Luxury bags have always been a symbol of opulence, grace, and status. However, in recent years, they have evolved from a mere fashion accessory to a burgeoning investment opportunity. While it may seem counterintuitive to consider a fashion item as a financial asset, burying luxury bags can indeed be a good investment.
In this article, we will delve into the reasons why luxury bags can serve as a smart financial choice and take a look into the popular designer bags that can be purchased as a potential way to invest money.
You might also like to read: 8 Best Tips To Save Money When Shopping For Luxury Brands In Dubai
Designer Luxury Bags: A Less Popular Yet Smart Investment Choice
We often turn towards stocks, bonds, and real estate as potential financial investments. But there are other possible alternatives too, which may seem less obvious as a good source of investment. The topic of discussion here is luxury bags which might serve as a great financial asset in the long run.
As discussed earlier, luxury bags have transcended their status as mere fashion accessories, they have turned into coveted assets for astute investors. Expensive designer bags were considered a good gift option but the scenario changed when some bags broke auction records in recent years.
Popular designer bags from brands like Louis Vuitton, Chanel, and Hermes have increased 80% in value over the years. This ratio surpasses the appreciation value of other valuable items such as coins, limited edition books, and branded watches. Today, collectors, buyers, investors, dealers, resellers, the elite, and fashion freaks are more than ever inclined to hoard luxury bags as a possible source of financial investment.
Best Luxury Bags to Invest in 2023
If you too love hoarding luxury bags and are keen on turning your high-end bag into a financial investment, this quick guide will help you navigate the world of high-end fashion and identify the best luxury bags available in the retail market.
Let’s explore these iconic pieces that not only exude elegance but also promise strong returns on your investment.
Louis Vuitton Neverfull MM Tote
The Neverfull MM Tote by Louis Vuitton is a practical yet stylish investment option. Its monogram canvas design and spacious interior make this product a perennial favorite. LV’s reputation for quality craftsmanship ensures that this bag will hold its value and remain a popular choice among elite fashionistas, collectors, and resellers.
Price: AED 10,200
Dionysus By Gucci
Gucci’s Dionysus bag has long been a contemporary classic. Its unique design featuring a distinctive tiger head closure has captured the hearts of fashion enthusiasts from across the globe. As the brand continues to redefine luxury fashion, investing in a Dionysus bag can be a savvy choice, especially in limited edition or exotic leather variations.
Price: AED 7,600
Gucci Horsebit 1955 Shoulder Bag
The Gucci Horsebit 1955 Shoulder Bag features a structured silhouette, iconic Horsebit detail on the front flap, and high-quality materials, including luxurious leather or premium canvas. It features a versatile adjustable and detachable shoulder strap, a polished metal twist-lock Horsebit closure for added security, and a well-organized interior with multiple compartments.
The bag is adorned with the discreet double-G Gucci logo and comes in various sizes, colors, and patterns to suit individual preferences, making it a classic yet customizable choice for both everyday use and special occasions.
Price: AED 12.900
Chanel Classic Flap Bag
The Classic Flap Bag by Chanel is another iconic fashion accessory that exudes nothing but elegance and vintage charm. Its versatility, design, and enduring fame make it a solid investment choice. Over the years, Chanel’s commitment to quality craftsmanship has helped maintain the bag’s value. It can serve as a reliable addition to your investment portfolio and of course an incredible addition to your set of luxury designer bags.
Price: AED 39,220
Prada Galleria Bag
The Prada Galleria Bag is a perfect amalgamation of modern sophistication and vintage style. Its clean lines and luxurious saffiano leather have made it a top favorite fashion item among discerning investors. Prada’s reputation for quality, style, and durability ensures that this bag will retain its value, making it a not-to-be-missed addition to your investment portfolio.
Price: AED 15,500
Prada Re-Nylon Medium Backpack
The Prada Re-Nylon Medium Backpack is a stylish and sustainable accessory known for its eco-friendly construction, made from regenerated nylon materials. It offers a medium-sized, functional design with a spacious main compartment and multiple pockets for organization. T
The backpack is comfortable to wear with padded shoulder straps, and it features a top handle for versatility. It’s adorned with the Prada logo plaque, reflective details, and leather accents, embodying a contemporary and urban aesthetic. The eco-conscious design and sleek aesthetics make it a versatile and fashionable choice for everyday use.
Price: AED 8,600
Hermes Birkin Bag
Hermes Birkin tops the chart as the ultimate investment piece. Known for its impeccable craftsmanship, timeless design, and exclusivity, the Birkin has consistently appreciated over the years. Its scarcity due to a long waiting list makes it a status symbol and a sought-after collector’s item. Investing in a Hermes Birkin, especially in popular classic shades like neutral tones and black can yield substantial returns over time.
