Please enjoy this short article by Kerry Hall on 'Understanding Handbags'; 

Handbags are big business. Long gone are the days of designer handbags being a niche or overlooked collectors’ item. Nowadays, handbags are bought as a serious investment with prices rocketing for well cared for bags, making them a savvier investment than some of the more traditional categories. The most famous brands are well aware of this significant shift, bringing out ever more exclusive, unique and unusual handbags which collectors are fighting over at auction.

In addition to the contemporary view of handbags as major collectors’ pieces, there have been two further significant changes in more recent years. Firstly, the rise of the second-hand and vintage markets has meant that items from decades past are now seeing big prices at auction as collectors want to get hold of timeless pieces which are no longer available. This trend has been furthermore elevated with celebrities such as Rihanna publicly adorning themselves with vintage bags. As well as this trend for second-hand items, is the concern for the climate and a move towards sustainability which increases the demand for items already made and on the market. Secondly, with the growth of androgynous fashion, there is a widening demand for handbags as men join the market too. Once seen as a female-only accessory, the handbag now has a universal appeal.

As we have ascertained, handbags are a significant market to watch. But which handbag brands are the most likely to appreciate in value? This would be Hermès (looking at the ‘Birkin’ and the ‘Kelly’ in particular) and Chanel (with focus on the Classic Flap Bag).

For several collectors, a custom-made Hermès bag is the pinnacle of fashion. These are known as an HSS (Horseshoe Stamp) as each custom order is foil-stamped with an iconic horseshoe motif. But these bespoke items are extremely hard to come by with waitlists years long and often only offered to a very exclusive clientele. Hermès often customise the ‘Birkin’ and the ‘Kelly’ and these are highly sought after at auction. For example, in June 2022, a custom matt pink 5P and gris perle alligator Birkin 25 went for just shy of $190,000 at a Christie’s sale in New York. This was three times the estimate. In addition, a rare custom Hermès matte black alligator and rouge vif swift leather Quelle Idole with palladium hardware achieved over $200,000 at a Christie’s auction in Hong Kong. But topping even these was a Hermès Kelly from the Himalaya series (said to resemble the snow-capped mountains of the Himalaya with its graduating colour of white to grey) which holds the record for most valuable bag sold at auction. Being made from Niloticus crocodile hide with 18k white gold and diamond hardware, it fetched over £418,000.