According to experts, this is a type of investment with profits calculated in multiples but has potential risks in valuation, distinguishing between real and fake goods and poor liquidity.
I am a housewife, all day taking care of my husband and children, occasionally going shopping, sitting in restaurants with housewife friends.
Recently, one of our sisters, dressed luxuriously, spent a lot more. After much questioning, she said she was learning to invest in designer bags - spending a lot of money to choose luxury handbags that she thought would be "hot" in the near future, waiting for the price to increase, then selling them for a profit. She said, some models bring in one and a half times the profit, if lucky, double it.
I am very interested and intend to join you. Expert, please tell me how much potential does this investment have?
Oanh Oanh
Hermès Birkin - one of the most expensive bags in the world, priced from 9,000-500,000 USD. Photo: Reuters
Consultant:
First of all, the topic you brought up is quite interesting. Investing in designer handbags is a form of luxury investment. This is a form of investing capital to own an item (handbag, watch, antique, painting...) and holding it with the expectation that its value will increase, then reselling it for profit. In terms of method, we usually "hunt" for rare, valuable items that are desired by many people who are knowledgeable about them.
This type of investment can be both an accessory or fashion jewelry, and can also earn profits from future sales. However, the risk factor is that you need to understand how to distinguish between real and fake goods and must determine the value of the item accurately to avoid buying "bad". This type of investment is quite unpopular and is not suitable for the majority of users or traditional investors.
Investing in designer bags, watches, antiques, and paintings is a popular trend. However, you need to pay attention to the following issues.
The prerequisite for the value of an item to increase in the future must be scarcity, or in other words, "uniqueness" or rarity, showing the desire to own or hunt for the collector or user. To achieve this factor, the item must usually be produced in small quantities, for example, Chanel or Hermes handbags, the price of each bag is usually very high to show the "class" of the person wearing it.
These types of bags usually cost from several thousand to several tens of thousands of USD, even up to hundreds of thousands like Hermes Kelly or Hermes Birkin. However, owning these bags is not simple. If you buy in Vietnam, the price will be much higher than other markets from 2-30%, depending on the model. In case you take a trip abroad just to buy the bags, the cost of the trip will "eat up" all the investment profit (if there is profit).
If buying used goods, choosing an authentic bag is not a simple task for a housewife like her. In fact, there is also an entrupy checking service - scanning with a super sharp camera to the structure of the material to distinguish between real and fake goods, but it also costs more. Not to mention, finding a source to buy is not simple.
Of course, not all designer bags are profitable investments. Dior, Gucci and Louis Vuitton still have a few product lines that remain unchanged in price. YSL, in particular, has seen many models discounted on the secondary market in recent times. In addition, bags in seasonal collections are often difficult to resell.
For someone with no experience but "very interested" like you, investing in this type is really difficult to bring profit, it takes time to experience using and learn from buying and selling these products. A very important point that you need to consider is that this type of investment has low liquidity. If you do not buy the right "hot" model that many people are looking for, reselling is a problem.
For the field of investing in luxury goods, you can refer to other types such as watches or paintings. The form is similar but most of the items will not be degraded over time.
Rolex watch models have increased in price quite a bit since the pandemic due to scarce supplies. The GMT Master or Daytona lines have doubled in price at times in 2021. If you invest in the right model at the right time, it is considered to have both jewelry and profit. Patek Philippe models such as the 5205R or the Nautilus line, prices have also increased sharply. However, to own these models, even if you have billions of dong, you may not be able to buy them because the global production quantity is very small, only a few dozen to a few hundred pieces per year. The total number of pieces produced by the whole company is only around 60,000 pieces per year.
Paintings or antiques are another category. If you choose the right "bargain", you can make a profit by the multiples. But the problem is that you need to have aesthetic taste to choose "quality goods" and the probability of success is also quite low. In my experience, buying 5-10 paintings, if you are lucky, you will only have one successful deal.
In general, investment is a difficult category, the less people understand and need it, the more difficult it is to participate and the liquidity is also quite low. You should spend a lot of time learning if you decide to invest in this very special type.
Khanh Nguyen
Head of Investment Consulting
at FIDT Investment Consulting and Asset Management Company
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