These are the smartest handbags to buy as an investment, from Hermès to The Row
Madeline Berg
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- Handbags can make a good investment — sometimes selling for as much as double their retail price.
- Bags' performance on the secondhand market depends on several factors including condition and style.
It's not girl math — handbags can be a great investment. Not only are they actually usable, unlike stocks or bonds, but certain ones can be resold for more than they cost.
That's a good thing for those who love to shop because handbags from the most exclusive brands can cost five figures or more.
"People are shopping more with an investment mindset and less trend-driven, and I think that comes down to people understanding they can resell these items in the circular economy," Kelly McSweeney, a senior merchandise manager at luxury secondhand retailer The RealReal, told Business Insider. "They are understanding more the value that their closet holds. If they have an item they haven't worn, they can get a percentage of that initial purchase back and then put that back into their wardrobe."
The secondhand luxury goods market reached about $50 billion last year, an increase of 4% to 6% from the year prior, Bain reported. There was growing interest in "preloved timeless bags" in the US, the report found. Meanwhile, a McKinsey report found that bags and shoes make up more than a third of all resale purchases.
In its annual Resale Report, The RealReal looked at which bags are selling for the highest percentage of the manufacturer's suggested retail price and which are selling for even more, a trend partially driven by the scarcity model adopted by certain luxury houses, like Hermès.
"It really comes down to availability in the primary market and then exclusivity, so depending on the brand's strategy for releasing a bag," McSweeney said.
Of course, a bag's condition also plays a role. Resale value is highest for bags that have never or barely been used. That said, bags that are not in new condition can still sell above MSRP, McSweeney added.
Bags that are classic — full leather, lacking too much ornamentation, styles that return season after season — tend to fare best on the resale market long-term, which is one reason bags like the Hermès Birkin and Chanel Kelly routinely show up on lists of the best investment bags.
These are the bags that, on average, have the highest resale value compared to their market value.
Toteme T-lock: 85% of MSRP
Toteme's simple T-Lock bag is another example of the investment potential of quiet luxury.
Polène Numéro Dix: 92% of MSRP
Polène is a more moderately priced brand — the Numéro Dix retails for $580 — and its place on the list demonstrates that resale is thriving at all price points.
"Along with these luxe brands that we are really seeing trend — the Loewes, Miu Miu — we are seeing certain emerging brands really rise to the top too," McSweeney said. "Polène is one that sells really quickly. We can hardly keep that style in stock."
Bottega Veneta Andiamo: 95% of MSRP
"We are really seeing people gravitate toward really quality leather pieces that are going to stand the test of time," McSweeney said, pointing to Bottega Veneta.
Telfar Shopper: 8% over MSRP
Another brand known for perfecting the scarcity model, Telfar bags can be hard to come by.
Hermès Mini Bolide: 14% over MSRP
The popularity of the Hermès mini Bolide speaks to the quiet luxury trend and how simple, classic styles tend to sell well on the resale market.
The Row Margaux: 15% over MSRP
"With all of the buzz about the bag this year, we noticed The Row seems to have possibly changed its distribution strategy," McSweeney said.
Most varieties of the bag are now sold out online, meaning customers have to go to The Row's boutiques or a department store to snag the bag.
Chanel Mini 22 Hobo: 20% over MSRP
While the mini hobo is particularly on-trend at the moment, certain aspects make it a strong sell on the resale market.
"It has those classic elements — it's super recognizable Chanel, it has the logo hardware and the classic chain strap," McSweeney said.
Goyard St. Louis Tote: 25% over MSRP
The resale value of Goyard totes goes to show that investing in classics is often a smart strategy when it comes to handbags.
Chanel Mini and Nano Kelly bags: 30% over MSRP
While Chanel is one of the most expensive handbag brands out there — resale or new — its notorious price increases have made some of its most popular styles, like the flap bag, less valuable on the resale market when compared to MSRP.
That said, certain styles like the classic Kelly still command prices higher than the market.
Hermès Birkin: 32% over MSRP
The most well-known of Hermès' handbag portfolio, plain leather versions of the Birkin bag sell for about a third higher than their retail price.
One of the most perennially in-demand bags, a Birkin's price can vary widely based on rarity (ones made with exotic skins or special editions are particularly valuable) and condition (new styles in pristine or excellent condition can sell for 90% over MSRP).
Of all styles, the Birkin 25 resells for the highest amount, averaging double the MSRP.
Hermès Evelyne TPM: 47% over MSRP
Like Kelly bags, Hermès Evelyne bags are a signature of the brand.
Hermès Kelly: An average of 50% over MSRP
Hermès has perfected its scarcity model, racking up waitlists for its most popular styles like the Kelly. Those who don't want to spend time and money proving their loyalty to the brand can buy one secondhand — at an added cost.
"We know that Birkins and Kellys, you can't just walk into the store and purchase one of those," McSweeney said.
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