We all know that inflation is all the rage right now. And by "all the rage", I use that ironically, because people are seriously pissed. That said, it's a perfect time to use the age-old excuse: "It's an investment!"
All jokes aside, fashion really can be an investment. Just look at arguably the most famous handbag of all time, the Hermes Birkin. Known for its extreme price tag, the Birkin bag has also gained a name for not only maintaining, but often appreciating, in value. There are many reasons behind this, and the goal of this post isn't to explore them all, but just know that the Hermes Birkin bag is often considered the most exclusive handbag of all time. They are not on sale either on the Hermes website or in most stores, so you cannot simply buy a Birkin bag. Rather, those given the opportunity to purchase a Birkin bag are part of a special list of clientele, including celebrities, prominent political figures, even royalty, as well as existing Hermes customers with long-standing relationships with the brand. For more info, this article by Madison Avenue Couture is a great intro. For me personally, I like to imagine a couple European princesses, a handful of Prime Ministers' wives, and a dozen girlfriends' and/or fiancés' of prominent athletes taking part in an all-out brawl for the chance to dish out thousands of dollars for a limited-edition Hermes Birkin. You might say my imagination is exaggerated, but I wouldn't be surprised if my elaborate story wasn't far from reality.
Before you write-off my hypothetical princesses and influencer girlfriends as crazy, keep in mind the fact that Hermes Birkins appreciate in value, even as soon as they leave the store. For the 99.99% of people without the special relationships required to purchase a new Birkin bag, a handful of consignment platforms exist which sell pre-owned Birkins of all conditions. TheRealReal, Fashionphile, and Farfetch all sell Birkins. For reference, most Birkin bags on resale websites fall somewhere between $10,000 to $100,000 USD. Although the exact price range of new Birkin bags purchased by special clientele is unclear, it is widely known that the MSRP is not nearly as high as the resale value. So, maybe the princesses, politicians, and pop-stars (OH MY!) aren't as crazy as you thought.
Enough on the Birkin bag. The point is, fashion can be an investment, with Hermes Birkin bags being an extreme example. Other fashion items are known to hold and even appreciate in value, but finding out exactly which requires a lot of research. While your author is by no means an expert, I can offer a couple tips which will likely influence how well a luxury fashion item will hold and increase in value:
Is it classic?
Think Chanel double-flap, Christian Dior Lady Dior, Gucci Jackie 1961, Burberry trench, Fendi baguette, LV trunk, Hermes twilly ... you get the picture. Most brands have a couple staple items that they continue to make year after year. They might come out with different colors and patterns, but the core design has always been the same. That's because these particular items are central to the brand's identity and often history, making them timeless pieces which never go on sale or out of style. While most big brands comes up with new designs every season, some items stay notoriously the same. These are the pieces worth investing the most in, because they are unlikely to become relics of the past anytime soon.
Is it trendy?
Think of this as the demand part of supply and demand. The more an item is considered trendy, the more demand there is for it and the greater lengths people are willing to go to acquire it. It's a pretty simple mix of economics and psychology; if something is trendy, there is a sudden rush of people in search of it with a limited supply. You'll need to pay attention to the trend cycles, which are now notoriously fast-paced and even harder to pin down. To benefit from the increased resale value of something trendy, you'll also need to already own the item at the time that it becomes popular, but in the off-chance that you do, you'll likely stand to benefit. My personal preference is to invest in classic pieces with simple silhouettes, neutral colors, that are functional and wearable, because they are more likely to sell well regardless of trend cycles.
Is it hard to find?
This is the supply part of supply and demand, and a large part of the craze behind the Birkin bag. Scarcity breeds exclusivity, and, whether you agree with it or not, exclusivity is something that can be monetized (a lot). Bags, shoes, and clothes are no different than any other material goods in their capacity to represent status in some way. The more sought after something is, the more people will be willing to compete for ownership.
Here are some things I personally own which I consider my best investments (and why):
Burberry Wool/Cashmere Tailored coat
Functional, High-Quality, Classic Brand, Simple
I found this several years back during a very rare sale on the Burberry website, which I have yet to witness since. Not only is this coat an extremely high quality, functional piece, but it's a classic color and silhouette without any giveaways as to the brand. It's simple enough to be wearable for many years and useful enough to benefit anybody living in a place that experiences cold weather. Based on my quick online research of similar items on resale websites, I could likely get close to the price I paid for it. I don't plan on giving it up anytime soon.
Burberry Large Grace bag
Functional, High-Quality, Classic Brand, Simple
I got this bag during the same potentially accidental Burberry sale mentioned above. This was my first high-end bag purchase, and I wanted something simple and classy, but functional. This bag is a great size for storing all of the necessities, and has a tiny printed metallic silver logo that gives it away, but only up-close. It's simple, black leather, and doesn't compromise on craftsmanship. I've been carrying it for years and it's still in great shape. Based on my quick online research of the same item on resale websites, I could likely get close to the price I paid for it. I don't plan on giving it up anytime soon.
