Recently, the news of successive store closures in China by Delvaux, the historic Belgian luxury brand, has sent ripples through the industry. As the President of the Asia Luxury Association, I see this as more than just a brand's strategic adjustment in a single market; it unveils a harsh reality about the investment value of luxury goods, especially handbags.
The core issue for Delvaux lies in its resale value, or lack thereof. A classic Brillant bag, retailing for HK$100,000, is listed on the secondary market for a mere HK$20,000 to HK$30,000—a staggering 70% depreciation—and even then, it struggles to find a buyer. The problem is a critical lack of "circulation value."
In stark contrast, a similarly priced Louis Vuitton trunk or an Hermès Lindy bag can be resold at 60-70% of its original price, with popular models even commanding a premium. This demonstrates the immense power of brand recognition and market liquidity.
According to a Bain & Company report, China's personal luxury market is projected to contract by 3-5% in 2025, with the leather goods category expected to fall by as much as 8-11%. In such a climate, consumer spending becomes more conservative, gravitating towards established, top-tier brands with proven market consensus and stable resale values. Niche luxury brands like Delvaux, despite their rich heritage and exquisite craftsmanship, are facing the risk of being phased out due to low public awareness and poor secondary market performance.
For us in the pre-owned luxury business, this is a significant wake-up call. When assessing a brand's commercial value, we must look beyond its history and design to its actual performance in the secondary market—specifically, its value retention and liquidity. A brand that cannot circulate effectively in the pre-owned space presents a substantial business risk, regardless of its primary market price tag. The Asia Luxury Association is committed to providing our members with precise market insights and resources to navigate these complex dynamics.
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For deeper industry insights, visit the Asia Luxury Association official website: aisaluxassoc.com
