Luxury Bags Don't Hold Values and Why | What makes the best and worst investment designer handbags.
Hi guys I'm Eileen.
Today's video isabout the reasons why certain luxury handbags don't hold their values.
For meresale value is something I always consider when buying a designer bagbecause it's nice to know I can recoup my money if I change my mind.
Sometimes if I love a handbag enough though I will still buy it even if thatmeans I might lose some money in the future, but I think is important to havean idea about resale values because first of all you can then decide if youshould consider buying pre-loved secondly I promise you you would thinktwice before buying anything.
So without further ado let's get started.
First ofall luxury handbags which are more readily available tend not to keep theirvalues as well.
So for example designer bags that you can order online andthe availability is never an issue, such as YSL and Balenciaga.
Now thisis not to say these bags are not worth buying but quite simply if you're notoffering a huge discount that's really not incentive for thepotential buyers I mean they might as well buy it brand new from the websiteor from the store because it really is at their fingertips.
With Louis Vuitton however, although the are classic handbags are fairlyavailable, these pieces tend to keep their values very well because of theregular price increases.
Where as with brands like Balenciaga, YSL andLoewe , their inflation's are nowhere as drastic and sometimes they even go onsales.
In fact I got my YSL pouch at 15% off from MyTheresa.
Along the same line, demands can be higher when a luxury handbag is less available.
So for examplethe Chanel mini flaps are not actually from Chanel's classic collection, socertain colors are only available for specific collections.
So when thesehandbags are sold out you usually will have to wait for a longtime before Chanel brings back the same designs and sometimes they just nevercome back.
So for bags like these, the only option would be to look at pre lovedmarket or resellers and just to put things into context, I was looking for aChanel mini flap in the black patent leather and silver hardware but I wasjust really lucky Chanel released this collection around the same time.
Sincethen I've seen these bags on the pre loved market a few times and most of themwere going for a lot higher than retail price.
Other luxury handbags which arequite tricky to find from the stores are the Hermes Kelly, Constance and Birkins so these pieces tend to hold their values extremely well.
If you get one of thesebags in a brand new condition the price is usually 40 to 50 percent higher thanretail price and they cost even more if the bag is a special order or limitededition.
Essentially the supply of designer handbags can certainly affecthow these pieces hold their values.
Next let's talk about new collections.
Now Ihave quite a reserved taste for luxury handbags in the sense that I generallyprefer classic pieces and when a new collection launches, I like to stay onthe sidelines for a bit and just observe if the collection will stick aroundbecause if that's not the case usually it's a sign that these pieces will nothold their values.
Now I'm not suggesting you should never buy a handbag from anynew collections but I think it's important to not get overexcitedespecially with all the campaigns and marketing your judgment can get a bitclouded.
I'm not sure if you remember the Chanel Girl bags which are basicallysling bags inspired by their very classic Chanel jackets.
When KarlLagerfeld launched this collection in 2015 he was hoping this collection wouldfollow the footstep of the Chanel boy bags.
The boys were launched in 2011 and obviously they've done really well and they are now a new classic forChanel.
Unfortunately the Chanel Girl bags didn't do the same.
I still see afew of these bags on the second-hand market and most of them are going forless than ideal prices.
So essentially with a new collection, it's really a hit ora miss if these pieces will hold their values, so I think it's really importantto only buy what truly makes your heart sing.
Other times a new handbagcollection can be very well received and on top of that if a few celebrities areseen carrying these handbags it can really set the trend off.
This is whenthe resale values really peak because demand is high.
In fact some people might even pay a premium for a personal shopper to source the bag for them butthat in two years time when the trend is gone you might have problems sellingthe very same bag.
For example the Dior saddle bags were really popular in the90s but then they kind of disappeared.
In 2018 they made a comeback and suddenly the prices for the vintage pieces went up quite a bit.
Then we have the Celineluggage totes these bags were really trending at onepoint so it was a mission to try to get one from the store, but now you canactually order one online so it just really shows how the trend has shiftedand the demand has dropped.
In the stock market usually it's best to buy low andsell high but I think we do exactly the opposite for luxury handbags, so I thinkit's really crucial to not follow any trends blindly.
On the other handsometimes luxury brands discontinue they are very popular handbags for noapparent reason.
So for example the Chanel GST tote, the Louis Vuitton Eva clutch and Totally.
In fact I feel like Louis Vuitton has a habit of launching thendiscontinuing some of their really good handbags and it's a bit frustrating.
Nevertheless I think people still love these handbags and they are searchingfor them so if you own any of these pieces andthey are in a very good condition you should be able to recoup most of yourmoney.
As I mentioned I do prefer classic handbags but even with the very classicpieces there are still a lot of variables that can affect how these pieces holdtheir values.
For example, the material of a handbag is certainly a big factor.
Ifyou look at the Louis Vuitton Metis, these handbags are a lot more sought-after inthe classic and the reverse monogram whereas a Louis Vuitton Metis in theumpreine leather is not as tricky to find in the store.
I also think handbags madeof more durable leathers tend to do better in terms of keeping their valuesbecause the market is bigger.
Most of us are more protective with our first fewluxury handbags so durable leathers tend to always be the leathers of choice.
Ithink the general purchasing habit is people are more likely to look atdelicate leathers when they already have a selection of handbags.
So essentially leathers that are more resistant to wear and tear tend togenerate more interest.
So for example on the second-hand market, a Chanelclassic flap in the caviar leather will almost always sell faster than the samebag in lambskin.
Along the same line with material, I think color is anotherfactor most people consider heavily when buying a designer or luxury handbag.
Infact I do that with every single handbag I buy.
I really take good time to picturehow the color would complement my wardrobe.
It might sound a bit boring anduninteresting but a handbag in a black or grey color is a lot easier to stylethan the same bag in a bright orange color.
This is not to put down handbagswith bright colors but I think neutral colors tend to do better on thesecond-hand market because the customer base is bigger, so the demand will behigher.
In fact if you're buying your first luxury handbagI would suggest to go for a color that will go with absolutely everythingbecause even if you decide not to buy another bag, you've had all bases covered.
Next let us talk about handbag sizes and how this can affect the resale values ofyour pieces.
I think this has a lot to do with the current fashion trend, so forexample the mini bag trend has been really popular in the last five to sevenyears and it feels like every luxury handbag now has a mini version.
Considering the sizes I think the price tags for these little bags are reallyhefty.
Currently on the second-hand market smaller bags are doing better, sofor example the Hermes Birkin 25 the Mini Kelly and Chanel mini flaps.
I thinkthat's why Chanel really took advantage of this trend and increase theprices of their mini flaps so drastically.
However just like any otherfashion trend this might not last so when and if the trend is gone, the resultvalues of your mini pieces might then take a downturn.
Seeing we cannot controlhow fashion trends come and go I think is really important we choose ourhandbags based on our lifestyles and not the current trends.
There you have itthose are my thoughts about why certain luxury handbags tend to do better thanothers in terms of holding their values.
Again this video is not suggesting thatyou should only restrict your handbag choices to those with good resell values but I think is a good reference to use if you want to gauge how much youlove a certain handbag before making the purchase.
I mean will you be happy tosell the bag for half the price if it turns out you don't actually enjoy thebag after all.
so I guess that's it for me, thank you so much for watching anddon't forget to share like and subscribe I will see you in my next one, have a nice day.