- Angela Gonzalez-Rodriguez |
The market for used luxury handbags has grown from 5 million pounds seven years ago to more than 26 million pounds last year and is expected to keep on growing.
In fact, according to a recent report by Jefferies, some handbags outperform even the most successful hedge fund. Actually, highlights Jefferies, some owners could be sitting on annual returns of more than 30 percent.
"Christie's data shows that Hermès bags often offer a positive return, for example one Himalaya bought in 2010 for 29,600 euros was sold in 2016 for 157,500 euro marking”, explained the investment bank in a new report.
Second hand luxury handbags’ market grows five-fold in seven years
Jefferies’ analysts met last week with Rachel Koffsky, specialist for luxury handbags at auction house Christie's, who told them the secondary market in those accessories had grown to 26 million pounds in 2017 from 5 million in 2011.
That's a 432 percent upswing against about 310 percent if one had bought a Hermès share at the beginning of 2010 and sold it at the end of 2016, highlighted from the investment bank.
Jefferies cautions however that "most of the top designer handbags such as Chanel, Louis Vuitton and Gucci will (on average) depreciate in value".
According to a recent report by Markets Research Future, globally, the market for luxury fashion has been increasing due to changing consumption patterns and growing demand for new designs and brands.
Growing brand awareness and discounts on big brands online considerably supported the luxury fashion market. Based on those trends, the global luxury fashion market is expected to grow at CAGR over 5 percent from 2016 to 2022.
Secondary data within the same research reveals that among the various market segments accessories specifically watches and jewelry witnessed highest growth followed by clothing in the last few years.
Clothing and accessories dominates the luxury fashion market both in market volume.
Rise in women working population across the world has boosted the luxury fashion product sales to a greater extent, traction for branded items, rise in disposable incomes continue to support growth of the luxury fashion market.
Image: Hermès Birkin, Hermès Official Web