Price: AED 113,000
Lady Dior Bag
The Dior Lady bag is a symbol of refined elegance and femininity. The bag with its iconic quilted pattern and dangling charms has been endorsed by fashion icons and celebrities for decades. Investing in a Lady Dior, particularly from a limited edition or in rare materials, can be a profitable choice as it continues to gain value.
Price: AED 25,000 AED
JW Anderson Green Bumper 15 Crystal Bag
The JW Anderson Green Bumper 15 Crystal Bag is a distinctive and eye-catching accessory known for its unique design. It features a vibrant green color with crystal embellishments, adding a touch of glamour and sophistication. The bag has a compact and structured silhouette, perfect for carrying essentials.
It typically includes a top handle and a detachable shoulder strap for versatile carrying options. The design is characterized by its playful and contemporary aesthetic, making it a statement piece for fashion-forward individuals who want to add a touch of sparkle to their outfits.
Price: AED 2,574
Coperni Heart-shape Leather Tote Bag
The Coperni Heart-shaped Leather Tote Bag is a unique and playful accessory crafted by the fashion brand Coperni. As the name suggests, it takes the form of a heart shape, adding a whimsical touch to your style. This bag is typically made from high-quality leather and features a spacious interior, making it practical for daily use.
It comes with two top handles for comfortable carrying and may include a detachable shoulder strap for added versatility. The Heart-shaped Leather Tote Bag from Coperni has risen in popularity for its distinctive design, making it a statement piece that combines fashion and functionality with a touch of romance.
Price: AED 1,950
Alaïa Half Moon Leather Chain Shoulder Bag
The Alaïa Half Moon Leather Chain Shoulder Bag is a chic and luxurious bag known for its elegant design. It typically features a half-moon shape. The bag comes with a chain shoulder strap that adds a touch of sophistication and can be worn as a crossbody or carried as a shoulder bag. It has a flap closure with a secure fastening mechanism.
The interior is well-organized with compartments to keep your essentials organized. Overall, this bag exemplifies Alaïa’s attention to detail, timeless style, and quality craftsmanship, making it a sophisticated choice for various occasions.
Price: AED 7,600
The Row Half Moon Bag
The Row Half Moon Bag is a minimalist and sophisticated accessory known for its clean and simple design, featuring a half-moon shape. The bag typically has a single shoulder strap and a zip-top closure for security. Its interior is designed to be practical with enough space for essentials but maintains a streamlined look.
The Half Moon Bag is celebrated for its understated elegance and attention to detail, making it a versatile and timeless addition to any wardrobe.
Price: AED 8,614 AED
By Far Fran Semi-Patent Leather Satchel Bag
The By Far Fran Semi-Patent Leather Satchel Bag is a stylish and contemporary accessory designed by the brand By Far. It showcases a sleek and semi-patent leather construction. The bag typically features a satchel-style design with a structured silhouette and a top handle for hand-carrying.
It often comes with a detachable and adjustable shoulder strap for added versatility. The interior offers practicality with compartments and pockets for organization. This bag embodies modern aesthetics and quality craftsmanship, making it a fashionable choice for various occasions.
Price: AED 2,000
Loewe Cubi Anagram Jacquard Leather Shoulder Bag
The Loewe Cubi Anagram Jacquard Leather Shoulder Bag is a stylish and versatile accessory crafted from premium leather. It features a unique Anagram Jacquard pattern on the exterior, showcasing the brand’s signature logo.
The bag has a structured silhouette with a flap closure and an adjustable shoulder strap, offering different carrying options. Its interior is typically well-organized with compartments and pockets for essentials. The bag’s luxurious design, attention to detail, and iconic branding make it a fashionable choice for various occasions.
Price: AED 5,100
Jacquemus Le Bisou
The Jacquemus Le Bisou bag is a unique and whimsical accessory created by the French fashion brand Jacquemus. It’s renowned for its playful and romantic design, resembling a miniature version of lips puckering up for a kiss. This distinctive bag is typically crafted from high-quality leather and features a gold-tone chain shoulder strap.
It has a compact yet functional interior with enough space for small essentials like keys and lipstick. The Jacquemus Le Bisou bag is celebrated for its artistic and eye-catching design, making it a statement piece for those who want to add a touch of fun and elegance to their ensemble.
Price: AED 2,850
LOEWE Puzzle Small Textured-Leather Shoulder Bag
The LOEWE Puzzle Small Textured-Leather Shoulder bag is known for its unique geometric design, resembling puzzle pieces stitched together. This bag is typically crafted from textured leather, giving it a distinctive and tactile feel.
