When 28-year-old Dubai resident Amira purchased her first Hermès Birkin bag in 2023, she believed she’d made a savvy financial decision. “Everyone on TikTok said Birkins only go up in value,” she recalls. “I thought it was safer than stocks.” Two years later, when she tried to sell it through a local consignment shop, she was offered 40% less than her purchase price.
Amira’s story isn’t unique. Social media touts luxury bags as “appreciating assets,” but the reality—as Amira discovered—is far more complex. Dubai-based luxury resale platform Gemaee, known for its rigorous authentication processes and market insights, challenges this claim.
“The idea that all designer bags are investments is misleading,” Safiya Mehbaliyeva, founder of Gemaee, explains. “While a small percentage of bags may appreciate in value, the majority lose their worth over time. Buyers need to approach these purchases with clarity and realistic expectations.”
With years of experience analyzing resale trends and buyer behavior, Mehbaliyeva offers an informed perspective on why the “bags as investments” narrative often falls apart—and how consumers can make more intelligent choices.
The Myth vs. Reality of Luxury Bag Investments
The notion of luxury handbags as financial instruments gained traction during the pandemic, fueled by influencers showcasing “collection goals” and resale platforms reporting record prices for rare pieces. However, Mehbaliyeva argues this narrative ignores critical market realities. “Social media conflates rarity with reliability. Just because a bag is expensive doesn’t mean it’s an investment,” she explains.
Mehbaliyeva reveals that contrary to popular belief, only 5–10% of luxury handbags retain or increase in value over time. These are typically rare or iconic models, such as Hermès Birkin or classic Chanel flap bags. Even within these coveted categories, factors like color, material, and condition play a significant role in determining resale value.
Hermès vs. Chanel: A Supply-Demand Imbalance
When people think of luxury fashion bags, Hermès vs. Chanel stands out. However, Mehbaliyeva points out that it is a different story when it comes to investment. For instance, an oversaturation of the Hermès bag market in recent years has reduced exclusivity and resale performance.
“There’s now an abundance of Hermès bags available on the market,” Mehbaliyeva notes. “This oversupply has impacted their status as a perfect investment.”
Conversely, Chanel bags have seen a surge in demand due to limited supply and consistent brand appeal. However, even these exceptions come with caveats. Trendy or seasonal designs from any brand—whether Hermès or Chanel—often depreciate quickly, with some losing 30–50% of their value within the first year of purchase.
These realities can be a revelation for buyers lured by social media influencers promoting luxury bags as financial assets. “Social media has created unrealistic expectations,” Mehbaliyeva adds. “Many creators push the investment narrative for affiliate gains or aesthetics without considering actual market data.”
What Drives Resale Value?
Several factors influence how well a luxury bag performs on the resale market. Mehbaliyeva mentions that bag condition is paramount—bags in pristine or unused condition achieve significantly higher prices than those showing wear and tear.
The 2024 Gemaee study found that scratches on hardware reduce bag prices by 15–25%, and missing authenticity cards slash values by up to 40%.
Dust bags and authenticity cards significantly increase the value of original packaging and accessories. Additionally, timeless designs in neutral colors like black or beige tend to hold their worth better than bold or seasonal styles.
Mehbaliyeva explains, “We’ve observed that timeless pieces with classic designs consistently outperform trendy items on the resale market.” Buyers can maximize their chances of securing a higher resale value by meticulously focusing on iconic styles and maintaining their condition.
However, Mehbaliyeva emphasizes that buyers should prioritize enjoyment over financial return when purchasing luxury bags. “Luxury should be about love and lifestyle,” she says. “If you’re buying solely for investment purposes, you may end up disappointed.”
Smart Buying in a Hype-Driven Market
For those determined to view bags as potential assets, Mehbaliyeva offers blunt advice: “Buy for love first. If it gains value, consider it a bonus.” Additionally, she identifies three pillars for “safer” purchases: timelessness, provenance, and proper maintenance.
Mehbaliyeva advocates choosing timeless designs over fleeting trends. Neutral colors and classic shapes, such as the Chanel Flap or Louis Vuitton Speedy, consistently outperform seasonal styles in terms of resale value.
Durable materials such as calfskin and caviar leather retain their quality and appeal over time, making them smarter choices for buyers who prioritize longevity. Mehbaliyeva believes buyers can avoid the rapid depreciation often associated with trendy or seasonal pieces by focusing on timeless designs.
The resale value of a luxury bag depends heavily on its provenance. By this, Mehbaliyeva emphasizes the often-forgotten value of original receipts, dust bags, and repair histories, as these accessories can increase the resale price by up to 35%.
Additionally, Mehbaliyeva advises investing in proper bag maintenance. Preserving the bag’s structure, keeping it in safe temperature conditions, and confirming proper storage all work together to retain its original quality, achieving higher resale value in the market.
Luxury as Experience, Not Equity
At Gemaee, debunking myths about luxury investments is part of its mission to educate clients about the realities of the resale market. Mehbaliyeva mentions how, through its rigorous authentication process and curated selection of high-quality items, Gemaee guarantees that buyers receive genuine products with clear information about their potential resale performance.
However, despite her step ahead in knowledge about luxury resale, Mehbaliyeva acknowledges that the luxury resale market is constantly changing, and there is still much to learn. “The luxury resale market is constantly growing. At Gemaee, we’re always learning and adapting to provide our clients with accurate insights and unmatched service. We aim to be their partner in the luxury presale game.”
Gemaee’s stance is not about dismissing luxury bags but reframing expectations. “A bag should bring joy, not anxiety,” Mehbaliyeva reflects. “The true value isn’t in resale potential but in how it makes you feel when you wear it. Luxury isn’t a stock portfolio. It’s a story you carry with you.”