If you’re considering luxury accessories as an investment, understanding what drives their value is important. For example, certain luxury bags are valued not only for their aesthetic appeal but also for their ability to appreciate in value over time.
Luxury bags that appreciate in value are crafted from high-quality materials and are often produced in limited quantities, enhancing their exclusivity and demand. Similarly, luxury watches, wallets and jewelry from prestigious brands can also serve as valuable investments. The key to success in the luxury accessories market lies in choosing pieces with enduring appeal and strong demand.
Find out what to look for in potential investment pieces and how to successfully navigate the resale market, according to shopping experts.
Luxury Bags
Ben Schreiber, experienced retail professional and head of e-commerce at Latico Leathers, said that the Hermès Birkin bag and the Chanel classic flap bag can be considered investments.
“Often regarded as the benchmark of designer accessories investment, the Hermès Birkin bag’s value has appreciated over 500% in the last 35 years, outperforming traditional investment markets including gold and stocks,” he explained. “This is largely due to the use of exquisite materials such as leather and gold hardware, meticulous craftsmanship and scarcity.”
“The iconic Chanel classic flap bag uses premium leather and gold-plated details that promote its lasting value. Chanel only raises its prices, creating an upward trend in resale values,” Schreiber said.
Luxury Watches
“Similar to fine art, wine [and] cars, there are certain scenarios where watches can double as investments,” said Joshua Ganjei, CEO and head curator of European Watch Company.
“High-end models from established luxury brands like Patek Philippe, Cartier, F.P. Journe and others are rare collectibles that sometimes increase in value over time. Just like traditional investments, it’s all about choosing the right piece at the right time,” Ganjei explained.
Luxury Wallets
“Similar to handbags, many of the most sought-after luxury brands that offer wallets have seen prices increase,” said Michael Mack, president of Max Pawn Luxury.
According to Rebag’s 2023 Luxury Resale Report, known as the Clair Report, the Hermès Kelly To Go Wallet has an average value retention of more than 80%. Additionally, according to the report, the Chanel Wallet on Chain has an average value retention of about 75%.
Luxury Jewelry
“Iconic pieces from brands such as Van Cleef & Arpels have recently sold for up to double their original price,” Mack said.
The Clair Report indicates that Van Cleef & Arpels jewelry has an average value retention of over 95%.
What To Look For When Choosing Luxury Accessories
Here’s what to look for when purchasing luxury accessories as investments.
Brand Heritage
“Classic brands with strong histories tend to maintain their value,” Schreiber said. “Brands like Chanel, Hermès and Rolex are known for their craftsmanship and long-standing prestige.”
Quality and Craftsmanship
“High-grade materials and exceptional craftsmanship ensure the piece’s longevity and lasting appeal,” Schreiber explained.
Exclusivity and Demand
According to Schreiber, limited editions, scarce availability and high demand all factor into an accessory’s potential as an investment.
Market Trends and the Resale Value of Luxury Accessories
Schreiber said that market trends significantly affect the resale value of luxury accessories.
“Just as rising trends such as sustainability and ethical production can boost a brand’s appeal, falling trends, such as logo fatigue, can negatively impact resale value,” he explained. “However, timeless pieces such as a Hermès Birkin or a Rolex watch generally withstand market fluctuations.”
Common Misconceptions About Investing In Luxury Accessories
According to Schreiber, a common misconception about investing in luxury accessories is that all pieces will appreciate over time. But he said it’s important to remember that not all luxury accessories increase in value.
“Often, only iconic models or limited pieces from renowned brands will be significantly appreciated,” he said. “Another misconception is that these investments are risk-free. Despite the past performance of certain items, market fluctuations, volatile fashion trends and unpredictable consumer preferences can create risks in luxury accessory investments.”
