Are luxury bags a good financial investment?

Like a fine wine, a luxury bag can increase in value over time. But be careful…

Luxury bags can be a good financial investment, but it is important to know that the value of luxury items can be affected by a number of factors.

Some of these factors include:

Brand reputation: Luxury brands with a strong reputation for quality and craftsmanship are more likely to retain their value over time.

Rarity: Limited edition or unique luxury bags are more likely to be in demand and retain their value.

Condition: Luxury bags that are well maintained and in good condition are more likely to be in demand and retain their value.

Popularity: Certain styles or models of luxury bags may be more popular at certain times, and the demand and value of these bags may fluctuate depending on trends and fashions.

It is important to note that the luxury bag market can be volatile and bags that are considered valuable today may not be so in the future. It should also be noted that luxury bags are not liquid assets, which means that it may take some time to find a buyer and the price may be affected by market conditions.

Some examples of luxury brands that have become completely has-been

There are many examples of luxury brands that have gone out of fashion over time. An example might be the Charles Jourdan brand, which was a popular luxury shoe brand in the 1970s and 1980s. Charles Jourdan shoes were known for their high heels and distinctive design, but the brand struggled to adapt to changing fashion trends in the 1990s and 2000s, and eventually went bankrupt.

Another example is the Halston brand, which was a popular luxury fashion brand in the 1970s and 1980s, known for its elegant and minimalist designs. However, the brand struggled to adapt to changing fashion trends in the 1990s and 2000s, underwent several ownership changes and failed to maintain its relevance.

Another example is the brand Fendi, which was known for its luxury fur and leather items in the 70s, 80s and 90s. However, as public opinion and attitudes towards the use of fur in fashion have evolved, the brand has had to adapt and focus more on leather goods and ready-to-wear.

The most telling example is Pierre Cardin:

Pierre Cardin is a luxury fashion brand that was founded in the 1950s and was known for its avant-garde designs and futuristic aesthetic. The brand was particularly popular in the 1960s and 1970s, when it was at the forefront of fashion trends, but it has struggled to maintain its relevance in recent decades.

One of the reasons for this is that Pierre Cardin’s designs have become somewhat outdated and out of step with contemporary fashion trends. In addition, the brand has expanded into a wide range of categories, such as home décor, furniture and accessories, diluting the value and focus of the brand.

Another reason is the over-licensing of the brand, i.e., the brand has authorized the use of its name on a wide range of products, including clothing, accessories, and home décor, resulting in a loss of control over the quality of products bearing the brand name, as well as a loss of exclusivity and perception of luxury.

In summary, Pierre Cardin was an influential luxury brand in the past, but it has struggled to adapt to changing market conditions and customer preferences over time, resulting in a decline in its relevance and popularity.

In short, these examples illustrate how luxury brands can become unfashionable if they do not adapt to changing market conditions and customer preferences. The key to luxury brands remaining relevant and valuable is to constantly innovate and adapt to new trends while staying true to their brand identity.

On the other hand, which luxury brands have aged or renewed themselves well?

(and which have increased in value…)

There are several examples of luxury brands that have aged well or that have managed to renew themselves.

This is the case of Hermès, a luxury fashion and leather goods brand that was founded in 1837. The brand has managed to maintain its relevance and prestige over the years by staying true to its heritage and traditional craftsmanship, while innovating and adapting to changing market conditions and customer preferences.

Another example is Chanel, which was founded in 1909 and is known for its iconic designs and timeless elegance. The brand has managed to maintain its relevance and prestige over the years by constantly innovating and adapting to new trends, while remaining true to its brand identity.

Another example is Gucci, which was founded in 1921 and was a major brand in the 1980s, but the brand struggled in the 1990s and early 2000s. However, the brand has managed to renew itself under the creative direction of Alessandro Michele, who joined the brand in 2015. He brought a new vision and aesthetic to the brand, which resonated with contemporary consumers and rejuvenated the brand, making it one of the most successful luxury brands today.

These examples illustrate how luxury brands can age well or renew themselves by staying true to their heritage and brand identity, while innovating and adapting to changing market conditions and customer preferences.

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