Most Profitable Luxury Handbag Brands

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Some people spend thousands of dollars growing their collection of luxury handbags. Aside from their quality, exclusivity, and prestige, luxury handbags are deemed worthy investments. Some experts mention they're better investments than the stock market or even gold. Luxury handbags last for a long time and may retain or exceed their initial selling value.

So what are the most profitable luxury handbag brands? The big 3 luxury bags will always be valuable: Hermes, Louis Vuitton, and Chanel. Aside from these, Christian Dior and Prada are also great luxury handbag brands. Value appreciation depends on the kind of bag you purchase - the materials used and the production are among other factors that come into play.

Luxury Handbag Brands to Invest In

Aside from their style and prestige, designer bags have also become worthy investments because they can return thousands of dollars when resold in the luxury market. The more exclusive your bags are, the higher return of investment you may expect. Here are some of the most profitable brands in the luxury industry:

1) Hermès

Hermès is one of the luxury brands that produce items with a high resale value. The French luxury house started in 1837, specializing in leather goods until they expanded to bags, jewelry, watches, clothing, and more. 

Their most popular luxury handbag is the Hermès Birkin bags, which cost around $9,000 to $500,000. Most collectors and bag lovers consider their Birkin bags investments. According to research, the value of Hermès Birkin bags may increase by 300% after 10 years. In 2021, Statista noted that Hermès is one of the most profitable handbags brands with an average premium of 26.7%.

2) Louis Vuitton

Louis Vuitton is a classic favorite. Who would not recognize the iconic Louis Vuitton monogram? This French fashion powerhouse has a brand value of about $25.9 billion. You may have seen A-listers and personalities sporting their Louis Vuitton bags everywhere they go.

Louis Vuitton is one of the top luxury brands with high increases in resale value. The increased price will still depend on the types of designer handbags--the more limited it is, the more expensive it can get. 

One of the examples is the 1978 Louis Vuitton Chantilly, which held an 85% retention of its retail price. The Louis Vuitton Petite Boite Chapeau held a resale value of 87%, but probably the most valuable is the Louis Vuitton Neverfull with a resale value of 91% to 96%.

3) Chanel

Chanel is also a profitable brand in the fashion industry. The French brand has an average premium of 28.3%. Its price increase for the resale market also depends on the type of Chanel bag you have, but you can sell most of its items at an attractive price after several years. 

An example is the famous Chanel Boy bag, which was just released in 2011. This bag now has a retail price of $5100, from being $2100 five years ago. It retains a resale value of 90%

4) Christian Dior

Christian Dior is also one of the most profitable brands, having an average premium of 38.1% in 2021. Their luxury purses are also known to be both royalty-approved and fashion icon-approved, thanks to Princess Diana and Carrie Bradshaw, respectively.

One of the Dior bags worth investing in is the Lady Dior bag, which was the handbag Princess Diana used. It first has the name "chouchou," which means "favorite" in French. The luxury bag changed its name to Lady Dior in 1996 as a tribute to the then-Lady Diana Spencer. Its updated version, the D-Lite Lady Dior, retains 70% to 80% of its retail price when resold.

5) Prada

This list of the most profitable luxury bag brands wouldn't have been complete without this French fashion house. It started in 1913 as a shop for leather goods, but now it has earned the prestige of offering luxurious goods. Their handbags are some of the best items in luxury fashion. 

Prada is worth investing in, having an average premium of 28.9%. The Prada Re-Edition Nylon Bags have a high resale value of up to 190% of their retail price.

Tips for Investing in Luxury Handbags

Investor sitting on stack of coins.

Investing in luxury bag brands may give you promising returns, but you should still know your way around. Keep your assets in the best brands and bags for a higher resale value. Here are some tips:

1) Choose the Classics

While many luxury bag brands ensure a good ROI, it's still best to invest in what they call the holy trinity of luxury handbags: Hermès, Chanel, Louis Vuitton. We also recommend investing in classic bags among the pieces from these luxury brands due to their high demand and difficult procurement.

2) Invest in Limited Edition Bags

If you want more challenges, limited-edition bags are also worth investing in. Stay tuned for custom-made pieces, exclusive collections, or collaborations with famous fashion designers. Be prepared for the bloodbath because these pieces tend to sell out in minutes and even in just a few seconds.

3) Avoid Frequent Sales

Sales might be good news for you if you just want to own a luxury bag. If you're after the resale value, you might want to steer clear of brands that are always on sale. Handbags from sales or those bought at a lower price may also have a lower resale value. You must also avoid brands that release a seasonal collection of handbags that don't have a consistent style. They easily lose relevance and are forgettable.

4) Do Your Research

To ensure that the luxury bag you're planning to purchase is a good investment, do lots of research. Know more about the bag's resale potential and look more into the increase in their prices. Compare luxury brands, especially their best bags and  accessories.

5) Maintain the Bag's Condition

Maintain the quality of your bag's condition to avoid losing its resale value due to poor maintenance. Store it in its dust bag and keep it upright on a spacious shelf. Avoid hanging your bags when you're not using them and air them out regularly to regulate humidity. It will also help to invest in the right cleaning products.

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The luxury bag brands with high annual revenues must have shown effective strategies in keeping their designer items relevant and popular. If you're having prospects for collecting and investing in luxury bags, you should look more into these brands to assure a high ROI in the future. Hermès, Chanel, Louis Vuitton, Christian Dior, and Prada are some profitable brands to trust.

Look for a reputable reseller of luxury handbags to ensure that you only get the best and guaranteed authentic pieces, like ours at HG Bags Online. Here at HG Bags Online, we offer brand-new and pre-owned luxury bags, shoes, and accessories. Get your dream bag today and visit our website.