Luxury experts say the Hermès Birkin handbag is a coveted item, and once it leaves the store, it becomes even more coveted, doubling in value in just five years.
said James Firestein, founder of luxury goods resale and authentication platform OpenLuxury. luck When the value of his Black Togo 30 Birkin doubled in five years, he experienced the most rapid price increase he had ever witnessed.
For reference, prices for the Black Togo 30 vary widely across resale platforms depending on the bag’s condition, type of hardware, and year of purchase from Hermès, ranging from $30,500 for a “like new” bag at Sotheby’s to $10,925. It’s about $8,000 at The RealReal and about $8,000 on eBay.
But more commonly, it takes a decade for the price of a Birkin to double.
“I know of several cases where people have doubled their money by buying something 10 years ago and reselling it today in pristine condition,” Fierstein told Fortune.
“Over the past 10 years, the resale value of Birkin and Kelly bags in particular has surpassed gold,” he added.
In 2020 alone, when the luxury goods market was shut down due to the coronavirus pandemic, Birkin bags returned a whopping 38%, according to a report from Credit Suisse and Deloitte.
As a result, Fierstein estimates that 25% of Birkin buyers keep their bags as an investment, and the remaining 75% actually use them, Fortune reported.
Most shoppers turn to the second-hand market to purchase Birkin bags. The main reason for this is that purchasing luxury eye candy directly from Hermès is time consuming and does not guarantee that customers will get the exact style they desire.
Hermès allows its stores and boutiques around the world to buy a selected number of Birkins each season, but the bag’s color and size are rarely known in advance. sotheby’s.
And for aspiring Birkin owners who don’t already have an existing relationship with a retailer, it can be even more difficult to ensure staff will try to reserve the bag they want, Sotheby’s says. Stated.
As a result, Birkins often sell for well over the $12,000 list price.
According to Sotheby’s, pricing is primarily driven by the principle of scarcity, with Sotheby’s selling a diamond-studded Himalayan Birkin 30 for $450,000, but the auction house says it sells a diamond-encrusted Himalayan Birkin 30 for $450,000, while the auction house says it sells a more common leather item in pristine condition. Models typically cost between $25,000 and $30,000, he said.
Hermès has been accused of making it extremely difficult for everyday shoppers to get their hands on a Birkin.
Two California plaintiffs alleged in a class action lawsuit earlier this month that the French fashion house allegedly required customers to purchase other “accessories” such as “shoes, scarves, belts, jewelry, and household items,” among other things. He claimed that the company was engaging in “unfair business practices.” — before you get the chance to purchase a coveted and chronically unavailable handbag.
To be allowed to buy a Birkin, a customer must have a “sufficient purchasing history” with the luxury brand, according to the complaint.
Once that is achieved, “deeming worthy customers” will be offered a Birkin, but it will be kept in a private room rather than displayed in public, the suit says. claims.
“The Birkin handbag’s unique popularity, incredible demand, and low supply give Defendants incredible market power,” the attorneys wrote in their filing.
