Hermès Birkin Bags, a Luxurious Investment
The Hermès Birkin is widely considered the ultimate status symbol. Socialites, celebrities and entrepreneurs around the world collect these exclusive beauties, with some Birkin bag collections valued in the millions. What gives? Why has this particular Hermès bag exploded in popularity? It comes down to a combination of luxury, exclusivity and smart investing.
That’s right. Hermès bags, particularly the Kelly and the Birkin, are considered luxury investment assets. The Knight Frank Luxury Investment Index showed Hermès prices rising 17% in 2020, with a decade-long 108% increase. In 2020, Hermès outperformed luxury assets like fine wine, colored diamonds, watches and rare whisky. For those who can afford the steep price tag of a rare and usually special-ordered Birkin bag, the return on investment is worth it. On the secondary market, these bags — in excellent condition — can fetch astronomical sums.
Take the rare Himalaya Crocodile Birkin, which first broke a record when it sold at auction for more than $300,000 in 2016 and has since fetched even higher prices on the secondhand market, more recently topping the half a million dollars mark. Created for a VIP client, the bag was a sensation from the moment it came into the world, and fans have been clamoring to get their hands on it ever since.
Birkin bags can be hard to find at Hermès boutiques because of supply and demand, and not just anyone can place a special order. Appointments are by invitation-only, so clients who have already spent big sums are generally first in line. That makes the resale market a great place to find rare Hermès Birkin bags.
Of course, the rarest bags will command the highest prices. But even less-exclusive Birkin bags offer a good investment because they will hold their value and can sometimes be sold for more than the original retail price.
What to Know About Hermès’ Birkin Bag
The Birkin bag may be much younger than Hermès’ iconic Kelly bag — renamed for Grace Kelly in 1956 — but it has its own legendary story. On a flight from Paris to London in 1984, Hermès Executive Chairman Jean-Louis Dumas happened to sit next to British actress Jane Birkin. As they chatted, she complained about how hard it was to find a bag suitable for a young mother and showed him the straw tote she was using to hold the diapers, bottles and other stuff she needed. On the spot, Dumas sketched a large rectangular bag with functional pockets, space enough for baby bottles and a fold-over flap to keep everything inside. The Birkin bag was born!
The original Birkin was a spacious 35 centimeters, but now the bag comes in a tiny (and hard to find) 25 cm, a midsize 30 cm, and the very large 40 cm, which is most suitable as a travel bag. The Birkin’s short straps can be held by hand or carried in the crook of your arm.
Generally, Birkin bags are available in the Retourne style, which refers to how the edges are finished on the bags. Retourne bags are stitched together inside out, providing a softer edge. The Sellier style is instead saddle-stitched along the outside, creating a sharp edge and architectural shape to the bag. Occasionally, Hermès will release Sellier Birkin bags, and in 2020 they did so again, creating a buzz among collectors hoping to get their hands on this rare release.
Materials and Craftsmanship of the Hermès Birkin Bag
Each unique Hermès Birkin bag is handmade by a single artisan who has trained for several years to earn the privilege. The entire process, from cutting and dyeing the leather to stitching the final seams, can take 15 to 20 hours, with some special orders and rare bags taking years to complete.
Leather choices seem endless, including everything from lizard, ostrich and crocodile to goatskin, calfskin and buffalo.
Each leather choice begets another because there are just as many grains and finishes to choose from. You could get shiny crocodile or polka-dot ostrich leather. You can choose delicate and soft buffalo leather or opt for tough Epsom leather made from calfskin that will stand up to heavy use.
Color provides another sea of choices. Black, gold, red, white, ombre, grays and browns on the neutral side contrast with a vibrant rainbow of hues on the other. Want a pink bag? There are at least 20 different shades to choose from. No matter what color you pick, the leather you choose will make the color dye behave a certain way.
Hardware also comes in a variety of metal finishes, from silver palladium and gold-plated to diamond-encrusted and black ruthenium — all selected because they are the highest quality and will not tarnish.
Making such choices is a worry best left for the lucky customers who get to make special orders. Hermès releases its own combinations of leathers and colors each year. And stores never know what they’ll be getting in their shipments from Paris, which makes the secondary market a great place to hunt down that specific 25 cm black Togo leather Birkin with palladium hardware you’ve been wanting.
Hermès Birkin Bag Value and Collectibility
Hermès bags have been a guaranteed luxury investment for at least a decade, and that’s not expected to change soon. The French fashion house produces a limited number of Birkin bags each year — how many is a mystery — so limited availability continues to drive demand … and value.
As of January 2021, experts projected that year’s cost for brand new Birkin Togo bags would range between $9,000 for a 25 cm to upwards of $13,000 for an extra large 40 cm. Prices then vary even more based on color and leather. Special order bags can cost as much as a customer is willing to pay.
With so many models, colors, sizes, leathers and other Birkin bag options out there, there’s a handbag for every fashionista. For those seeking one of these legendary bags on the secondary marketplace, expect to pay approximately $15,000.
When shopping for a Birkin bag, keep an eye out for bags in popular sizes — 25 cm and 30 cm — and rare editions, like the Birkin Sellier that was rereleased in 2020. Consider the color and leather, as well. Softer leathers are less likely to be in top condition, and condition is a key concern for collectors.
Pristine condition Birkin bags that come with store receipts, a Horseshoe stamp (indicating it was a rare, special order) and the original orange box are likely to fetch the highest prices at auction.