Louis Vuitton or Gucci? Here’s the handbag worth the investment

A Louis Vuitton Neverfull MM handbag. Picture: Edward Berthelot/Getty Images

As the world modernises, so does the way people choose to grow their money. Some South Africans are choosing to carry their investments on their arms as they step out into Sandton traffic.

People are increasingly moving away from traditional investments and into designer items. One example from Luxity is two designer handbags bought a year ago for the same amount of money; however, only one has gained value.

This comes as Luxity co-founder Michael Zahariev says there are signs the luxury segment is recovering after a difficult 2025. Luxity is a marketplace for buying, selling and consigning authenticated pre-owned luxury designer items.

According to Zahariev, Hermès recorded an overall resale-to-retail ratio of 119.2% in Luxity’s analysis, meaning its items resold for more than their retail price on average. The median ratio across its products was considerably lower, at 68.2%.

The ultra-rare Hermès Birkin, inspired by the 1960s-era French movie star Jane Birkin, could fetch twice its sticker price on the secondary market within five years, according to experts.

However, not everyone can buy the brand. Only customers with a sizeable purchase history at Hermès are offered the opportunity to buy a “quota bag”, such as a Birkin or a Kelly.

The gap between the average and the median largely comes from highly sought-after handbags such as the Birkin and Kelly. When handbags are considered separately, Hermès’ weighted resale-to-retail ratio rises to 162.5%, well ahead of Louis Vuitton at 70% and Christian Dior at 67.2%.

“Birkins and Kellys can command two or three times their retail price, but that doesn’t mean every Hermès product performs the same way. The model, its scarcity and its condition can make an enormous difference to resale value,” said Zahariev.

Zahariev compared the Louis Vuitton Neverfull MM and Gucci Marmont. The two handbags recorded median paid prices of R25 000 in the previous reporting period.

A year later, the Neverfull had increased by 12% to R28 000, while the Marmont had fallen by 12% to R22 000.

“Buyers often assume that two equally recognisable designer bags will behave the same way in resale. The Neverfull and the Marmont were evenly matched a year ago, and they show how quickly sentiment can shift from one brand to another, even in the pre-owned market,” added Zahariev.

He noted that Louis Vuitton remains the most searched luxury brand on Luxity’s platform, accounting for 14.07% of brand search interest. It ranks among the top three brands for resale-to-retail value across five categories: handbags, jewellery, clothing, accessories, and wallets.

Zahariev highlighted that despite the attention rare handbags and high-value watches command, most pre-owned luxury purchases remain at substantially lower price points.

According to the State of the Luxury Market in Africa report, which analyses search interest, purchases and resale prices from July 2025 to June 2026, 57.7% of purchases were less than R10 000, while the median amount paid remained unchanged at R8 000.

“The headline-grabbing pieces are often the rare handbags selling for more than their retail prices, but that’s only one part of the market. For many shoppers, pre-owned is how they buy their first designer piece at a more accessible price,” he said.

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