A dive into highly-demanded, timeless luxury items that only appreciate with time.
The world of luxury items is one of elegance and exclusivity, with their value increasing as time passes. They are unattainable and highly coveted by the masses. Plus, luxury products have a Veblen effect on the market—as their price rises, their demand does, too.
Luxury brands purposefully limit the supply of their products to take advantage of this unique market structure. It gives them an image of being a cut above the rest. Due to scarcity and exclusivity, luxury items tend to retain their value during resale. Interestingly, the value of some products even fetches premiums in these markets.
Lasting nearly a lifetime, luxury goods are increasingly becoming investment instruments. They are considerably “safe” investments, as they may be immune to inflation. The second-hand luxury market is set to grow thanks to specialized digital platforms that make the market more accessible. With that in mind, keep scrolling to discover what luxury items you should collect that never lose value.
Hermès Birkin bag
The iconic Birkin bag is a collaboration between French luxury design house Hermès and famous singer and actor Jane Birkin. The sought-after purse was designed on a flight from Paris to London. Although it wasn’t popular when released, it eventually won public favor. With sales soaring at the turn of the 21st century, it has become arguably the most sought-after bag in the world. It is one of the most expensive designer bags in the world of luxury handbags, with their costs ranging from US$8,500 to over US$300,000.
Birkin bags are costly because they are handcrafted by a particular artisan, taking up to 48 hours to create one bag. They are only offered to exclusive clientele who have shopped with Hermès before, with extensive waitlists spanning up to six years. Once the bag leaves the stores, its value tends to increase. Birkins can be resold for an average price of US$25,000, depending on their make.
Burberry trench coat
Burberry’s trench coats symbolize style and chic fashion. They are made from water-repellent cotton gabardine, a fabric invented by Thomas Burberry in 1879. With over a century of history, they are timeless pieces. They are considered wardrobe essentials by celebrities, fashion icons and ordinary people.
Prices of Burberry’s trench coats start from US$1,700 and can go up to US$2,600, and they tend to hold their value better than other designer apparel. It has multiple variations, but the Kensington Heritage trench coat’s iconic cream-colored exterior paired with a plaid interior is arguably the most beloved. It adds charm to outfits and shields the wearer from the rain in style.
Rolex watches
Rolex’s watches have a distinct look and feel, recognizable on any wrist and occasion, giving the wearer a feel of elegance while sporting timelessness. Most Rolex watches average between US$7,000 and US$12,000 and will retain their original value upon resale; they may even increase in value.
Rolex’s watches have excellent resale value due to their limited product lines, familiar designs and exceptionally high quality. These factors make the watches extremely popular amongst people. Some popular models are the Rolex Submariner, the Rolex Daytona and the Rolex Day-Date series.
Chanel classic handbag
Chanel’s classic handbag (also called the Chanel 2.55) is one of the brand’s most famous luxury handbags. It was designed by founder Gabrielle Chanel herself, who was inspired by the need to create a hands-free bag that is lightweight, beautiful and easy to carry.
The 2.55 flap bag is priced at US$8,800 and can retain its value or increase based on the make of the bag. It has been au courant since its inception in 1955, with the name representing its release date. Elegant and spacious, the bag accompanied by the iconic CC lock designed by Karl Lagerfeld in the 1980s.
Christian Louboutin heels
The iconic, red-bottomed heels are an eye-catcher, suitable for any occasion. The red-lacquered bottom wouldn’t have existed if Christian Louboutin hadn’t borrowed his assistant’s red nail polish, slathering it on the sole of his prototype shoe in 1993. It soon became the brand’s signature look for decades to come.
Louboutin heels are designed to impress the onlooker. The five-inch heels embody the adage: “Beauty is pain.” They accentuate your figure, but comfort is definitely not a priority. Signature Louboutin pumps range from US$500 to US$2,000 and only appreciate with time. Each piece is handmade and has a unique theme, making them more coveted and valuable with the release of every new collection.
The future of the luxury market
The world of luxury goods has retained its glamour among the newer generations (millennials and Gen Z). Despite the challenges it faced during the pandemic, the luxury market has bounced back. It is projected to grow between 3 to 8% in 2023.
The narrative that “luxury goods are not worth the money” no longer rings true (and perhaps never has). Consumers look to buy products that will make them feel posh while also acting as an investment for resale later. For the latter, people frequent designer resale stores, like HURR, TheRealReal and The Luxury Closetto, to buy and sell luxury goods on the second-hand market.
Despite the increase in popularity of the second-hand market, the demand for first-hand luxury goods is consistently growing. Luxury products are seen as a status symbol—the more iconic and exclusive the pieces, the more desirable they become to the public eye.
This article is meant for informational purposes only, please make investment decisions based on your own discretion.
Also read:
- Are Luxury Goods Really Worth It?
- What Can We Do for Sustainable Fashion?
- 5 Coolest Luxury Watches Of 2023 – Jumpstart Magazine
- How Should Luxury Brands Fight Against Counterfeiting?
- 4 Luxury Fashion Brands To Keep On Your Radar In 2023
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