The Most Expensive Handbag In The World Is Worth $3.8m

The Guinness Book Of Records lists the most expensive handbag in the world for 2015, as the Mouawad 1001 Nights Diamond Purse. It is worth an astounding US $3.8 million. This remarkable evening bag has held the record as the world’s most expensive handbag for the preceding five years as well.

This amazingly expensive handbag is heart-shaped. It was fashioned in 18 carat gold, but its most incredible feature are the real precious stones which decorate it. There are 4,356 colorless diamonds, 105 yellow diamonds and 56 pink diamonds which cover it. This is a total of 4571 diamonds weighing a colossal 382 carats. 

This one of a kind work of art actually took 10 skilled craftsmen 8,800 hours to make. It was designed and manufactured by Mouawad which is a privately owned multi-national company that sells exquisite jewelry, objects of art, and luxury watches. The company, which was founded in 1891 in Lebanon, now has its headquarters in Geneva, with a Middle East headquarters in Duba genevai. It was founded by David Mouawad, and is now led by 4th generation family members Fred, Alain and Pascal Mouawad.

 Alain, Fred & Pascal Mouawad Source: Wikipedia

Mouawad also holds three other Guinness World Records:

1. 1.     The Mouawad L’Incomparable Diamond Necklace featuring the world’s largest internally flawless diamond, the Incomparable diamond which is 407.48 carats. This is the most valuable necklace in the world and worth $55 million
2. 2.     The Very Sexy Fantasy Bra worth $11 million. This is the most luxurious and costly piece of lingerie ever made.
3. 3.     The Mouawad Splendor worth $12.8 million. This is most costly single pear-shaped diamond in the world.

The Mouawad 1001 Nights Diamond Purse speaks wealth and luxury. While diamonds are a girls' best friend, handbags are a girls' best companion. This most expensive bag offers the best of both worlds; friendship and companionship.

But this is not a bag the normal person could ever hope to own. And quite honestly you would be a bit anxious carrying it to the pub wouldn't you? There are   several other less expensive handbag styles you can select from to make a fashion statement for yourself. Make your next companion a tiny less bit more affordable by getting it from the Large Purse Shop. 

The worth of designer handbags has remained quite steady overtime, so a quality purse is a good investment. Take the  2014 Hermes Birkin crocodile skin handbag which recently became the most expensive handbag ever sold at auction at a price of over $220,000.  It certainly kept its value. But make sure you look after it well and store it properly. 

The Most Expensive Handbag In The World - Or NOT ?

  

I read recently in the Daily Mail UK that Christies Auction House in Hong Kong sold the most expensive handbag ever sold. The bag was a Hermes Birkin, in pink crocodile skin and was bought by an anonymous buyer at auction.  When the final hammer went down at 1.72 million Hong Kong dollars which is equivalent to UK £150,000, or US $228,480, it was reported to be the most expensive handbag ever sold.   However i think the Wall Street Journal has clarified the situation by reporting it is the most expensive handbag sold at auction.

The Daily Mail UK reported that the cost of this record setting Birkin bag broke the previous world record, set in 2011, for the world's most expensive handbag. The previous record holder, which was sold for £133,500 (USA $202,585) at auction, in the USA, was held by another Hermes Birkin, but in red crocodile skin. This probably also relates to the most expensive handbag sold at auction.

Because  this report conflicts with research I have completed. I believed that the world's most expensive handbag, as listed in the Guinness Book of Records, was the Mouawad’s 1001 Nights Diamond Purse which is worth an astounding US $3.8 million. I will discuss this super valuable bag in another blog. It is quite a different bag to the Birkin.

So did the Daily Mail get it wrong? It seems so. I think they meant to say the most expensive handbag sold at auction.  I will devote this blog to discussing the world's most expensive handbag as identified by the Daily Mail UK because it is a bag more appropriate for day to day wear.

But just to put it into perspective, you could buy an Aston Martin DB9 Volante with the same amount of money that this Birkin, a record making expensive handbag costs. Or even put a deposit on a house. But the Daily Mail also reported that Christies have another Birkin on their books, a sexy black leather number, which may sell for even more and beat this record price.

So what makes this expensive handbag so valued?

This astoundingly expensive handbag is a Birkin Bag designed by Hermes. It is made in bright fuchsia-pink luxury crocodile skin and features beautiful 18 karat gold detailing and is covered in genuine diamonds. The Birkin bag, which was first designed in 1984 by Hermes, a French fashion house, was named after the actress Jane Birkin, is seen as a fashion classic.

The story has it that the Birkin was created after the Hermes CEO, Jean Louis Dumas, sat next to Jane Birkin on a Paris to London flight. The actress expressed her frustration about the difficulty in finding a leather weekend bag.  She outlined what her ideal bag would be like. Soon after, the bag she described was born as the Birkin. Hermés now count many of the world's wealthiest women as fans.

The Hermes brand is famous for its extravagant leather accessories and the Birkin has become one of the most sought-after handbags of all time. The Birkin Bag is known for having a price tag in the thousands of dollars. There is a waiting list for a Birkin which can be several years long.  Hermes is eminent for its perfect finish and the best quality materials used.  Hermès never uses  assembly lines with but uses one crafts-person to make each bag at a time, hand-stitching each piece to create the immaculately finished product.

