Bag’s “Real State”

 Everyone at some point have had some thoughts about investing their money somewhere. Properties, gold, the stock market, crypto… But what about luxury bags? This market moves millions of pounds a year.

 

Bags from Louis Vuitton, Chanel and Hermès not only retain their value but increases over time. The price of Chanel’s Classic Flap Bag has nearly tripled in the last decade, being $1,650 in 2005, now the same lambskin bag goes for $4,900. 

Every year, luxury brands increase their prices mostly on their most iconic or desirable items, but price is not just the only obstacle to get one these pieces. 

 

A few years ago, I bought the Louis Vuitton Bum Bag (£1,020 back then, £1,410 now and up to $3,000 second hand) and I remember one of the girls working at the boutique saying to me “Oh my God! You are so lucky!”. ‘Lucky’… I had to wait 5 months and come as soon as my sales associate called me to get it.  But this is nothing compared with Hermès and ‘The game’ the put up to get one of the most desired bags in the world, the Birkin. Named after Jane Birkin, muse of Jean Louis Dumas.

For instance, you have to be offered the bag, no chance you can just walk in and buy it. You must build a certain relationship with your sales associate, you must prove you are worthy to buy one of these bags and of course that you have the money to buy it, around $10,000.

Hermès keep a shortage on this bag on purpose and you can just buy 2 of them a year, obviously this can be no issue if you buy them in different countries or someone else is getting it for you under their account at store, but that means they have to play ‘The game’ too. 

Due to their high value, desirability and how hard can be to put your hands on one of them, they increase their value around 54% as soon as you step outside the boutique with it.

One of the most expensive bags in the world is the Himalayan Birkin, Nile Albino Crocodile bag designed to conjure thoughts of the beautiful Himalayan highlands. The interior is lined with Gris Cendre Chevre Leather with one zip pocket and one slide pocket. The most affordable Himalayans have white gold hardware studded with diamonds, while the most opulent Himalayans contain palladium hardware, bought for $500,000 (second hand).