If you’ve spent time on the fashion side of TikTok, you’ve undoubtedly stumbled across thrift store content. Bold shoppers head into second-hand shops searching for treasures, paying pennies on high-end items from luxury fashion brands, hanging next to old marathon t-shirts and patched department store jeans.
The real magic happens when the shoppers re-sell these garments for hundreds or thousands of dollars.
Why do items from the top luxury fashion brands fetch so much, even when plucked from thrift store shelves? Essentially, shelling out for products from valuable brands is like making an investment. Quality goods hold value, and there are several reasons why.
We’ve created this guide to explain why the luxury goods market is unique. Read on to learn why investing in bags beats investing in the stock market!
You Get What You Pay For
We’ve all heard “you get what you pay for,” and it tends to be true when it comes to luxury goods. Your designer purse costs so much because an artist designed and created it using the highest quality materials. You can expect to see high-end leather, real metal findings, and solid, reinforced construction across the board.
Thus, your high-end luxury goods are less likely to sustain damage before resale. They stay in one piece and continue looking new long after they leave store shelves. That’s why many people are willing to pay more, even second-hand.
Furthermore, handcrafted luxury goods come in limited quantities. They can be rare or hard to find. A rare designer product in good shape will fetch more due to supply and demand.
Often, a designer’s reputation is also enough to boost the asking price of a high-end garment or accessory.
Luxury Brands as Veblen Goods
Some luxury products hold their value because they are veblen goods. Essentially, a veblen good is any product that increases in demand as the price increases. The market drives further demand, as these items are often trendy and difficult to find.
Imagine that a celebrity has worn a luxury garment on the red carpet. Due to the association with the star, the price of the garment will probably increase.
Individuals interested in products as status symbols will latch onto this increase. They are willing to pay more because of the price tag itself, which boosts the product’s appeal.
Invest in the Top Luxury Fashion Brands
Clothing and accessories from top luxury fashion brands fetch the prices they do for a reason. They hold their value because their quality and artistry are challenging to match. Whether you acquire your product new or get lucky at a second-hand store, you can be sure that your luxury item will fetch a pretty penny down the line.
Are you as obsessed with following fashion trends as we are? Check out the rest of the blog for more posts like this one about the latest in haute couture and more.