CNN article about Resale value of luxury handbags

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#3
The market is inundated. Between auction houses all over the world, internet sites, resellers
at some point something has to give.
And in spite of some record sales from the auction houses specifically for Hermes bags, the
acquisitions for designer bags will continue for those clients who can afford whatever they
want to buy & likely the market will cater to that 1%.
Prices are starting to come down on a number of handbags, but that high in demand bag
will likely hold its value to a certain degree & for that client who will pay the premium price for it, JMO
 
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#8
As far as I know, BV financial return at resale has always been diabolical.

The video is misnamed. The guy from Etsy (CEO Josh Silverman) is talking UP the market not commenting on a lowering of prices. His model will lower prices though because he is encouraging the lowest end of the market. That's because increased sellers/buyers and traffic still mean more money to him, the price per item don't really matter (to him).

'They' always talk about Gen Z blah blah, 26 y o blah blah. Still most of Gen Z are not old enough to work or have a Etsy account (18 min). That means most sellers and buyers are older than 26 (non-Gen Z) and have not only paved the way for the market but are drivers in the resale fashion market.

The market JS is talking about (buyer/seller/buyer as seller) is an amateur one. I sold vintage when I was at uni so I didn't have to take out a loan. I no longer do. Online sales, including pre-loved jewellery, antiques, bags etc have bottomed-out. Even when people are not just selling low to clear wardrobe space, others have been taking advantage of extra pin money which is a side-hustle market. The widening of the market means people will buy at thrift chops and are happy to double the $5 bag, as a viable business you can't do that. That's why many professionals have changed their resale businesses (buy to sell) to agency business model.

JS is just soft advertising his platform as a resale platform away from home-crafty/small business model it initially promoted itself as. Pre-loved, vintage and antiques are usually underpriced on Etsy (and DePop which he also talks about). Compare to TRR (US) Collectors Square (France) Labellov (Belgium) HEWI (UK). Etsy may be somewhere to look to buy, it's not a (market)place to sell.

I have always maintained that only certain bags from certain brands have ever made a profit or broke-even after deduction. That's always been the gamble.

To me it's just common sense:

People often spend the most money on a bag rather than any other part of their wardrobe. Sometimes people can't/won't buy another bag until they've sold their old one.

Very few handbag 'investors' will now accept write-offs as they do in RTW and want to sell their would-be cast-offs because they can.

This leads to more bags on the market.

More supply than demand.

This leads to even lower offers

Personally, I'd rather buy the bag I want in the first place instead of the continuous trading-up mentality. I would buy preloved if the bag and condition was right? Yes, and I would pay top of the market for the right example. Would I rely on the pre-loved market to make money (profit or break-even)? No.
 
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#9
papertiger said:
Personally, I'd rather buy the bag I want in the first place instead of the continuous trading-up mentality. I would buy preloved if the bag and condition was right? Yes, and I would pay top of the market for the right example. Would I rely on the pre-loved market to make money (profit or break-even)? No.
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This paragraph summarizes what took me a few years of trial and error to realize. The bags I really wanted that I bought new, albeit more expensive, I still have and rotate. In regards to the last pre loved bag I bought, I was willing to accept a slightly less than perfect bag for $1k less than brand new. I have never made money from the pre-loved market. My purchases are a bit wiser now. Well said!
 
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#11
Lynnaea said:
I’ve always felt that prices for pre-loved are FAR too close to new to be worth considering. It’s just silly, why would I buy your cast off when I could get it new for $200 more?
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I would normally agree with this statement for most other brands. However, for BV, I usually don't have to wait long to find a pre-loved item in new or excellent condition for significantly less than full retail, especially with the steep price increases.

Case in point - in September 2022, I purchased a pre-loved Pre-Fall 2022 Padded Cassette for $2595. I saw no signs of use on it. Retail price at the time was $3900. This item in the color I bought is still available in many stores, and current retail price is $4500.

BV is not known for holding its value on the resale market. That combined with the steep price increases has pushed me more towards buying BV secondhand.
 
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#12
I definitely still see prices for preowned Hermes and Chanel items are too close to new to be reasonable. Even for small items like a scarf ring, the ones on Fashionphile are same price or more than what you can freely buy on the H website! I don't get it.

I also just sold an old Celine bag to Fashionphile for much more than I bought it for new (still in transit to them). It's been awhile since I sold bags but I was surprised to see that... it may be more a function of how much retail prices have increased over the years than preowned pricing strategy though.
 
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#13
lalame said:
I definitely still see prices for preowned Hermes and Chanel items are too close to new to be reasonable. Even for small items like a scarf ring, the ones on Fashionphile are same price or more than what you can freely buy on the H website! I don't get it.

I also just sold an old Celine bag to Fashionphile for much more than I bought it for new (still in transit to them). It's been awhile since I sold bags but I was surprised to see that... it may be more a function of how much retail prices have increased over the years than preowned pricing strategy though.
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It's because the seller wants to recoup their loss, and fashionfile takes a big cut
 
#14
I have been searching for a topic about the resale market being less viable for certain brands/styles after I started thinking about the Loewe Puzzle bag and Givenchy Antigona today after years of not “checking in” on the current retail prices, and was surprised that the latter did not hold its value at all, while the former seems to still be in demand. I was interested to know why demand has gone down for certain previous “it” bags while others continued to hold or exceed their value. Is it the shape of the bag itself? Is it the retail market driving demand/scarcity (or lack of)? Is it social media not featuring these bags anymore? Or is it simply the brand itself?
 
#15
Great question! IMO the antigona was a true “it” bag that became popular because of social media. In some ways I saw it as a shiny new alternative to the speedy. To be honest, I never really saw the appeal. The Loewe puzzle is a bag people are only recently (meaning in the last two years)discovering. I am biased but I feel that Loewe’s leather quality and craftsmanship are beyond most luxury brands. I bought my first small puzzle from fashionphile for $1650(including tax!)on a whim after seeing Karen Brit chic rave about her puzzles. I didn’t think much of it until I started using it and then I couldn’t put the bag down! Currently, I am obsessed with the mini flamenco bag! I am not loyal to any luxury brand, but I keep coming back to Loewe because their bags are not only excellent quality, but they are durable and practical bags to carry and the leather feels so luxe.
IMO it’s not social media, there has been a shift where people want to experience true luxury and not just buy a bag that is hyped via influencers. I can’t dismiss the fact that Loewe is a hot brand right now, so it’s a little more popular, but as long as the brand maintains their quality control, I don’t think their popular styles will drop much in the resale market.
 
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