12 Designer Brands Not Worth Investing In
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There’s a few brands that although we absolutely love, we don’t consider great investments. Find out which!
The modern investment landscape is no longer confined to traditional avenues like stocks or real estate.
A shimmering niche has emerged: luxury designer goods, with brands like Chanel and Hermès leading the pack. These fashion titans, known for their impeccable craftsmanship and iconic designs, have become more than just fashion statements.
Bags such as Chanel’s ‘Classic Flap‘ or Hermès’ ‘Birkin‘ have historically seen significant price escalations, driven by a demand that often outstrips their meticulously controlled supply. In many instances, this scarcity has led to considerable returns in the resale market.
However, caution is necessary. Not all designer brands offer such lucrative investment potential. Several brands, despite their high retail prices, can suffer from diminished popularity over time, leading to lower resale values. The primary culprits? Waning brand appeal and an oversaturated market.
In essence, while brands like Chanel and Hermès represent the zenith of luxury investments, not all designer goods guarantee a profitable return. Discernment and market insight are crucial for those navigating this glamorous, yet unpredictable, investment terrain.
So which brands, although luxurious do not have a great resale value, thus are not a good investment?
Balenciaga
Once championed for its avant-garde and architectural designs, Balenciaga has pivoted towards streetwear-inspired aesthetics in recent years.
However, Balenciaga’s recent scandal made the resale value plummet. Many influencers were actually burning or giving away their Balenciaga items and the general public seemed to follow.
Regardless of the scandal and their questionable morals, the brand’s trendy nature means items can become dated, leading to cyclical desirability in the resale market.
Additionally, their edgy, high-fashion appeal may be too niche for the broader luxury resale audience.
Prada
Prada is a paradox in luxury fashion. At one point, its minimalist nylon bags and logo-centric designs were the epitome of luxury.
However, in the ever-competitive luxury space, Prada’s expansive range and frequent releases can potentially dilute its brand exclusivity. The fluctuation in their designs and collections means that while some pieces become iconic, others fade in popularity and resale potential.
Prada also has sales and outlets which can make the brand appear less exclusivist and thus decreasing their potential as a good investment designer brand.
Mulberry
Mulberry, a quintessential British brand, made waves with its Bayswater and Alexa bags. But maintaining consistent global appeal has been a challenge.
The brand has also navigated a tricky space between high luxury and accessibility, and changes in their pricing strategy have occasionally left consumers puzzled. This brand identity flux impacts the perceived value of their items in the resale market.
Mulberry has sales often, including their most popular bags. And although we absolutely love the quality and designs of the brand, we must admit that it is one of the designer brands that are not worth investing in.
That does not mean not worth buying! Just that if you’re expecting to make money out of your purchase, look elsewhere.
Burberry
An emblem of British luxury, Burberry’s trench coats are nothing short of iconic. However, when it comes to accessories, their resale value tells a different story.
Overproduction and frequent sales, along with designs that might not always resonate with younger audiences, can impact the long-term investment value of their bags and RTW.
Now, we don’t recommend Burberry as an investment in the classical sense but we absolutely recommend “investing” into a Burberry trench that can last you a lifetime. It’s not a financial investment but it’s definitely an investment into a classic wardrobe!
Gucci
Under Alessandro Michele, Gucci experienced a renaissance, bringing eccentric and bold designs to the forefront. However, this rapid evolution means some items can feel transient in their appeal.
While the GG monogram remains iconic, the vast array of styles and collections introduces variability in resale value, making certain items a risky investment.
Even though overall we see Gucci as a brand not worth investing in, there’s certain items that are classic and a relatively good investment, such as the Gucci Jackie.
Coach
Historically significant, Coach has a legacy in leather craftsmanship. Yet, in recent decades, the brand has become widely accessible, often found in department stores and outlet malls.
This wide distribution, combined with frequent sales, reduces the brand’s aura of exclusivity, which in turn impacts its resale potential.
Kate Spade
Kate Spade‘s vibrant and playful designs have carved a niche in the affordable luxury space. While the brand has its loyalists, the bags lack the exclusivity factor.
Being a staple in many malls and its positioning as a mid-tier luxury brand can affect its perception and subsequent resale value.
