Luxury fashion is all about exclusive supply and high demand. These products, made with the highest level of craftsmanship, are limited in number purposefully. Their high price tags can't be justified if it was so readily accessible.
From my years of personal shopping, majority of my clients were collectors and sellers. My specialty was figuring what was going to be the It Bag that everyone wants, but only a few will get. I would secure those for my clients immediately. Then, after 6 months to a year, I would broker a sale between a client of mine who moved on my suggestion and purchased the bag with a client of mine who didn't heed my words and missed the sale. Those commission checks were great because almost 99% of the time the bag appreciated in value.
I created a mini fashion stock market as an alternative stream of income and I am not the first to do so. Most people with those types of closets are constantly selling and buying with the same pool of capital. They aren't expending new money and when done properly, they generate more revenue, thus growing their capital pool dedicated to purses. So it becomes a self-sustaining system that funds itself.
I know this is crazy,especially since I am talking about a purse. Here is a great example though: one of my clients invested in a Himalayan Birkin in 2008. At that time, it was $60,000. I mean, I was floored she did it, I didn't really believe my arguments would work. But it is the rarest of the Birkins, with a wait list that stretches decades. She sold that bag in 2012 for $130,000. If she would have waited until this year, it would have sold upwards $500,000. Look at that appreciation!
The biggest lesson I can impart to you is how to make your closet into a fashionable stock market. The best place to start is the world of handbags. When turning your closet into an asset, handbags are a great place to start because classic pieces are priced in a somewhat approachable manner. What I mean by this, us working career ladies could start a piggy bank, stuff $20 bucks a week in it, and in about a year could afford one luxury handbag. It isn't completely out of reach, one can save up for it.
Every successful luxury brand has created one handbag that is synonymous with the label. For example, Hermes and the Birkin bag. We all know what a Birkin is and we all know what it means to have one. If I hear Birkin, I think Hermes. If I see Hermes, I think Birkin. So when you are trying to select which bag to start with, it is best to start with that bag which invokes that label immediately.
Here is how the fashion stock market work: you purchase a luxury bag and hold on to it for a max about a year, then sell it. There are so many selling channels from local consignment shops, The Real Real, and the evergreen Ebay. The money that you make is your capital for your next bag. Start with a classic, make back your investment. In the interim, start following fashion shows, read the magazines, check Instagram. Business of Fashion is my go-to, because they have analysts who monitor this and do most of the work for you. Slowly, you can see what item is the most desired. Runway bags are the most coveted of items, as well as rare colors of classic silhouettes, like a lime green Chanel Boy Bag. Then, the next investment you make, go after that limited edition piece that will only appreciate in value. Then you are in the game.
I am going to give you 5 luxury bags that are starter bags for your stock market. These pieces are classics and retain their value, as well as have high demand.
1. Chanel Boy Bag: From 2011 to today, Chanel Boy Bags have appreciated in value 140%. In 2011, it went for $2500 and now it goes for $5100. You can never lose on a boy bag and pro tip: go after that rare color because there is only a handful of those
2. Fendi Peekaboo: there has been a huge increase in demand in Fendi Peekaboos. They are one of my favorite starter bags because Fendi still handcrafts them in their factories in Italy. Since Karl Lagerfeld's passing, they have doubled in value because he is credited in being the one who popularized the silhouette. Currently it is at 150% appreciation level
3. Louis Vuitton Neverfull: demand for this has been steadily increasing. With the decline in favor of Coach among the suburban mom and teenager crowd, this bag has quickly become the favorite. It is a favorite graduation gift and is starting to become harder to find. Louis Vuitton will be curbing production soon and raising prices, so now is the time for this piece.
4. Lady Dior Bag: Made famous by Princess Diana, every season this bag comes out in a limited edition. Its a constant favorite of Rih Rih's, and popular with the millennial crowds. It is appreciating at a fast rate so snatch it up.
5. Gucci Cross-body: Gucci started as a leather goods company, specializing in luggage, so bags is what they do best. This classic cross-body comes in all sorts of shapes and colors is a staple. You'll see most of your favorite influencers rocking it. It is also priced very well so it is a greater starter.
I will be doing more with the series so this is just the first of many posts to help you monetize your closet.