Why Luxury Brands Are Investments

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Our ways of spending have already evolved from own-show-impress shopping to shopping as investments or to put it simply, we buy stuff because of its possible financial returns.  In this article, we will tackle why luxury brands are actually investments.

We are now paying more attention to the value of the item which we ought to buy, together with its long-term advantage. Especially nowadays that the future of our economy is unsure and merely holding. 

The fashion industry is one of the areas where we can best put our hard-earned money to. We usually hear people buying pieces of jewelry such as necklaces, bracelets, rings, and watches for use and for reselling because the cost of these items largely increases over time. However, some would ask if aside from pieces of jewelry can we invest too in branded or designer bags, shoes, and clothing? – The answer is both yes and no. Yes, because just like other treasured items, designer bags, shoes, and clothing also hold special value for other individuals. Thus, allowing us to make money out of our purchases and No, if we carelessly and unmindfully buy items without actually researching on worth longevity, a factor that is set by style, scarcity, and exclusivity. 

So, how do we earn money through branded fashion and why luxury brands are investments?

1. Through Rentals 

There are several ways to earn when investing in branded fashion items. For example, if you buy a limited-edition Hermes, Louis Vuitton, or Gucci bag, you may use it a couple of times but after satisfying yourself with public liking, you can actually subject the bag to rentals that go together with gowns and shoes. This can be trendy for people attending a formal conference, parties, promenades, and even for clients who want to show off in a family reunion. If we do the math, let’s say you bought the bag for Php.30-000 – Php. 60,000 you can rent it for Php. 500 – 2,000 for single-day use (rent price depends on the bag value). The same goes with shoes and designer clothes. Take note, the rarer the item or the more it is known to people the higher the possible rental cost you can put in an item. 

2. Through Reselling and Consignment Business 

Another way to earn through your fashion investment depends on the item’s resale value.

Don’t worry, established fashion icons such as Prada, Dior, Balenciaga, and Yves Saint Laurent and the holy trinity, Chanel, Louis Vuitton, and Hermes seem to know how people think and move in fashion.

They know how to put a sense of ‘worth’ and ‘esteem’ to their creations and they play along with the trends. 

Their value never fades. So, if you previously owned one of these most sought-after fashion icons, you could research the possible second-hand price of them, or if you don’t need the money yet, you can just keep track if the item’s cost and value increase with time.

For some bags and shoes, because of their social symbol and exclusivity, they happen to appreciate in worth over the years. 

Moreover, you can put your piece for appraisal to a consignment business or a direct and accredited reseller of branded fashion articles to act as an agent to resell your pre-owned fashion piece. It can sell it with the standard value, or you can demand a little bit of cost if the piece is a Collector’s edition, like the LV Murakami collection, and Dior Saddle designs. However, out of trend items may tend to sell slowly and cost lowly but still, it holds a potential of being acquired.

What the numbers are saying about luxury brands being an investment: 

62 million women purchase second-hand bags, shoes, and clothing and is expected to grow about 27%. The reworn clothing market is also expected to reach 64-billion sales by 2024.

Bottom line: Spending a six-digit or more for a branded clothing articles and the latest fashion trends is a good investment, in the long run, all you need to have is the right knowledge and people to help you market your future business and the right people and locale to target. 


What should we consider when buying luxury brands? 

Knowing various ways to profit from your purchase is one thing but knowing what to buy is another. So, before you rush to the nearest fashion boutique you may want to consider the following first. 

1. Invest in Timeless Classics

When looking for a piece to buy always ask for the item that eludes and transcends time, and economic climate. Spending on an item that never gets out of style and out of trend is one of the best choices for a fashion investment. 

2. Invest in Iconic and Luxury brands 

Although not all luxury bags and clothing are created equal, it is still advisable to pull the investment trigger on bags that rise above the others in terms of sale and resale value. Bags like the Hermes Birkin exceed that of gold in annual return rate over the last 35 years. Now that’s a bag worth investing.

Clothing brands are also writing their name in the investment market. So, buying Versace, Tory Burch, Kate Spade, Tiffany and Co., is like hitting the jackpot. But if your target market are students, you can invest in brands like Regatta, Oxygn, and UniQlo. 

Sneakers, on the other hand, was estimated to sit with a resale value of a 2-billion-dollar market, moreover, according to Cowen and Co., it is expected that its value will triple over the years, probably 6 billion in 2025. You should probably invest in Nike, especially its World1 Airforce1, Travis Scott SB Dunk low, Nike x Air Jordan 1, Air Jordan x Dior, and Adidas Yeezy QNTM BSKTBL OG. 

3. What Celebrity Trendsetters are saying about luxury brands are investments

Investing in fashion means investing your time in studying what people want, and sometimes what people want are set by celebrities. Internationally, we are talking about the Jenners, the Kardashians, Beyonce, Lady Gaga, Anna Wintour, and Harry Styles. Here in the Philippines, you may want to keep an eye on Heart EvangelistaCatriona Gray, Pia Wurtzbach, Jinky Pacquiao, Daniel Padilla, Kris Aquino, and other promising YouTube fashion content creators.

Final Thoughts: 

Investing as a whole is risk-taking endeavor. No one can assure how much one can earn in return for his or her purchases.

However, it is beneficial for some to think of returns and inflation every time we decide to buy an item. And, patented and luxury acquisitions today are not only considered as careless expenditures but a good asset.

All you need to have are good hands to take care of your pieces, a mass of customers that are comfortable with branded bargain sales, and your passion for style to make your branded fashion expenses an investment. 

So our final thoughts – luxury brands are investments.

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