Limited edition bags of luxury brands have become a real phenomenon in the world of fashion and investment. Buying such accessories is often seen not only as acquiring a status item of clothing, but also as a way to preserve and increase capital. Rare models released in a limited edition are in particular demand on the secondary market and can significantly increase in price over time.
Designer bags have become an independent category in auction houses, such auction houses as Sotheby’s and Christie’s put them up for auction for significant amounts.
Why are limited edition bags becoming a profitable investment?
Exclusivity. Limited edition makes the bag more desirable for collectors and fashion lovers. The fewer copies released, the more likely it is that its price will increase over time.
Unique design and materials. Limited edition models are often made from exclusive materials — exotic leathers, rare textures or gemstone decorations. Such features add additional value to the bag.
Brand popularity. Luxury brands such as Hermès, Chanel, Louis Vuitton know how to create an atmosphere of exclusivity and excitement around their limited edition models. This allows them to raise starting prices and make such items even more popular on the secondary market.
How do the prices of limited edition models change?
The price increase for limited edition bags can be impressive. Some bags set records at auction, costing several times more than their original price. Here are a few examples:
- Hermès Birkin «So Black». This bag was released in limited quantities in 2010. The initial price was about $20,000, but after a few years it was sold at auctions for amounts over $100,000;
- A Hermès Himalaya Birkin 30 in crocodile leather, decorated with white gold and diamonds, sold at Christie’s in 2022 for $450,000. The bag’s original price when it was released was around $100,000;
- In 2021, a Hermès Birkin with diamonds sold at auction for $380,000, although its original price was around $150,000;
- The Chanel Diamond Forever Classic Bag, a limited edition of only 13 bags, sold for $261,000. The original price of this model was around $32,000.