Investing in Designer Handbags - Interview with Meg Randell of Chiswick Auction House
A beautiful object which can be used, encompassing both art and history, and consistently retaining, and even growing in value, even in a down market – that sounds like a fairly good investment, doesn’t it? That is exactly what you get when you buy a designer handbag – a hand-crafted piece of wearable art which, if cared for correctly, could be one of the best investments you ever make.
Image courtesy of Chiswick Auction House
“If they are looked after well, they can be just as good as investing in gold”. That is according to Meg Randell, Designer Handbag and Fashion expert at Chiswick Auction House, and it is remarkable but true that in a time fraught with so much economic uncertainty, designer bags are gaining value faster than the stock market. The Chanel Classic Flap, for example, has increased by nearly 72% over the past five years and will now cost you over 20 times as much as it would when it was created in 1955. Even taking inflation into account, that is quite incredible. “Hermès Birkins have gone up 500% since they were first created 35 years ago”. Online consignment giant Tradesy reported recently that top designer bags in mint condition earn sellers back an average of 63% of retail value, and for the “Big Three” (Hermès, Chanel and Louis Vuitton) this can be even higher. Chanel’s resale retention value stands at 86%, with rare and limited Hermès bags sometimes fetching 1.3 times their original retail price.
But perhaps the most important reason to invest in designer bags is because you will enjoy them. A fun, beautiful investment, which you can use yourself (as long as you take care of it). Buying one of the classic models will also guarantee you a piece of fashion history, especially if you buy second-hand.
Image courtesy of Chiswick Auction House
Although you may miss out on the boutique experience, there are myriad advantages to buying a vintage bag rather than a brand new one. Chanel maintains its exclusivity largely by raising its prices every year – sometimes by as much as 8-12% - with constant demand for the bags ensuring that this move continues to be good for business. Buying a brand-new Hermès Birkin will require excellent connections, excellent luck or… adding your name to a reputedly 6-year-long waiting list. Buying second-hand from an auction (such as the upcoming one in Chiswick [LINK to auctions piece]) means no waiting list, better prices and more choice. Limited edition pieces, rare fabrics and a range of different colours all come up at auction and mean you could end up with your bag of preference, rather than just whatever happens to be in shops at the moment.
So, what should you be looking for?
For maximum profitability, Randell recommends opting for one of the “Big three” – the Chanel 2.55 Classic Flap, the Hermès Birkin, or the Hermès Kelly. Each of these bags has been around for decades and each has an inspiring woman behind it. The Chanel 2.55 must be the most iconic bag of all time, with its quilted leather and chain strap. Created by Coco Chanel herself in February 1955, it was an instant classic. In the 1980s Karl Lagerfeld reinvented it, and now both his version (the Classic) and the original (the Reissue) are consistent top sellers. The Birkin was created over 30 years ago for singer and Gainsbourg girl, Jane Birkin, and although its eponymous muse ended up not using it for very long, it became the it-bag of its time and remains a hit to this day. The Kelly has been around for longer, created in the 1930s and renamed in honour of Grace Kelly, a life-long fan of the bag. She even famously used it to hide her first pregnancy from the press!
Should you decide not to opt for the big three, the best tips are to choose from limited editions or rare, unique releases – something which is exclusive is far more likely to be valuable later on. Classic styles which will not go out of fashion are a must. Other big-brand bags which do very well include the Louis Vuitton Neverfull, the Lady Dior bag (made famous by Princess Diana) and the Fendi Baguette (so called because it was designed to be carried under the arm like the French bread). Fashion’s cyclical nature also means that, if you do invest in a quirkier, more distinctive style, you may well find it back in style in the future. Recently, notes Randell, 1970s and 1980s Gucci is performing well, as is anything which features a logo print - due to current catwalk trends.
Image courtesy of Chiswick Auction House
The most important thing, however, is to ensure that the bag you buy is authentic. Imitation designer goods are becoming ever-more sophisticated, so it is imperative that you head to a reputable source and that you get the piece authenticated by an expert before you buy. Luckily for any interested investors, the Chiswick Auction House will be holding a designer fashion and handbag auction on the 7th February, where there will be some truly special pieces on offer. “You just have to see it in person, when you’ve got a real one in front of you, you can tell”. So why not head over on February 7th and find your favourite new investment piece.