From Hermès to Louis Vuitton to Chanel, bags are ballooning in value on the resale markets.
And one standout taking the lead is Telfar.
“For the first time, [Telfar’s] average value retention on the secondary market exceeds all legacy brands, including Hermès,” according to luxury reseller Rebag’s Clair report for 2022 unveiled Tuesday. The consumer-facing resource, which launched in 2019, details market value and trend shifts for luxury accessories. For this latest report, data collection spanned July 2021 to July 2022 with insights on the biggest collaborations, best investment pieces and other economic predictions.
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Specific to Telfar, collaborations with Ugg, Eastpak and Moose Knuckles were in hot demand.
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“Based on Rebag’s Clair data, we estimate brand values based on the average retention value on the secondary market. Telfar items, on average, carry an average value retention of 195 percent on the secondary market, meaning that they appreciate to nearly twice as much as their original retail price,” Rebag chief executive officer Charles Gorra, told WWD. “Hermès bags, meanwhile, carry an average 102 percent value retention at resale, while Louis Vuitton’s is 82 percent and Chanel’s is 87 percent.
“Even though it’s in the contemporary category price-wise, it carries the same type of status — the Telfar Shopping Bag could even be considered cooler — [as] owning an Hermès bag,” he added. “The fact that Telfar bags are so coveted but difficult to obtain drives their brand value up. Chanel and Louis Vuitton are increasing prices and limiting their supply to increase their brand value at retail and resale. It shows that a contemporary brand can achieve the success of a luxury brand with the right amount of marketing strategy, hype and prestige.”
Telfar has already been democratizing luxury handbags through its bag security program meant as a sort of preorder for customers. At retail, the bags go for between $150 for a small shopping bag to $257 for a large shopping bag. Everything on the site is currently sold out. And as mass market brands like Nike are discovering, the resale value of its namesake can mean runaway inventory if resellers (bots or otherwise) take the reins. Nike recently announced it would ban sales to resellers if the purchase is found out as an immediate resale flip.
As for other key findings in the report, Rebag said that while the watch market continued to boom in 2022, early signs indicate it could plateau amid looming economic uncertainty. That being said, Rebag still crowned a handful of investment bags, like the Telfar Medium Faux Leather Shopping Tote, Louis Vuitton Monogram Canvas Bum Bag and Chanel Quilted Caviar Mini Classic Single Flap Top Handle Bag, for shoppers to keep in mind.