Are Chanel handbags a good investment? Sort of.
You often hear or read that Chanel bags are a better investment than the stock market or buying a home! While it’s definitely true that the retail price of Chanel bags has skyrocketed over the last few years, are they really a good investment?
Let’s define a good investment as follows: the process of investing money or capital in order to make a profit. So for a Chanel handbag to be a good investment, first you need to purchase the bag and then sell the bag for a profit.
This is where the investment part gets tricky. There is only one way you can make money on a Chanel handbag: buy the handbag, take extremely good care of it and resell it after many years.
Let’s say you purchased a Chanel medium flap in 1990 for $1,150; the retail price at that time. It’s now 2016, 26 years later and that same Chanel medium flap bag costs $6,300 Canadian dollars. If the purse is in very good condition you can resell this vintage bag on your own for $3,000 - $3,500 less your fees (PayPal or EBay) or have a reseller sell the handbag for approximately $4,000, where after their fees, on average, you would make $2,800. Yes, you made a nice profit of $1,650 but, let’s not forget it took 26 years. If you invested $1,150 in 1990 in the stock market at an average annual return rate of 6% in 2016 your investment would be worth $5,231. So, if we're talking good investments, stick to the stock market!
So, what’s the break even point when selling a Chanel handbag? Meaning, when does the handbag move from liability to asset? We estimate around 7 years.
Let’s say you purchased a Chanel medium flap bag in 2009 for $2,695. You could try to resell the bag yourself for $3,500 - $4,000 or put the bag on consignment and sell for $4,500 (less fees) so you would make approximately $3,150. We can see here you have made a slight profit depending on how much the bag sells for. The key to “investing” in a Chanel bag is to always invest in classics because you can only resell and make any money with bags that remain in style and the classics do. The Chanel flap bag has been around since the mid 1950’s and this classic style is more in demand than ever before.
We are not trying to discourage you from using creative accounting when persuading your spouse to buy a Chanel handbag, but we do want to provide a realistic perspective of what you can expect your rate of return to be when “investing” and selling. Our bottom line is that we think you should buy what you love, enjoy it and keep it in your arsenal when you go out and want to look your very best.
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FAQs
The Chanel brand is known for its high-quality materials and craftsmanship, making it a popular choice among luxury handbag buyers. While there are no guarantees when it comes to investing, the right Chanel bag can often appreciate in value, making it a worthwhile purchase.
Does a Chanel bag hold its value? ›
Many Chanel bags retain 90% of their value. Let's face it though, all Chanel bags are not created equal. The aforementioned Medium Classic Flap (or the 11.12) is probably the best investment at the moment.
What's the best Chanel bag to invest in? ›
Chanel Diana Flap Bag
Its quilted leather and long shoulder strap have made it a favorite among Chanel aficionados. The bag's value has consistently risen, making it a sought-after piece for investment.
Will Chanel bags keep going up? ›
The 2024 Price Increase In Numbers
The increase affects all Chanel bags across the board, but the percentage increase is far lower than what we've come to expect in the past few years. Last year, the Classics were hit with a 16% increase on average, while this year only sees a 6.7% increase for the classic styles.
How many Chanel bags can you buy a month? ›
The brand-wide policy will restrict each client to only two Classic Flap Bags per year. At the time of writing, the quota system will not be affecting styles such as the Chanel 19s, Coco Handles, the Trendy CC, and Boy bags.
Is Chanel more expensive than Louis Vuitton? ›
Pricing & Value
Louis Vuitton bags carry a premium price tag but are considerably more affordable than Chanel. A Chanel bag at retail can demand almost six times the price of a similar offering from Louis Vuitton, which makes LV appeal to a wider audience.
What is the most valued Chanel bag? ›
The Chanel "Diamond Forever" Handbag, priced at $261,000, is a timeless classic adorned with 334 diamonds set in white gold. With only 13 ever created, it is a rare and coveted treasure for collectors.
What age group buys Chanel? ›
Chanel, for example, delivers the fashion to the customer. This blog will discuss Chanel's one segmentation briefly. Demographic: Middle-age 18-50, annual income level of $100,000 or higher. Variables such as age and income level are important because they are easily indentifiable and linked to one another.
Should I buy a Chanel bag or Hermès bag? ›
Resale Value
Hermes bags generally hold their value more than Chanel, retaining an average of 103% of their value. This is because Hermes bags are produced in much lower quantities than Chanel, making them rarer.
What is the most popular item in Chanel? ›
Arguably the most famous Chanel purse of all time, the 2.55 Flap bag is a timeless icon.
Exclusivity Factor
The allure of Chanel bags extends beyond their materials and craftsmanship. As one of the most sought-after luxury brands, Chanel is considered a 'Veblen good,' where increased prices can lead to greater consumer demand due to their perceived status and exclusivity.
Why are Chanel prices so high? ›
Reasons for the Increases? Some believe it's to maintain exclusivity while others think the brand wants to reach peak dream bag status to sit alongside those from the more expensive brands like Hermès.
Why are Chanel bags so valuable? ›
The quality of Chanel bags is unmatched, and they are designed to withstand the test of time. One of the most compelling reasons to invest in a Chanel bag is the high resale value. Because of their timeless style and exceptional quality, these bags hold their value well and often appreciate over time.
Is it good to invest in luxury bags? ›
Most of the time, buying a luxury bag is like buying a new car or most of the stuff in life we acquire. The face value instantly drops once it gets past that 30 days return period. Some people may have made a profit by selling their luxury bags, but that's limited to trends and timing.
Is it good to invest in designer bags? ›
If you invest in a trendy piece, chances are you won't sell it for years, if not decades. 2. Super limited edition luxury items can still increase in value. Take for example the Himalaya Birkin, one of the most expensive bags of all time that sold at auction for more than $440,000, similar to the Ombré Birkin.
Is it good to invest in luxury brands? ›
Brand boost
Luxury stocks have long been regarded by some as an effective hedge against inflation. This is largely to do with the segment's high pricing that seldom deters its affluent customer base and much higher margins than many other consumer discretionary products, such as televisions or phones.
Should you invest in luxury brands? ›
It's possible to make money by investing in luxury goods. But it's unlikely that you'll make more than you would've by just investing in a quality investment fund, such as an S&P 500 ETF. As you saw, most luxury items don't outperform the S&P 500.
