“Luxury items are things you reward yourself with.” - Hans-Joerg Seeberger
Hermès, CHANEL, Louis Vuitton, and many more are brands known for making some of the best luxury handbags. Intriguingly, the luxury handbag business is booming. Luxury handbags are a relatively new division of the luxury market which came into existence a decade ago. Here is an insight into why the luxury handbag market is becoming so popular.
Reasons Why the Luxury Handbags Market Is Growing
The traditional market is losing its charm as products being manufactured outside of the USA are becoming less and less popular. Buying trends are changing; people are not spending as frivolously; instead, they are smart shopping.
Buying a luxurious handbag is seen as an investment now
According to Judy Taylor, the CEO of Madison Avenue Couture, “People are buying items that they know will hold or appreciate.” The resale value of luxury handbags is higher than that of a traditional bag. One can get at least an 85% return on their Hermès. Auctioneers even agreed that their auctions of luxurious handbags had an almost 95% sell-out rate in comparison to that of traditional bags.
Luxury Handbags Never Go Out of Style
Classic luxury handbags such as the Channel Classic and Hermès Burkin have not received many changes except for a few tweaks. People are still in search of them even after they have been circulating for decades now. Luxury handbags that are made to order, tend to stay in style for longer periods of time.
On the other hand, trendy styles do not have that much longevity. Trendy styles are susceptible to market fluctuations, and their resale value is low. Classics have performed well during the pandemic and the 2008 recession.
Luxury Handbags Are Getting Sold Online
Recently, many retail “brick and mortar” stores have shut down. Businesses are turning to selling online in order to stay viable and current. Similarly, luxury handbags are sold online.
Luxury Handbags are Attracting New Customers
As a very young market, the luxury handbag market tends to attract new customers. Unlike other sectors where luxury products are sold in large stores, new customers prefer shopping online. They are comfortable buying online and prefer placing their orders through the information and reviews provided online.
The luxury handbags market also has different demographic makeup than traditional resale divisions. Customers are becoming smarter. They want to buy the best product, and they make sure to do their research before purchasing from any website.
A Luxurious Handbag Can Be A Smart Investment
Let’s face it, if you invest in a luxurious handmade handbag, not only will it go nicely with many of your outfits, the resale of one should result in a decent return even after a few years of usage. In some instances, you may even be able to realize a profit on the resale. The Hermes resale market is more significant than its primary market. Another difference between a traditional and luxurious handbag would be that there is an emotional component to it that is not available in the traditional handbag.
Buying luxury handbags is not just a bag that you can pair with your outfits. It can be an investment and give you a sense of pride of ownership. These sustainable and luxurious goods have a high resale value, and a pretty long life. They make an excellent gift for those who enjoy luxury items, or just treat yourself to one.
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