Sure, the siren call of a designer handbag is strong. The shiny leather, the unmistakable logo, the aura of affluence slung over your shoulder – it’s a heady combination. We’ve been conditioned to believe that these bags are investments, assets that will increase in value over time. While that is true in some extreme cases, I would argue the truth is much more complicated. For some, one designer handbag is an entry into a new value-oriented lifestyle. It’s a deeply valued emotional indulgence with far more value than what it could be flipped for.
I get the allure of considering these bags as profit-generating assets. Headlines scream about the thousands of dollars in appreciation of select Hermès Birkins or Chanel Flaps. You read that right. This practice has made certain bags—particularly those produced by desirable luxury brands and in limited quantity—popular within the resale market. And according to The RealReal, a luxury consignment platform, select Bottega Veneta styles hold over 90% of their original retail value. By comparison, Chanel’s Classic Flap has historically seen as much as 100% value retention over the years. Some styles such as the Gucci Jackie 1961 have more than doubled in popularity. These together data points continue to barrel forward our investment narrative.
Looking only at the potential resale value definitely misses the big costs of owning and maintaining these things. We should focus on the less obvious spending. The most basic repairs run, on average, from $50 to $200. If you have serious restoration to tackle, the cost can easily jump into the hundreds. Professional cleaning, protective sprays, specialized dust bags, and even storage options all add to the cost of ownership over time. These costs eat into any possible buy profit, reducing the investment’s overall yield.
Far from the numbers, there’s the emotional aspect. As a result, I’ve talked to countless women who describe their designer purses as a source of comfort and happiness, even anxiety relief. As one woman shared, she feels happiness when she unzips her bag. Just seeing a photo of her kids brings a smile to her face. As one of the participants called the bag, it is a shield. It functions as a comfort item, allowing her to cope with her anxiety and history of trauma. She argues that the luxury handbag actually reduces her anxiety. This relationship ties self-esteem into conditions such as PTSD, OCD, survivors’ shame and guilt, as discussed in the DSM V.
These are not measurable returns, admittedly. You can’t price in the confidence boost afforded by toting around a stunning, well-executed creation. The luxury purse is a status symbol par excellence. It’s a great way to improve an individual’s rank in a dominance hierarchy and increase self-worth. It’s a powerful medium of self-expression, statement of style and taste. For billions of consumers, the designer handbag represents a lot more than a mere accessory, it’s an extension of their identity.
I still vividly recall scrounging together my pennies for months to buy my first designer handbag. It didn’t have to be a Birkin or a Chanel – just something like the unbranded, utilitarian but well-crafted leather tote she had on now. The monetary stretch was extreme. When I did finally get that bag in my hands, the happiness it brought me was worth every single one of those cents. It wasn’t the resale value it could gain me one day, it was the confidence and delight that this investment gave me. It was the ultimate prize for my diligent efforts, my very own kept promise to me.
And that, I would argue, is the heart of the issue. Let’s reframe the conversation about designer handbags. Instead of viewing them as investments in the financial sense, we should recognize them for what they truly are: investments in ourselves. They are investments that make our neighborhoods more vibrant, beautiful, and culturally rich.
Imagine the flip side. Don’t gamble thousands on one bag expecting it to increase in return. Instead, direct that capital into publicly traded companies, debt instruments or other asset classes with a proven track record of long-term appreciation. You might save for retirement, pay off student debt, or invest in job training. These are all smart investments that provide pretty clear financial dividends.
I’m not trying to say here that purchasing a designer handbag is a terrible thing to do. If you can afford it, and it really makes you happy, then spend away. As with most direct buys, it is important to get real about what the purchase is actually doing. Purist viewpoint aside, let’s admit that emotional value usually trumps economic value. Let's appreciate these bags for what they are: beautiful, well-crafted items that enhance our lives, not guaranteed paths to financial riches.
In the end, whether or not to buy a designer handbag is up to you. But before you drop a significant sum, ask yourself: Are you buying it for the potential resale value, or for the joy it will bring you? Do you want it to be a big economic opportunity, or an exciting piece of technology that represents your community’s unique character and taste. Putting together the real “price tag” is important. It includes the financial as well as the emotional side, helping you arrive at a better informed, more rewarding choice. Realize that it’s a lifestyle investment, and reap the emotional dividends that are likely to accrue from it.
