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BUYING a designer handbag may seem like a misguided pleasure, but according to the Knight Frank’s Luxury Goods Investment Index (KFLII), a luxury bag can be a wise way to diversify your investment.
For two consecutive years, luxury bags from fashion house Hermes topped the index, with prices rising 17 percent in 2020. Art Market Research (AMR) also noted that in 2019, the price of Hermes bags rose 13%. AMR is a research firm that analyzes the collectable art, antiques and luxury goods markets.
The presence of online auctions for the upper class and the desire to buy relatively affordable luxury goods during the pandemic, especially in Asia where there are many luxury bag collectors, have made luxury bags the leading luxury item that remains in demand for collectibles, said Knight Frank in press release.
In comparison, the price of quality wines, which took second place in the KFLII, was up 13%. Classic cars are in third place, with prices up six percent.
“The luxury goods market, whose profile is largely dependent on the auction market, is clearly severely affected by the COVID-19 pandemic. But some sectors such as bags are facing a pandemic storm better than assets such as art, where no painting has sold more of US$100 million for the first time in years,” said Andrew Shirley, editor of The Wealth Report at Knight Frank, as quoted by Chanel News Asia.
Meanwhile, luxury bags from the fashion house Hermes have become a popular choice for collectors. The collection of luxury bags has expanded with the presence of luxury goods from other brands, said AMR in the 2020 Luxury Handbag Report.
While Hermes bags are coveted for their chicness, other luxury brands such as Chanel and Louis Vuitton are more popular with budding collectors, the report says.
The index from AMR shows that the Chanel flap bag has increased in value by an average of 132% over the last 10 years, higher than the Hermes Birkin and Kelly index in the same period. [antaranews/photo special]