It features a detachable and adjustable shoulder strap, allowing it to be worn as a shoulder bag or cross-body. The bag’s interior is well-organized with multiple compartments and pockets, making it practical for daily use. The LOEWE Puzzle Small Textured-Leather Shoulder Bag is loved among fashion enthusiasts for its innovative design, quality materials, and functionality, making it a fashionable choice for various occasions.
Price: AED 10,753
Khaite Lotus Suede Tote Bag
The Khaite Lotus Suede Tote Bag features a suede leather construction, which gives it a soft and tactile feel. It has a structured silhouette with a sleek and minimalist design. The bag often includes two top handles for hand-carrying and a detachable shoulder strap for versatility.
While it may not have extensive interior compartments, it offers ample room for your essentials, making it a stylish yet practical choice. The Khaite Lotus Suede Tote Bag is celebrated for its quality materials and timeless simplicity, making it a sophisticated addition to various outfits and occasions.
Price: AED 6,777
Saint Laurent Icare Quilted Leather Tote Bag
The Saint Laurent Icare Quilted Leather Tote Bag features a classic quilted leather exterior, which adds texture and sophistication to its design. It typically includes two top handles for hand-carrying and a detachable shoulder strap for versatile wear.
The spacious interior of the bag offers ample room for your essentials and may have pockets for organization. The Saint Laurent Icare Quilted Leather Tote Bag embodies the brand’s signature blend of elegance and functionality, making it a chic and practical choice for various occasions.
Price: AED 17,500
Gucci Jackie 1961 Small Shoulder Bag
The Gucci Jackie 1961 Small Shoulder Bag is inspired by the original Jackie bag, which was popular in the 1960s. This small shoulder bag typically features a curved and structured silhouette with a single adjustable shoulder strap. The bag’s design often includes the signature piston closure, a nod to its vintage roots. Its interior is compact yet functional, with enough space for essentials.
The Gucci Jackie 1961 Small Shoulder Bag is celebrated for its timeless style, quality craftsmanship, and association with the brand’s heritage, making it a versatile and sophisticated choice for various occasions.
Price: AED 12,850
Bottega Veneta Sardine Intrecciato Leather Top-Handle Bag
The Bottega Veneta Sardine Intrecciato Leather Top-Handle Bag is a distinctive and luxurious accessory, distinguished by its impeccable craftsmanship and unique design. It boasts Bottega Veneta’s signature Intrecciato weaving technique, which gives the leather a stunning texture and durability.
The bag features a structured top-handle design with a spacious interior, offering ample room for your essentials. Its top handle and detachable shoulder strap provide versatile carrying options. Its muted yet elegant sardine color, complemented by subtle gold-tone hardware, exudes sophistication. It closes securely with a zip-top closure and showcases the brand’s discreet logo plaque, making it a chic and timeless addition to any fashion-forward ensemble.
Price: AED 16,600
Miu Miu Wander Metalassé Nappa Leather Hobo Bag
The Miu Miu Wander Metalassé Nappa Leather Hobo Bag features a soft and supple Nappa leather construction with a unique Metalassé texture, adding a distinctive touch to its design. The bag is designed in a hobo style with a slouchy and relaxed silhouette, making it comfortable to carry. It comes with a single shoulder strap for ease of wear. The spacious interior is often unlined, giving it a minimalist look and offering ample space for your daily essentials.
The Miu Miu Wander Metalassé Nappa Leather Hobo Bag combines modern aesthetics with high-quality craftsmanship, making it a fashionable choice for those who appreciate a relaxed yet chic style.
Price: AED 10,500
Top Reasons to Invest in Luxury Bags
Buying luxury bags can be a good investment for those who appreciate the artistry, craftsmanship, and exclusivity that these items offer. While it may not be a traditional path to financial growth, the luxury fashion market presents opportunities for investors to diversify their portfolios, preserve capital, and potentially earn substantial returns.
Here are the top reasons why investing in luxury bags can be a smart choice!
- Timeless Quality and Craftsmanship
One of the key factors that make luxury bags a good investment is their exceptional quality and craftsmanship. High-end fashion houses such as Chanel, Louis Vuitton, Dior, and Hermes have spent decades perfecting their art, creating handbags that are not only visually appealing but also built to stand the test of time.
These brands make use of the finest materials and employ skilled artisans to handcraft each piece, resulting in a product that is durable, stylish, and long-lasting. Due to their superior craftsmanship and quality, luxury bags tend to retain their value or even appreciate over time.
Unlike fast fashion items, which may deteriorate over a short span, luxury bags can be carried and enjoyed for years and then resold at a substantial rate, often higher than the original purchase price.
