Does the market for pre-owned and vintage luxury goods have a place in Saudi society? And are we on the verge of embracing it?
Saudi women have always walked hand in hand with all things luxurious, and their focus on high quality and a complete experience is nothing new. From a young age, mothers adorn their daughters with gold, instilling in them the social notion summed up in the Saudi saying ‘Zinah w Khazinah’, meaning Adornment and Investment.
The gold markets spread across the Kingdom stand as proof of how deeply rooted this mindset is. Almost everyone has some experience in timing the purchase of a piece of jewelry or a timeless watch, then evaluating it based on current trends among peers and future projections, using it, caring for it, and ensuring it remains in excellent condition until the desire for change or the need for resale arises. When selling, there are usually two routes: selling directly to the trader, or offering the piece for bidding between buyer and owner until both sides agree on a fair price.
Investing in Luxury and The Formula for Winning
From the outset, it is clear that the concept of investing in adornment and the strong awareness of its value is deeply rooted in our society. In Saudi society, the world of luxury handbags is one of the strongest and most prominent markets. People carefully assess brands globally: their reputation, values, and history, then gauge the lasting power of their classic pieces both at home and abroad.
Anyone who follows the luxury handbag world, from Hermès to Chanel, has seen the fierce competition for their timeless pieces. This pursuit reflects the determination to secure what achieves the winning formula in luxury investment.
Heritage brand + Classic design that withstands the test of time + Premium quality in materials = Sustainability and Investment.
According to a report published by Hermès on October 24, 2024, its leather goods including handbags recorded a 17% increase in growth. And in September 2024, Hermès opened its 23rd leather workshop, further cementing the brand’s strength and its continuous growth and development.
Hermès products stand as compelling evidence of the strength of the vintage and pre-owned luxury market. A closer look at platforms dedicated to vintage shopping reveals a clear and consistent demand for acquiring luxury items, particularly those that embody a timeless and enduring classic value.
One of the most famous examples of the high returns on investing in Hermès handbags is the Hermès Kelly Himalaya Crocodile Retourne. The bag is considered among the rarest in the world, crafted from crocodile leather and adorned with 18-karat white gold and 229 diamonds. This unique piece was resold in 2021 at a Christie’s auction for €484,024 (SAR 1,932,124).
Are all brands worth investing in?
Certainly not.
Not all items from investment brands truly qualify as worthy investments. One brand that currently sits at the midpoint of this “winning formula,” and remains fascinating to watch and study for anyone interested in fashion analysis from a practical perspective, is Chanel.
The classic pieces remain in demand among luxury fashion lovers, and vintage shops specializing in Chanel handbags can still be found across different cities worldwide, places people continue to visit and buy from. Their reason for doing so lies in the high-quality execution, the choice of leathers, and the materials used in their production. Yet in recent years, there has been much discussion about production errors in some Chanel bags and the abundance of counterfeit products of its classic models. This has pushed the brand to raise its prices dramatically, a clear attempt to retain its symbolic status with clients.
This brings us to the key conditions that make a brand worthy of investment:
Consistent strong performance of the brand over a number of years.
Maintaining quality in both production and execution.
Reinforcing the brand’s founding values to preserve its loyal customer base.
Pursuing a clear growth strategy that motivates customers to continue investing in it.
Why do people invest in pre-owned and vintage luxury goods?
Building a personal collection.
Many feel as though they have found a treasure when they come across a brand that matches their personal taste, meets their needs, and fits their standards. This often means searching for rare and limited pieces, and these exclusive items are not easy to find unless the buyer turns to vintage stores or online platforms. For art lovers, for example, Louis Vuitton stands out as one of the brands most active in collaborating with global artists, producing unique collections and rare pieces such as their collaboration with Jeff Koons in 2017, or with Yayoi Kusama in 2012 and again in 2023.
Sustainability.
Acquiring a Birkin crafted from rare leather with guaranteed quality, or a Fendi Baguette from a limited collection, or even a vintage luxury Delvaux, undoubtedly reflects the principle of sustainability. Such choices not only carry long-term value for the environment but also highlight the emphasis luxury houses place on exceptional craftsmanship and the use of durable, sustainable materials, creating items truly designed to endure.Investment Value.
As noted earlier with the Hermès Kelly Himalaya Crocodile Retourne and the exceptional returns it has generated, investing in classic and highly sought-after pieces from brands like Chanel, Bottega Veneta, Fendi, and Louis Vuitton has proven to be a sound decision. Such items, when of high quality and preserved in excellent condition, can be reinvested multiple times, either yielding significant financial profit or passed down to family members. Over time, these collections grow into a family treasure chest filled with rarities and exclusives, ultimately becoming a valuable legacy.The Desire to Own a Luxury Piece at a Lower Price.
There is no doubt that the repeated price hikes by brands like Chanel, Louis Vuitton, and others will drive many enthusiasts toward the vintage market, seeking classic and rare pieces that have become increasingly out of reach at retail prices.The Desire to Own a Luxury Piece at a Lower Price.
There is no doubt that the repeated price hikes by brands like Chanel, Louis Vuitton, and others will drive many enthusiasts toward the vintage market, seeking classic and rare pieces that have become increasingly out of reach at retail prices.
