The Traits Of A Designer Handbag Collector

 Designer handbag collectors are obsessed. Some people collect stamps, coins, butterflies or other weird things but some people have a designer handbag collection. These designer handbag lovers have developed a lot of knowledge about bags and have information about all brands at their fingertips.

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 Designer handbag lovers have a few things in common:

1. Designer handbag lovers find their bags to be wonderful accessories which can brighten up any outfit and add a touch of class – they are in love with bags.
2. They love their bags to be the topic of conversation and admired by friends. Others may be a little envious of their designer handbag collection so they may tell them they got it for a steal on e-bay.
3. Collectors love to have the same bag in multiple colors, leathers or sizes. For a designer handbag lover this is not ridiculous or wasteful – it is common sense to like what you like hand have a variety, and sometimes you like a big black bag. Other times, you want the same bag to be little and pink.
4. Fancy leather is one of life’s little luxuries and once they have experienced it it’s hard for them to go back to enjoying things that are merely average.
5. A collector knows that a designer handbag can last a lifetime but they require proper care and storage.  Even if you’re not super careful with your bags, you know that they should be kept in their dust-bags in a cool, dry place, out of direct sunlight and feed leather regularly. If you’re extra careful, stuff them with tissue to maintain their shapes when not in use. Handbag maintenance requires more attention to detail than regular clothing, for better or for worse.
6. A lover of handbags will plan a whole outfit around their new bag. This is perfectly rational.  In fact, I would go so far as to say that if you buy a new handbag and don’t immediately plan an outfit for its debut, you should probably return it because you don’t like it enough.
7. Collectors believe that you can actually save money on the rest of your wardrobe by having a selection of great handbags. Okay, so the maths might be a little wonky, but hear me out: carrying a nice bag automatically makes everything you’re wearing look more expensive, so who’s to say that your Zara sweatpants aren’t actually Rag & Bone? We all have a finite amount of money to spend on our wardrobes, and if nothing else, a bag is a great diversion.
8. Designer handbag lovers truly believe that people really do treat them differently. Whether they realize it or not, everyone has little cues about social status, and they do it all day, every day. Even someone who’s not obsessed with fashion can usually tell when someone’s outfit is expensive and sophisticated, and high-status people tend to get better treatment in stores, restaurants–everywhere. Because the brand of a designer handbag is easily recognizable and usually carried prominently on the body, they’re a great shortcut.
9. Designer handbag collectors are passionate, and any argument about handbags being too expensive or fashion too shallow will not change their minds or their habits.
10. The experience of buying a new designer handbag is second only to the bag itself. Whether it is perusing the handbag floor at a beautiful department store or unwrapping the bag they purchased on line it is just a lot of fun. The anticipation is so worth it.

And the best thing of all is that a designer handbag will retain its good looks, style and value for a very long time. They are timeless and never seem to date.

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?

Luxury Handbags Are Selling Well In BRICs Countries

According to a recent report by Technavio luxury handbags are selling well in BRICs countries. In economic terms, BRICs is an acronym which is used in economics to group Brazil, Russia, India and China. These countries are sometimes referred to as the "Big Four" because they are all at a similar stage of newly advanced economic development.  A related acronym, BRICS also includes South Africa.  

The reason that the market for luxury handbag has grown in BRIC countries is that there is an ever increasing spending power and a growing internet presence in these regions. The internet has the capability of raising brand awareness and gives access to a people who would otherwise not had the ability to obtain these items. This in turn has led to a strong e-commerce market and a rapid growth in the sales of luxury handbags.

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Another factor is that there is an upsurge in retail stores making the products more reachable and the demand for brands is on the increase because of it. The occurrence of strategically located brand stores promotes brand awareness and increases online sales.

Socially, there has been a growth in the middle-class populations of the BRIC countries, resulting in more consumers with a disposable income to spend on products such as luxury handbags. Women account for about 50% of the population in the BRIC countries, and they are entering the workforce at greater rates and wanting more and more material luxuries.

Luxury handbags are in high demand with brands such as Louis Vuitton, Chanel, Dolce & Gabbana, Prada and Gucci top of the popularity stakes. For example, Chanel and Gucci are particularly popular in Russia, whereas Louis Vuitton is favored by wealthy Chinese consumers. Shoulder bags are the most popular style selling at present, with brands like Chanel, Louis Vuitton, Burberry and Michael Kors making the most out of this profitable market.

The growth in sales is predicted to last because the populations of these BRIC countries are becoming more urbanized and western fashion trends are more in demand. “The growing participation of women in the workforce, increasing infrastructure development, rising urbanization and the growing influence of western lifestyles will continue driving growth of the market in the region,” said Sriram Mohan, industry manager, Technavio, Bangalore, India. “Technavio estimates the market to grow at a compound annual growth rate of 7.41 percent during 2015-2019.” Technavio’s Luxury Handbags Market in BRIC 2015-2019

The sale of luxury handbags in the BRIC countries may reach up to 16 million by 2019. In the past five years the market has already grown at a compound annual growth rate of 6.66 per cent from approximately 8 million to about 11 million.