Certain names are exceptional investments when evaluating luxury brands based on their resale value. The second-hand luxury market in North America was projected to generate $2.6 billion in 2023, with expectations to reach $3.6 billion by 2028, highlighting the potential for substantial resale market growth. Here's a retail analysis created by our team to help consumers and investors make informed decisions. Below are the top 10 brands worth investing in, ranked by their resale value retention.
10 Most Valuable Luxury Brands Ranked
| Rank | Brand | Resale Value Retention | Key Models & Stats |
|---|---|---|---|
| 1 | Hermès | Constance (127%), Picotin (120%) | High demand, limited availability, exceptional retention |
| 2 | Louis Vuitton | Neverfull (136%) | Consistent demand, timeless designs, iconic brand appeal |
| 3 | Chanel | Deauville Tote (114%) | High collector interest, rare models like 2022 Chanel Heart Bag |
| 4 | Gucci | Top brand in past years | Innovative designs, strong brand loyalty |
| 5 | Prada | Highest growth in recent years | Cutting-edge designs, exclusivity elevates market performance |
| 6 | Dior | Strong resale value | Blend of tradition and modern trend, high second-hand demand |
| 6 | Saint Laurent | High resale demand | Combines classic and contemporary styles |
| 7 | Mercedes-Benz | G-Class (82.61% over 5 years) | Solid luxury auto investment, exceptional five-year value retention |
| 8 | Porsche | 911 (91.46% over 5 years) | Performance, precision engineering, consistently high resale |
| 9 | Acura | 86.29% over 5 years | Highest overall vehicle resale value, reliability, quality |
| 10 | Rolex | Exceptional retention | Unparalleled craftsmanship, enduring market value, sought-after timepieces |
Here's Top 10 Luxury Brands with the Best Resale Value for Investment Potential
1. Hermès
Hermès stands at the zenith of luxury investments. The Hermès Constance and Hermès Picotin retain 127% and 120% of their value, respectively. This exceptional resale value is due to their limited availability and high demand in the second-hand market, available on luxury consignment shops such as Collective Cage.
2. Louis Vuitton
Louis Vuitton’s popularity remains strong, with models like the Louis Vuitton Neverfull achieving a resale value of 136%. This high percentage is a testament to the brand's consistent demand and timeless designs that attract buyers, even years after the initial purchase.
3. Chanel
Chanel shows remarkable resale values, particularly with bags like the Chanel Deauville Tote holding 114% of its original price. Collectors especially hunt for unique models, such as the 2022 CC "In Love" Chanel Heart Bag, maintaining record-level resale prices.
4. Gucci
Maintaining its position as a reliable investment, Gucci's high resale value is driven by innovative designs and strong brand loyalty. Gucci has held its ground over the years, ensuring that its products remain in demand despite market fluctuations.
5. Prada
With the highest growth in average sale price in recent years, Prada’s resurgence can be attributed to their cutting-edge designs combined with exclusivity. This blend has resulted in significant market performance and robust resale values.
6. Dior and Saint Laurent
Both brands have adeptly blended tradition with modern trends, securing their place in the top ranks for resale value. They appeal to second-hand buyers looking for a mix of classic and contemporary styles.
7. Mercedes-Benz
In the luxury car segment, Mercedes-Benz, particularly the G-Class, exhibits a five-year residual value holding at 82.61%. It's a solid choice for those looking to invest in luxury automobiles with a strong track record of value retention.
8. Porsche
Known for performance and precision engineering, the Porsche 911 retains 91.46% of its value over five years. Porsche's focus on delivering high-quality, desirable vehicles consistently yields high resale values.
9. Acura
Among luxury vehicles, Acura holds the highest overall resale value, with vehicles maintaining about 86.29% of their value over five years. This impressive number is thanks to Acura's reputation for reliability and quality engineering.
10. Rolex
Rolex remains unparalleled in the luxury watch market. The brand’s exceptional craftsmanship and enduring appeal ensure that Rolex watches retain value far better than many other luxury timepieces, making them a sought-after investment.
Retail Trends and Key Insights
- Second-hand Market Growth: The broader second-hand luxury market in North America was projected to generate approximately $2.6 billion in 2023, with expectations of reaching over $3.6 billion by 2028. This trend supports a significant resale market potential for luxury goods.
- Luxury Cars: Acura, Porsche, Lexus, and Tesla exhibit strong resale performances, retaining 86.29%, 82.33%, 79.82%, and 79.74% of their value over five years, respectively. High-performance and brand prestige are key factors driving these numbers.
- Apparel and Accessories: The luxury goods market is dynamic, with apparel and jewelry recording 5%-6% growth annually over 2022. Leather goods particularly saw a 3%-4% growth, showcasing the segment's robust appeal.
- Environmental Impact: A significant driver of the second-hand luxury market is environmental consciousness. Young affluent consumers often view pre-owned luxury purchases as a sustainable choice. Approximately one-third of luxury consumers currently engage in buying pre-owned luxury items.
- Geographical Trends: European consumers show a notable preference for second-hand luxury goods, with over 37.5% participating in such transactions, indicating regional trends in consumer behavior.
In conclusion, the dynamics of the luxury resale market reveal a multifaceted landscape driven by sustainability, economic sensibility, and the ongoing allure of high-value luxury goods. Strategic investments in these top-ranked brands can offer substantial returns, whether in fashion, accessories, or automobiles. Recognizing these trends can guide both consumers and investors towards making savvy decisions in the luxury market.
