Timeless classics of fashion investors can luxuriate in

Classic bags from luxury brands such as Chanel fetch a premium in the UAE. Philip Cheung / The National

It was a typical Thursday: my friend and I had just watched a movie at Abu Dhabi's Khalidiya Mall cinema when she received a phone call.
It was from a representative of Christian Dior urging her to buy the bag she had been eyeing recently, because the prices were set to increase again next month.
We were there in 20 minutes.
But as we drove to the store, at Marina Mall, I pondered the rapid increases in prices across the city.
With oil prices again topping US$100 per barrel, everything else is seeming to increase in tandem. While inflation on certain commodities in the UAE such as food have been governmentally controlled, increases in other products show no sign of stopping.
We could not find a parking spot at Marina Mall, so my friend suggested valet parking. Dh40 (US$10.88) was written on the ticket.
Puzzled, my friend asked the valet parking driver about the sudden price hike from Dh30.
"The rent increased," he said apologetically. "We had to raise the price."
We headed inside and decided to visit Chanel first to check out a small, classic caviar-skin bag, a potential gift for my graduating sister.
"I believe this is Dh9,000, right?" I asked.
"No," replied the salesman. "It is now Dh15,000."
Somewhere between Ramadan and last month, the bag put on Dh6,000.
Did anything change in its style to justify the price? Definitely not. It is Chanel! The bag has looked the same for more than 50 years, and it will likely remain the same for another 50.
Then why the sudden price rise? It appears Chanel wants to maintain its exclusivity - hence the latest global price increases, followed by another soon.
"There is already a waiting list of more than 100 customers in big cities like New York, and we expect that list to increase now that consumers know about future price increases," the salesman told us.
Frankly, there is a part of me that does not blame Chanel. I had started to resent seeing the bags everywhere. I could not turn around in any mall in the country without spotting them in all colours and shapes, slung over the shoulders of almost every nationality.
We left Chanel and headed towards Christian Dior.
The Lady Dior bag, made of either lambskin or patent leather, had also gone up in price.
The medium version cost approximately Dh11,000 just two months ago. It now costs a little over Dh13,000, with that expected to increase again this month and in the following months. Although the small one cost Dh9,000 at the end of last year, it now comes in at just over Dh11,000.
The explanation given here was not much different from that at Chanel.
I cannot think of a better proof that the financial market has recovered from the 2008 crisis: people are splurging on luxury products again.
Bain & Company, an international consulting company, predicts an 8 per cent growth in global luxury sales this year - and up to 12 per cent in the Middle East. Sales are projected to grow to €185 billion (Dh985.15bn) this year, surpassing a pre-financial crisis peak of €170bn in 2007.
At Dior both of us were urged to buy the patent leather bag as the leather used was to be discontinued in the near future.
"It is very hard to manufacture. [The bag] would be a limited item that you could re-sell in the future," the saleswoman insisted.
I dislike pushy sales people, but this lady made a good point.
In my view, there is no better way for a young woman to invest her money in today's healing financial market than in luxury. I cannot help but quote Carrie Bradshaw, the fictional narrator in Sex and the City: "I like my money right where I can see it - hanging in my closet."
Unlike new vehicles that start to lose value the minute they are driven off the showroom forecourt, a classic bag's value will often increase over time.
A girl I know bought a classic Chanel jumbo bag just six years for about Dh7,000. Now it sells new for Dh16,000. With abundant vintage retailers in the country, she can easily sell hers for Dh10,000, making a Dh3,000 profit.
Now that is what I call business. What if you had 20 classic bags, and sold them a year from now when their prices will have probably similarly rocketed?
You do the math.
Unlike the stock market, there is little chance you will lose your money by investing in timeless, classic luxury. Unless, of course, you leave your bag somewhere.
Manar al Hinai is a fashion designer and was last month named an Arab Woman of the Year