Secure The Bag: How To Invest In Luxury Handbags That Retain Their Value

In an economic downturn, many consumers take stock of what’s valuable and efficient for their budgets. The current economic climate can be a deterrent to investing in luxury items, but it could be one of the better investments to make right now. When we think about luxury handbags, we often think about the hefty amount of money we’re investing into the product. As of late, though, a different discussion has dominated the conversations in the luxury handbag space, and that’s the idea of resale.

It’s a burgeoning market, with secondhand companies seemingly sprouting up everywhere. To understand the resale conversation though, one has to understand the importance of the luxury handbag sector. Not surprisingly, handbags and small leather goods (SLGs) are the unsung heroes of your favorite heritage brands, driving the majority of sales at the world’s biggest names. According to a BoF report, global luxury giant Hermes attributes roughly 46% of its overall revenue to handbags and SLGs, whereas Prada sits at around 50% and Gucci nets out around 53%. For smaller or newer houses, the percentage grows higher, with Kate Spade at 78%, Coach at 72%, and houses like YSL and Bottega sitting at 71%.

This escalation strategy, typically deployed by heritage brands but quickly catching on with smaller brands, allows for more client acquisition and escalation. In the fashion world where the objective is volume, this strategy is an effective model to stay relevant, partially regarding the younger generation.

In an industry that’s predicted at $100 billion in 2026, brands are competing to own the market for luxury handbags, including owning the secondhand market. ‘Investment bags’ are quickly becoming a popular topic of conversation on Rihanna's internet. According to a Bloomberg report, luxury handbags are becoming a hotly sought-after investment commodity, a trend driven primarily by Gen Z and millennial shoppers. The return on investment (ROI) can be profitable, especially in this $72 billion market of luxury goods; one just needs to know where to look.

Fashion insider or not, chances are you already know about the retention rates of brands like Hermes and Chanel, but what about the other brands? Keep reading for tips on the best luxury handbag investments, including the ones to look out for!

Featured image by Edward Berthelot/Getty Images