Interesting Article from Forbes.com on "It" Bags

In case y'all haven't seen this yet. The other article on high end
baby items is interesting too.

Enjoy,

Vicki in DC
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Most Expensive Handbags

Lauren Sherman
Forbes.com
Think spending $180 on a pair of perfectly distressed jeans is
extravagant?

Then you might gasp at shelling out $37,000 for an Hermès "Birkin"
bag, even if it is made of orange crocodile and embellished with
palladium hardware.

Yes, five-figure handbags. To be sure, they're rare--but for a certain
set, they have come to replace the $675 Manolo Blahniks of the post-Sex
and the City '90s.

"It used to be the shoes make the man," says Milton Pedraza, chief
executive of the Luxury Institute, a market research firm based in New
York City. "Well, these days, the handbag makes the woman."

Status bags are nothing new. In the 1960s, after a structured Hermès
bag graced the cover of Life magazine, shielding the pregnant stomach
of Princess Grace, everyone wanted a "Kelly" purse. The '80s belonged
to the roomier, softer Hermès bag inspired by British icon Jane
Birkin. After the minimalism of the early 1990s, the opulent Fendi
"Baguette," which came in dozens of versions, inspired lengthy waiting
lists. Women shelled out hundreds, and sometimes several thousands, for
the "It" bag.

However, a major shift in the overall handbag price point occurred
about five years ago with the emergence of what Marshal Cohen, chief
analyst for the Port Washington, N.Y., research firm NPD Group, calls
"signature items."

Suddenly, splurging on a pair of premium denim jeans or dropping a few
hundred dollars on satin slingbacks became socially acceptable, even
encouraged in some circles. The willingness to spend way more than
necessary, and to think of an accessory as an investment and a
collectible, is part of what makes a handbag so coveted, Cohen says.

This idea was put to the ultimate test on April 20, 2005, when Doyle
New York auctioned a black crocodile Hermès "Birkin" with a
diamond-covered clasp and lock. It sold for $64,800.

Why would anyone spend so much on a purse when they could have
something a little roomier and more useful--say, a car--for the same
price? For its exclusivity, originality and above all, status, says
Cohen.

"It's the difference between buying a Rolls Royce at $300,000 and
buying a Rolls Royce at $150,000," he says. "There's really little
difference at some point--it's the status that comes along with it and
the desire to separate yourself."

As a result, nearly every fashion house has gotten into the game.
High-end designers like Narciso Rodriguez and Zac Posen have new
handbag lines. Coach has expanded its business dramatically with smart
handbag marketing, offering stylish, mid-priced bags that change
frequently, like the uber-luxury labels.

Posen, whose curve-hugging, 1940s-inspired dresses have become red
carpet must-haves for women including Natalie Portman, Nicky Hilton and
Lauren Dupont, plans to distinguish his handbag line through "detailing
and textural materials that reveal themselves in a combination of
function and flair," says Stephanie Cozzi, sales director of the house.
"The Zac Posen woman wants to feel like she is carrying a future
collectible when she has our bag on her arm."

To compile our list of the most expensive handbags, we searched through
product offerings for the priciest versions currently on the
market--not including custom-made or antique versions. We limited the
list to one handbag per brand, so the list wasn't full of slightly
different bags all by the same maker. Of course, there will always be a
designer who is willing to charge a little bit more for some extra
detailing on a handbag, not to mention a customer who is willing to
spend a little bit more to have it.

The brands on our list are highly recognizable. They include Gucci,
Hermès and Ralph Lauren, all known for creating top-quality goods
infused with impeccable style--and charging a pretty premium for them.
Newcomers Devi Kroell and Zac Posen also made the cut, Kroell with her
black crystal version of the traditional evening bag and Posen with his
luscious blue croc "Antonia."

Though the brand name counts, price is also determined by material;
anything in ostrich, python or crocodile tends to up the ante. Most
labels offer their most popular bags in several skins. Take Yves Saint
Laurent's very popular "Muse" bag. The chocolate leather version will
set you back around $1,300. The white crocodile, however, is priced at
$18,990.

At these astronomical prices, our experts see no sign of the "It" bag's
demise. But still we have to wonder--what's next?

"The belt," Pedraza says, "will become a much bigger status symbol."

Go to Forbes.com for the handbag slideshow
Back to The Best That Money Can Buy

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