Could that designer bag be making you money? Here’s what you need to know

Charlene Koh acquired her first luxury bag – a black Prada leather hobo – 18 years ago, a gift from her father when she was still in university. What began as a sentimental present gradually grew into a long-term habit of buying, selling and trading designer bags.

By 22, she was already exploring Singapore’s early resale scene – long before platforms like Carousell existed – hunting for underpriced pieces from private sellers who kept their bags in pristine condition, complete with receipts and dust bags.

“This was a pre-Carousell world, and some of the deals were unbelievable,” she recalls. “I paid $300 for a Louis Vuitton Murakami Speedy HL and $500 for a Dior Saddle. These bags retail for thousands. That’s when I realised there was investment potential.”

Now in her 40s and a stay-at-home mum, Charlene has owned about 30 designer bags over the past two decades – experience that has given her a deep, practical understanding of how the pre-loved market works.

Today, interest in luxury resale shows no sign of slowing down, prompting Carousell Luxury to open its first physical store in September 2025. Located at The Centrepoint with more than 1,000 verified pieces refreshed daily, the space offers shoppers a convenient way to browse or drop off designer bags in person.

Says Tresor Tan, director of Carousell Luxury: “While resale prices might have fluctuated over the past couple of years, consumers’ appetite for luxury resale continues on an upward trend despite volatile macroeconomic conditions and geopolitical challenges. In Singapore, we see no waning demand in this sector, with luxury resale still being one of our key growth business units.”

She adds: “Many factors contribute to this: a younger generation more mindful of sustainability; growing recognition of the economic value of luxury resale; and shifting post-Covid priorities, where consumers prefer to buy less but buy better. Luxury brands’ clever use of pop culture has also played a role.”

For a self-proclaimed “bag lady” like Charlene, the appeal goes beyond economics. She enjoys the “thrill of the hunt” – the possibility of finding a rare vintage or hard-to-obtain piece – as much as the chance to buy a bag at a lower price or resell something she no longer uses.

“I think the beauty of the resale market is this – your collection can grow with you and work for you, rather than sit unused in your closet,” she says.

Still, seasoned collectors like Charlene and industry players are quick to point out an important truth: Not everyone profits from luxury resale. In most cases, the people who benefit the most are resellers and buyers who purchase second-hand at below-retail prices.

For first-hand buyers, the economics are clear: Some brand new, store-bought bags may hold their value (think the iconic Hermes Birkin), but the general rule of thumb is that most designer bags do depreciate in value over time.

Here, “investment potential” means finding undervalued preloved bags and, with proper care, reselling them later at roughly the same price – or with a small profit.

Buy in-demand brands or models

Charlene says experience has taught her which bags tend to hold their value – particularly Hermes, Chanel and Louis Vuitton. Hard-to-obtain pieces often command higher premiums.

She believes it is wiser to buy fewer bags and choose ones with long-term appeal that you will love and use for years. One of her current favourites is the Hermes Neo Garden Party 23 in black, chosen for its size and utilitarian aesthetic.

“I believe it is about $6,000 in local stores, and local resellers are selling it for $1,000 to $2,000 above that, brand new. Hermes mini bags are very hard to get, especially the Neo Garden Party in full leather and in black, so it can command a larger premium,” she notes.

Not every bag in her collection has made financial or practical sense.

She let go of her Alexander Wang Rocco – bought on sale for about $600, down from its $1,000 retail price, and eventually sold for $400 – because the bag’s studded base was so heavy it “blew (her) shoulder out”. She also sold her Louis Vuitton Petite Malle for around $1,900 (purchased in excellent condition for $1,450) after realising it was difficult to match with her daytime outfits.

At Carousell Luxury, Louis Vuitton is the most transacted brand (one in every four bags sold). Chanel, Hermes and Gucci are also consistently popular, says Tresor.

“Based on our internal data, the Hermes Birkin, Kelly, Bolide and Evelyne bags in smaller sizes hold steady in their resale pricing with little fluctuation,” she explains. “Goyard bags also perform well, with selected styles reselling at a premium if they are in brand-new condition. Controlled supply and scarcity typically help these brands retain value.”

For example, Tresor says a mini-sized Hermes Kelly in normal leather and brand-new condition can resell for twice its retail price or more if it is a seasonal limited design. Popular Goyard styles like the Saint Louis, Anjou or Boheme can resell at a slight premium when new, while mint-condition pieces from two or three years ago still retain roughly 80 to 90 per cent of their original retail value. Another segment that has held strong is the Y2K revival – bags from the 1990s and early 2000s.

