Even people who don’t follow fashion are aware of the value of certain, high-end designer handbags. The Hermès Birkin, for example, has outperformed gold on international markets.
In this article, we cover:
- South Africa’s top-performing luxury handbag brands
- how well designer handbags retain their value
- example resale prices for luxury bags
- maximising the resale value of a luxury handbag
- an alternative to selling: pawning a luxury handbag.
South Africa’s top-performing luxury handbag brands
Luxity is a marketplace that buys and sells authentic, pre-owned luxury items. It has insight into the top-performing luxury brands in South Africa.
According to its most recent State of the Luxury Market Report, these are the three top-performing luxury handbag brands, based on resale price as a percentage of the original price:
- Chanel2%
- Dior2%
- Louis Vuitton2%.
Chanel and Louis Vuitton were overall top performers in preowned luxury goods, claiming the number one and two spots respectively.
In a return on investment (ROI) comparison, certain Chanel and Louis Vuitton handbags outperformed gold over a five-year period.
Image source: Luxity.
How well designer handbags retain their value
There used to be certain taboo in buying used luxury items, especially shoes. As these barriers have fallen away, designer handbags have retained more of their value.
As a percentage of the original retail price, the second-hand value of luxury handbags has steadily increased for most luxury brands over the years. If this percentage stays steady as retail prices increase, an investor can end up with a bag worth more than they paid for it.
“The luxury market is resilient to economic turbulence and is even outshining the majority of mainstream investment classes,” said Michael Zahariev of Luxity.
“As luxury goods from renowned brands retain their value over time and, in some cases, even appreciate in value, the pre-owned luxury market presents yet another investment opportunity.”
The Chanel Medium Flap Bag case study
The iconic Chanel Medium Flap Bag is a good case study on the appreciating investment value of luxury handbags.
The retail price of this bag has continued to climb. Interestingly, its resale value has increased more or less in tandem with new prices.
Image source: Luxity.
This points to the value of the bag not just as a fashion item, but as a significant investment asset.
Statistics like these aren’t limited to the Chanel Medium Flap Bag. A number of high-end designer handbags show similar appreciation over a five-year period.
Example resale prices for luxury bags
Handbags from top designers often make headlines for their hefty price tags. Celebrities are frequently seen toting handbags worth thousands of dollars.
In the US, the headliners for handbags with the highest *resale prices include:
- The Row’s The Margaux at US$5,090 (R95,483)
- Gucci Jackie 1961 Bag at US$3,350 (R62,842)
- Bottega Veneta’s The Andiamo Bag at US$5,100 (R95,671)
- Toteme’s The T-Lock Top-Handle Bag at US$1,390 (R26,075)
- Prada’s Crossbody Bag at US$1,750 (R32,828)
- Saint Laurent’s Loulou Medium Shoulder Bag at US$3,200 (R60,028)
- Louis Vuitton’s Pochette Accessoires Bag at US$1,520 (R28,513).
* Prices as of March 2024.
If you’re thinking of investing in luxury handbags in South Africa, these designer handbags also have excellent resale values locally.
Louis Vuitton
Louis Vuitton luxury handbags perform well on Luxity. A good example is a pre-owned Louis Vuitton Monogram Orfevre bag that recently sold for R49,000. The retail price is estimated at R67,000, which is a resale value of 73.1%.
Gucci
Gucci is also a good investment option. The Gucci Joy GG Large Tote Brown was listed on Luxity for R25,000. The estimated retail price is R35,000. That puts its resale value at 71.4%.
Saint Laurent
Saint Laurent bags are very popular with resellers. A Saint Laurent Leather Baby Sac De Jour Rouge Merlot was recently for sale on Luxity for R40,000. The original estimated retail price is R54,000, making the resale value 74%.
Dolce & Gabbana
Dolce & Gabbana is always a popular choice. The Dolce & Gabbana Leather Miss Bonita Shoulder Bag Red was for sale at R30,000, with an original retail price of about R50,000. That’s a resale value of 60%.
Maximising the resale value of a luxury handbag
Like any investment, the value of your luxury handbag depends on many factors, including its condition.
Maximise the resale value of a designer handbag by following these tips from Luxity.
- Buy the right brands: invest in brands with a proven track record for good returns.
- Buy the right style: research bags that are popular and timeless.
- Look out for rare items: keep an eye out for rare handbags or limited editions.
- Look after your handbags: clean, protect and store your luxury handbags correctly.
- Know when to sell: selling at the right time – for example, when a bag is in high demand – is key.
An alternative to selling: pawning a luxury handbag
At LoanAgainst, we offer short-term loans against a range of luxury assets, including high-end designer handbags from certain, leading fashion houses.
This can be a quick, discreet and convenient way to secure funds. It makes it possible to access the value of a luxury asset, without having to sell it.
Call us on 064 976 7106 for more information or simply complete and submit our online loan application.