Michael Kors
Michael Kors’ jet-set aesthetic made it a popular brand globally. However, its vast production and broad accessibility have led to market saturation.
The frequent sight of Michael Kors bags on sale racks diminishes the allure of scarcity, inevitably pulling down resale values. Some are debating if Michael Kors can even be considered a designer brand!
Chloe
Chloe brings a bohemian chic vibe to luxury fashion. Bags like the Paddington once set resale records, but the brand’s appeal has been inconsistent. The ever-evolving designs and lack of a consistently iconic bag can make its products’ resale value less predictable.
Chloe is definitely a brand that we can see coming back, especially with the resurgence of Y2K fashion however, it’s unlikely it will ever make a great investment designer brand.
Jacquemus
Jacquemus has become synonymous with quirky, avant-garde designs. The brand often defies conventions, like with its micro bags. However, this playful and often experimental approach, while gaining editorial acclaim, might not resonate with a broad audience on the resale market, making certain pieces more of a fashion statement than an investment.
As much as we’ve enjoyed having a new brand shine and take over the fashion world, we just don’t see the longevity.
If you enjoy Jacquemus’ bags, by all means buy them just don’t see them as investment pieces.
Valentino
Valentino exudes elegance, with the Rockstud line being a standout. However, the brand sits in a challenging position, caught between timeless heritage brands and edgy contemporary ones.
While they’ve produced coveted items, they haven’t cemented an enduring iconic bag presence, which can be a factor in resale desirability.
Stella McCartney
Stella McCartney’s ethical and sustainable approach to fashion is truly groundbreaking. Her brand’s commitment to cruelty-free and eco-friendly materials sets it apart. However, in a luxury resale market dominated by leather goods, her non-leather items, though of high quality, might not fetch comparable resale values.
While all these brands are revered in the fashion world, their investment potential varies. As with any investment, research and market awareness are crucial for success in the luxury resale space.
The top 5 reasons why a designer brand might not be a good investment:
1. Regular Sales and Discounts: One of the key elements that uphold a luxury brand’s value is its exclusivity and perceived worth. Regular sales and discounts can severely diminish this aura of exclusivity.
When consumers know that they can simply wait for a sale to purchase a product at a reduced price, the item’s perceived value and desirability drop. Moreover, items that frequently appear on sale racks may be seen as less prestigious, thus affecting their resale value.
Example: Coach, Mulberry, MK, Kate Spade
2. Decreasing Popularity: Trends in fashion can be fleeting, and what’s en vogue today might not be tomorrow.
Brands that fail to evolve with changing consumer preferences or hinge their identity on transient trends may see their popularity wane over time. A decrease in popularity not only affects the brand’s primary market sales but can significantly impact the potential resale value of its products.
Example: Chloe, Stella McCartney
3. Overproduction and Saturation: Luxury items derive their value from scarcity. When a brand overproduces or releases too many similar items, it floods the market, creating a surplus.
This saturation can lead to decreased demand, making it difficult for investors to resell items at a profit.
Example: Michael Kors, Gucci (to a lower extent)
4. Dilution of Brand Identity: A strong, consistent brand narrative is crucial in the luxury sector. If a brand frequently shifts its identity or positioning or tries to cater to too many demographics simultaneously, it risks confusing and alienating its loyal consumer base.
A diluted or ambiguous brand identity can significantly undermine the brand’s equity and investment value.
Example: Kate Spade (after being acquired), Prada
Quality Concerns and Scandals: The allure of luxury items is often tied to impeccable craftsmanship and an unwavering commitment to quality.
If a brand faces controversies related to quality, craftsmanship, or ethical issues, it can lead to a tarnished reputation. A damaged brand image, due to any form of scandal, can have lasting repercussions on its resale market potential.
Example: Balenciaga
Conclusion: Designer brands that are not good investments
In summary, while designer brands offer the allure of luxury and exclusivity, not all are guaranteed to be sound investments. Potential investors should be wary of these pitfalls when considering fashion as a means of financial growth.
However, that does not mean that you should only buy bags that are considered great financial investments. For one, people tend to not even wear those expensive “investment” bags. It just means that you need to be mindful on how you justify a purchase. If you love it and it fits your lifestyle, buy the bag! Just don’t expect to get your money back when you sell it!
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