Handbag Investment Glossary & Definitions
1
1-Year Change (%)
What it means: Price change over the last 12 months.
How we derive it: Formula: (Current Value − Value 1 Year Ago) ÷ Value 1 Year Ago × 100.
Why it matters: Shows short-term momentum (appreciating vs. cooling).
C
Collection
What it means: A named style family (e.g., “Classic Flap”, “Birkin”).
How we derive it: Used for grouping models and tracking performance at style level.
Why it matters: Different collections behave differently in the market.
Color
What it means: Primary colorway of the bag.
How we derive it: Normalized color names; seasonal vs. classic tracked separately when relevant.
Why it matters: Color affects demand; classics often retain value better.
Condition
What it means: Quality grade at resale.
How we derive it: Standardized scale (New, Like New, Excellent, Very Good, Good, Fair).
Why it matters: Directly impacts achieved price.
Current Market Value
What it means: The average resale price the bag trades for today.
How we derive it: Derived from recent observed sales across resale marketplaces and auctions.
Why it matters: Represents what a buyer would realistically pay right now.
Current Trend
What it means: Directional signal for a brand/collection (Up, Steady, Down).
How we derive it: Based on recent multi-month change in brand-wide median resale prices.
Why it matters: Quick read on market confidence.
L
Liquidity
What it means: How quickly a bag typically sells at market value.
How we derive it: Estimated from frequency of observations/listings/sales; simplified to High / Medium / Low.
Why it matters: Higher liquidity means faster selling with less discounting.
M
Material
What it means: Primary leather/fabric (e.g., Lambskin, Caviar, Canvas, Exotic).
How we derive it: Standardized to canonical names.
Why it matters: Impacts durability, demand, and price.
MSRP (Manufacturer’s Suggested Retail Price)
What it means: The official retail price set by the brand when sold new.
How we derive it: Collected from brand sites, boutiques, or historical catalog data.
Why it matters: Baseline for comparing how well a bag holds or grows in value.
O
Observed Price
What it means: A single recorded sale price used in price history.
How we derive it: Captured with date/source and normalized to USD.
Why it matters: Raw inputs that form monthly medians and trend metrics.
P
Price History
What it means: Timeline of observed sale prices over time.
How we derive it: Stored as dated entries from marketplaces and auctions.
Why it matters: Reveals long-term trends, not just today’s price.
S
Size Class
What it means: Standardized size bucket (Mini, Small, Medium, Jumbo, Maxi).
How we derive it: Mapped per model to normalize naming across sellers.
Why it matters: Sizes can command different prices and liquidity.
T
Top Appreciating Bags
What it means: Bags showing the strongest recent growth.
How we derive it: Ranked by annualized growth of monthly median resale over a chosen window (e.g., 12 months).
Why it matters: Helps surface what’s “hot” now.
V
Value Retention (%)
What it means: How much of the original MSRP the bag still holds.
How we derive it: Formula: (Current Market Value ÷ MSRP) × 100.
Why it matters: Higher retention means the bag keeps value better after purchase.
Example: MSRP $10,000; Current Value $9,200 → 92%.