Three brands that have stood the test of time command the highest dollar in the luxury resale market.
Hermès, Chanel, and Louis Vuitton continue to have the best resale value, according to the Clair Report from luxury resale retailer Rebag. The historic legacies of the three brands play a role in their value, along with their control over pricing and inventory, the report said.
Hermès handbags topped the list, retaining an average of 90% of their retail value. Louis Vuitton followed with 80%, gaining 17 percentage points over last year. Chanel handbags kept 75% of their value on average, climbing 12 percentage points from 2020.
The data in the Clair report was retrieved from Rebag's artificial intelligence-powered instant pricing tool. Clair. Founded online in 2014, Rebag currently has seven physical stores, including four locations in New York City. In August, it opened a location in Greenwich, Conn., featuring a self-service kiosk that allows customers to receive an instant price quote.
On the jewelry front, Van Cleef & Arpels, Rolex, and Cartier stand at the top of the resale value chart. Van Cleef & Arpels pieces retain an average value of 95% of their retail value, while Rolex timepieces currently retain 82% of their retail price. Watches and fine jewelry by Cartier averaged 74% of their retail value on the resale market
According to the report, with several brands strategically raising prices and restricting their supply, the appetite for luxury resale is rising.
As to what’s ahead in the luxury resale market, the report predicted that Tiffany & Co.'s retention value will increase next year due to a few factors, including changes in leadership, shift in target demographics and the appointment of new brand ambassadors. Also, watches will continue to climb on the secondary market. With luxury watch intricately handcrafted in Switzerland, it's nearly impossible for watchmakers to create the supply to meet the demand, according to the report.
“Over the past year, the retail landscape has dramatically shifted,” said Charles Gorra, CEO and founder of Rebag. "With the Clair Report, we aim to lift the lid on what forces are fueling the future of luxury. We hope these insights will enable further transparency in the luxury market at large, expand the product life cycle, and create more circularity."