“Iconic models such as the Dior Saddle, Fendi Baguette and Balenciaga Motorcycle have seen renewed interest, boosting demand for these vintage styles. Chanel’s vintage Diana and Cambon series are also popular,” says Tresor.

“Generally, timeless or classic styles retain value better than seasonal or one-off designs. Limited edition runway pieces may generate hype at launch, but they are also the ones that tend to drop significantly in value over time.”

To avoid getting scammed, Charlene emphasises the importance of doing your homework. “Trust your gut. If you are meeting a seller, stay focused on the fundamentals – check that everything listed in the ad is present and matches the photos, and look for defects that were not disclosed. If you are authenticating it yourself, study up.”

Always put effort into maintenance

Maintenance of such an expensive item is paramount, especially for those who intend to resell it later. Any slip-up and the value might plummet – the bag might even end up unsellable. Because condition plays such a big role, proper storage is crucial.

In Singapore’s hot and humid weather, Charlene has a built-in dehumidifier in her cupboard, which she uses together with a humidity and temperature meter.

Her bags are always kept in dustbags to protect the leather.For those stored in boxes, she places dehumidifying sachets inside. She also swaps the acid-free stuffing paper for plastic air pillows or bag inserts to help maintain their shape and keep out silverfish.

Placement also matters. “Try to ensure that bags are stored as far away from the bathroom as possible. Bathrooms are the most humid areas of the home, so bags stored too close are more likely to develop mould,” says Tresor.

Still, over-protecting a bag can backfire. Charlene believes the best way to preserve a bag’s condition is to use it. Regular rotation, she explains, keeps the leather supple as natural oils prevent cracking.

“Taking your bags out also lets you spot any issues early and reduces humidity build-up from long-term storage,” she adds.

In short – a well-loved bag is often a well-kept one. Tresor agrees. “Leather bags – especially since they are ultimately still an organic material – actually thrive in an open-air environment. Using and exposing our bags to a natural and well-ventilated environment is one of the easiest ways to maintain their condition.”

She adds that interior care matters too. Charlene uses bag inserts to keep the inside clean and maintain structure, especially since some brands only offer servicing for the exterior. For light-coloured bags, she wraps silk twillies around the handles to prevent darkening – particularly helpful on days when she sanitises her hands more.

Accidents, however, can still happen. Charlene advises acting quickly if there is a spill: Blot gently and take the bag to a trusted professional immediately. Exotic leathers need even more caution. “I’m especially careful with my python Gucci Diana to prevent the scales from lifting,” she says.

Tresor has seen her fair share of mishaps as well. “After Covid, many owners sanitised their bags after every use,” she says. “But alcohol-based wipes can damage or discolour leather and canvas.”

The result is often irreversible – and can instantly turn a once-valuable piece into something unsellable. “Instead, consider using leather conditioners regularly or work with an established professional bag spa service for maintenance,” she suggests.

Ultimately, resale values vary widely across brands and styles. Condition matters, but its impact depends on the bag. For popular models like the Louis Vuitton Speedy, the difference between a mint and visibly used piece can exceed $500. For less sought-after styles, such as the Prada Galleria tote, the gap is smaller – often around $200.

Sell smarter with research

As a veteran collector, Charlene advises researching market prices or getting quotes from resellers before selling. She says to trust your item’s value and not feel pressured to accept low offers – reputable resellers won’t make you uncomfortable if you choose to walk away.

Tresor advises sellers to start by researching realistic market prices before listing an item. “If you’re short on time or prefer a hands-off approach,” she adds, “it’s best to work with professionals like Carousell Luxury, who handle the entire resale process for you – from authentication to delivery.”

For those willing to put in the effort, selling directly on trusted platforms like Carousell can yield higher returns. Still, Tresor cautions that today’s resale market faces a new challenge – the rise of “super-fakes”.

To stay ahead, her team has strengthened its authentication process, hiring seasoned appraisers and developing a proprietary reference guide covering more than 500 bag styles.

Still, Charlene cautions that the resale market is constantly shifting – and those buying purely to flip should tread carefully.

“You can now find a relatively new Chanel 19 in great condition for less than half its retail price,” she notes. “A few years ago, that would’ve been unthinkable.”

Tresor notes that while it’s always nice to recoup part of a bag’s cost later on, luxury should never be treated as a speculative investment.

“Affordability must come first,” she says. “Buying luxury on debt or purely for profit rarely works out. Purchase only if your finances allow it – and if you’re comfortable with the fact that its value may depreciate over time.”