With the stock market roiling, luxury goods—especially designer handbags—are becoming a hotly sought-after investment commodity. One July study from the Business of Fashion said 40% of US consumers had bought or were planning to buy one, helping bolster the category from a global market of $72 billion this year to a predicted $100 billion in 2026.
Buy them to store and trade, rather than tote, and that as-new purse could offer an impressive return on investment: In June a study from Credit Suisse Group AG showed that Chanel bags rose in value 24.5% from the previous year. Those by the house’s late designer Karl Lagerfeld are especially coveted.
The entire luxury bag sector was singled out, over other categories like cars or wine, for its risk-reward proposition. Handbags, Credit Suisse says, had annualized volatilities of 2.5% to 5%, with mid-single-digit returns.
