In the ever-evolving world of luxury fashion, a new contender has emerged to challenge the reign of the iconic Hermès Birkin. The Row's Margaux bag has been turning heads and opening wallets, with Vogue boldly declaring it "the new Birkin." But does this newcomer truly have what it takes to dethrone the queen of investment pieces? Let's dive into the details and see how these two luxury powerhouses stack up.
The Birkin: A Legacy of Luxury
The Hermès Birkin has long been the holy grail of handbags. Created in 1984 for actress Jane Birkin, this handcrafted masterpiece has become synonymous with exclusivity and status. In a IFYKYK situation, you can’t just saunter into a store and buy a Birkin—if you’re willing to play the Hermes game for the long haul, you may just get lucky someday. With waiting lists stretching for years and prices starting at five figures, the Birkin isn't just a bag—it's an investment.
Birkins have consistently proved their resilience as a luxury investment. In a 2020 study published by Credit Suisse and Deloitte, Hermès Birkins have averaged an annualized return of 5.7% between 2010 and 2020, and in particular, increased by “a staggering 38% on average that year.“ In 2016, a diamond-encrusted Himalaya Birkin sold at auction for a mind-shattering $300,168, setting a world record for the most expensive bag ever sold.
The Row, founded by Mary-Kate and Ashley Olsen, has made waves with their Margaux bag. Praised for its understated elegance and versatility (aka “quiet luxury”), the Margaux has quickly become a favorite among fashion insiders and celebrities alike. Vogue's endorsement as "the new Birkin" has only fueled its popularity and potential as an investment piece.
While the Margaux doesn't command the same astronomical prices as the Birkin (yet), its value proposition lies in its timeless design and the growing cult status of The Row brand. With prices ranging from $3,900 to $39,000 depending on size and material, the Margaux offers a slightly more accessible entry point into the world of luxury investment bags.
When it comes to retained value, the Birkin still reigns supreme. Its limited availability, coupled with Hermès' strict production standards, ensures that Birkins hold—and often increase—their value over time. The secondary market for Birkins is robust, with some styles selling for more than their original retail price. Sotheby’s assures us that “neutral leather Birkin 25 and Birkin 30 are the most desirable bags and often sell within a few weeks of being listed.”
The Margaux, while newer to the scene, shows promising signs as an investment piece. The Row's reputation for quality craftsmanship and the bag's growing popularity suggest that it could appreciate in value over time. However, it's important to note that the Margaux doesn't have the same scarcity factor as the Birkin, which could impact its long-term investment potential.
Let’s look at some real-world examples to compare the investment potential of these two bags:
Though these real-world examples illustrate a stark difference in investment potential between the two bags, with the Birkin handily beating the S&P500 in just one year and the Margaux experiencing a significant depreciation over a similar period, it’s important to remember that like the stock market, past performance does not predict the future. The Margaux has been around for a while (since 2018, if you’re wondering), but only hit the cultural radar in late 2023.
In a March 2024 Vogue article, Kelly McSweeney, TheRealReal’s Senior Merchandising Manager stated:
The resale value for this bag has risen over 30% since last year and on average the Margaux bags sell for over 80% of the suggested retail price.
Given the scarcity of this bag in shops around the globe and its ongoing popularity, we believe that this piece will have long-term staying value.
Choosing between the Birkin and the Margaux ultimately comes down to personal style, budget, and investment goals. The Birkin offers a proven track record of value retention and potential appreciation, making it a safer bet for those looking to invest in a luxury piece. The Margaux, on the other hand, represents a more contemporary aesthetic and could be a smart choice for those who want to invest in an emerging luxury brand. Bags are a personal choice — you do you!
While the Margaux may not be poised to completely replace the Birkin, it has certainly carved out its own niche in the luxury handbag market. Both bags offer unique value propositions: the Birkin with its unparalleled prestige and investment potential, and the Margaux with its modern appeal and accessibility.
As the luxury market continues to evolve, there's room for both these iconic pieces to thrive. Whether you're team Birkin or team Margaux, one thing is clear: investing in quality, timeless design is always in style.
Remember to track the value of your luxury investments with Carouge, your digital closet companion. You can easily get a birds-eye view of your bag value with our free tool comparing commissions across different resale platforms. Whether you're considering a Birkin, a Margaux, or any other high-end piece, Carouge helps you manage and maximize the value of your fashion investments.
