Hi, I’m Charles Gorra, founder and CEO of Rebag.com. As you know, we’re an omnichannel
retailer in the US for luxury resale bags and accessories. We’re here today to talk about our
first Clair Report. As you may know, Clair is a software that we launched about a year ago - it
stands for Comprehensive Luxury Appraisal Index for Resale, and what it does is that you can query
a brand, a designer, a model, a style, and we will give you instantly the value and resale price
that Rebag is willing to pay. So in order to assess the value of brands in the resale market,
we look at a ratio of the market value in the resale market divided by the retail price. In
other words, if you bought a bag for $1,000 in a store or online, and today it resells on the
resale market for $600, that ratio is 60%. Now, the higher that ratio, the higher the
desirability of that brand in the resale market. So not too surprisingly, you’ll see in this chart,
that Hermès is in a world of its own. Currently, Hermès bags trade around 80%. Right after that,
you will see Louis Vuitton and Chanel; currently, they are at 63% for handbags. Two big winners this
year: Dior, that is now trading at 56% - that’s a very big 13% increase from last year! And you
will see as well Bottega Veneta that’s now at 38% - again, that’s a 10% increase from last year.
This year there are two big winners: Bottega and Dior. Now,
let’s start with Bottega. The new creative director, Daniel Lee, was appointed
back in July 2018 and he made a superb impact on the brand. The latest collection items of Bottega
trade at 83% of their value. If you want to buy a Pouch for instance or a BV Jodie Hobo,
you’re talking low 80s. Now, that is very, very high compared to former collections,
if you think about some of the old hobos or the old Cabat totes - they trade in the low 30s.
Similar story with Dior. The Dior new collection trades at 92% - so this is absolutely mindblowing,
in particular, the Saddle Bag is in the upper 80s, including the vintage Saddle Bags. The
trend around Dior has to do a lot with the vintage revival trend. The designer, Maria Grazia Chiuri
has been at Dior, for now, the past four years, but the real turning point there was in mid-2018
with the reissue of the vintage bags. And again, be very careful of the older Dior collections,
like the Diorissimo or the J’Adior - there, you’re in the low 40s, a very different price point.
There are many factors that influence the resale value of an item. Okay, I can start right there
and tell you one that has no impact, and that is the retail price. Now I understand for consumers
that that is what we always remember - that is how much we paid in a store. Unfortunately,
in the same way that you can list your car for any price, you can list your apartment at any price,
that doesn’t necessarily mirror its value in the resale market. That underlying value is
based on other factors, most importantly, how much consumers are willing to spend,
how much are consumers fighting to procure that item in the resale market.
Now, we can take a few examples, for instance, the Eva bag from Louis Vuitton. That bag was produced
in the early 2000s and was discontinued in 2014. Now since then, and very recently, the value
totally skyrocketed. It currently trades at almost two times its last available retail price. A part
of that is its discontinuation, and a part of that is also because it’s hitting a master trend
around mini bags. We can look at another example in the Chanel world. As we discussed earlier,
Chanel bags have very high resale value. We can look for instance at the Chanel Classic
Double Flap as an example, in size small, quilted caviar. Earlier this year, it traded around 90%
of its retail price. Now very interestingly, in Q2 of this year, you may know that Chanel pushed
some price increases in America as well as in Europe. For this specific model,
its retail price increased by about 11%, and if you look at the evolution of the resale value,
in that same time frame, you will see it pretty much follows the curve;
actually, it’s even slightly faster than the evolution of the retail price,
which means that today, that same bag trades almost at 100% of its retail price.
I know that’s a ton of data, and we all need to digest it, so this is why we’re launching today
a new feature as part of our Clair software suite that we call Historical Price Tracking. You can go
on Rebag.com or the app, and you can now follow a Clair Code, and then you will see in your profile,
for each Clair Code, a historical evolution of the market resale value for that item
over time. We also make recommendations on whether to buy or whether to sell - and,
we will even send you notifications when there’s a price change
Earlier this year in June, we launched a new category called
Accessories, and today we’re happy to share some insights.
In terms of what items preserve value the most,
things like pouches, key holders, and card holders trade at over 90% of their retail value. If you
look at the Wallet category, one of the reasons why I find this very interesting is because it’s
one of the only categories where the big, top three brands are actually not winning. So Hermès,
Louis Vuitton, and Chanel are actually topped in the Wallet category by a few other brands,
particularly Dior and Saint Laurent, that are over 75% of their value.
There’s a lot to choose from, but here are three that we want to highlight today.
One is the Evelyne by Hermès, in particular the TPM version, which is “Trés Petit Model.”
The second one we want to highlight is the OnTheGo Tote by Louis Vuitton. This bag is fairly new,
issued earlier this year. And of course, our third choice from the Chanel world is the Single Classic
Flap in Quilted Caviar, preferably in the Mini size because that speaks to the mini-bag trend.
When it comes to accessories, the same pattern applies - we’ll pick three recommendations here!
The first one we want to highlight is the Dior Saddle Wallet. These have seen pretty steep
increases earlier this year, over 30%. The second one is the Saint Laurent Card Holder
which trades about 70% of its value. Again, a very recognizable pattern and logo, a very sleek
and tight unit. And finally, we’re showcasing here a belt by Gucci,
the Marmont style. This is also very desirable: it’s thin, sleek, and has a recognizable logo.
Well, that’s it for the Clair Report. Thanks so much for watching! Please review the whole
Clair Report on Rebag.com/ClairReport and see you soon on Rebag!