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?

Gucci Brand Is One Of The Top Three

According to an article in the BOF, Gucci is one of the strongest brands in the world. It says that in unprompted brand recognition survey, where consumers are asked which luxury brands they like to buy, Gucci regularly is in the top three.

However recently, the Gucci brand has been at risk of losing its strong brand position and has been suffering from a decline in sales. Its weakened status as a fashion authority is due to two factors; (1) competition in the luxury market is growing and (2) Gucci has been lacking fresh creative content. Former creative director Frida Giannini was a master at maintaining and even reviving former Gucci icons but she did little to produce a plan for future icons.

It is obvious that to stay relevant, a brand must bring new ideas and styles to marketplace. And that is exactly what new creative director Alessandro Michele is doing for Gucci.  The second quarter of 2015 saw sales rise by 4.6% beating all expectations.

One problem Gucci has is that its entry-level handbag priced at around $600 to 700 seems to have lost its ‘oomph’ factor. Ill-advisedly Gucci seems to view its logos as a stigma and only uses the logo on bags with lower price points. But Louis Vuitton’s logo-heavy luxury products show that this is not what the consumer wants. Consumers at all levels want their branded bags to be recognizable.

So where does this leave Gucci today? Gucci’s third quarter results, released today, show only a modest growth. Yet, it still seems to be a bit ahead of its brand competitors. It is anticipated that Michele's influence will improve both organic growth and financial performance as early as next spring.

However while it is anticipated that Gucci’s sales will recover quickly, its profitability may take a little longer. This is because fixing the Gucci brand image will cost. Gucci needs to fix disparities in pricing across regions, the brand’s retail network in China more needs to be spent on communications to support Michele’s new creative vision.

But overall the Gucci brand looks like it has a better future and Gucci handbags will remain popular with consumers. Check Out Some Authentic Gucci Products At Discount Prices 

Large Purses Impress

For generations the handbag has been used to demonstrate signs of wealth and many women these days crave the labelled brands as an indicator of status. Large purses first came into popularity in the early 1900's and the term handbag was initially used to refer to hand-held luggage most often carried by men. At this time it was considered lady-like to carry as little as possible and a small bag was typical. In fact, it is noted that Eleanor Roosevelt was one of the first women to start the trend of carrying large purses which was not really typical of the time. Since that time large purses have impressed.

www.largepurseshop.com

Women and men are advised to invest as much money as they can in a good quality leather handbag. This is because quality leather especially Italian leather,  lasts a long time and always looks good.  Well made large purses can hide the fact that maybe your clothes are not as well-made or fashionable. A good handbag has become a sign of good breeding. Designer large purses are a good way to exhibit both wealth and good taste. Large purses also reflect women's climb up the corporate ladder. In the 80's, as women began “power dressing” in shorter skirts, sharply tailored suits and killer heels, their handbags soon followed suit becoming bigger and flashier.

Today the size of the typical handbag has increased to meet the need of the modern women on the go. Nowadays our large purses carry our keys, our phones, our I-pads, our make-up, our personal items, our books, our umbrellas and much, much more.  Essentially, our large purses carry our lives.

Large purses are designed to hold all your daily necessities, so you can say so long to cramming your belongings inside. Streamline your style with plentiful pockets and card slots! Add a wallet to store your coins, notes and card. Large purses provides organization for convenient weekend getaways, overnight stays, business, college, and everyday use.  Large purses are great for both men's handbags and women's handbags alike.

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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.

Check out my luxury handbags

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.

 

Italian Handbags Have A Long And Rich History

Quality handcrafted Italian handbags have a long and rich history, have been much admired for centuries. During the twelfth century, Italian handbags were used by royalty and those in high society. The Parisian court sourced its bags and purses principally from the skilful artisans in Italy. Documents still exist which confirm very extravagant and luxurious purses were sourced from Italy. These incredible bags were embellished with gold, precious stones, enamels and silver. Many ancient examples are on show in museums in Europe.

The bag-making industry in Italy can be traced back to the twelfth century. Ancient records of different guilds for arts and crafts include:

·         Arti Minori (the lesser crafts)

·         Cuoiai e Galigai (leatherworker)

·         Arte dei Lavoratori del Cuoio (Leatherworkers’ Guild).

·         Correggiai (military leatherworkers)

·         Sellai (saddlers)

·         Calzolai (shoemakers).

Some of the finest tanneries in Italy were established in this very early period. Cow and buffalo were the most common hides used but more refined skins such as chamois and calf skin also found.