- Limited Editions and Exclusivity
High-end fashion houses often launch limited edition and exclusive collections. These types of exclusive pieces create a sense of urgency and desirability among customers and fashion freaks. The unique designs can appreciate significantly in value, especially when the demand exceeds supply in the market. Savvy investors who manage to get their hands on such limited edition pieces can bag a good amount of profit by reselling those products after a time.
For instance, the iconic Hermes Birkin bag is known widely for its exclusivity, making it a highly sought-after fashion accessory. Some Birkin bags have been sold for millions at auctions, far exceeding their original retail prices.
- Investment Potential in Iconic Brands
Renowned luxury fashion brands with a rich history and a loyal customer following tend to be more resilient to economic downturns. Investing in bags from these fashion houses can provide a kind of stability and security that is a pretty rare thing in the fashion market.
Chanel for example, is renowned for its timeless elegance and designs. Vintage Chanel bags are still in high demand among fashion enthusiasts. The value of these bags tends to increase steadily over the years, offering investors a reliable source of potential income.
- Diversification of Investment Portfolio
Diversification is a fundamental principle where financial investment is concerned. While most investment portfolios are comprised of stocks, saving bonds, and real estate, including luxury handbags as part of your diversified portfolio can be a smart move. Expensive luxury bags represent a tangible asset that is not directly tied to stock market fluctuations, providing a degree of insulation against economic volatility.
- High Demand in Emerging Markets
The growing middle and upper classes in emerging markets like India and China have fuelled a surge in demand for luxury goods, including expensive designer bags. This global demand has contributed to the appreciation of luxury bags’ value as buyers from around the globe seek to add prestigious fashion pieces to their collections. Investing in luxury bags can provide exposure to this expanding market.
- Preservation of Capital
Buying luxury bags as an investment can be seen as a form of preserving capital. While the value of money can erode over time due to inflation, luxury bags tend to maintain or increase in value. This serves as a hedge against the decreasing purchase power of fiat currency.
Is It Worth It To Invest In A Luxury Bag? Potential Risk Factors Explained
Studies have shown the value of designer bags ascending over time, even surpassing expensive cars and artworks. But of course, there are some risks involved that should be taken into account before shelling out pools of money from your wallet.
While purchasing a designer luxury bag may seem outrageously expensive, it may help you save money in the long run. One of the most coveted designer bags of all time Himalayan Birkin by Hermes is considered one of the most preferred collectible fashion items in the world. Some other Hermes Birkin bags have been sold for thousands of dirhams in the past and continue to be one of the most sought-after luxury bags in the fashion market.
Dior, Valentino Garavani, and Chanel are among many popular brands whose bags tend to hold their value over the years, thus making them a good investment option.
The expensive luxury bags may have a competitive return on investment, especially if the product is from a limited or exclusive collection. But this notion is always not true because it is difficult to determine whether these bags will have the same high potential value in the coming years. As there are too many expensive luxury bags available in the market at present, it may be hard to tell whether the specific product you intend to buy will retain its value in the future.
Also, as with any other wardrobe or fashion investment, the probability that a luxury handbag will retain its value closer to its actual retail price is grim. In the end, it all depends on the exclusivity and demand of a certain product and you can perhaps take a risk on these grounds.
Usually, when customers think of buying luxury bags as investments, they often don’t compare the risks and returns of the designer bags against conventional investment options. One should always be mindful of what they are buying especially when the purchase is meant to be for financial investment.
If you wish to take good returns on your investment, you would have to keep your bag in optimal and pristine condition. People who wish to resell their bags for profit have to put an effort to maintain the product.
It’s hard to make money out of your luxury handbag if it’s been heavily used and has visible signs of wear and tear. One has to keep these risks in mind when thinking of buying an expensive designer bag for investment purposes.
Investing in expensive luxury bags from high-end design houses can be a lucrative endeavor for those who appreciate both fashion and financial growth. These iconic bags not only offer a timeless class and design but also the potential for significant returns on investment. When approached with careful consideration, investing in luxury bags can be both financially rewarding and a source of genuine pleasure for collectors and fashion enthusiasts alike.
As you navigate the fashion market for luxury bags, make sure you consider your personal style, market trends, and the bag’s rarity. With careful research and a discerning eye, you can build a bag collection that will not only enhance your fashion statement but also secure your financial stature.
Collecting luxury handbags can be a smart investment choice, as they are low in volatility and the profit returns could be pretty competitive. But of course, there are risks to consider including determining future demand, authenticity verification, reseller fees, and high insurance costs.
Some bags like Birkin are expected to double in value in the coming years. So investing in bags from brands like Louis Vuitton, Channel, Dior, Prada, and Hermes can yield good returns as they tend to retain their value in the resale market. Even if the value does not go up, you still have something to cherish. So it’s never a bad choice if you love collecting luxury bags.
Also read: 13 Top Fashion Shopping Websites In The UAE