Founded by Coco Chanel in 1910; loved by A-listers, fashion lovers, and investment buyers ever since. The Chanel brand is one which has long been shrouded in luxury, very quickly establishing itself as a market leader in the luxury sector owing to the craftsmanship of the products and the status of Coco Chanel herself as somewhat of a fashion revolutionary.
When Chanel first tapped into the handbag market with the release of the 2.55 in 1955, the brand sparked a surge in demand for luxury handbags which has never really gone away – creating an incredible market around which demand continues to outweigh supply.
When you look at the history of Chanel bags as an investment, there are many times over the past 80 years that one may have assumed the market had reached its peak. However, an exciting new release or the rerelease of an old classic constantly brings attention back to the brand and its classic, elegant designs – ensuring that the spotlight never falls away from Chanel.
With all that in mind, and with both the financial value and status of Chanel bags driving demand across the market, it doesn’t take an expert to conclude that Chanel bags are a great investment.
What we’re interested in in this article is why.
What happens when demand constantly outweighs supply
The value of a product on the luxury market is increased tenfold when new investors struggle to get their hands on it. In fact, this concept is true of pretty much anything – with cryptocurrency a prime example of how a limited supply can drive shares skywards (with Bitcoin worth, at the time of writing, around $29,208.
Chanel handbags have long been manufactured under a limited supply chain, meaning that demand is far higher than supply allows – and Chanel use this to their advantage by hiking prices on a regular basis in order to cover the rising cost of manufacturing as well as contribute towards the exclusivity of their collection.
The way that this is framed mimics that seen across the market, with Chanel adjusting their prices in line with inflation and the rising cost of materials – however, that doesn’t explain the increase in the value of a Chanel handbag as soon as it has left its original retail environment.
Exploring the increase in a Chanel bag’s value after it has left the store
As soon as a Chanel handbag leaves its original retail environment, the value of that bag increases exponentially. A portion of authentic Chanel bags that are purchased in-store are taken straight to resellers or else kept in box-fresh condition ready for resale at a later date, as a result of this hike in value.
This, again, is fed by demand – with classic models and rare materials among some of the most coveted. And as savvy investors will already know, with demand and desire comes a willingness to pay higher prices, thus pushing the value of these rarest and most in-demand Chanel bags even higher.
What are the factors that impact the investment value of a Chanel bag?
There are certain factors that need to be considered when seeking a Chanel bag investment, particularly one that will continue to increase in financial value the longer you hold onto it. One of these factors is the condition, with owners needing to retain all the original packaging in order to maximise their investment potential.
It is also crucial that your bag is authenticated and valued by a reputable reseller, whether you plan to sell it straight away or retain it as a long term investment.
Is a Chanel bag worth the investment?
Whether you consider yourself to be a fashion lover or simply open-minded with regards to investing, a Chanel bag is an excellent option for those who want to own something which will continue to appreciate in value over time. With everything from the cost price of a Chanel bag to the coveted status driving value upwards at a steady rate, an authentic Chanel bag is the kind of investment that is considered stable – far more so than traditional investment alternatives, as evidenced over the past few years.
If investing in Chanel and other luxury brands is something that you’re interested in, or you would like to browse the current and ever-changing collection of authentic Chanel handbags available at Love Luxury, you can visit us in store and on our website.