In the ever-evolving world of luxury fashion, a new contender has emerged to challenge the reign of the iconic Hermès Birkin. The Row's Margaux bag has been turning heads and opening wallets, with Vogue boldly declaring it "the new Birkin." But does this newcomer truly have what it takes to dethrone the queen of investment pieces? Let's dive into the details and see how these two luxury powerhouses stack up.
The Birkin: A Legacy of Luxury
The Hermès Birkin has long been the holy grail of handbags. Created in 1984 for actress Jane Birkin, this handcrafted masterpiece has become synonymous with exclusivity and status. In a IFYKYK situation, you can’t just saunter into a store and buy a Birkin—if you’re willing to play the Hermes game for the long haul, you may just get lucky someday. With waiting lists stretching for years and prices starting at five figures, the Birkin isn't just a bag—it's an investment.
Birkins have consistently proved their resilience as a luxury investment. In a 2020 study published by Credit Suisse and Deloitte, Hermès Birkins have averaged an annualized return of 5.7% between 2010 and 2020, and in particular, increased by “a staggering 38% on average that year.“ In 2016, a diamond-encrusted Himalaya Birkin sold at auction for a mind-shattering $300,168, setting a world record for the most expensive bag ever sold.
The Row, founded by Mary-Kate and Ashley Olsen, has made waves with their Margaux bag. Praised for its understated elegance and versatility (aka “quiet luxury”), the Margaux has quickly become a favorite among fashion insiders and celebrities alike. Vogue's endorsement as "the new Birkin" has only fueled its popularity and potential as an investment piece.
While the Margaux doesn't command the same astronomical prices as the Birkin (yet), its value proposition lies in its timeless design and the growing cult status of The Row brand. With prices ranging from $3,900 to $39,000 depending on size and material, the Margaux offers a slightly more accessible entry point into the world of luxury investment bags.
When it comes to retained value, the Birkin still reigns supreme. Its limited availability, coupled with Hermès' strict production standards, ensures that Birkins hold—and often increase—their value over time. The secondary market for Birkins is robust, with some styles selling for more than their original retail price. Sotheby’s assures us that “neutral leather Birkin 25 and Birkin 30 are the most desirable bags and often sell within a few weeks of being listed.”
The Margaux, while newer to the scene, shows promising signs as an investment piece. The Row's reputation for quality craftsmanship and the bag's growing popularity suggest that it could appreciate in value over time. However, it's important to note that the Margaux doesn't have the same scarcity factor as the Birkin, which could impact its long-term investment potential.
Let’s look at some real-world examples to compare the investment potential of these two bags:
Though these real-world examples illustrate a stark difference in investment potential between the two bags, with the Birkin handily beating the S&P500 in just one year and the Margaux experiencing a significant depreciation over a similar period, it’s important to remember that like the stock market, past performance does not predict the future. The Margaux has been around for a while (since 2018, if you’re wondering), but only hit the cultural radar in late 2023.
In a March 2024 Vogue article, Kelly McSweeney, TheRealReal’s Senior Merchandising Manager stated:
The resale value for this bag has risen over 30% since last year and on average the Margaux bags sell for over 80% of the suggested retail price.
Given the scarcity of this bag in shops around the globe and its ongoing popularity, we believe that this piece will have long-term staying value.
Choosing between the Birkin and the Margaux ultimately comes down to personal style, budget, and investment goals. The Birkin offers a proven track record of value retention and potential appreciation, making it a safer bet for those looking to invest in a luxury piece. The Margaux, on the other hand, represents a more contemporary aesthetic and could be a smart choice for those who want to invest in an emerging luxury brand. Bags are a personal choice — you do you!
While the Margaux may not be poised to completely replace the Birkin, it has certainly carved out its own niche in the luxury handbag market. Both bags offer unique value propositions: the Birkin with its unparalleled prestige and investment potential, and the Margaux with its modern appeal and accessibility.
As the luxury market continues to evolve, there's room for both these iconic pieces to thrive. Whether you're team Birkin or team Margaux, one thing is clear: investing in quality, timeless design is always in style.
Remember to track the value of your luxury investments with Carouge, your digital closet companion. You can easily get a birds-eye view of your bag value with our free tool comparing commissions across different resale platforms. Whether you're considering a Birkin, a Margaux, or any other high-end piece, Carouge helps you manage and maximize the value of your fashion investments.
