It bags VS classics
When we talk about must haves, there are two subgroups. Must have as a contemporary fashion art pieces currently floating with high speed in the market and media space. Second, the classics, often called investment pieces. Of course there comes to a point of time line, when the contemporary switch to classics, if the conditions are met. Which conditions though?! Since we do not operate with a mathematical equation in the case of fashion relations and logic, but with purely invisible undefined emotions of customers, we are at no position to state the exact factors which determine the break point. Yet the historical buys and sales frequency is the data on which one is safe to relay on when it comes to value the “degree of classics” of one fashion item. Therefore the secondary market is the real Wall Street for fashion. The price and volume of the specific piece.
The bags are core of classics alongside the watches (which might as well belong into special/solo category) following by shoes, jewelry and clothes only at the end. Currently there are many fashion bags circulating the market as the contemporary must have bags. Which ones will become that? Is Hermes the only respected bag of fashion history, the investment piece worth investing? Hermès Birkins and Chanel 2.55s. How classic is the YSL? Celine, well old Celine? Going further, we spot Chloe Paddington, Gucci Marmonts, Miu Miu, Proenza Schouler, YSL, Prada.
According to Charles Gorra, the founder and chief executive of Rebag, designer bags go through four phases. See the picture. There is fabulous article about bags luxury market valuation on BoF ”How to create next Birkin« (read it here).
Cathaleen Chen discusses:”According to data from The RealReal, Hermès’ Birkin, Kelly and Constance bags currently sell for up to 140 percent of their original retail price. Even among Birkins, popularity depends on availability. For all but an elite few bags, a nosedive is inevitable. Typically, about a year after release, demand plummets and huge numbers of bags hit the resale market, fetching prices as low as 20 percent of retail.
With It bags, the nosedive typically comes later, sometimes years after their peak. The Chloé Paddington, released 2004, once retailed for about $1,300. On TheRealReal now they sell for under $300. And brands like Saint Laurent, Prada, Fendi and Bottega Veneta have seen handbag styles struggle in recent years to retain more than half of their retail value on resale sites.
The ability of a handbag to remain in the second or third phase is the testament to its status as an It bag. The Gucci Dionysus, for instance, introduced in 2015, has lived in phase three for years now. According to The RealReal, the style has retained on average 70 percent of its $1,800 retail value."
And far the biggest volume currently reaching on the second market are Gucci bags. The Alessandro’s Gucci bags! So, as a fashion investor, should you buy it? Will this crazy influencers trend push the bags further on time line to become the classics ones? Should we take a risk? The owner of Realreal, the biggest secondary fashion on-line market existing right now, frankly admitted: “Currently the velocity of used Gucci approximates that of a NASA solar probe, thanks to the expensively Etsy-esque styling of that brand’s creative director, Alessandro Michele; even garments from before Mr. Michele’s tenure are selling well. “Isn’t that wild?” said Ms. Wainwright, who is 61 but has the pep and studiousness of a schoolgirl. “Everything ebbs and flows, but they’ve had more than a moment. People are compulsed by that brand. I keep thinking, when will it end?” Tycoon of the Pre-Owned, New York Times, read more here.
I’ve been having second thoughts about Gucci for long time. The reason holding me back is that media is over-floated with the Gucci bags. Literally. Many fashion lovers are owning a vintage Gucci instead. Is the reason for that financial nature (these are available of more reasonable prices) or aesthetics based? However, the Alessandro hype is to be blame for the rise of demand for vintage Gucci’s.
The kitschy, bold colored design, funky patterns and materials of new era bags screams for attention. I’m here for it. Not all bags should be a quite elegant partner of your style. We have quite of them already. Honestly I would love to see that a pink velvet clutch or butterfly motifs tote takes over the reign of investment bags. Bright future!
Summing all up, my economics instincts is telling me, one should own the Gucci bag. Whichever. Now.