Today, Chanel bags are talked about for two main reasons: their iconic design and their increasing financial value. The maison made headlines earlier this year for its decision to introduce a second increase to the price of small leather goods (a rise of 15% in some cases). The rising price point might encourage us to believe that Chanel bags are golden financial investments. However, the truth behind this investment and if it is a sustainable way of making a profit remains cloudy. Can anyone succeed in making this investment; Is it worth the time and effort; is there a clear advantage to the non-professional buyer/customer? In this exploration, we investigate if the current buzz around investing in Chanel bags is to be chased or ignored.
Buying any Chanel bag is often no easy financial feat. If buying one of the most investable pieces, prices currently range from £3,090 to £6,800 – a hefty sum for the typical buyer. Yet this iconic item is on many fashion lover’s dream list and there are endless reasons why buying a Chanel bag is good and worth it: its beautiful craftsmanship; the house’s iconic status; they’re an amazing statement accessory; they’re a collector’s item; or simply because you want to. However, if buying you’re only for the current ‘investment’ status, be cautious unless you’ve thoroughly thought it through, as the price tag might not always be worth it.
Whilst Chanel is an emblem of luxury high fashion, not all the brand’s bags hold the same resell value. When investing (and reselling) Chanel bags, the financial value is typically dependant on its historical meaning and relevance within the house. As a rule of thumb, the Chanel 2.55 Flap, Chanel Classic Double Flap and Chanel Boy Bag are the three bags that are likely to make the greatest profit when investing. Created by Coco Chanel in 1955, the 2.55 Flap was a fashion revolution: the first bag with a strap, it was made with an emphasis on practicality and ease of living. Women everywhere flocked to the 2.55 design not just for its beauty (with details of diamond-quilted stitching and its burgundy interior) but for what it represented. Alongside the 2.55 sits the Chanel Classic Double Flap (renamed 11.12 in 2021): created in 1983, this bag was created by Karl Lagerfeld as a reinvention of the 2.55. This bag was created with two new features, a leather woven chain and the c-turn-lock closure and today available in endless varieties, this bag sits as one of Chanel’s most sought-after pieces. Finally, and the newest addition to the most famed Chanel bags, is the Chanel Boy Bag. Created by Lagerfeld in 2011, the Boy Bag is designed with a masculine edge which is said to reflect Coco’s famous boyish, boundary-pushing attitude. Modelled on the spirit of Chanel, this bag has gained recognition from its celebrity status and seasonal reinventions. Although buying luxury fashion pieces is very personable and taste-dependant, it is worth noting that there is a hierarchy of financial value within Chanel. For rough guidance, investing in a bag that represents a piece of Chanel’s history is the most guaranteed profitable investment, because owning a piece of Chanel history will never get old.
From a purely financial perspective, buying a bag to resell is a good, profitable investment. With a retail price increase of 3% each year, reselling a classic Chanel bag is an almost foolproof way to make a profit. Despite small leather goods holding their price point well, Chanel’s announcement of price inflation has increased the exclusivity and desirability of their pieces. In turn, the Chanel bag is even more marketable and sought after. However, whilst the financial gain is straightforward, reselling a Chanel bag is not as easy as listing it on eBay the following year. To reach full profit potential, it’s recommended that you wait at least seven years before reselling, to allow the bag to reach its peak value. Subsequently, not only are you bound to time but within these seven years, the bag must maintain perfect condition to avoid value reduction from damage. If buying with the sole intention of reselling (i.e., it patiently sits in packaging at the back of your wardrobe for seven years) this is no worry, but if you plan to enjoy the luxury of owning a Chanel bag, you might want to re-think your plans.
Owning an iconic Chanel bag but not wearing it is a form of fashion torture; being so close to something so beautiful but locking it away requires a special amount of willpower that few of us have. So where does that leave the average buyer who might invest in a Chanel bag? Simply put, if you desire a Chanel bag, then buy a Chanel bag: wear it with pride, use it as a staple accessory, allow yourself to indulge in its craftsmanship and beauty. If reduced to only a calculation of profit, our interaction with luxury fashion will arguably soon lose its joy and specialness. Luxury fashion (particularly small luxury leather goods) holds brilliance because of its meaning, it is important to both the industry and the buyer. Stripping this away, by focusing only on investment, is just a more painful way of putting money in stocks and shares. The question of if you should invest in a Chanel bag does not have a universal answer, but it does have universal technicalities which you should follow to ensure that your investment pays off. Whether investing in a bag is good is dependent on your personal relationship with fashion and, in this instance, Chanel. When speaking of ‘investment’, we assume ‘good’ to mean high profit and good money, but the payoff from the emotional investment of buying a Chanel bag is just as – if not more – profitable. Because of this, there is just one thing that we can tell you for certain: buying a Chanel bag will always elicit joy.
Hannah Emery
