As fashion and accessories have become increasingly popular in the world of auctions, many people are interested in understanding their growing influence. To understand the meaning and functioning of these markets, FashionUnited spoke to Alice Léger, head of fashion and accessories at Artcurial, the third largest auction house in the world after Christie’s and Sotheby’s.
Artcurial was one of the first companies to introduce fashion and accessories to auctions. How has this segment developed in recent years?
Alice Léger: We were in fact pioneers in organizing auctions for Hermès bags and even set up a dedicated department for it. Although our handbags (Hermès and Chanel) and fashion divisions merged in 2016, these two markets are inherently different.
In the handbag market, prices are no longer what they once were; they have increased significantly. The public began investing in Hermès bags about a decade ago and investments have increased since then. In the beginning you could buy a Constance bag for 300 to 500 euros; Now you have to add a zero to it. The same goes for the Birkin, which follows boutique pricing. The increase in prices is in fact due to investments, but also to the significant increase in boutique prices.
“Investments have increased. In the beginning you could buy a Constance bag for 300 to 500 euros; Now you have to add a zero to it.”
The fashion market is a multi-brand market where you can find both clothing and bags from, for example, Louis Vuitton. The fashion sector has become more accessible – where previously there were only institutions, collectors and regular auction visitors, we now have a much younger clientele who are primarily interested in second-hand pieces. The emergence of platforms for selling second-hand pieces and the development of second-hand departments within luxury houses have had a major impact on auctions. We reach a much larger circle of customers, both sellers and buyers.
You mentioned that the boom in online fashion sales has had a positive impact on your live sales offerings. Can you explain why? Do online auctions now dominate over in-house auctions?
Alice Léger: We were already fully focused on digital before Covid hit, but the pandemic has significantly strengthened this channel by attracting an even larger audience. We see that people now have less difficulty shopping online. They feel more comfortable buying online and have gained more confidence in this type of shopping.
Thanks to our monthly auction frequency, we have managed to retain this new customer base. However, we find that auctions perform particularly well in physical spaces. People attend these auctions in person, and their physical presence has a significant impact on the results. This may be due to a combination of factors such as the presence of our clientele in Monaco and the ability for buyers to safely carry their jewelry and bags in the Principality.
“The emergence of second-hand platforms has had a significant impact on auctions. We have gained a younger clientele.”
What is the average budget of your customers and what does their profile look like?
Alice Léger: The introduction of the fashion and accessories segment has brought with it a new clientele that was previously less present – the female clientele. Most auction departments are traditionally frequented by a male audience. We are pleased that diversifying our offering has brought new dynamism and a sense of fairness.
Spending varies significantly from one segment to another. At the Hermès auctions in Monaco, for example, we recorded expenses of around 10,000 euros per person; At Hermès vintage sales it is between 4,000 and 5,000 euros. In the vintage segment of Chanel, which we are currently developing, the spend per customer is around 3,000 euros, while in the fashion market it is on average between 500 and 1,000 euros.
Is the volume of fashion sales different from that of accessories sales? Approximately how many pieces are sold in each segment?
Alice Léger: We intentionally limit the volume of our fashion and accessories sales per event. For fashion items, we typically do not exceed 300 items, while for prestige sales in Monaco we limit the number of items to 80 to 100. We receive a large number of offers, but we make a strict selection without this affecting our annual results, as prices have increased at the same time.
“Buyers sometimes prefer to pay six times more at auction to get their Birkin directly rather than wait years to buy it in a boutique.”
What logic determines auction prices?
Alice Léger: When it comes to pricing Hermès models like the Kelly, Birkin or Constance at auction, several factors influence their value. In general, the newer a bag is, the more expensive it is, especially if it is in current fashion colors. The material and condition of the piece also play an important role in determining the auction price. The rarity of Hermès bags and the difficulty of getting them in boutiques due to long waiting lists lead to considerable speculation. Buyers sometimes prefer to pay five to six times more at auction to get their Hermès bag directly rather than wait years to buy it in a boutique.
Limited editions like the Birkin Picnic can be priced at 15,000 to 20,000 euros in the boutique, but can fetch 50,000 euros at auction. As for Chanel prices, we are currently analyzing whether the brand will establish itself in the long term or whether the prices will be influenced by a fashion effect related to Karl Lagerfeld. Chanel prices have risen significantly; The sellers now demand prices that are almost as high as those at Hermès. So far this seems to be working, and we’re watching to see how buyers react in the long term.
The multi-brand market is subject to trends. Some brands are making a comeback, such as Courrèges, which is particularly successful at auctions. Current collections from brands such as Prada, Bottega Veneta and vintage pieces from Saint Laurent from the 1970s also attract great interest.
Which items break price records at auction?
Alice Léger: Hermès bags. In fact, we sold a Hermès bag for 115,000 euros in Monaco. When it comes to fashion, it is often pieces that break records because they have great value for the archives of fashion houses or museums, such as a Saint Laurent jacket that we recently sold for 35,000 euros, or a dress by Dior from the 1950s, which fetched 20,000 euros.
“Fashion auctions reflect the development of consciousness and the desire to consume more consciously.”
Why do bags sell so well?
Alice Léger: This phenomenon can be partly attributed to the emergence of “it bags”. Bags have become an essential accessory for women to show off their social status. They play an essential role in female communication, sometimes even more important than the clothes themselves. Famous personalities do not hesitate to combine an affordable dress with a luxury bag, highlighting the importance of bags as a social marker.
What motivates people to buy or sell an item? Is it really environmental awareness?
Alice Léger: We notice that sellers are increasingly motivated by the desire to give their pieces a new life. They prefer to turn to us rather than throw them away; a sign of growing concern for the environment. On the buyer’s side, the motivation for buying at auction is to acquire a unique, hard-to-find piece that will stand the test of time. This change reflects the development of consciousness and the desire to consume more consciously.
This article originally appeared on FashionUnited.FR. Translated from English and edited by Simone Preuss.