There’s something about luxury items that draw people to them.
Conspicuous consumption? Maybe. Premium quality and craftsmanship? Sure. Status symbol? Perhaps. Can be passed down to your kids? Okay lah can.
And you can throw in “valuable” in the list of reasons, because designer bags can be investments.
While people seldom trade bags to earn money (after all, some bags are hard to come by) it’s true that some luxury bags can earn you a neat profit if you ever decide to sell them.
Here are four which have proven to consistently reap a ROI for their owners.
The holy grail bags
1. Hermes Birkin
Price: Anything from US$12,000 and up
Why it’s so valuable: Rare materials, limited quantity, craftsmanship, classic design, coveted by celebrities
First things first: There are bags and there are Birkins -- a bag cannot be Birkin, but a Birkin is a million bags and more.
All Birkins are apparently handmade.
It’s a coveted handbag that sometimes even money cannot buy as the waitlist can take up to six years.
The brand maintains mystery over the number of Birkins it produces, and this exclusivity contributes to the bag averaging a rise in value of around 16 per cent year on year.
There are actually user-generated strategies to score one like building up a reputation as a big spender first.
According to the New York Times, a Hermes 12-inch Hermès Birkin matte Himalayan crocodile handbag, with white-gold hardware set with 245 F-color diamonds weighing close to 10 carats, was sold for close to US$300,000.
And we all know that one Birkin collector.
2. Hermes Kelly
Price: US$9,000 and up
Why it’s so valuable: Classic design, craftsmanship and Hollywood glamour -- after all it was named after Grace Kelly, an American actress who became the Princess of Monaco.
Another gem in the Hermes family of ridiculously-expensive bags, the Kelly is a favourite because it has a variety of sizes, and can also double up as a shoulder bag.
3, 4. Chanel 2.55, Chanel Classic Flap
Price: US$8,000 and up
Why it’s so valuable: True classics created by two late legendary designers, which means they will stay as classics forever.
Talk about Chanel and the iconic 2.55 and Classic Flap come to mind.
And both are created by legendary designers -- Coco Chanel with the 2.55 64 years ago, and Karl Lagerfeld the Classic Flap.
The relatively low entry point (US$8,000) makes it attractive for collectors. According to the baghunter, the Chanel Medium Classic Flap Bag has increased in value by 71.92 per cent between 2010 and 2015.
How about trending bags?
But anyone interested in luxury goods will tell you these bags are not easy to come by.
And sometimes, you just want to buy something pretty and trendy, instead of thinking about how much you can sell them for.
To help you with that, here are three trending bags that have the potential* to be investment bags.
*disclaimer we are not the experts but we heard from some experts *ahem Style Theory Bags* ok
1. Dior Book Tote (launched in 2018)
You either love it or hate it. But the people who love the book tote are crazy over it, and it’s all over social media -- simply because it’s spacious, comes in a variety of designs, can be customised with your name, and just stands out on its own:
Why it’s potentially an investment: This bag is practical and easy to use, and has remained hugely popular, spurring Dior to re-release it in different variations of canvas and even leather.
The Dior Oblique Canvas is also instantly recognizable and unisex, and continues to be high in demand thanks to an army of Instagram stars.
2. Chanel Gabrielle Hobo bag (launched in 2017)
Chanel rarely releases new bag models, so when Gabrielle was launched it caused quite a stir. Unlike the classics or the Chanel Boy, the Gabrielle Hobo is more functional (zip closure!!) and has a unisex appeal -- but you can still tell it’s a Chanel just by looking at it.
There’s apparently also 7 ways to wear the bag.
Why it’s potentially an investment: Because Chanel. It also comes in three sizes, which is great if you like your bag to be like Doraemon’s pocket.
3. Louis Vuitton Twist (launched in 2014)
Visually, it’s markedly different from what most would assume LV bags to look like. But five years since its launch, LV is still pushing out variations of this model every season -- which implies that demand for the bag is there.
The bag itself is a familiar shape with a minimalist design, which means it would be easy to match it with most wardrobes. And occasions.
Why it’s potentially an investment: Prices in the secondary market are not far from the retail price, and that's always a good sign.
But before you buy
Now, forking out thousands for a bag can be scary. We get it.
So this is where we plug our sponsor -- Style Theory Bags.
Its bag rental concept means that you can try out first before you sink your hard-earned bonuses into a handbag (sadly, they don’t carry the holy grail bags).
At just S$129 a month, you get to try and carry two different bags every month: It’s more prudent, and you get to “review” the bags first before you decide to drop cash on it -- you can rent a bag for up to three months.
It’s also a fuss free process:
Now, there is a waitlist to get on the designer bag subscription, but once you get a spot, you can pick from any of their available bags. Brands available include Celine, Chanel, Dior, Fendi, Givenchy, Gucci, Louis Vuitton, Prada, Saint Laurent, Valentino, and more.
The wait time to get a spot on the subscriber’s list is 1-2 weeks.
You can even put your designer bags up for rent -- a good way to earn some money if you have a few sitting around collecting dust.
Just snap a picture and Style Theory Bags’ experts will do the rest.
Cool.
Find out more about bags available here.
This sponsored post by Style Theory Bags helps our writers get slightly closer to being able to afford a Birkin.
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