BRAND STORIES

BRAND STORIES

Chanel as an investment

Need a reason to buy yourself a Chanel bag? Do not look any further. In a world where financial markets and taking a good look at your assets is a big part of the private economy, investing your money in a luxury bag is probably not your first thought or need. But, considering the increasing value of luxury goods and (especially!) Chanel bags over the last years, investing in this kind of high-end piece is definitely worth a second thought. 

The fact is that the Chanel Medium Classic Flap Bag, which has become synonymous with the brand, has increased in retail price at least one time every year since 1955 (the house adjusts its prices up to three times a year!). Though it originally cost around $255, a new one will set you back about $5,000 today. While sometimes its price has remained unchanged, it has never dropped or depreciated. Since its value continues to increase, investing in a Chanel Classic Flap Bag is safer than investing in the stock market.

Photo by Edward Berthelot/Getty Images

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Photo by Edward Berthelot/Getty Images

The reasons behind the aggressive price increase

The reasons for Chanel's price increases are, as it explains them itself, due to changing production costs and prices of raw materials, but inflation also plays a big part. So, why should you invest in a Chanel bag right now? 

The first reason is that, if you look at the historical price increase, it will never be as cheap as it is today. 

Secondly, the fine craftsmanship makes it worth it. Makers pay attention to every detail on every bag, from the material to the stitches, relying on their extensive training and technical expertise. In the Chanel factory, it takes up to five years of training before an employee fully masters each of the stations, ranging from cutting to quality control. To complete just one bag, 15 different people work up to 18 hours. You can be sure your Chanel bag will withstand the test of time, making its cost per wear surprisingly low.   

And, lastly, Chanel combines its exemplary craftsmanship with a strong and clear marketing strategy, which makes its products even more desirable and gives them an extraordinary value for years and years to come.

Price increases can be frustrating – especially if you have been saving up for years to buy your dream bag. But, your investment does not have to be so expensive. 

While the price for luxury goods has been increasing, the market for buying these items secondhand or vintage has grown simultaneously. Ironically, it is the rising prices that have opened up this market, making luxury bags accessible for more people. Here are three reasons why you should invest in a Chanel bag, and why it should be pre-loved: 

Photo by Christian Vierig/Getty Images

Photo by Christian Vierig/Getty Images

It will be cheaper…most likely

Yep, it is not rocket science, but still a convincing reason. The lower price point also gives you the opportunity to buy a bag that is outside of your comfort zone. Maybe a bright-colored or patterned one? Not to mention, as the retail value rises, so does the resale, meaning you will likely earn if you sell it in the future. That is, if you keep the bag in good condition. 

You have more options

As a matter of fact, you have more options than if you were to walk into a Chanel store. Of course, you could still purchase a classic, black leather one, but you could also be lucky enough to find a rare, limited-edition style. Whichever suits you! 

hoto by Christian Vierig/Getty Images

Photo by Christian Vierig/Getty Images

It makes the world a little bit greener

One of the most important things we can do is be kind to Mother Earth. We all certainly know that the amount of water and chemicals used in the production process negatively impacts the environment. Everyone cannot do everything, but everyone can do something. Buying a pre-loved rather than a new Chanel bag is a start. 

 

For any fashionista, investing in a Chanel bag is a big financial decision. Fortunately, it is not your average accessory. A Chanel bag is not something that will go out of style after one season; it is a timeless, heritage piece, which can be passed down for generations. As Coco Chanel said herself, “Fashion fades. Only style remains the same.” You will not regret it. 

Written by : admin

The people pictured are not associated with The Archive or The Vintage Bar, and do not endorse the products shown.

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