A few years ago, Nancy Marshall, the head of family office services with Prime Quadrant in Toronto, strolled into the Prada outlet while on holiday in Florence and decided to treat herself. At 500 euros, the red leather handbag she picked out seemed like a splurge. She was shocked (and pleased) to find the black version of the same bag priced at $6,000 in Canadian stores, while the red version wasn’t available at all.
It’s common for successful women like Marshall to reward themselves with a designer handbag. But for some, that first acquisition is just the beginning.
“A lot of women start purchasing bags as they join the professional world, and it’s easy over 10 or 20 years to amass a significant collection,” says Cynthia Houlton, global head of fashion and accessories with Sotheby’s in New York. “It’s not unusual for women to have 50 to 100 bags.”
At Sotheby’s, the vast majority of sales are made up of Hermès, Chanel and Louis Vuitton, and the classic Hermès Birkin bag – named for fashion icon Jane Birkin (her original bag just sold for US$10 million) – is probably the most desired of all, with the Diamond Himalayan Birkin considered to be the cream of this rarefied crop. Flaunted by the likes of JLo, it’s a diamond-studded crocodile confection with white-gold hardware.
The $400,000 handbag
“This year we sold a [Hermès] Kelly and a Birkin for over $400,000 each. For some people, that’s a deposit on a house,” Houlton says. “Those are certainly the most expensive bags that Sotheby’s has ever sold. Actually, we’re in the process of selling one more Diamond bag; its not Himalayan, but it has diamonds on the closure; it’s going to sell for around $300,000.”
“The mini Kelly is the hottest bag right now; a regular iPhone will not fit in the bag if you have anything protecting the case,” she says. “It retails for $8,000 at Hermès; we sell it for $30,000 to $40,000. We don’t set the prices; the market sets the prices.”
“Hermès Birkins that originally sold for $12,000 to $14,000, we’ve had them for as high as $30,000,” says Joy Mauro. She is the owner of Turnabout, the luxury consignment resale shop she founded in 1978, with brick-and-mortar outlets in Vancouver and Victoria.
Why collectors value high-end bags
What’s the attraction of a used purse with a five-figure price tag?
“It’s good quality, it’s sturdy. You can have it refurbished and it will look like new again,” Mauro says. “And then there’s the style and the look. There’s nothing like walking into an event with my beautiful Chanel bag on my shoulder, and I look like a million dollars.”
At the high end of the market are “trophy hunters,” Cynthia Houlton says. “They’re looking for that super-special bag.”
Like vintage cars, vintage handbags have a special appeal, says Mauro: “There’ll be people who have recollections of someone in their family having that bag. And people cling to a lot of traditional things, because today there’s not a lot of stability in our world. We all need our things that will never change.”
Linked to career milestones
Turnabout resale manager Jill Fullan distinguishes between occasional customers and serious aficionados. “I think there’s a switch where you become a true collector,” she says, noting that for this breed, bag purchases are often linked to career milestones.
Jacqueline Szeto-Meiers falls into this category.
“Some people like to buy cars; some people like to buy handbags,” says the director of investment programs at Canso Investment Counsel in Richmond Hill, Ont., who is also a VIC (Very Important Client) at Louis Vuitton.
That summer, Szeto used her own earnings to buy her first Louis Vuitton (the Reporter), which she still owns.
“To me, Louis Vuitton means more than to other people. Every single time I have an achievement, I reward myself with a bag,” she says. Today, Szeto-Meiers owns “maybe 70,” mostly Louis Vuitton.
How do you buy a luxury designer handbag?
It takes dedication to become a serious collector. Demand for high-end designer handbags outstrips supply, and the luxury brands have been raising their retail prices over the past decade without dampening sales.
Also, money alone can’t buy the most sought-after bags. Houlton explains that VICs like Szeto spend years building a relationship with the brand, one purchase at a time.
“When they know you, they will start to offer you bags as they come available,” she says. “The whole process is somewhat opaque for a reason; this lack of clarity is exactly why people are willing to pay such a premium.”
Regular clients may join a waitlist for a preferred bag, but this is not a guarantee.
Szeto-Meiers recalls the time she requested a very rare bag: “Everyone in North America knew it was coming to Canada, and everyone was trying to intercept it, to steal my bag,” she says. Only her deep relationship with the brand protected her claim to it.
And the thirst for luxury bags isn’t slowing.
“On the contrary,” says Mauro, “I see it continuing like crazy.”
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