It is a frequent occurrence for me as a Handbag specialist working for Doerr Dallas Valuations to travel to a job with the expectation of valuing 20 handbags, only to discover there are 200, so why do these appreciating assets with great investment potential get overlooked by their owners when it comes to insurance? While assets such as diamonds, jewellery and watches are commonly itemised, handbags are, often disregarded. Such oversights can prove disastrous in unforeseen circumstances, and given current market trends, individuals may be astounded by the significant appreciation in these assets value.
The world of exclusive handbags is made up of many brands often renowned for their unparalleled craftsmanship, heritage, and scarcity. At the pinnacle is Hermès, with its iconic Birkin and Kelly bags being the epitome of luxury, often having extensive waiting lists and achieving astronomical prices on the resale market due to their limited availability and meticulous handcrafting. Chanel follows closely, celebrated for its timeless quilted designs like the Classic Flap, which embody enduring elegance and sophistication. Louis Vuitton stands out with its rich history in trunk-making and its globally recognised monogrammed canvas, producing highly coveted bags like the Neverfull and Speedy. We can’t discuss designer handbags without mentioning Dior, famed for its Lady Dior and Saddle bags, and Gucci, known for its distinctive motifs and popular styles like the Jackie bag. Not forgetting Prada, with its sleek and minimalist designs, Saint Laurent, recognised for its modern aesthetic and the Sac De Jour, Fendi and its iconic Baguette, Loewe for its innovative and artisanal leather goods, and Bottega Veneta, celebrated for its distinctive Intrecciato weave and understated luxury. Goyard the Parisian trunk maker with its iconic Goyardine canvas and finally The Row founded in 2006 by Mary Kate and Ashley Olsen, known for its minimalist design and often lacking any visible branding or hardware. Of course, the list continues however these brands are popular examples which collectively represent the ultimate in exclusivity, artistry, and investment in the realm of high-end handbags.
There are a few things which also contribute to the value of a designer handbag and one of those is the skin. Popular leathers used by Dior and Hermès include smooth calfskin. A more durable grained calfskin used by Chanel and referred to as Caviar is a popular choice for a Classic whilst Louis Vuitton’s Epi leather is also very popular for a Speedy. Hermès also use pebbled options called Togo and Clemence. Prada’s favours scratch-resistant Saffiano. Let’s not forget the soft supple lambskin used often by Chanel and Dior. It may be personal preference; some leathers can be more popular than others, selling out quicker. There is however, when it comes to value, a clear leader in this race. Handbags made of exotic skins seem to appreciate at a greater rate than others. Prized for their distinctive textures, inherent rarity, and the unparalleled craftsmanship required to work with them. Materials such as crocodile and alligator are among the most coveted and are distinguished by their unique scale patterns and available in various finishes from high-gloss to matte. The rarest and most expensive Hermès Birkin and Kelly are often made of exotic leathers. The Hermès Himalaya, made of niloticus crocodile hide, sold at auction in 2022 for just over $450,000! Making it one of the most expensive handbags to ever go through auction. Another example is Ostrich leather, instantly recognisable by its characteristic quill marks, offering a durable yet supple option that develops a rich patina over time, also a staple in Hermès’s exclusive collections. Furthermore, lizard skins present a more delicate, intricate scale pattern, often favoured for smaller, exquisitely detailed bags, while python and other snake skins provide striking natural patterns and a distinctive tactile feel, frequently incorporated by brands like Gucci and Fendi to add an element of bold, exotic allure.
Here is the Hermes Himalayan which sold at Sothebys in 2022:
Each brand come in a vast array of styles, each serving different purposes and aesthetics, reflecting both timeless elegance and contemporary trends. The foundational styles include the tote bag, shopper, crossbody, top handle handbags, and clutches to name a few. The shoulder bag is a classic, designed to hang from the shoulder with a single strap, varying greatly in size and structure, from Chanel’s iconic Classic Flap to Fendi’s Baguette, which is often more compact. Crossbody bags feature a long strap worn across the body, offering hands-free convenience and security, typically smaller in size and popular for casual outings. Top-handle bags, such as the Hermès Kelly or Dior Lady Dior, are characterized by a rigid handle at the top, exuding sophistication and often requiring a more formal carry. For evening wear, clutches are small, strapless bags held in the hand, while minaudieres are even smaller, often rigid and highly embellished, designed for just the essentials. More unique styles include the hobo bag, known for its slouchy, crescent shape and soft construction, and the backpack, which has been elevated to luxury status by designers like Louis Vuitton and Gucci.
Here is a Gucci Jackie 1961 from the Gucci website retailing for £2820:
Here is a Louis Vuitton Alma from the Louis Vuitton website retailing for £2750:
Here is a The Row from The Row website retailing for £5190:
With the rise in the handbag market, which by 2034 is estimated to be worth 60 billion dollars, also sadly comes a rise in reported thefts. Some people are looking to track their handbags using Apple Air Tags and Bluetooth devices. The market for this is still relatively young. Although tracking your precious Birkin may be hard, there are many more experts out there to help you stay clear of any fakes.
So how do I know what I am purchasing is real?
Authenticating a designer handbag requires a keen eye and knowledge of the brand’s specific characteristics, as counterfeiters become increasingly sophisticated. While no single factor is definitive, a combination of observations can help determine a bag’s authenticity.
