Men Invest In Stocks, Women Invest In... Handbags? Deconstructing the Lie of the Girlypop 'Investment Bag'.
No news outlets wanted this, so I guess I'll do it myself.
At risk of sounding bitter and entitled, I was rather surprised when editors I usually work with (and whose likes and dislikes for commissions I know) all declined this piece. Upon discussion with
on the current state of luxury fashion reporting, it appears many are still clinging to the perception that handbags are a sound investment and, somewhat worryingly, an investment for the girls. The reporting seems to follow the money in this instance, and since I can’t seem to get in on that, it’s time to blow the whistle.The Falsehood of the ‘Investment Piece’ Handbag
The perception of luxury items as ‘investments’ rather than consumer goods to be enjoyed by the buyer has steadily risen in popularity following a post-pandemic boom, reported on extensively by various news outlets. However, as the data starts to settle, it’s becoming increasingly clear that promises of returns that outperform the S&P 500 on your Birkin bag are inflated.
The trend of ‘investing’ in luxury goods is reflected across the board, leading CEO of Rolex SA Jean-Fréderic Dufour to come out and warn speculators against investing in luxury watches, stating “I don’t like it when people compare watches with stocks. This sends the wrong message and is dangerous.” This warning comes following the release of data demonstrating declines in value, as the Bloomberg Subdial Watch Index (which tracks prices for the 50 most traded timepieces by value) has declined 40% in the past two years. When it comes to handbags, no equivalent statement has yet been issued by an industry giant, but rumblings of doubt are starting to emerge.
Why Did We Start Viewing Handbags As Investments?
Employing financial language to shill luxury items to women was not on my 2024 marketing bingo card, but it clearly works. Companies like ByRotation are using hooks like “When Your Wardrobe Is An Asset Class”, and TikToks explaining the finer points of luxury handbag investment gain considerable attention.
The widespread use of financial jargon in these marketing campaigns is a clear attempt to offset the trope that purchases of luxury goods primarily aimed at women are frivolous. The stereotype that women are big superficial spenders and men are not is tired, and not reflected in consumer data (e.g., Deloitte’s ‘Bourbon Barometer’ vs ‘Lipstick Index’ - clipping included below).
However, it’s clear that the stereotype still stands, and luxury goods marketers have figured out how to appeal to women wanting their purchases to be taken seriously by framing handbags as an alternative means of participating in the world of investment.
This excitement for viewing handbags as investments follows data that emerged post-pandemic, as handbags topped the handbags topped the Knight Frank Luxury Investment Index in both 2020 and 2021. However, it’s becoming clearer that the tables have turned in the world of luxury goods as the KFLII fell 1% over the last year, pulled down by rare whiskey (-9%), classic cars (-6%), and crucially, handbags (-4%).1
Cui Bono?
Much of the encouragement and marketing surround handbags as shrewd investments comes, unsurprisingly, from resale companies such as TheRealReal, ReBag, and Vestiaire Collective. Whilst promoting circular shopping is an admirable mission and buying preloved is our best working solution to the fast fashion crisis, handbags are bought to be worn, and any value they accrue through the years is simply an added bonus. Also, handbags retaining their value is largely dependent on the condition they are kept in, which basically precludes you from taking the bag to any activities other than dry influencer events where you carry it on the tube in a dustbag, snap a few pics, and then place it back in your cupboard.
A comment below one of the handbag investment TikToks I showed earlier.
The smallest stain, tear, or scratch can knock hundreds off the resale value of a handbag, and this reality precludes you from actually enjoying a purchase whose sole object is to be enjoyable (and hold stuff, I suppose).
Fundamentally, the idea that you can girl invest in your girl assets just like the big boys do in their real finance world makes for uneasy reading, and discounts the millions of women (myself excluded) who are very capable at maths, and excel (pun intended) in the financial sector.
Moralising on bimbo feminism aside, the numbers speak for themselves, and are decidedly skewing away from the Birkin Boom of 2021-2022. There’s no reason not to invest in your handbag collection if it’s a fun pastime and you truly love and appreciate your pieces, but viewing them as surefire value retainers is likely to lead to disappointment.
Also, let’s be real - keeping your top tier handbags in pristine condition is highly unchic, as evidenced by the Olsen twins and Jane Birkin, so don’t let TikTok pyramid scheme girlbosses deprive you of the glorious experience of a well-loved handbag.
Sources:
https://money.com/men-treat-themselves-spend-more/
https://www.vogue.com/article/bags-with-the-best-resale-value
https://channels.ft.com/en/ft-wealth/the-rise-of-luxury-fashions-resale-market/
https://content.knightfrank.com/resources/knightfrank.com/wealthreport/the-wealth-report-2024.pdf
https://www.nasdaq.com/articles/nasdaq-100-vs-a-chanel-bag-which-makes-a-better-investment
Knight Frank Wealth Report 2024, p5, p66.