Though many people may think it’s crazy to drop thousands on a designer handbag, the truth is some are actually worth the investment – as long as you can afford it.
A well maintained, classic design could actually recoup the amount you paid for it.
Many fashion-forward females proudly rock their grandmother’s decades-old vintage Chanel, Gucci and Prada purses – some actually looking better with age.
Back in January, we told you about a recent study by Baghunter that claimed Hermes Birken bags were a better investment than stocks or gold, stating that they increase in value by 14.2 per cent on average each year. The study looked back at the last 35 years of historical data and found that the value of a Birken bag has never fluctuated downward, unlike the S&P 500 and gold markets. In fact, it’s increased in value over 500 per cent in the 35 years since the coveted bag was first produced.
Now, the company has reported that the demand for Chanel bags has skyrocketed among rumours of a price increase. After a relatively stable few years – with Chanel concentrating on harmonizing their prices worldwide and only increasing prices slightly compared to previous years – industry experts expect a price hike is just around the corner.
Baghunter confirms that they’ve indeed witnessed more activity on the sale of Chanel bags, particularly from regular VIP clients who purchase handbags as an investment piece. Although the exact date of the looming price increase remains unknown, it is likely that at least one price hike will occur in 2016.
This, of course, makes now the perfect time to invest in a Chanel bag – for those lucky enough to be in the market for one.
“The unusual sustained surge in sales of Chanel handbags over the last couple of months spiked our interest,” said Baghunter CEO, Evelyn Fox, in a press release. “So we decided to look into it further and reached out to some VIP club clients who were purchasing Chanel bags to try and identify the reason behind the sudden rush. The response was unequivocal – buy Chanel handbags now as a price increase is imminent.”
The price harmonization last year was a rarity for the brand, which is usually known for regular price increases. As Baghunter highlights, a Chanel Classic Medium Flap Bag in black lambskin increased in price from $2,850 in 2010 to $4,900 in 2015. That’s pretty huge. A similar price increase has been seen over a shorter time period with the latest coveted staple in the Chanel collection, the Boy Bag, which was released in 2012.
The Small Boy Flap Bag originally retailed for $2,600, while the Chanel Medium Boy Flap Bag retailed for $3,200. In 2015, the Small Boy Flap Bag increased to $4,300 while the Medium Boy Flap Bag increased to $4,700, representing a 40 per cent and 30 per cent increase, respectively.
Clearly, these iconic bags don’t come cheap – and it’s not a good idea to scrimp and save for one over more important life needs. There’s nothing cute about being that girl with the pricey handbag and just a few inside of it.
The thing is, as the more affordable brands lower their prices, they become less desirable. For many fashion-forward females, nothing feels “special” about mainstream. North American handbag producers like Coach, Michael Kors and Tory Burch have been forced to lower their handbag prices in recent years.
So if you have the extra few grand burning a whole in your pocket, you don’t have to feel as guilty about making the splurge.