As experts in handbags, we will look at the craftsmanship and quality. Authentic designer bags are meticulously made and go through stringent checks before being able to leave the factory.
We look very closely at the level of stitching, there should be no loose threads, frayed edges, or inconsistent spacing. There certainly shouldn’t be any sign of glue. Hardware (zippers, clasps, buckles, feet) should feel substantial and high-quality, often engraved with the brand’s logo in a precise, clear manner. The plating should be even and not chipped or tarnished. Zippers should glide smoothly without snagging.
Chanel Stitching:
We also pay close attention to the materials used. Genuine designer bags utilise premium leathers (calfskin, lambskin, exotic skins) or high-grade canvases that feel luxurious, have a specific texture, and often a unique scent. Counterfeit bags often use cheaper, synthetic materials that feel rigid, plasticky, or look overly shiny, and may have a chemical smell. For bags with monograms, like Louis Vuitton or Goyard, inspect the pattern alignment; it should typically be symmetrical and continuous across seams, with logos often intentionally cut off at specific points to maintain consistency.
We scrutinise the brand’s markings. This includes examining the logo placement, font, and spacing, both on the exterior and interior. Check for specific serial numbers, date codes, or authenticity cards, and understand where they should be located and what format they should follow for that particular brand and model. For example, Chanel bags have serial numbers that match a sticker inside and an authenticity card, while Louis Vuitton uses date codes. Hermès bags often have blind stamps indicating the year and artisan. Research the specific model you’re interested in, as these details vary widely by brand, collection, and even production year.
Consider the seller and price. If the price seems too good to be true, it almost certainly is. Authentic designer bags rarely come with significant discounts outside of authorised sales. Reputable sellers, whether boutiques, authorised retailers, or trusted pre-owned platforms, offer guarantees of authenticity. Be wary of sellers who cannot provide original receipts, dust bags, or boxes, or who refuse to provide detailed photos. While these accessories can also be faked, their absence is a red flag. Consulting with an expert is often the most reliable way to confirm a bag’s legitimacy, especially for high-value purchases.
The resale market for designer handbags has undergone a dramatic transformation in the last decade, shifting from a niche, somewhat stigmatised sector to a booming, mainstream industry. This evolution is driven by several key factors, profoundly impacting prices.
Here is an example of Hermes selling for more than their retail prices at auction
In the last decade there has been a huge increase in dedicated online resale platforms and auctions selling designer items. At the beginning of my career a handbag being offered at auction would have been jammed in a miscellaneous section in-between the medals and silver, whereas now specific designer auctions dominate multimillion pound auctions every year. There are better experts in the field with professional authentication services, high-quality photography, and streamlined selling processes, significantly mitigating concerns about counterfeits and making it easier for both buyers and sellers to participate. This increased trust and convenience have normalised the idea of buying and selling pre-owned luxury, expanding the market to a wider demographic.
Examples of changes in the resell market over time with a Hermes Kelly selling at Christies in 2007 for £400 and in 2023 selling at Bonhams for £7650:
Sustainability has also become a powerful driving force. As consumers, particularly Gen Z and Millennials, become more eco-conscious, the concept of circular fashion – extending the lifecycle of goods – has gained immense traction. Purchasing a pre-owned designer bag aligns with sustainable values, reducing demand for new production and minimizing environmental impact, making resale an attractive, guilt-free option for luxury consumption.
Finally, and perhaps most crucially, the escalating retail prices of new designer bags and often extensive waiting lists or difficulty in obtaining a bag at retail have pushed many consumers towards the resale market. Iconic styles from brands like Chanel and Hermès have seen significant, often biannual, price hikes. For instance, some Chanel Classic Flap bags have more than doubled in price in less than a decade.
Furthermore, for highly coveted models such as the Chanel Classic and Hermès Kelly and Birkin resale prices have soared, often appreciating significantly beyond their original retail cost, effectively making them investment assets. Reports show some designer handbag models have seen valuation spikes of up to 83% over the past 10 years, with Hermès Kelly bags increasing by 129% and Chanel Classic Flap bags by 132% in value. This phenomenon is particularly true for limited editions or bags with long waiting lists.
So, If you own a collection of handbags but lack a professional valuation, your bags may not be accurately valued or insured. It’s not enough to simply consider the retail price. If you needed to replace a bag, you’d likely have to purchase it on the secondary market, where its cost could be significantly higher than the retail price.
In the mid-15th Century cutters designed the table cut diamond, they used the same polishing methods and simply removed the top point of the octahedral shape to produce a table.
After developing and perfecting table and rose cuts, European cutters started to experiment with new cuts and styles. Cardinal Jules Mazarin requested that cutters in Europe designed a faceted diamond. The result was a cushion shaped diamond with 34 facets called the Mazarin cut, also known as the double cut.
The mid-17th century saw the introduction of the single cuts. Like the point and table cut, the single cut resembled the shape of the octahedral rough. It also displayed more potential for brilliance than the table cut because it had more facets. This cut served as the basis for the modern brilliant cut and even today, the single cut is still used on smaller diamonds.
The new rough from Brazil was used to create the first old mine cut also known as the Peruzzi Cut; this has the same number of facets as the round brilliant, but with a high pavilion it resembles a cushion shape. In 1750, a London jeweller called the new style of cut a passing fad and said the classic rose cut would outlast them all.
