Hermes and Chanel Reported As Best Bag Investments

As shoppers, we spend a lot of money on our bags and they serve as important pieces in our wardrobes, so of course, we consider them “investments.” Yet, in the technical sense of the word, most handbags are not investments. An “investment” is something that is suppose to hold its value or even gain in worth in the future. However, there are certain handbags that are an exception to this rule, and by the numbers, have proven to be great investments. Your best bet for bag investments: the Hermes Birkin, the Hermes Kelly, and the Chanel Flap bags.

Let’s look into the reasons why…

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You may be wondering why Hermes and Chanel specifically have risen to the top as coveted brands. Their bags hold in value because of the association and reputation behind them. Let’s take a closer look at the few outstanding characteristics that have lead to Hermes’ and Chanel’s success.

Hermes

  • Prestigious fashion house with a rich history
  • Impeccable Craftsmanship
  • Cult Following
  • Symbol of Ultra-Luxury and Exclusive Status

Chanel

  • Prestigious fashion house with a rich history
  • Willingness to experiment
  • Cult Following
  • Stamp of Luxury and Chic Elegance
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It’s easy to see why so many people love Hermes and Chanel, but let’s take a look at the numbers and facts to see why their bags make such great investments.

Hermes Birkin
As reported in racked.com, the BagHunter compared investment returns on gold, the S&P 500, and the Birkin over the last 35 years, and the Birkin was the clear winner. Over the last 35 years, the Birkin has increased in value over 500% and has never decreased in value even during economic difficulties. Annually, the Birkin increases in value by an average of 14.2%.

The Birkin is expected to only increase in value going forward. Its high retail price, limited availability, and strong presence on the secondary market demonstrate that it is still a highly coveted piece.

Read more details on the Hermes Birkin as an investment HERE.

Hermes Kelly
In terms of desirability, the Hermes Kelly holds a similar rank to the Birkin. In comparison, the Birkin has a bit more media exposure as a status symbol, and is consequently a little more popular. However, the Kelly has risen to iconic status too and is still highly sought after. Both bags are exclusive and difficult to procure. Due to its limited availability and high appeal, the Kelly holds its value well in the secondary market just like the Birkin.

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Chanel Flap Bags
The Chanel Flap Bags (Classic Flap and Reissue) are Chanel’s oldest and most iconic bags. Upon its first launch in 1955, the bag retailed for $220. By the 90’s, the bag increased to around $1,150.  In 2010, that number rose to $2,850. Today, the Medium Classic Flap is $4,900. Take a minute to soak those prices in…the Chanel Classic Flap has increased in value by over 70 percent in the last six years alone.

As reported by fashionista.com, in a recent study conducted by BagHunter, experts analyzed the pricing history and investment potential of the 2.55 bag (Classic Flap and Reissue). The study concluded that from 2010-2015 the retail value of the 2.55 outpaced the rise of inflation by more than eightfold. To put that in comparison, the study quotes, “Housing prices increased by 8.1 percent and the S&P 500 by 13.2 percent during that same period, with neither coming close to matching the rapid value increase of the Chanel Medium Classic Flap bag.”

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Infographic: Courtesy of Baghunter via Fashionista.com

Hermes and Chanel have such a strong influence in the fashion world that they have the ability to rapidly increase prices in a short period of time without alienating or turning off consumers. Many price increases have taken effect recently. Hermes increased prices in Europe and Chanel increased prices in the UK exactly one year after the price globalization changes.

PurseBop wants to know: Do the investment studies make you feel more secure about your Hermes and Chanel purchases? If you don’t already own these bags, will you consider buying these classic pieces in the future? Or do the increasing prices make you less willing to buy and more willing to prioritize other purchases?

Read related articles below:
Gold, S&P 500, or Hermes Birkin?
Should a bag be an “investment”?
Handbags Keep Luxury Afloat
The Birkin Continues to Make Headlines
From Coach to Hermes: The Luxury Handbag Market
Are Luxury Brands Losing Their Exclusivity

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