Designer items such as clothes, shoes, accessories were once something only obtainable to the very wealthy. Now, you’ll find that many people both young and old, are spending more money on designer and luxury brands. Waves of people from fashion influencers to celebrities included all talk about purchasing designer handbags or other accessories as investment pieces.
This has caused a lot of confusion as many people now believe that handbags should be regarded as financial investments. So, are designer clothes and accessories good investments?
For starters. It’s important to clarify the difference between “investment pieces” and “financial investments”.
What is an Investment Piece?
Investment pieces such as a designer handbag are high-quality luxury items that will be considered timeless and the durability can last for years.
It’s very rare that luxury brands increase in value over time unless it’s very rare. However, in the case that some bags are worth more as they age, you’re not always guaranteed to get that amount.
What Are Financial Investments?
Financial investments are areas where this is an opportunity to compound to accumulate wealth (while still running the risk of losing money). This can include stocks, bonds, cryptocurrency, real estate, and so much more. Learning more about this and decentralised finance for beginners can help a lot.
Why Exactly are Designer Goods Bad Investments?
While designer goods can be good investments for your closet if you are looking at creating a timeless wardrobe, they’re not an idea if you plan to resell them for a profit.
Investment pieces from designer items are nothing more than paying extra money to have an item that you can count on lasting years. This item is something that isn’t a victim of falling out of fashion, it’s high quality so it can withstand the test of time, and it’s unique, unlike fast fashion.
Those who have more disposable income can afford these pieces and will most likely not sell these. As stated earlier, you can sell designer items at a profit but it’s extremely rare.
Modern-day fashion trends die quickly and clothing is very cheap and low quality. Investment pieces are to combat fast fashion by slow curation. Some other reasons why using designer items as financial investments are bad include as follows:
- Designer Items Go In & Out of Fashion
While fast fashion has paved the way for trends to come and go in as little as a month, designer products have now fallen victim to this as well. Some designer items lack exclusivity, and they’re heavily advertised and flaunted.
One good example of this would be the Gucci Belt, this belt was seen everywhere by both men and women of all ages in 2019, now the trend of the infamous Gucci Belt has died out. Some classic brands such as Hermes and Chanel do have limited quantities of more timeless items that would hold desirability.
- Designer Good Must Stay in Pristine Shape
Your bag will have to appear as if it is brand new. The moment that an item, such as a handbag shows any signs of age, wear or tear means that the value will plummet.
Unless you plan to keep your items in a box to collect dust, the more you use your designer goods, the value will just keep decreasing. The whole point of owning a designer item is to enjoy the impeccable quality, right?