Turns out, the uber popular Telfar Shopping Bag is a better bag investment than several legacy brands, such as Hermès and Louis Vuitton. Deets inside…
2020 CFDA winner Telfar Clemens (above, left) and his business partner Babak Radboy launched Telfar in 2005, and since then, it has become one of the hottest must-have pieces for fashionistas everywhere. Yep, even for Beyonce and Oprah.
If you don’t have a bag by now you ain’t never getting one post Beyoncé https://t.co/LJL7fToXMo
— Breya M. Johnson (@TheBlackLayers) July 8, 2021
Dubbed the “Bushwick Birkin,” the girlies are always payment ready for the brand’s next drop in anticipation to get their hands on one because they sell out quickly. Since its humble beginnings, inclusivity has been at the forefront of the marketing strategy and the tagline: “It’s not for you, it’s for everyone.” And it seems that has been the key to its resale value.
According to Rebag’s Clair Report on The Biggest Brands of 2022, Telfar’s resale value outperformed well-established legacy luxury brands like Hermès, Gucci, Louis Vuitton, and Chanel. The report, which looks at market value and trend shifts for luxury accessories each year, used data collection that spanned July 2021 to July 2022.
The site shared that Telfar built its cult following on a series of limited drops of its signature Shopping Bag, which sold out within minutes. The Shopping Bag is available in three sizes (small, medium, and large) and is marked by a rectangular shape, shoulder straps, a top handle, and circular “T” logo embossed on vegan leather. The bags go for between $150 for a small Shopping Bag to $257 for a large Shopping Bag.
Although Telfar introduced their democratic Bag Security Program in 2020, allowing eager customers to pre-order as many bags as they want in any color, the Ugg collaboration sold at Nordstrom, and most recently, the pop-up Rainbow Bag Drop during New York Fashion Week, demand remains higher than supply, making the brand go off the charts — and an investment that carries a higher price on the secondary market than at retail.
“For the first time, [Telfar’s] average value retention on the secondary market exceeds all legacy brands, including Hermès,” according to luxury reseller Rebag’s Clair report for 2022.
While Telfar bags do not meet the traditional luxury price point, the brand’s effective limited-drop model has resulted in them selling for 195% more than retail.
“Based on Rebag’s Clair data, we estimate brand values based on the average retention value on the secondary market. Telfar items, on average, carry an average value retention of 195 percent on the secondary market, meaning that they appreciate to nearly twice as much as their original retail price,” Rebag chief executive officer Charles Gorra, told WWD. “Hermès bags, meanwhile, carry an average 102 percent value retention at resale, while Louis Vuitton’s is 82 percent and Chanel’s is 87 percent.
“Even though it’s in the contemporary category price-wise, it carries the same type of status — the Telfar Shopping Bag could even be considered cooler — [as] owning an Hermès bag,” he added. “The fact that Telfar bags are so coveted but difficult to obtain drives their brand value up. Chanel and Louis Vuitton are increasing prices and limiting their supply to increase their brand value at retail and resale. It shows that a contemporary brand can achieve the success of a luxury brand with the right amount of marketing strategy, hype and prestige.”
Just another reason to convince your boo (or sugar daddy) you need one. Ha!
Photo: Getty
