A bag that is expensive can be a way to commemorate a life event. Most likely, you are buying a bag to commemorate a significant achievement such as a promotion or job. It should be considered an investment that will grow over time. Bags, which are luxury goods, can bring in significant income. A Hermes Birkin bag is better than gold, according to studies. Chanel bags appreciate up to 3% per year and Louis Vuitton bags are long considered an investment purchase. There are two types of people: those who invest in the stock market and those who buy bags.
Although Chanel, Louis Vuitton and Hermes have been the most popular brands in the world for a long time, Bottega Veneta is now making inroads in this niche. Since Daniel Lee became the brand’s CEO in 2019, the bags have received a lot of attention. The It bags are a testament to his soft, sometimes thatched, leather purses. They are everywhere in my daily life, including street style photos and my feed. The little, stomach-shaped Jodies in a lime shade remind me of Nickelodeon Slime and the square Cassette with its puffy Interaccio Leather are what blinded me. Our Slack channel was flooded with images of Victoria Beckham walking around New York City in Bottega Veneta bags. She held them up to her chest, like a football, and displayed them front and center.
These bags are sought after by many people who will go to great lengths for them. A colleague who lives in New Jersey often told me that New York-based women were crossing the Hudson to shop at a Bottega Veneta boutique instead of Madison Ave to to avoid the New York sales taxes. These bags are not cheap. The Cassette retails at $4,100. The Pouch retails for a cool $3,690. The Jodie costs $1,900. The answers came flooding in when I posted a question on my Instagram account asking for the pieces. These bags were also being purchased at retail by many people. One woman told me that she purchased three bags! Another colleague DM’d that she heard from a friend working in a Bottega Veneta shop that it was “hard to keep product on shelves.”
It is so popular that the resale value has gone up. The luxury resale e-commerce site Rebag, which specializes in bags, watches, and high-end accessories, released its annual Clair report in mid-October, which shows that the Bottega pieces can sell for a pretty penny. When it is resold, the Chain Cassette Crossbody retains 87% of its original value. The Chain Pouch retains 80% and the Jodie keeps 90%. Rebag would almost pay half the price for the Pouch Intrecciato Nappa bag, which is a very ordinary feed bag, save for its storied weaving process. Rebag claims that Bottega styles such as the Pouch 20, Crossbody, and Padded Cassette sold for more than their retail value. Rebag says that Bottega bags in Parakeet (the aforementioned green) are the most well-known, but more traditional colors such as black, navy, brown, and even burgundy sell better than any other colors.
Although the brand has seen a substantial increase in sales over the last few years, it still is not at the same level as Chanel or Hermes. Bottega Veneta is now considered a high risk purchase, meaning that a bag that sells for 40% or less of its retail value, according to Rebag, has become a low-risk purchase. Bottega is ranked higher than Celine and Prada on Rebag and slightly higher that Balenciaga in the low-risk category. Bottega Veneta is not in the safe bet category (Gucci, Dior and Saint Laurent), but it’s close.
The jury is still out on whether these bags are being bought as investments. Bottega Veneta’s rapid rise to popularity might discourage some people from believing that it is a good investment rather than a passing fashion. P.R. rep Sophie Gubernik writes, “I liked the bag and I bought it for myself as a reward for the new job. But I worry that it’s a super trendy item so I am not sure if it is a good investment.” Others shared the same thoughts. The jury is still out on whether the bag will retain its value five or ten years from now. It is possible that there are not enough data. Even if a company suddenly experiences a downturn in sales, there’s still hope for a rebound. Charles Gorra, CEO of Rebag, says that handbags such as the Dior Saddle and Balenciaga city have the potential to rebound and increase their return on investments. The trendiness of bags is not a factor, but the numbers are strong for now. These bags are great and in high demand. You can’t ask for more.