With the growth of the resale market, customers are seriously rethinking their investment. Those with a penchant for designer items are no longer in the business of acquiring things. They want to know that it will have value, so they can resell it and eventually invest it in something else.
Alternatively, they will see it as an active investment, expecting a return if it rises in value (we’re looking at their Chanel). Customers also want pieces that are eternally relevant, not just momentary.
Currently, there is a debate about whether the luxury goods industry is recession-proof. The wealth gap in America is the widest in history, so despite a pending recession, there is no shortage of consumers with deep pockets. If you’re looking for an investment piece, what are the best buys.
Chanel has come under scrutiny for raising its prices, but customers keep buying. Its revenue just hit $15 billion, an all-time high for the company. The Chanel Classic Flap bag is now priced at $8,200. In 1990, the price of the bag was $1,150. For those lucky enough to have kept their bags in good condition for over 30 years, that was a great return on investment. As Chanel positions itself to compete with Hermes and supply chains tighten, expect a potential price increase.
The world of watch collectors are people who have long known the value of investment. There are stories of vintage Swiss watches being resold for a down payment on people’s houses or college tuition for students. The Submariner is a gold standard for diving watches. The average Rolex price is now more than $13,000, up from an average of $5,000 in 2011. Those prices aren’t expected to drop any time soon.
louis vuitton neverfull
This was once the standard entry-level Louis Vuitton bag, with an average price of $1,200. Now, the brands have an average retail price of $2,000. For those who have held on to their Neverfulls and kept them in good condition, congratulations, they are worth more than what you paid for them.
The Birkin is one of the most iconic status symbols of all time. Named after actress Jane Birkin, the bag has a waiting list of up to three years at times. It also has a high resale value. Vintage Birkins can fetch six figures at auction. They have a higher return on investment than gold. It is best to buy one and keep it in a safe for twenty years.