Practically every city in Italy had its own quarter of bag-makers; Tuscany, Venice, Pistoia, Siena and Pisa all had craftsmen who made the best Italian handbags.  The craftsmen who created these excellent Italian handbags were called bolzieri.

The cities who housed these craftsmen flourished. Every city in Italy where trade and commerce have flourished have had their own quarter or street of bag-makers (Via dei Borsai). The extraordinary artisans who worked there gave Italian handbags, made in Italy, such a respectable reputation which has lasting throughout time.

One city that was particularly famed for their exceptional Italian handbags was Venice. Venice was an industrial city and its highly skilled artisans made bags of all shapes and sizes, planned for countless uses, made in leather or in rich cloth such as  velvet, damask and silk; adorned with jewels, pearls, embroidery, lace etc.

The first bags were developed to hold money securely and were undoubtedly made of leather (the word for handbags, borsai, derives from the Greek byrsa which means leather). The bags of this period were called scarselle and were worn around the neck or at the waist. Many scarselle were lavishly ornamented and it is these that made the craftsmen in Italy very famous.

 The bisacce were also popular at this time and were used for travel. Knitted bags   were also used in the medieval period and were often embroidered with the family crest or had the professional guild’s coat of arms inscribed on them.

The Renaissance era of the sixteenth century brought about a worldwide trade in bags. Bags from both Italy and France became popular especially from the cities of Florence, Paris, Venice, Tuscany and Ferrara. The Italian handbags of this period   were well bedecked with ribbons, fringes, lace, bows and precious stones; and a trend were often made from more extravagant materials such as velvet, brocade, and satin etc. but leather was still used a great deal.

The style of Italian handbags started to change and the most popular type of bags included: the cartella  - an improvement on the medieval scarsella because it was more spacious and had a knife pocket;  the brachetta -  a bag worn by men, as a codpiece over their pants, where there was room to keep money and a handkerchief; the borsa da matrimonio - a bag filled with money as a wedding gift to the bride and groom

Another type of bag which became popular during the fifteenth century, especially in Venice was the manicotti or the muff. This was a forerunner of contemporary Italian handbags. The manicotti was cylindrical in shape, and was lined with fur. It was used to keep hands and arms warm. It had inside pockets to hold small objects and money.

In the later part of the eighteenth century, bags began to lose popularity and were used less often. It was not until after the French Revolution, that resurgence in popularity occurred. The barilotti, bags worn on the arm, became the popular style. These bags were similar to the manicotti, the Italian handbags popular in fifteenth century Venice.

With the rise of the bourgeois in the eighteenth and nineteenth centuries, Europe saw   a new demand for Italian handbags with high society women wanting better and more extravagant purses.

By the end of the nineteenth century, Italian handbags were well entrenched in the fashion scene.  Bags were now seen as an everyday item worn not only as a fashion symbol and a sign of wealth, but as functional pieces. The design of bags became more practical, more comfortable and roomier; and could be made in leather or fabric, and were elaborately decorated and very elegant.

At the end of the First World War, the fashion industry took on a whole new significance and was blooming. The first fashion houses of the world were established and thanks to names like Gucci and Gherardini Italian handbags became bigger and better.  Bags now complemented other fashion accessories and were designed to be worn for specific occasions and different times of day.

Pochettes became the popular style of the day and the muff came back into fashion, made in either velvet or pony-skin.  However due to the war, there was a shortage of materials and a drive to find alternative materials to make bags from was led by the artisans in Italy. Fashionable Italian handbags started to be made from imitation alternatives through to precious materials. Materials such as imitation leather, dentice (a type of sea bream), rospo (toad), hemp, linen and silk were all being used in the manufacture of Italian handbags. Metallic hardware and decorations, snap fasteners and zips were used to embellish the design.

After the Second World War, Italian handbags were in even more demand.  As technology and transport grew, Italian handbags became more accessible worldwide.  Made in Italy, is among the most sought after fashion labels.

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The leather traditions used to make Italian handbags have stood the test of time and are prospering still. The mysteries that marks Italian handbags as different have been handed down from generation to generation within families. This handover of skills from father to son helps to retain the old traditions that this craft offers.

Fashions and tastes might have changed during the course of the centuries but the refined workmanship and techniques that go into making quality Italian handbags remain the same. Craftsmen in Italy work as a team - one personally cuts out the leather, others colour it, and yet others stitch it to produce the most amazing Italian handbags which last a lifetime.

I love my Italian handbags. This tradition full of history and mystique is why made in Italy bags are so loved and desired. To see my lovely range of Italian Handbags click here.