Introduction
In today’s fashion world, certain brands stand out. Most of which have held a high standard over a long time. Talk of fashion, bags are an essential part of the dressing; they serve more than storing and carrying loads. They portray the user’s personality and taste. Everyone uses bags, and as a result, bags today seem to be better investments than paintings and other forms of art and craft.
As far as female bags are concerned, three names are at the top of the list regarding quality, uniqueness, class, and value. If you are talking about bags, you can’t mention brands like Hermes, Chanel, and Louis Vuitton. When considering investments in a bag brand, Hermes vs Chanel is your best bet. In other words, if you want to invest in bags, or you want to make more money from buying a designer bag, your choice should be between Hermes vs Chanel. Therefore, to help you discover which bags are worth investing in today, this article will compare and contrast Hermes vs Chanel.
Hermes
Hermes is a significant name in clothing and accessories in the world today. However, we will be talking about only an arm of Hermes, which is Hermes bags. A unique feature of Hermes bags is that they are entirely handmade and the production of each bag can take up to 18-24 hours. Hermes leather is durable and you can obtain them from all over the world. The most famous Hermes bags are Hermes Birkins and Hermes Kelly. Hermes Birkins, for example, was named after a British actress Jane Birkin and was introduced in the 1980’s. In 2020, a Birkin bag was worth about $11,000 and was sold for up to $377,261 at auctions.
They are often available at Hermes boutiques at unpredictable times and have limited quantities in distribution. Hence, this makes it very scarce, and that contributes to its high cost and resale value. Hermes bags are often resold at a higher price, making it an incredible investment option.
Chanel
Chanel is also an important name in the fashion world and has a wide range of products like Hermes. Before we explore Hermes vs Chanel in detail, let’s explore the Chanel brand. Since its inception, Chanel is also a French luxury company focusing on women’s clothing, accessories, and luxury goods. The company was founded in 1910 and was initially owned by Gabrielle ‘Coco’ Chanel (a French woman). Alain Wertheimer and Gerard Wertheimer are the current owners of Chanel. They are the grandons of Pierre Wertheimer, who was a business partner to Coco Chanel. This 112-year-old company is currently located in 310 places in the world and has its products served worldwide.
As of 2019, Chanel has a net income of about €2.14 billion and has more than 20,000 employees. Chanel is famous for perfumes, Chanel suits, shoes, and leather bags, among others. Chanel products are sometimes regarded as made from the highest quality materials. Most of Chanel’s leather bags are made from lambskin or caviar leather and crafted by craftsmen mainly from Paris, Spain, and Italy. On every bag made, Chanel does a durability test to guarantee they would last for years. These, among other reasons, are responsible for the high cost of Chanel bags and increase in resale value.
Chanel has a culture of making its most iconic bags more expensive yearly. Hence, Chanel bags can increase in value with time. For instance, Chanel 2.55 design has increased in value about 70% over the past few years. Chanel bags sell for about $6,000 to $9,000 and are only available at Chanel boutiques. Only the resale of Chanel bags is done via online platforms and at reale shops. Limited edition bags are often the best when it comes to the choice of investment.
Many people make their choice of bags exclusively on fashion and taste. They consider primarily the design that compliments their outfit, speaks to them, or just the designer they love. However, if you are all about investment, most or all of those may not be a primary factor. A good investment yields you the expected gain at the predicted time. Time is an essential factor to consider before investing in bags. Bags that increase in value do so that over time, to maximize your investment, you may have to wait for many years.
Generally speaking, both Hermes vs Chanel bags are worth investing in. However, considering certain factors, you may want to choose one over the other. Luxurious styles, quality materials, and craftsmanship are standard features of Hermes and Chanel to a reasonable degree.
Factors to Consider When Deciding Which to Invest in Hermes vs Chanel
There are several factors to consider when deciding which is a better investment choice between Hermes vs Chanel.
These are:
These are:
Scarcity that relates to its value
Apart from the few similarities, Hermes bags’ scarcity is a unique feature that makes them very valuable. If you are to trust the valuableness of a brand, Hermes will have it based on scarcity. Only a limited quantity of Hermes’ designs is produced. It is almost impossible to purchase a new bag design from Hermes without a strong relationship with a sales representative. As a result, the increment in the value of a new Hermes bag design is often faster. It is only reasonable that once people cannot purchase a new Hermes bag, especially once it’s out of stock, they go to the resale shops and buy at a higher cost.
However, if you want to make a real profit, you will not resell your Hermes bag too soon.The actual gain accumulates over time. An excellent number of Hermes handbags retain their value, and some appreciate a lot over time, unlike Chanel with fewer value-retaining or appreciating handbags.
Luxurious Styles
When considering Hermes vs Chanel, luxury is another essential factor to consider. Chanel is the pioneer of the designer handbags and stands out for its classic handbag styles. The investment value of a Chanel bag often depends on its ability to retain its hype and convert it to a long-term trend. Chanel bags are not produced in limited quantities like Hermes. Hence, the value of a Chanel bag is not primarily a result of its scarcity but its style.
The most valuable of Chanel bags are often the classics. They tend to supersede even future designs in value as they have maintained high demand for a long time. The Chanel 2.55 Flap, Wallet on-Chain, and Boy Bag are timeless and will always be in style. Not all Chanel products appreciate or even retain value, but you can count on classic Chanel designs if you invest in bags.
An Hermes Birkin bag can be worth up to $15,000 in resale, while an Hermes Kelly ranges from $9,000 to $12,000. Even with a Hermes Shiny Lizard Kelly Sellier 28 selling for $22,500 in the resale market, Hermes Birkin is still the most sought after and the best Hermes bag to invest in. The increase in the value of Birkins over the years is tremendous. Birkins, especially with gold hardware in some years, beats the value of gold. Also, Kellies or Birkins made from alligator or crocodile skin are good investment choices considering future returns. Apart from Kellies and Birkins, other Hermes bags retain their value over time or may even appreciate a little, like Hermes Garden party tote. The longevity of an Hermes bag makes it a good investment option as long as you keep it from damage and manage it well.
Durability
Chanel leathers are not as durable as Hermes. As a result, your ability to resell profitably depends on how you handle the bag(s). Either Chanel vs Hermes, vintage products are often your best investment options. Five years ago, a Chanel boy bag started at $2,500, and today, it starts from $5,100. A Chanel Caviar Handle medium Flap bag cost about $1,600 ten years ago, but has now increased in value by 206%. The retailer can sell the same bag for $4,900 today. Possessing any of these bags is possessing usable assets. You can use your Chanel as it retains or increases in value over time.
Uniqueness and Market Dominance
Both Hermes vs Chanel bags are famous for their uniqueness in quality and a long term of dominating the designer bags market worldwide. The most valuable of any of these designers’ handbags are their vintage products. However, you should note that some of their recent designs will be vintage in a few years to come, many of which promise to be of great value at the time.
Observing the worth and the resale value of different bags designed by Hermes vs Chanel, it is not difficult to discern which is the better investment. By the instrumentalization of scarcity, Hermes has guaranteed a surer investment opportunity in bags over Chanel. On this premise, it is more advisable to go for vintage Hermes bags considering the colors, which are often in high demand for investment purposes as far as designer bags are concerned.
Conclusion
It is important to note that the investment value of any designer bag does not mean it is better quality, as many other factors affect this. This article majorly considered the market worth and resale value of both designers. If you are not buying directly from the designer’s boutique, make sure to confirm the originality and reliability of the bag you purchase, as there are many counterfeit products out there. Whichever designer you are investing in, go for the high-demand products and the high-demand colors.