When it comes to the ideals of investing, we often associate investing with choosing necessity over luxury. For first-time investors, finding the funds to invest often means sacrificing some luxury spending in order to invest in your quality of life some time in the future. The idea of growing your money doesn't often gel with the idea of spending it. But there are certain hobby and luxury items that have, through various circumstances, become investment items.
There are so many things that people have collected over the years that have increased in value over time. Classic comic books, vintage toys, fine art, cars, concert t-shirts, wine, sneakers, and Pokémon cards all have certain items that are worth much, much more now than what was originally paid for them. For many collectors, acquiring these investments happened simply by way of enjoying a hobby.
Fashion is one of those hobbies or interests that has opened up for investment opportunities. With proper research and intentional purchasing, certain fashion items can appreciate over time. In order to be a viable investment, the item should be able to handle long-lasting wear. Designer items like bags, scarves, coats, watches, jewelry, and other accessories can become incredibly valuable as the years go on.
The 2022 Clair Report
If you're interested in making your handbag another item in your portfolio, you may have already heard of Rebag. The site is a hub for people looking to buy or sell their luxury items. Rebag has a team of specialists who can certify that what you’re buying is the real deal — and in doing so, the resale site also has access to some really helpful luxury resale data.
For the third year in a row, Rebag has released the data-driven Clair Report. “Clair” stands for “Comprehensive Luxury Appraisal Index for Resale”. It breaks down all the site’s data about the value of bags and other luxury items, helping investors make the most informed decisions about buying and selling fashion items.
“Consumer shopping trends have shifted immensely over the last year”, Charles Gorra, CEO and Founder of Rebag, said in a press release. “This year's Clair Report offers unique insight to how customers are shopping and making informed decisions with their purchases more than ever before. We hope these insights will continue to provide transparency in the luxury market at large, expand the product life cycle, and create more circularity.”
The Results Are In: Brands To Watch
Standing high above the other luxury brands in regards to resale value, Telfar bags have been in high-demand since they debuted in 2005. Self-taught designer Telfar Clemens' unisex fashion bags retain an average of 195% of their retail value. Limited drops of the bags New York Magazine has dubbed the “Bushwick Birkin” initially clock in between $150-$360 — by luxury standards, Telfar has a much more accessible cost than other designer brands.
Other brands saw substantial growth in their resale value over the course of the last year. Moët Hennessy Louis Vuitton (LVMUY) brands Louis Vuitton and Fendi both saw bags reselling for most of, if not more than, their initial retail value. The Fendi Baguette retains an average of 115% of its value, and Fendi Mama Forever bags also retain an impressive 111% resale value.
Fendi wasn't the only brand whose values grew 10% or more from last year. Several Italian brands also saw significant growth in their resale value compared to 2021. Prada values went up by 11%. while Gucci, Bottega Veneta, and Fendi each went up by 10%.
Two of Prada's Re-Edition bags, a classic design now re-made with recycled plastics, have a return that ranges between 99% and 112%. The bags are priced and marketed to a younger generation, which could contribute to the products' resale success.
Gucci has also had a big year thanks to the well-publicized film “House of Gucci” featuring Lady Gaga and Adam Driver. The brand also saw success in high-profile collaborations with Balenciaga and pop star Harry Styles, and most recently even made headlines announcing that it would accept payments in cryptocurrency.
As for Gucci's best investment bags, Gucci’s Soho Chain crossbody bag is the best bet for fashion investors. This year, the bag retained 122% of its initial value at resale.