As the luxury resale market continues to grow exponentially since the pandemic, buying a luxury handbag today is a wise investment. Among the most iconic luxury handbags, two sought after French houses dominate the category: Hermès and Chanel. With a significant resale value well above their RRP, you’re guaranteed a return on your investment. Choosing between the two will depend on how much you’re prepared to pay upfront and how quickly you want to cash in on your return. In this two part series, we will use our R.E.A.P. method to help you decide if these coveted handbags are worth the investment.
Chanel Classic Double Flap
The original 2.55 classic Chanel handbag was created by none other than Gabrielle Chanel in the 1930s. When the late Karl Lagerfeld joined Chanel in the 80s, he designed an updated version now known as the Classic Double Flap. To create this haut de gamme piece, artisans require a minimum of 4 years of training and nearly 15 hours to craft. It is clear that a high level of craftsmanship is required to produce this work of art.
Resale Value:
On Vestiaire Collective, a brand new Classic Double flap can be resold for up to 30% of its RRP. This bag has also seen four price increases since May 2020 and is now twice as expensive as it was a decade ago. This suggests that there’s may be an opportunity to make a profit if you hold on to it for a while. However, they’re not hard to find in second-hand condition on the resale market. Unless you plan to keep it in perfect condition for resale, you may not get as big of a return on your
initial investment.
Exclusivity:
In October 2021, Chanel introduced a two-purchase limit for the Double Flap bag, limiting the number you can buy and making the item more exclusive.
Accessibility:
Unfortunately, you cannot buy this coveted beauty online and will have to visit one of their boutiques. Then, it will depend on whether your local Chanel store carries the exact size you’re after.
Price Point:
The Classic Medium handbag retails for £8,530 on chanel.com (May 2023). As mentioned above, it can be subject to several price changes in a short period of time. With such a volatile price fluctuation, buying the bag at retail now and holding on to it is likely yield a notable return down the line.
The Classic Chanel Double Flap is a highly iconic and timeless handbag that has maintained its popularity over the years. It is known for its elegant design, high-quality craftsmanship, and the distinctive CC turn-lock closure. The bag is available in various sizes and materials, such as lambskin, caviar leather, and exotic skins, each with its own price point and desirability.
The value of the Classic Chanel Double Flap can be influenced by factors such as its condition, rarity, and specific features, such as limited edition releases or sought-after color combinations. Chanel bags, in general, have shown a track record of holding their value well and even appreciating over time.
However, like any investment, it’s important to consider several factors before deciding to invest in a Classic Chanel Double Flap. Conduct thorough research on the bag’s current market trends, consult experts or professionals in the luxury goods market, and consider your own investment goals and risk tolerance.
Keep in mind that the value of luxury items can fluctuate, and investing in them may involve risks. It’s crucial to make informed decisions based on your personal circumstances and financial objectives.
Investment Rating: 7/10
We believe that if you are investing in the Classic Chanel Double Flap with the purpose of resale, it is best to keep it in perfect condition and in its dust bag and box. Otherwise, you risk not being able to sell it for more than you paid for it. After all, we’re in the business of investing, and what’s the point if there’s no return?