Unfortunately the high-end luggage and accessories produced by Hermés isn't really within every fashionista's price range.  A Hermes Birkin bag can have a price tag of upwards of £8,000 (USA$ 12185).  But while a Birkin bag may be worth as much as a small car, it is seen by the fashion industry as an 'investment' piece – an expensive handbag yes, but one that will remain in style for years, if not decades. And at the same time go up in value. The Birkin has proof of this - waiting lists of up to three years and the highest two sales records for the "most expensive bag" being attributed to a Hermes Birkin bag.

We don't know the identity of the new owner of this most expensive handbag, but we do recognize that both Kim Kardashian and Heidi Klum are the proud owners of pink Hermes Birkin bags which are similar to the record breaking one described here. Don't they look really great and make such a bold statement? They certainly stand out.

Victoria Beckham is reported to owning as many as 100 bags, which together are estimated to be worth £1,500,000 (USA $2,284,800). Khloe Kardashian has one in just about every color of the rainbow. Recently she showed off her latest acquisition which features the Monopoly mascot on the front, holding a large bag of money, surrounded by paper bills with the sides splattered with orange, pink and dark red dots of paint. 

I am not convinced that the pink Birkin bag reported in the Daily Mail UK is the most expensive handbag in the world, but do believe that the Wall St Journal report is correct - it is the most expensive handbag sold at auction.  Check out my next blog when I disclose ten bags which may be more valuable than this record setting expensive handbag reported by the Daily Mail UK.

I you want a great new bag but simply cannot afford a very expensive bag then check out the great bags on my site at the Large Purse Shop.

Some Luxury Handbag Retailers Have Cut Costs and Reduced Discounts

The Business of Fashion has reported that some luxury handbag retailers have cut costs and reduced discounts in order to cope with slow-moving sales. But the outcome has been good with some companies such as Michael Kors, Kate Spade, and Coach    all topping analysts’ earnings estimates for the past quarter. To protect their brands and margins, these companies have reduced discounts, added new products as well as slashing costs.

Michael Kors Chief Executive Officer John Idol reports that growth of the once hot luxury handbag segment in North America has slowed to low single digits but that young customers are still buying handbags and leather goods, but styles have shifted to lower-priced large wallets and small cross-body bags.

“There’s been this myth that no one is buying a luxury handbag anymore, but really it’s a change in trend away from the big totes everyone was buying a few years ago to smaller bags that don’t cost as much,” said Dorothy Lakner, a New York-based analyst at Topeka Capital Markets.

Because the number of people looking for a luxury handbag at North American department stores is reduced and subsequent sales are low, there were higher levels of leftover Kate Spade, Coach and Michael Kors handbags that needed to be sold off at discounted prices to make way for newer goods.

“You have to make products scarcer and have less inventory left over at the end of the year so you can get full price,” Lakner said. “Michael Kors is really pulling back on inventory in the department store channel. Similarly, Coach is reducing the number of discount events.

Luxury handbag sales have been boosted by international expansion but a strong U.S. dollar has hurt tourism sales domestically and taken a bite out of profits earned abroad. “You have to focus on newness in products and keep inventories tight,” Lakner said.

Even after a restructuring, Kate Spade’s luxury handbag sales still make up about 70 percent of its revenue, according to data compiled by Bloomberg. Since 2013, the New York-based company has sold the Lucky and Juicy Couture brands and streamlined its corporate operations. In 2014, it began a complete overhaul of management with renewed focus on e-commerce, which now accounts for 20 percent of luxury handbag sales. The retailer is also expanding into home goods, rolling out a 325-piece home-furnishings category last month.

The move to streamline expenses may be paying off. While Kate Spade’s $275 million in net sales in the third quarter fell short of the $281.2 million analysts expected, the company recorded profit excluding some items of 6 cents a share, topping the 4 cents analysts forecast.

Michael Kors posted profit in the second quarter through Sept. 26 of $1.01 a share. That topped the 89 cents a share analysts predicted. Still, the London-based company forecast third-quarter revenue of $1.33 billion to $1.35 billion, falling short of the $1.4 billion analysts projected.

Results were similar at Coach, which said last week that profit excluding some items last quarter was 41 cents a share, exceeding analysts’ estimates by a penny. The New York-based retailer posted sales of $1.03 billion, missing analysts’ projections of $1.04 billion.

While all three companies say they’re pulling back on discounts, they’re also looking to categories other than luxury handbag sales to drive growth. Coach agreed to buy designer shoe brand Stuart Weitzman in January for $574 million to diversify its selection. It also hosted its first women’s runway fashion show this fall. Kate Spade introduced a home goods line last month, while Michael Kors is expanding its licensing agreements into watches, accessories and eye wear.

The luxury handbag makers could follow the example of how fellow luxury handbag retailer used restructuring and cost-cutting to boost performance. One of the original lifestyle companies, Ralph Lauren, announced a restructuring effort in May that will save $110 million annually when it’s completed in 2017.

Increased efficiency helped Ralph Lauren post earnings last quarter of $2.13 a share, excluding some items. That surpassed the $1.73 a share analysts had estimated. Still, comparable sales declined 6 percent, Ralph Lauren said in a statement Thursday. That’s more than the 3.8 percent decrease analysts had forecast.

But you don't have to own an expensive luxury handbag – there are bags available that look more expensive than they are. If you have champagne taste but not the budget to match, The Large Purse Shop has a range of affordable bags which manage to look like a luxury handbag and look like they cost way more than what they actually do. They'll all make you look like a million bucks for two to three figures. We're especially fond of Italian leather; isn't it lovely?