Designer Items That Appreciate in Value

Have you ever wondered which designer items could potentially make you a profit? In a world driven by trends, it’s easy to assume that most luxury items would lose value over time. However, certain designer items, with their limited production, exclusivity, and unique craftsmanship, can defy this logic by appreciating in value. Some luxury brands and items have demonstrated this phenomenon, outperforming traditional investments, and attracting the attention of collectors and investors alike. Whether you are a fashion enthusiast or someone considering high-end items as an alternative asset class, there’s a great deal to explore.

1. Handbags – The Queen of Investment Pieces

Let’s kick things off with the ultimate investment piece: luxury handbags. Hermès Birkin bags are perhaps the most famous example of a designer item that has consistently appreciated in value. These bags are iconic not only for their craftsmanship but also for their rarity. They are made in limited quantities, and each Birkin bag is meticulously handcrafted, which adds to its exclusivity.

According to data, a Birkin bag has seen an average annual increase in value of about 14%—far exceeding traditional asset classes such as the stock market or real estate. In fact, certain limited-edition Birkin bags have been known to sell at auction for several times their original retail price. A 2017 auction saw a Birkin Himalaya handbag sell for over $370,000, making it one of the most expensive handbags ever sold.

But it’s not just Hermès that offers handbags that appreciate in value. Chanel's classic flap bags and Louis Vuitton limited-edition pieces also often appreciate, especially when they are well-maintained or kept in pristine condition. Investing in handbags, however, requires careful selection. Limited editions, rare colors, and collaborations with famous artists or designers often tend to increase in value over time.

2. Sneakers – From Streetwear to High-Value Assets

Luxury designer sneakers, once considered niche, have now become a thriving market for investors. Brands like Nike, Jordan, and Adidas have mastered the art of creating scarcity with limited edition releases. Collectors eagerly anticipate these drops, and those who manage to purchase a pair at retail can flip them for multiples of the original price within days.

One of the most lucrative sneaker investments is the Nike Air Yeezy 2 "Red October." Originally sold for $245 in 2014, this Kanye West-designed sneaker has been resold for prices as high as $12,000. Similar limited-edition sneakers, especially those designed in collaboration with celebrities or fashion houses, have shown remarkable appreciation.

In addition, the market for pre-owned sneakers has grown significantly with the rise of platforms like StockX and GOAT, providing transparency and liquidity for sneaker investments. The key factors that contribute to a sneaker's appreciation include its rarity, condition, and the cultural significance attached to it. Sneakers that have a strong narrative, such as a unique collaboration or a game-changing design, tend to appreciate the most.

3. Watches – Timeless Value and Craftsmanship

Luxury watches are another category of designer items that can appreciate significantly. Brands like Rolex, Patek Philippe, and Audemars Piguet have long been associated with enduring value. For instance, the Patek Philippe Nautilus 5711 has become one of the most coveted watches on the market, with demand far outstripping supply. Its value on the secondary market has skyrocketed, often reaching three to four times its original retail price.

Rolex, too, has a long history of producing watches that appreciate in value. The Rolex Daytona, particularly the "Paul Newman" model, has become one of the most sought-after watches for collectors. A 1968 model sold at auction for $17.8 million in 2017, making it the most expensive Rolex ever sold.

When it comes to investing in watches, condition is paramount. Original parts, minimal wear, and the inclusion of original packaging and certificates can significantly impact the resale value. Limited editions and discontinued models also tend to appreciate the most, as their scarcity drives demand.

4. Jewelry – A Dazzling Investment

Investing in high-end jewelry can also be a lucrative option for those looking for designer items that appreciate in value. Brands like Cartier, Tiffany & Co., and Van Cleef & Arpels produce pieces that not only hold their value but often increase in worth over time.

For example, Cartier’s “Love” bracelet has become a cult item, consistently appreciating in value due to its timeless design and the prestige of the brand. Similarly, Van Cleef & Arpels’ Alhambra collection has gained legendary status, with pieces from this collection often selling for more on the secondary market than they were initially bought for.

Diamonds and gemstones with certifications that guarantee their authenticity and quality can also serve as valuable investments. Jewelry investments, however, require a deep understanding of the market, as factors like design trends, provenance, and materials play significant roles in determining long-term value.

5. Clothing and Couture – When Fashion Becomes Art

High fashion and couture pieces can also appreciate in value, particularly when they are designed by iconic designers or come from groundbreaking collections. For instance, pieces from Alexander McQueen's early collections have become highly sought-after by collectors, fetching impressive prices at auction. Similarly, vintage Chanel jackets, Yves Saint Laurent gowns, and rare Dior pieces have seen their values increase over time, particularly when associated with important moments in fashion history.

Certain limited-edition collections, especially collaborations between high-end designers and contemporary artists, have also proven to appreciate in value. The Louis Vuitton collaboration with Japanese artist Takashi Murakami, for example, resulted in handbags that now sell for many times their original price.

6. Art and Designer Collaborations – A Fusion of Worlds

Speaking of collaborations, the intersection between art and fashion has created some of the most valuable designer items in recent history. Louis Vuitton’s collaborations with artists like Stephen Sprouse, Jeff Koons, and Yayoi Kusama have produced limited-edition bags, scarves, and accessories that have appreciated in value.

Collectors covet these pieces not only because of the reputation of the designer but also because of the added cultural value brought by the artist. These collaborations are often produced in limited numbers, ensuring their scarcity and driving up their value in the secondary market.

7. Furniture and Home Décor – Designer for the Home

Designer furniture and home décor are less commonly thought of as investments, but certain pieces have appreciated significantly in value. Iconic furniture from mid-century designers like Charles and Ray Eames, or contemporary designers like Philippe Starck, have become highly collectible. A vintage Eames lounge chair, for example, can sell for several times its original price if kept in good condition.

Furniture that blends functionality with artistic value often becomes highly sought-after. For example, the Italian design company Cassina produces limited runs of iconic chairs and tables that have become collector's items, regularly appreciating in value. Pieces that embody timeless design principles and are produced by renowned designers tend to appreciate the most.

8. Rare Perfumes and Beauty Products – A Niche but Growing Market

While not as commonly discussed, certain beauty products, particularly limited-edition perfumes, have appreciated in value. Classic fragrances from brands like Chanel, Dior, and Guerlain, especially discontinued or rare editions, can fetch impressive prices on the secondary market.

For example, vintage bottles of Chanel No. 5 or Guerlain’s Shalimar in their original packaging can sell for hundreds or even thousands of dollars, far exceeding their original retail prices. As with other designer items, rarity and condition are key factors in determining the value of these beauty products.

Conclusion – How to Get Started with Designer Investment Pieces

Investing in designer items requires a deep understanding of the market, an eye for quality, and, often, a bit of luck. It’s essential to do thorough research, keep up with fashion and industry trends, and focus on items that have proven to hold or increase in value over time. Consider looking for limited editions, rare collaborations, and items with cultural significance.

Moreover, if you're looking to turn this hobby into a more serious investment strategy, consider using online platforms and auction houses that specialize in luxury goods. These platforms provide transparency, authentication services, and historical data on price trends, making it easier to track the value of your designer investments over time.

In summary, the world of designer items offers a diverse range of opportunities for investment, from handbags and watches to art collaborations and even home décor. While there are risks involved, with the right knowledge and a bit of patience, investing in designer pieces can be both financially rewarding and personally satisfying.