MANILA, Philippines - It may be mind-boggling for some to discover a Chanel classic flap bag may cost around P150,000, or an Hermes Birkin bag is sold for more than P500,000.
Some women justify spending that much on a luxury bag, saying it's a "good" investment. But is it really?
On ANC's On The Money, blogger Ingrid Chua Go (thebaghagdiaries.com) said when buying luxury items such as designer bags you should buy it because you love it.
"Just like in any investment, there's always a risk. When it comes to luxury items, these are things you buy because you like it," she said.
The risks include how often you use the item and how well you care for it.
If you consider it as an investment, Go said you should consider supply and demand. "A lot of people like Hermes Kelly, Birkin bags. They think 10 years down the road, I might be able to sell it for at least more than half of what I paid for," she said.
Go pointed out a classic Chanel flap bag cost about P27,000 back in the 1990s.
"With the peso devaluation and the increase in the cost of production, now it's about P150,000 for one Chanel bag," she said.
Depending on the condition of the bag, Go said one might be able to re-sell a 1990s Chanel bag for about P70,000 today.
Tips for buying 'investment' bags
Go shared some tips for women who are looking to buy "investment" bags.
1. Find out how much money you have.
"Make sure the money you have is not for school or a necessity. Luxury versus necessity are two different things," she noted.
2. Look for iconic or classic bags.
"Although Chanel has produced a lot of different styles, the iconic bags of these brand houses, they've been there for quite some time. The Hermes Kelly has been there since the 1950s and nothing has changed with the style. A lot of the brands bank on the fact that the style has transcended trends," Go said.
She advised against spending too much on "trendy" bags, which would go out of style next year.
"Make sure it's a classic... Not a graffiti backpack. Go for something that is classy and feminine. Something you will use over time. At the end of the day, you have to know that the bag will travel with you," she said.
3. Do research on the bag you are interested in.
"When buying an expensive luxury bag, I recommend going through the history, the tradition of the brand and knowing it thoroughly before investing in it," Go said.
4. Beware of fraud.
Go noted there are many online scammers who would try to sell you fake bags.
5. Buy from the luxury brand's boutique.
"Don't scrimp. It's an investment," she added.
Reselling your bag
In the last few years, the resale market in the Philippines has grown significantly. Many Filipinas have started reselling their designer goods online.
"There is an over saturation in the market," Go noted.
Stiff competition in the resale market is driving down prices.
Go also said some bags, depending on the condition and market, cannot be resold.