this youtuber said I should.' It's more subconscious and subtle. Perhaps you were considering buying a Birkin, but you didn't take the plunge until you heard a 'success' story and watched an unboxing. Marketing isn't about changing minds instantly, but about slowly persuading you into being a lifelong customer.
I believe fashion can be fun and artistic, and we can help each other to make decisions that will enhance our own personal style. But there are times when we have to be critical of the messages we receive considering we pay a premium.
I'm only 24 and have just started my luxury collection. The thought of making 'investment' purchases stresses me out so much. What doesn't stress me out is curating a collection full of pieces that I love, cherish and use. Okay this post is getting long- I just have alot of thoughts.
E
Evia
At the age of 24 “curating” a collection of luxury goods from Hermes, Chanel (or anyone else) was the last thing on my mind. I was focused on getting established in my career, postgrad qualifications, and saving up for a house (oh, and having fun), I think you’re more influenced by what you’re watching on YouTube than you think.
I think you hit on a good point that gets overlooked even here at TPF. Fashion is about fun and expression and art. If you’re only buying three brands because “resell” value, you’re not all that into *fashion*.
I'm doing those things too! And I think a collection is something you curate over time (like 10+ years). So a bag every 2-3 years is fine for me. I think the trick to excellent style is not comparing yourself to others.
I believe it's possible to save, study, work hard and look stylish- at the same time
Agreed. I have a couple of Chanel bags ( 1 lambskin and 1 caviar) from 1990's originally purchased by me and yes for about $1000.. I will never sell them, but I have to admit this really is the only time I could see myself turning a profit on my bags.
Honestly, this topic has been beaten to death on so many threads on tPF. And, yet, while I may certainly have missed a stray post, I don’t recall ever seeing anyone encourage people to buy a bag as a true financial instrument / investment with the thought of it reliably appreciating and providing a positive financial return.
When I’ve seen people exhort others to buy a bag because it’s a good “investment” they’re saying some combo of these points:
1) it’s “worth” the money because it perfectly accents your style and / or will be a classic / non trendy and used for years to come.
2) It’s “worth” the money in relative terms to other similarly priced bags because the perceived quality to price ratio is higher.
3) that brand and/or model of bag is likely to hold its value better than other bags of similar cost.
Point one is a no brainer. If you have the money and the item is supportive of your look and your brand and makes you happy, it’s a good “investment.”
Point two is somewhat subjective as we all value quality slightly differently. For me, however, this means I’m far more likely to plunk new dollars down on Dior or Gucci (despite their relatively lower resale) than Chanel because I find their quality to now be superior for a lesser price. It’s win / win.
And, speaking to point 3, even in a saturated market, certain brands will sell faster or for a higher relative return than others. So, I want to know what those better resale brands are. People sharing that a bag / brand has better resale and therefore may be a smarter purchase (even using the terminology “investment”) isn’t a bad thing. That’s them offering information being based on their experience to help someone else make a decision. We do that on all aspects of bags. That’s a good part of what this forum is about.
And, that resale value potential is a good thing. I can’t think of any other personal, non durable good that I can reliably sell for something worthwhile. Even jewelry is a tougher sale with worse rates of returns.
So, I can’t speak to what youtubers say as I find most of them to be annoying, air puffed, braggards. Lol! But, on tPF, I can’t say I’ve ever seen anyone suggest that someone use handbags as part of their true investment strategy. And, for the life of me, I can’t understand why we would expect leveragable financial advice from beauty and fashion lovers even if they’re vloggers (for whatever teeny bit that status is worth.) That’s like me taking medical advice from a group of avid foodies.
When I’ve seen people exhort others to buy a bag because it’s a good “investment” they’re saying some combo of these points:
1) it’s “worth” the money because it perfectly accents your style and / or will be a classic / non trendy and used for years to come.
2) It’s “worth” the money in relative terms to other similarly priced bags because the perceived quality to price ratio is higher.
3) that brand and/or model of bag is likely to hold its value better than other bags of similar cost.
Point one is a no brainer. If you have the money and the item is supportive of your look and your brand and makes you happy, it’s a good “investment.”
Point two is somewhat subjective as we all value quality slightly differently. For me, however, this means I’m far more likely to plunk new dollars down on Dior or Gucci (despite their relatively lower resale) than Chanel because I find their quality to now be superior for a lesser price. It’s win / win.
And, speaking to point 3, even in a saturated market, certain brands will sell faster or for a higher relative return than others. So, I want to know what those better resale brands are. People sharing that a bag / brand has better resale and therefore may be a smarter purchase (even using the terminology “investment”) isn’t a bad thing. That’s them offering information being based on their experience to help someone else make a decision. We do that on all aspects of bags. That’s a good part of what this forum is about.
And, that resale value potential is a good thing. I can’t think of any other personal, non durable good that I can reliably sell for something worthwhile. Even jewelry is a tougher sale with worse rates of returns.
So, I can’t speak to what youtubers say as I find most of them to be annoying, air puffed, braggards. Lol! But, on tPF, I can’t say I’ve ever seen anyone suggest that someone use handbags as part of their true investment strategy. And, for the life of me, I can’t understand why we would expect leveragable financial advice from beauty and fashion lovers even if they’re vloggers (for whatever teeny bit that status is worth.) That’s like me taking medical advice from a group of avid foodies.
I do think a bag is an investment IF you can sell it for profit like buying pre-loved well below average and sell it at high. There's plenty of noveau rich x which hindern the shift from materialism to experiences but eventually I believe people are more willing to pay for innovative gadgets in the future than for the bags.
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Agree on the general point that a bag is not an investment in the traditional sense of the term.
On OP's sub-point that this is a bad time to sell Chanel because of TRR suit, I don't think that suit has even registered much. Chanel is always suing. I literally just consigned a Chanel bag to TRR 3 weeks ago and they got it sold in less than two weeks at a good price.
On OP's sub-point that this is a bad time to sell Chanel because of TRR suit, I don't think that suit has even registered much. Chanel is always suing. I literally just consigned a Chanel bag to TRR 3 weeks ago and they got it sold in less than two weeks at a good price.
Technically yes bags are not investment. A profit can be made if one brought them cheaply like consignment stores, or there were some price increase after a purchase to a like new bag. I also see a classic design as an investment to a wardrobe for long time wear. Most used bags won’t get you full market price, but sometimes you can get close to it for like new bags from some brands. Resell value does make some expensive bags more appealing to me, but of course it is not the only reason why I like the bag.
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Coming from personal experiences of buying seasonal bags from Luis Vuitton, Gucci, Prada, Dior, and etc. in the past, I find it so hard to wear them now. They just seem so dated, are hard to rehome, and just crates clutter; their values are also not even half of what I originally purchased, so why resell them. Compared to an Hermes bag, they retain their value which is a big investment. My first Hermes bag was a Green Birkin, which I currently do not wear anymore, but I find it easy to sell and rehome. I do understand you on how other bags are pretty and are not really good investments; I don't only strictly stick to Hermes but when I see a cute bag from Gucci or Balenciaga I don't hesitate to buy. It just really depends on how you see the situation; if the Gucci bag is cute and you see yourself wearing it a lot then thats a good personal investment, or if you see an Hermes or Chanel bag as a good investment because of the steady value of the bag.
Bags are not an investment. They depreciate just like a car. The minute you buy one and drive it off the lot, you have lost money. Jewelry and bags will rarely ever appreciate in value. Just my 2 cents.