The global handbag industry is worth over $68 billion in 2024 with the market projected to increase another 3.82% in the years to come. A part of this industry encompasses luxury bags which is projected to reach $50.9 billion in revenue by 2031.
Luxury bags have been on the fashion scene for many years. From Gucci, Channel to Dior and more, luxury bags have become a status symbol for the elite and wealthy. Not only that, they’re great investment pieces for any collection.
Overtime as more and more bags are produced and newer models are created, your current investment in luxury bags can still hold its value.You may wonder what makes these bags so valuable years after purchase. In this article we’ll cover the top reasons why luxury bags hold their value after your first initial investment. Let’s take a look.
Timeless Appeal and Iconic Design
Crafted by world-renowned designers, luxury bags are created with an iconic design and a timeless appeal that compliments seasonal trends. Some of the classic designs like Chanel 2.55, Hermes Birkin, and the Louis Vuitton Speedy deliver a classy yet sophisticated appearance that goes well with any outfit.
These bags are popular due to their fashionable appearance, their ability to be paired with most outfits, and their ability to make a statement anywhere you go. For this reason, they’ll always be in high demand and stay valuable over time, but unfortunately they’ll also be a high target for counterfeits and scams.
Many luxury bags are counterfeited across the world, and unfortunately many people spend thousands of dollars on them to find they aren’t worth anything. This is why it’s important before purchasing that you have your luxury bag checked and authenticated online through this website or other similar ones that offer these services. Doing this will help you avoid spending thousands of dollars on counterfeit products.
Craftsmanship and Quality
The craftsmanship and quality of luxury bags are second to none. Generally the material used is of the highest quality and they have skilled artisans handcraft the bag from scratch. Designer brands like Louis Vuitton, Chanel, and Hermes generally add the highest quality hardware to match the leather used.
Depending on the bag design, the level of detail each bag is created with can also take hours to complete. They also go through testing to make sure they can withstand the test of time. Luxury bags are built to last and this is why they make a good investment and last in value.
Limited Editions and Scarcity
Many luxury designer bags are built in limited quantities. This means they’re highly sought after. A lot of brands collaborate with certain artists and designers they normally wouldn’t work with, and others may release special edition bags.
Due to this scarcity, it drives more buyers to want them, thus driving up the price. Some bags may have a wait list of two to three years so the resale value can exceed the overall original price you paid for it making it a worthy investment.
Emotional and Status Symbol
Owning a luxury bag is seen as a status symbol to many. It shows success, wealth, refined taste and desirability. Some people have emotional connections with their luxury bags and own them with pride. Some owners feel joy when carrying them around.
Due to this prestige and status symbol effect, it causes others to want to invest into buying luxury bags of their own which helps to enhance the overall market value and promotes even better resale value for certain pieces.
Endnote
Luxury bags have been and will be fashionable for many years. Not only are they good at making a fashion statement but they’re also a wise money investment as well. Whether you’re looking to obtain valuable assets or you’re a seasonal collector looking for something to add to your collection, luxury bags are the in thing right now and choosing one should be a high priority. Just remember to have your bag authenticated so you don’t purchase a counterfeit one.