The Rise of Handbags as a Lucrative Investment in 2023

The Rise of Handbags as a Lucrative Investment in 2023
Hermès: a Mauve Pale Epsom Leather Sellier Kelly 25, Source - Bonhams.

Introduction

Handbags have evolved from mere fashion accessories to valuable investment assets. The allure of owning iconic pieces from brands like Hermès and Chanel has never been stronger, especially as the market continues to show promising growth.

According to the Knight Frank Wealth Report 2023, the handbag market is booming. Global registrants for Bonhams handbag auctions have increased by an average of 120% year-on-year. Even more impressively, the average hammer price has surged by 154%, indicating a robust demand for these luxury items.

When it comes to brand popularity, Hermès and Chanel are the undisputed leaders. Particularly, smaller designs like the Hermès Kelly 25 and Birkin 25 have proven to be especially popular among buyers.

When it comes to brand popularity, Hermès takes the lead, particularly with its smaller designs like the Kelly 25 and Birkin 25. Chanel is not far behind, especially since they have implemented a handbag quota, limiting the supply in the primary market.

Iconic Handbags

The Chanel 2.55 Classic Flap bag, designed by Gabrielle Chanel in 1955, holds a special place in handbag history. It was one of the world's first 'hands-free' handbags and continues to be an iconic piece that many desire to own.

The Importance of Condition and Rarity

As the market matures, collectors are becoming increasingly specific in their choices. Rare Hermès pieces in excellent condition are fetching a premium at auction, even if they were created in the last couple of years.

Iconic Sales

One of the standout moments this year was a single-owner auction in London that featured 30 Hermès handbags in excellent condition. The event created a buzz in the market, particularly for smaller bags like the Kelly Pochette.

Investment Tips

If you're considering investing in handbags, it's crucial to buy from reputable dealers or auction houses. Pay attention to the condition, as it significantly affects the long-term value. Brands like Hermès and Chanel offer repair services for some issues, adding another layer of security to your investment.

A Long-Term Investment

While short-term gains are possible, experts advise looking at handbags as a long-term investment, with a horizon of five to 20 years

Conclusion

The handbag market is more than just a playground for fashion enthusiasts; it's a burgeoning field of investment. With significant growth in both demand and prices, this market offers a unique opportunity for those willing to do their homework.

Sources

Knight Frank (2023), The Wealth Report Luxury Investments 2023. https://content.knightfrank.com/resources/knightfrank.com/wealthreport/2023/the-wealth-report-luxury-investments-2023.pdf

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