Etro Intarsia Wool Sweater
Functional, High-Quality, Quirky Brand
I got this on a crazy sale at Farfetch. It's warm, it's got a cool design that includes the brand's logo pegasus, and it's a simple black and white color with crewneck silhouette. While Etro might not be as popular a brand as some others, I can see it gaining popularity with its unique patterns and high-quality pieces. I'm not quite sure of the resale value of this sweater, but I do know it's held up brilliantly so far and is unbelievably sturdy / warm, making it very functional. I don't plan on giving it up anytime soon.
Fendi Borsa Pocket Zucchino bag
Functional, Classic Brand, Vintage, Trendy
This was my first purchase on TheRealReal many years back. I was a relatively broke college student with a small budget, but wanted something premium, high quality, and still in great condition. I found this and wasn't really sure what to make of it at first because of its slightly odd shape and very distinctly vintage design. However, I fell in love with the bag's usefulness and, over the last few years, this Y2K vintage design has seemed to skyrocket in popularity, not to mention it still has that classic Fendi symbolism. Based on my quick online research of the same item on resale websites, I could likely get close to the price I paid for it. I don't plan on giving it up anytime soon.
Jacquemus Le Bambidou Shearling bag
Functional, Trendy, Quirky Brand
I got this on another crazy sale around Black Friday from Neiman Marcus (r.i.p). At the time, I just though it was funny, and I loved the different design and brown color. Jacquemus had become famous for the mini Le Chiquito bag, but it was still not on the same footing as the bigger brands. That said, Jacquemus has seemed to gain popularity as a brand and, so has shearling. Granted, shearling and fleece has been trendy for a while now, but it shows no signs of slowing down, at least for the next few years. I think this has to do with the fact that shearling is incredibly warm and therefore functional. This shouldn't really apply to a handbag, but it just might. Because of the combo of shearling with an up-and-coming brand, I consider this bag to be one of my greatest investments. It also happens to be the item that I have received the most compliments on -- by far. I kid you not, I have not gone on a single outing, whether to the grocery store or Sephora, where I haven't received at least one comment on this bag. Based on my quick online research of the same item on resale websites, I could likely get far more than the price I paid for it. I don't plan on giving it up anytime soon.
Stuart Weitzman leather pumps and loafers
Functional, High-Quality, Classic Brand
Stuart Weitzman may not be one of the most high-end brands, but I personally still consider it a designer brand. For those who may not know, you can often find Stuart Weitzman on a pretty significant discount, either directly through the Stuart Weitzman outlet website, or at places like Nordstrom Rack or Saks Off Fifth. You might also be surprised to find that you can often snag SW shoes on sale in basic colors and styles, not just the outlandish colors and designs that haven't sold well. In the last couple of years, I found myself two black patent leather pairs of SW heels in such places, and I'm in love. The loafers are definitely more wearable than the stilettos, but both are classic styles that will last for years. While my research shows that SW does not have quite the same resale value as the top brands, they are certainly still in demand. Either way, I don't plan on giving either pair up anytime soon.
Wandler Medium Joe bag
Functional, High-Quality, Simple
This was my most recently snagged piece. After a shopping trip with my mom to Chicago did not yield the basic nude tote bag I had been hunting for, we decided to give this piece a try after I found it on Farfetch at a price better than the Wandler website. So far, I'm impressed. It's incredibly simple and understated, yet sophisticated, and goes with everything. While the light beige color might be hard to keep clean, I will try my hardest in hopes of giving her the best chance at living a long and happy life. Wandler seems to be more of an up-and-coming brand, so there's not much to say in terms of resale value (yet). Regardless, this is a staple that goes with everything and feels luxurious despite being significantly less expensive than the top brands.
Closing Remarks
I hope to provide updates as I continue to wear these favorite pieces, acquire others in the future, and track their value over time. The goal here has been to highlight some things that make pieces timeless and likely to hold value. To summarize, factors such as brand, style, and current trend cycles have a lot of say when it comes to resale value of luxury fashion items, but I hypothesize that other factors play an important role. Things like color, shape, and condition of an item will impact how sellable it is, with timeless pieces being more in demand. Of course, you might get lucky here and there with the occasional oddball piece that just happens to be "in", but it's not something to count on.
My personal goal thus far has been to invest not in the things that I think will sell well once I decide to get rid of them, but rather items I love and hope to never sell. Only then, I believe, will you truly get your money's worth. The real investment isn't in resale value, though of course it is a perk and something to consider, especially if you love a good deal like I do. I also don't want to discourage people from getting involved in fashion, even if it just means dipping your toes in. All I'm saying is, picture this:
It's ten or twenty years down the line and that the gorgeous black handbag or fabulous wool coat has given you hundreds upon hundreds of wears and is still hypothetically kicking, but it's starting to show signs of a deserved retirement. You're sad, but you know you had a good run together. Maybe you donate it, maybe you try to recoup some of its value, maybe you pass it on to the next generation in your family or a close friend.Either way, that's priceless.