Strong returns: The best designer bags, jewellery to invest in
You think buying a house will be your best investment? Think again. It might be time to splash out on that Birkin bag or a classic Chanel.
While ‘investment fashion,’ is a phrase easily bandied about, and perhaps one accompanied by a sigh from your accountant, there is certainly a case for it. Particular proof comes from the luxury resale market, a slice of the fashion industry expected to reach USD $60 billion by 2025.
According to research from the Knight Frank City Luxury Investment Index, luxury handbags increased in value by 13 per cent in 2020, while art saw a 5 per cent bump. And the resale market is one such place where you can see such investments come to fruition. A pastime surely as enjoyable as watching one’s stocks climb on a monitor.
Though it might be almost impossible to track the emotional value that a true fashion investment might engender.
Take the almost hallowed Hermès Birkin bag. Famously difficult to buy – as perfectly shown in the cult TV series Sex and the City – it continues to increase in value, both monetarily and culturally.
Luxury online reseller Vestiaire Collective (which earlier this year took on a 5 per cent stake from Kering, the owner of Gucci, Balenciaga, Bottega Veneta and other luxury houses and is valued at over USD 1$ billion), says the Birkin is widely considered a good investment and continues to be one of the site’s top-selling pieces.
Birkin bag sales (in volume) on the platform increased by more than 140 per cent in 2020 vs 2016.
“Resale value for recent key models such as Birkin’s and Kelly’s are usually above retail prices, especially as they are so complicated to get first hand,” says Sophie Hersan, Vestiaire Collective co-founder and fashion director.
“The Hermès Bag is the best example of a piece that also holds emotional value. These bags are considerably treated with care and have durability as people attach emotional value to the story behind how they obtained their Hermès bag. A vintage classic bag from Hermès will always stand the test of time.”
Otherwise when it comes to pieces retaining their value, Hersan says it is the rare, vintage, limited- edition and sold-out pieces that tend to fetch the highest resale value relative to their retail price.
“Over the last year, we’ve seen timeless and heritage designs, in particular, from Hermes, Dior, Gucci, Louis Vuitton and Cartier prove popular. Handbags and jewellery are always a safe investment, frequently increasing in value as the years go on. Consumers are looking for pieces that are high-quality and will retain their investment,” she says.
Another classic piece to hold value is Chanel’s 2.55 handbag. First released in 1955, it’s never lost its allure. Indeed, in 2016 many outlets reported buying one was a better investment than a house thanks to research from online retailer the Bag Hunter purporting prices of the style had increased 70 per cent in six years. Last month the luxury fashion house increased its prices on some styles by up to 15 per cent.
When it comes to other fashion investments, Hersan says limited-edition drops or collaborations from hyped brands like Supreme and Nike tend to sell out quickly and therefore have a higher resale value.
Meanwhile, according to the Business of Fashion and McKinsey’s 2021 State of Fashion report, sales of hard luxury items such as jewellery and watches are expected to grow around 3 to 4 per cent per year (fine jewellery) and 1 to 3 per cent per year (watches). One piece to particularly hold its value? Cartier’s Juste Un Clou bracelet, which, according to luxury reseller The Real Real, holds 106 per cent of its value, while the Van Cleef & Arpels Alhambra necklace holds 113 per cent.
Another investment would be none other than the tennis bracelet. The iconic design is said to be among the latest trends to make a come back, but to the trained eye they never went out of style. Designed in the 1920’s, the style was first coined the tennis bracelet 40 years later when tennis player Chris Evert wore one while she competed, climbing the ranks to becoming the world number one.
Since then the bracelet has been re-imagined by a number of luxury brands, including Australia’s very own Hardy Brothers Jewellers, and has been spotted on the wrists of royals and A-listers, Zoe Kravitz being one of them.
Ultimately though, what price can truly be put on sentiment or as Hersan puts it, emotional attachment? Jewellery in particular, especially the kind intended to be passed down through generations, holds value in ways that go beyond monetary.
What’s more, as Hersan points out, increasingly consumers want to invest in pieces that they treasure for reasons beyond just desire.
“More than ever, people are now questioning their habits and looking for eco-conscious alternatives in consuming fashion which fuels the demand of pre-owned. It‘s really about buying less but buying better, investing in quality pieces that will stand the test of time,” she says.
A real fashion investment then, one that takes in both value and meaning is likely something different to everyone. Pricelessness doesn’t always come with a tag.