2025 seems to not be the year for luxury designer brands. It begins with LVMH’s decline again this year, and how an entire conglomerate that owns not just Louis Vuitton, but also Christian Dior, Celine, Fendi, Loewe and so on. Half a decade ago, these companies have seen double digit growth, along with painful price increases.
Designer bags losing value on the resale market
A luxury fashion YouTuber, Jessiestyles states that resale prices could lead to the further decline of these bags on the resale market. She notes that despite new purchases being more costly, the tariffs could lead to a rise in living expenses, which may negatively impact the resale market.
Additionally, the decline on the resale market has been around since 2023. A report states that even Chanel experienced a decline of value on their bags. Brands like Louis Vuitton, Gucci, and Hermes experienced something similar as well. Gen-Zs are gravitating towards more contemporary brands rather than the higher end ones, even on the resale market.
CNBC states that only a few luxury bags can retain their purchase value, depending on the condition of the merchandise. Birkin and Kelly bags by Hermes are arguably one of the most resilient bags. But, they too have seen a decline on the market, albeit, it is currently still above retail price.
Poor resale value has always been constant depending on the brand
Redditors state that depending on the brand, resale value can be awful. They claim that brands like Chloe, Bottega Venetta and Celine are a tough sell pre-loved. Some add that they felt happy buying their bag at 70% off retail price, and wondered that they’d definitely be less happy if they paid the $3,000+ retail price for these items.
Are designer handbags an investment?
At the end of the day, these confections of leather are meant to be used as an accessory to carry your daily essentials. These designer bags are known to be a status symbol. Unless you’re planning to keep your handbag in pristine condition for the next decade, in which you might not even get your money back, it should not be seen as an investment but rather an item you cherish and enjoy.
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