Knight Frank's 2021 Wealth Report ranked Hermès first in its Luxury Investment Index for the second year running, with handbag values rising about 13 percent a year, and Baghunter's 2017 research found the Birkin had gained 500 percent since its 1984 release, faster than gold. Only certain bags behave like that.
Do designer bags really hold value?
The investment case starts with the asset class itself. Knight Frank, the consulting company, classifies designer bags not as accessories but as a real financial asset, one that has kept growing even through economic crisis. Specific models have climbed in price every year regardless of market conditions, and more buyers entering the handbag market push those prices higher still.
The scale is substantial. A Business of Fashion study projected demand for designer bags would grow from $72 billion to $100 billion by 2027, and Credit Suisse put bags at 2.5 to 5 percent annualized volatility, among the least risky assets in the luxury index. Bags now sit alongside watches, jewelry, cars and paintings as things people collect for value.
What makes a bag collectible?
- Rarity: a rare or unique item, such as bags in lizard or crocodile, or materials the house no longer uses;
- Vintage status: models that are no longer produced stay in demand forever;
- Limited editions: pieces created for a specific event in a limited run gain value over time;
- Proven classics: well-known models from major houses that have passed the test of time and stay in demand on both the primary and secondary markets.
Design and shape decide the rest. A bag meant for investment has to stay relevant for years and hold its presentation after years of use; if it risks sagging or losing form quickly, it does not carry investment value. The models below have all been tested by time.
The LDJ edit
Shop the latest finds
Hermès: the Birkin and the Kelly
The Birkin needs no introduction. Named after the singer and actress Jane Birkin, released in 1984 and made entirely by hand, it became extremely valuable on scarcity alone: limited production, waiting lists that can stretch up to six years, and every parameter of the bag recorded and strictly observed. The value grows by an average of 13 percent a year, and on the resale market buyers pay thousands above retail to skip the line and get the exact material, size, color and hardware they want. Exotic skins carry the highest prices of all, led by the Himalaya Birkin, one of which sold for more than $440,000 USD.
The Kelly followed a different route to icon status. Hermès launched it in 1935, but it was not until 21 years later, when Grace Kelly used the bag to shield her pregnancy from paparazzi, that the Princess of Monaco's accessory became the Kelly in the public imagination. It carries by top handle or strap, the Kelly 25 and Kelly 28 hold everyday essentials, and the house's purchase limits and confidentiality around production keep supply tight. Each bag carries a unique serial number registered with Hermès, made-to-order was cancelled, and boutiques decide who gets offered which model, which is why pre-loved is often the only reliable way in.
Chanel: the Classic Flap
Coco Chanel created the first women's shoulder-carried bag on a chain belt, and the name of the 2.55 encodes its creation date: February 1955. The original closed with a rectangular Mademoiselle lock; Karl Lagerfeld's 1980s update introduced the interlocking CC lock, and the rest of the design stayed true to the original interpretation. Chanel produces the bag in limited editions across colors, materials and finishes, and five price increases landed in the two years before August 2022, which tells you everything about the direction of travel.
Louis Vuitton: Neverfull, Speedy, Alma
Louis Vuitton classics play a longer game. The Neverfull, Speedy and Alma will never go out of style, and while their annual increases are more modest than Hermès or Chanel, they at least return your money after years of genuine use. The exception is collaborations: demand for those pieces runs hot, and values can double. In 2017 the works of Van Gogh appeared on a Louis Vuitton Speedy as part of the collaboration with American artist Jeff Koons, a crossover that turned a canvas bag into a collectible.
Frequently asked questions
Which designer bags hold value best?
Hermès leads the field: handbags topped the Knight Frank Luxury Investment Index for two consecutive years, led by the Birkin and Kelly, with Chanel classics close behind.
Why is the Birkin so expensive?
Hand production, limited supply and waiting lists that can reach six years. Resale buyers pay a premium to skip the line and choose the exact specification they want.
What is the most expensive Birkin?
The Himalaya Birkin, the hardest version to obtain, sold for more than $440,000 USD and remains the benchmark for the model at auction.
Do Louis Vuitton bags hold value?
Classics such as the Neverfull, Speedy and Alma increase at a modest annual pace and hold their value. Collaboration pieces can double in price when demand spikes.
Browse authenticated Hermès, Chanel and Louis Vuitton bags, or go deep on the holy grail in our Himalaya Birkin guide.
The LDJ edit
