How many of you research a luxury handbag purchase before you buy? Who contemplates, evaluates, and ponders the purchase of a luxury handbag? What do you look for to help make your decision? Do you look at it as an investment? If you haven’t started looking at the purchases of these expensive accessories as an investment, you should. I have a passion for researching, procuring, collecting, and selling luxury handbags. I would like to share what I have learned with you.
Investing in bags may be a new concept for you or it may be something you have been doing for a while. How do you make money on buying and selling handbags? This is how… First let’s talk about the short term investment.
To make money on a bag in a short period of time, less than a year, you need to find a bag that is limited, in high demand, but also timeless. A bag that many people want RIGHT NOW, but can not obtain. Over the last year I have seen a couple of bags go crazy on the internet: the Dior Saddle Bag, especially the vintage bags, and the Dior Book Tote. The Book Tote, a newly introduced design by Dior, by far outshined anything I’ve seen in a while.
The Dior Book Tote was introduced September 2017 during Paris Fashion Week for the Spring Summer ready-to-wear collection. The bag was open for pre-orders at the beginning of 2018 for $1850. The first collection came in one size with three color options: navy Dior oblique, Mexican fiesta, and the black and white checkered print. This bag was an instant hit because of its versatility, style, and design. The bag is great for traveling. It makes a great carry on bag or you can easily pack it in a suitcase because it folds flat and the handles fold in. When you arrive to your destination and unpack, the bag pops right back into its shape! You can wear it several ways too. You can swing it over your shoulder, carry it on our arm, or in your hand. The material is very beautiful and durable. It is a completely embroidered canvas, made in Italy, and it holds its shape, holds up to wear, and will last you a life time.
Since the bag did so well on the first release, Dior creative director, Maria Grazia Chiuri, has included it in every collection since. It has been released in a multitude of colors, prints, and materials. However, if you invested in this bag from the start, you are easily sitting on a profit of at least $1000 per bag. The price of the Dior Book Tote has steadily increased over the last year and it is now priced at $2850 for the new releases of the embroidered canvas.
However, the first limited releases from the SS18 show are highly sought after, especially the colorful Mexican Fiesta design. It has been seen on the arms of celebrities like Karlie Kloss, Jessica Alba, Sienna Miller and many Instagram stars. Now the bag is selling for close to $5000 on resale websites! Now that is a good return on investment IF you decide to sell.
Now let’s talk about the long term investment of handbags. The good long term investment bags are the ones you are actually going to wear day after day, the bags that will look and feel good for years to come. These are the staples of fashionistas everywhere and therefore, will never go out of style, will likely keep going up in value, and will give you a good return on investment even if you use it regularly for many years. These bags you’ve known about for years: Hermès Birkin and Kelly, Louis Vuitton Neverfull, the Lady Dior, and the Chanel Boy or Flap Bags, just to name a few.
However, I particularly like the idea of investing in these types of fashionista staples when they have been reworked in a collaboration effort with world famous artists. Many of the major fashion houses have done this. The products of a cross over of fashion and art are usually expertly crafted with new and unique materials, have an explosion of personality, and are always very exciting! I think these handbags make a logical longterm investment because they are unique, very limited, use rare materials, and interest collectors of both fashion and art.
The artist and fashion collaborations I have invested in are the Dior Lady Art projects 1, 2, and 3. I have collected from each release for the last three years. Picking a bag as an investment piece from a collection such as these can be a bit more tricky and requires more research than a regular bag. Over the years, I have honed my skills in narrowing down my selection. First, I pick my favorite bags based on design and style. Then I spend a good deal of time researching the artists (I use a website called Mutualart.com). Next, I go back to the bag to see if any of the fashion house codes have been implemented or if the artist truly embraced the carte blanche given by Dior. Finally, I consider the materials used, the craftmanship of each piece, and how many were made worldwide. It wasn’t easy at first, but I have gotten better at procuring what I think is the best long term investment piece from each collection. I have not tried to sell any of these bags because I treat them as if they are fine art, and I plan on keeping them protected, locked up, and safe for many years.
If you want to start making smarter, more well informed luxury handbag purchases then start considering the following points on your new purchase.
In the hunt for the bag that will beat the stock market.
1. Only invest in bags you love and would be happy to carry for many years. Chances are if you love it long term, so will the rest of us.
2. Buy bags that are tried and true. Bags that have been around for generations will likely stay for more to come.
3. Invest in a bag that is a color that is highly sought after or a rare limited edition, such as seasonal colors or art collaborations like the Dior Lady Art Projects.
4. Look for new bags debuting from top fashion houses, buy them before they become the IT bag and the prices go up.
Enjoy Life Now,
Tatiana Nicole
