Times are hard and more than one affluent consumer has had to downsize their lifestyle as a result of the financial crisis and ensuing recession. But pawn their designer handbags for quick cash infusions? Apparently so. Lady Finance, a short-term loan company in Hong Kong is offering 3-month loans for up to 70% of a handbag's value to their cash-strapped owners.
At the very least, this would suggest that there might be some truth to the "luxury as investment" claim I've heard so often over the years. Personally, I've always been suspicious of this argument when considering a fashion or luxury purchase. With few exceptions (say an Hermes "Birkin" bag or a Louis Vuitton "Keepall" neither of which has changed in design since their introduction), it always struck me as a convenient ploy to close a sale or keep buyer's remorse at bay. Also, I would be curious to know for instance the relative loan value of an Hermes "Kelly" bag or a Chanel "2:55" bag against a ubiquitous Marc Jacobs quilted "Stam" bag.
Tempting as it would be to let yourself be seduced by this tactic on your next shopping expedition, I would advise caution in resorting to it to justify a purchase. I highly doubt the "investment" argument applies across the handbag spectrum.
Sincerely,
The Luxe Chronicles
Interesting idea they have but I agree that a luxury purchase shouldn't be justified by such.
Posted by: Hermes Birkin Ostrich | Saturday, November 07, 2009 at 13:56