Are Luxury Bags a Good Investment? Analysis of the Hermès Birkin Bag and the Chanel Classic Flap Bag

The idea for this video came from a personal interest. As you may know, I have a business and finance background and I also like to apply it to what is going on in fashion. The reason why I was drawn to analysing bags as a financial investment is that I keep seeing articles in fashion magazines, online retailers and resell platforms and videos online encouraging readers and viewers to purchase so-called “investment bags”. These articles claim that luxury handbags such as the Chanel Medium Classic Flap bag or the Hermès Birkin bag would be a better investment than equities or gold, for example. At first, their arguments may seem really compelling, but let me share my research and the results which differed greatly.

00:00 Intro
03:11 Argument 1: “Bag Prices Have Steadily Increased”
05:14 Historic Comparison
07:11 Returns Comparison
15:25 Argument 2: “Bags are Less Risky than Other Forms of Investment”
23:03 Argument 3: “Hermès Bags Achieve Record Sales”
23:30 Additional Cost and Opportunity Cost
25:38 Conclusion

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** DISCLAIMER AND SOURCES **

This video is based on the general knowledge of Liz Steiger as a fashion and art historian and the following sources:

Weekend Style Magazine, May 2020, pp. 18-20; (Note: no sources given in the article) ;
www.lvbagaholic.com/blogs/lv_bagaholic/chanel-classic-flap-eu-price-list ;
www.sothebys.com/en/articles/understanding-the-latest-chanel-bag-price-hikes-and-the-resale-market#:~:text=The%20Chanel%202.55%20was%20first,price%20increase%20in%20March%202023 ;
www.chroniknet.de/extra/zeitgeschichte/1955-steigende-preise-durch-hoehere-loehne/ ; web.stanford.edu/class/polisci120a/immigration/Median%20Household%20Income.pdf ; www2.census.gov/library/publications/1956/demographics/p60-23.pdf ; www.welt.de/wirtschaft/karriere/article206799501/Gehalt-Einkommen-Wie-hoch-ist-das-Durchschnittsgehalt-in-Deutschland.html ; www.census.gov/library/stories/2019/09/us-median-household-income-up-in-2018-from-2017.html ; www.statista.com/statistics/416207/average-annual-wages-germany-y-on-y-in-euros/ ;
www.sothebys.com/en/articles/understanding-the-latest-chanel-bag-price-hikes-and-the-resale-market#:~:text=The%20Chanel%202.55%20was%20first,price%20increase%20in%20March%202023. ; www.instyle.com/fashion/accessories/bags/how-to-buy-a-birkin-bag ; www.forbes.com/advisor/business/average-salary-by-state/ ;
baghunter.com/pages/investment-guide
multimerch.com/blog/fashion-marketplaces-second-hand-luxury-consignment/
time.com/4182246/hermes-birkin-bag-investment-gold/ ; baghunter.com/pages/hermes-birkin-values-research-study ; sothebys.com ; vestiairecollective.com ; dorotheum.com
Yahoo Finance and the official filings of the respective companies.

For further information on the sources, data and calculations, please check my article “Are Designer Bags a Good Investment?” on https://www.thepinklookbook.com

Pictures Sources:

https://www.pinterest.com

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