Not all Luxury Goods are Investment-Worthy

Fortune recently published an article on the rise of the market for used designer goods online. Writing for the publication, Erin Griffith stated: "There’s a reason they call them 'investment pieces.' At $22,000 for a Proenza Schouler tote or $9,000 for a Ralph Lauren dress, luxury goods are meant to last a lifetime and hold their value […] A website called The RealReal, is on track to do $100 million in sales this year. The RealReal recently tapped its database of 500,000 luxury goods from 500 designer brands to find which brands have the highest resale value, and which ones hold their value the longest."

They found that the overall availability of a brand's goods has an effect on re-sale value (the less saturated the market is with the brand, the more valuable its wares are) and the frequency with which the brand offers sale (fewer sales make for higher re-sale prices). Additionally, resale values of fashion or luxury goods (and arguably the original value value of luxury goods) "can fluctuate depending on buzz around a certain designer, particularly if a fashion houses hires a a new creative director or chief executive." The article cites Phoebe Philo's appointment at Celine as an example of this. So, what brands did The RealReal pinpoint as good and bad investments? Here are the lists ...

BRANDS THAT HOLD THEIR VALUE THE LONGEST: Chanel, Christian Louboutin, Hermès, Cartier, David Yurman, Alaïa, Van Cleef & Arpels, and Goyard.

BRANDS WITH A "SURPRISINGLY" HIGH RE-SALE VALUE (aka that re-sell quite close to their original price):  Givenchy, Victoria Beckham, Charlotte Olympia and Alexander McQueen.

BRANDS THAT LOSE VALUE FASTEST: Tod’s, Versace, Marni, Valextra, and Etro.

BRANDS WITH A "SURPRISINGLY" LOW RE-SALE VALUE: Alexander Wang, 3.1 Philip Lim, and Marc Jacobs.