In a world of stocks, cryptocurrencies, and volatile markets, the idea of handbags being a safer investment than most options available today, with some pieces increasing nearly 3x their original value, is a bizarre yet all too real possibility. In this article, I reached out to Australian fashion designer Jerusha Baluch with a self-titled fashion label Jerusha Couture for her opinions on the matter.
After owning a boutique for four years, Jerusha exploded in popularity around 2010 as one of the original members of YouTube’s most fabulous community. Her combined audience of over 200,000 followers/viewers are said to follow her every word on all things luxury fashion. Right away, I knew she was the right person to give me insight on investing in Fashion.
What Type of Pieces Return Value?
When we asked her what type of pieces or designers typically bring the most return on investment, Jerusha was quick to list a few big-name designers such as Chanel and Hermes. Not only does it reassure us not to fret over spending a few thousand dollars on handbags or designer goods, but it also shows the confidence she has in her knowledge of the industry.
“Chanel always Chanel, for the sheer fact that the house for years past has 2-3 price increases Per-year without a doubt. This naturally (just like the stock market) pushes the equity up in the value of the item, sometimes depending on the want and demand of the product you may see anywhere to 40-100% markup on what you paid within months of purchase.”
Fashion Holds its Value: Here’s How
I know what you’re thinking; how do some designer items hold their value while others don’t?
The truth is it comes down to exclusivity and the basic rules of supply and demand. If we looked at the stock market in 2020, you would notice that almost every principle around stocks has broken. The one thing certain is the amount of uncertainty in the markets today. These catalysts are a driving force behind emerging markets, such as placing money into collectibles, antiques, retail possessions, and rare designer pieces. We have seen it become more prevalent as fashion investors have reported a higher return on Birkin bags and Kelly bags. There have even been multiple Forbes articles documenting the emergence of these new and wildly lucrative endeavors.
Practical Advice from Jerusha Couture to YOU
It’s a Lifestyle: Jerusha’s Advice begins with making sure your lifestyle and mentality are set up to take care of a material object. She believes it can be pretty tricky for novices in the industry since it is not in someone’s nature to care so much about a possession/product like a handbag. Keeping the items in supremely pristine condition will always give you a far better return than treating them poorly and expecting a high return.
The brand is Everything: Choice of the brand will quite possibly have the most significant effect on your outcome. By researching what brands will give you a higher return at a sale over some of the competitive brands that are far easier to obtain, you increase your chances of not taking a loss but rather a profit.
Packaging is just as Important: Jerusha’s last point would be something quite simple as keeping all of your packages. It seems funny and almost silly to keep the wrapping, the ribbon, the box, but in the end, the same experience you have within the boutique should be the carry-over as you sell your item.
Luxury Fashion for Everyone
For the foreseeable future, new fashion investors and enthusiasts will have the opportunity to flip handbags and different designer pieces with great potential. The industry is full of individuals who have been able to turn Fashion into art and now even investments. If you have been waiting to follow your passion for Fashion, 2021 has never been a better time to start learning and investing in your future.