Hermès vs. Chanel: Which Handbag Retains Its Value Better in the Resale Market?

In the world of luxury handbags, Hermès and Chanel are two of the most coveted brands. But beyond prestige and design, many buyers look for pieces that are not only beautiful but also good investments.

If you’re considering buying a high-end handbag and want to know which retains its value better in the resale market, this detailed analysis will give you the answer.

1. Introduction: The Luxury Handbag Resale Market

The secondary market for luxury handbags has grown exponentially, with platforms like The RealReal, Vestiaire Collective and Rebag reporting million-dollar sales. Two brands dominate this space:

• Hermès (especially the Birkin and Kelly models)

• Chanel (with its classic Flap Bag and 2.55)

But which one offers better return on investment?

2. Hermès: The King of Resale

🔹 Most Valued Models

• Birkin: The most iconic bag, with years-long waiting lists.

• Kelly: Similar to the Birkin, but with a distinctive closure.

• Constance: Less common, but highly sought after.

📈 Appreciation Rate

• A Birkin or Kelly in good condition can be worth more used than new due to scarcity.

• According to Baghunter, the Birkin has outperformed gold and the S&P 500 over the last 35 years.

• Some limited editions (like the Himalaya Birkin) have sold for over $400,000 at auctions.

💡 Why does Hermès retain so much value?

✅ Limited production: Hermès deliberately controls supply.
✅ Artisanal quality: Each bag is handmade by a single craftsman.
✅ Exclusivity: No online sales and legendary waiting lists.

3. Chanel: Classics with Good Resale Value, But With Caveats

🔹 Most Popular Models

• Classic Flap Bag (the best seller)

• 2.55 (the original by Coco Chanel)

• Boy Bag (more modern, but with lower value retention)

📉 Appreciation Rate

• The Classic Flap Bags retain about 70-90% of their value on resale.

• However, Chanel has drastically increased its prices (more than 100% in 10 years), which affects secondary market demand.

• Unlike Hermès, they typically don’t sell above retail price, except for special editions.

⚠️ Risks with Chanel

❌ Market saturation: There’s more Chanel on resale than Hermès.
❌ Counterfeits: It’s one of the most replicated brands.
❌ Seasonal devaluation: Some models lose value if they’re not classics.

4. Direct Comparison: Which is the Better Investment?

Conclusion:

• If you’re looking for the best investment, Hermès wins without a doubt.

• If you prefer an iconic but more accessible bag, Chanel remains a good option, but with lower returns.

5. Tips for Buying a Bag with Good Resale Value

✔ Choose neutral colors (black, beige, gray).
✔ Prefer classic leathers (Togo, Epsom for Hermès; caviar for Chanel).
✔ Keep the bag in perfect condition (with box, dust bag and authenticity card).
✔ Avoid overly trendy models (better timeless classics).

💬 Which do you prefer: Hermès or Chanel?

If you already own one of these bags, tell us about your experience in the comments. Did you buy it as an investment or for love of the design?