Purchasing a luxury item can be an investment that goes beyond the initial purchase. According to Knight Frank, the value of items such as rare whiskey and classic cars fell in 2023 compared to the previous year, while the value of art and jewelry rose. What are some luxury goods that are becoming more popular and have the potential to increase in value?
TheRealReal (REAL) Vice President of Merchandising Sasha Skoda has joined Wealth. Analyze which luxury goods are likely to increase in value over time.
For more expert insights and the latest market trends, click here to watch the full episode of Wealth.
This post was written by Nicholas Jacobino
video transcript
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Brad Smith: The lifestyles of the rich and famous seem very luxurious. And we may not be able to live like them. We can take a peek at the world from time to time. Wealthy shoppers want clothes and bags. According to Knight Frank's wealth report, the value of his handbags fell by 4% in 2023. So what kind of luxury goods are people buying now? Here's what we'll tell you. Enter Sasha Skoda, Vice President of Merchandising at Authentic Reel.
Thank you very much for taking the time to talk to me today. Even if you want to go out and show it off and make sure everyone knows, you need to know what you need to buy to actually create more value over time. Yes, that's that bag you all saw. And at this point it's actually starting to become more valuable. What are the hot topics? What items are attracting attention now?
Sasha Skoda: Yeah. I mean, I think that note you wrote earlier about handbags is interesting. In fact, handbags are one category that is seeing an increase in value, especially for brands like Hermès. So brands like Hermes belong to you and me. Today, we cannot walk into a Hermès store and walk out with, say, a Hermès Birkin or a Hermès Kelly. And because these items are rare, they increase in value over time. Typically, these bags sell for an average of up to 25% more than their original price.
They can also cost up to three times the original retail price, depending on comfort and style.
Brad Smith: oh. got it. Okay. So it's the bag side. What other popular items are usually worth a little more?
Sasha Skoda: Well, we're looking at hard luxury goods, then fine jewelry and watches. Fine jewelry is interesting right now and you usually see branded fine jewelry. Brands such as Tiffany, Cartier, Vans, Cleef, and Arpels. But lately, we've actually seen a trend towards unbranded jewelry. As you know, the price of gold has skyrocketed this year. And that's driving up the price of unbranded 18K gold fine jewelry. As a result, classic items such as necklaces, rings and earrings will once again be available in 18 karat gold.
These will now have very high resale value.
Brad Smith: What luxury goods are people selling? See where the most listings are coming from.
Sasha Skoda: Yeah. So I think what's interesting is that we're actually seeing similar trends in buying and selling. I think so when I think about the nature of the circulation of luxury goods. If you have a customer who is going to the primary market and wants to buy a new handbag, they probably have a one-in, one-out mentality. So they go back to the closet. They will be selling one of his old handbags on consignment and that's where we see the demand on our side as well. So we're actually seeing very similar trends in terms of what people are buying and selling. And now we can say that handbags are our two most popular categories.
Brad Smith: Okay. You didn't mention anything about my sneakers. So I think I'll just sit on it or wear it outside. Sasha Skoda is the substantive vice president of merchandising. Thank you very much for your time.
Sasha Skoda: Of course, thank you for having me.