One of the clearest examples is the steep and accelerating rise in Chanel’s prices from 2020 to today. Take, for instance, the medium-sized Flap Bag produced in 1983, originally sold for $1,000. That same bag now commands around $10,800 (SAR 40,513).
The Intangible Legacy of the Brand.
Every brand carries a symbolic image that strengthens its appeal among admirers. The mental picture that comes to mind when thinking of a Schiaparelli client, for example, is different from that of a Valentino client. Each brand’s heritage is reflected in the image of its clientele. Hermès enthusiasts, for instance, care about timeless classics that reflect their focus on the highest quality in what they own. Meanwhile, Alexander McQueen clients are drawn to bold, unconventional designs, especially the brand’s small skull-embellished bags and signature rings.Thus, anyone can reinforce their social image effortlessly by curating from the world of vintage pieces.
Rarity is often the strongest factor in driving up the value of a bag, or in helping it retain that value when handled with care. It may come from pieces produced for only a short time, designed as part of a limited collection, or created through a collaboration with a renowned artist. A notable example is the 2003 collaboration between Louis Vuitton and artist Takashi Murakami, which gave rise to iconic bags that remain highly sought after around the world.
One of the most striking examples of rarity is the Chanel Diana Bag, named after Princess Diana. She was among Karl Lagerfeld’s muses, and in a gesture of admiration, he designed the bag that now carries her name. Loved by both Chanel enthusiasts and admirers of the Princess, the bag was produced between 1989 and 1995, then reissued in Chanel’s Spring 2015 collection. Yet the versions crafted in the 1990s remain among the most coveted treasures in today’s vintage market.
Challenges and Obstacles
One of the biggest challenges investors in vintage pieces may face is verifying authenticity. The counterfeit market is massive, and the fear of overlap between the two spheres can discourage potential investors. Added to this is the scarcity of specialists who can clean and maintain luxury goods, along with the logistical and warehousing complexities involved in handling such high-value items.
There is also an intangible obstacle that could prove even greater if it arises: the negative social perception of pre-owned vintage pieces. At first glance, they may be wrongly seen as worn-out items with no real purpose in using or investing in them. Yet anyone familiar with the precision of the target brand and the materials it uses in production, such as gold handles on handbags, will recognize that some houses are committed to creating enduring, timeless pieces that owners can take pride in just as much as the brands themselves.
Golden Opportunities
Given the vast market for luxury goods in Saudi Arabia and people’s deep appreciation for quality in all their possessions, the vintage luxury market represents a golden opportunity for all stakeholders, from brands and retailers to investors. Brands can collaborate with vintage dealers to authenticate products and verify their originality, thereby ensuring growth while also strengthening loyalty among their clients. In 2020, Gucci partnered with The RealReal, one of the largest platforms for selling pre-owned luxury items, launching an online space to resell selected vintage pieces.
For individuals passionate about the field, there is also room to specialize in leading, in-demand brands and study their collections, opening the door to capturing a premium segment of clients, along with trust and long-term relevance.
What further strengthens the Saudi market is the presence of strict regulations that clearly govern counterfeit goods. In Saudi Arabia, trading in fake or counterfeit products is strictly prohibited, with a defined system of penalties and rigorous enforcement.
Global Figures
The global market for vintage luxury goods was valued at USD 26.17 billion in 2023, and is expected to reach USD 69.59 billion by 2032, showing an annual growth rate of 11.48%.
Europe remains the strongest market worldwide for vintage luxury products. In 2021, the regional market was valued at over USD 1 billion, according to a study, reinforcing its position as the largest hub for vintage and pre-owned luxury items. Asia, meanwhile, is projected to become the fastest-growing market for these goods.
Global Experiences
I would like to highlight a successful global experience that we could learn from as a market still in its early stages. In Japan, anyone who wishes to trade in vintage and pre-owned luxury goods must obtain a special license before starting their business. This regulation ensures the protection of consumers’ rights and safeguards clients, encouraging them to take the step with confidence.
This is one of the reasons that has made Tokyo a destination for those in search of rare vintage luxury pieces, whether collectors or enthusiasts seeking exclusivity and distinction. Added to this is the customer experience itself: walking into a boutique like Amor Vintage or Vintage Qoo means entering a world where the value of every item is respected, and where clients are offered a comfortable and rewarding shopping journey.
What distinguishes Japan’s experience even further is the effective steps it has taken to address the issue of verifying authenticity. The American company Entrupy, which specializes in the authentication of vintage goods, runs its largest market in Japan. Using artificial intelligence and its proprietary application, it provides clients with answers and authentication certificates in record time.
Where Can I Sell and Find My Vintage Pieces?
We currently have Klozet in this field, which first started as a consignment platform and then moved into e-commerce. In addition, there are online platforms in this field such as Farfetch and The Luxury Closet. There are also global auction houses like Christie’s and Sotheby’s, as well as platforms like Vestiaire and The RealReal.
In conclusion, it is worth noting that our Kingdom is a land of opportunities and investment in all its forms. The discerning observer will notice people’s strong appreciation for what is refined and luxurious, along with the attention of specialists and professionals in fashion to sustainability. This creates an excellent environment for the prosperity of this field. Yet it is time and experience that will ultimately reveal whether people embrace this market and whether it succeeds.
