Vintage luxury secondhand market sees Boom in Asia

Blowing money on extremely expensive luxury goods isn’t always a waste. In fact, buying the right luxury goods at the right time can pay off with huge returns years later, says a fashion guru. This technique is not limited to paintings or rare antiques. Former Chanel model and current fashion stylist Jittima Wattanasin said you can turn your wardrobe into an “investment portfolio” by buying the right vintage luxury  handbags, watches and other accessories.

“I never expected some of the handbags I bought 30 years ago, like Louis Vuitton and Chanel, to have so much value today,” she said. “The [luxury] vintage market has taken off in Asia and people are looking for old Louis Vuitton bags and other brands in good condition.”

Also Read: China to account for 50% of global luxury goods market by 2025

Following the popularity of vintage luxury goods in Western cities like Geneva, Asia has in the past 4-5 years started catching on to the trend, especially with vintage watches in cities like Hong Kong and increasingly in Thailand. The inherently limited quantity of vintage items drives up prices, especially for rare items with limited releases.

For example, the value of Hermes handbags has risen 500% since the 1980s, while some vintage Hermes Constance bags have gone up 900% from their original price.

“You have to look at certain factors in high-end brands to see if they will grow in value,” Ms Jittima said. “It’s about creativity, expertise, quality, craftsmanship and heritage.”

However, the most important factor when buying luxury goods is to “buy what you like”, said Prapavadee Sophonpanich, general manager of Christie’s Thailand.

“Investing in luxury goods is always a risk,” she said. “So if you’re stuck with something that’s not gaining value or want to hold on to it as a long-term investment, you may as well enjoy it yourself.”

Older investors are more likely to buy items for the long term, a strategy that often leads to the best returns, she said. Younger investors are much more impatient and may try to resell their investments after only 2-3 years, often leading to disappointing returns.

To cater to the younger generation, Christie’s has been building up its online presence and allowing people to bid at their live auctions online.

“Auctions can be quite chaotic and stressful for some people,” said Ms Prapavadee. “Letting people bid online is much more popular with younger collectors who don’t want to face the chaos.”

Also Read: Shop and Chill in Upscale Covent Garden, London

She said investing in well-known luxury brands is a pretty safe bet, but collectors and investors get the most excitement out of buying paintings. The painting market has a wide range of categories and price points, where top prices are “the sky’s the limit”. Investors have to research carefully to succeed, unlike many luxury products where the exact value can be found on Google.

“Buying paintings by old masters such as Renaissance paintings is sort of like bonds; they’re safe investments where the price is not volatile,” said Ms Prapavadee. “Contemporary art is more like equities, where a good investment at the right time could lead to big returns. Up-and-coming artists are much riskier, but also much cheaper.”

She said female artists are in at the moment, along with some Chinese contemporary art. Even paintings from Cambodia, Laos, Myanmar and Vietnam are starting to pick up in value.

Culled from Bangkok Post