The Hermès Birkin bag is renowned as one of the most sought-after purses globally and can only be obtained through an exclusive invitation from the prestigious French luxury brand.
Fashion insiders have disclosed intriguing details about the coveted Birkin bags, crafted from materials like crocodile and alligator skins and luxurious leathers such as Tadelakt and Monsieur Grainee. These high-end bags are meticulously handcrafted, taking a minimum of 18 hours to create. The standard model retails for approximately $11,400 before taxes when purchased directly from Hermès, with special editions reaching hundreds of thousands of dollars.
Despite the steep price tags, analysts revealed that it costs Hermès around $1,000 to produce each Birkin bag, as reported by The Wall Street Journal.
Enthusiastic shoppers eager to acquire these coveted bags face unique challenges due to their limited availability. The bags are typically reserved for clients with an extensive purchase history with the brand, requiring customers to spend a significant amount on other Hermès products.
Hermès Birkin bags cost customers tens of thousands of dollars but the bag cost the company just about $1,000 to make, according to analysts. (pictured: A $129,000 crocodile Birkin bag)
Kim Kardashian is seen arriving at the stadium in Osaka with one of her many Birkin bags in hand
According to insiders interviewed by the Journal, Hermès clients must spend a substantial amount, starting at $10,000 on other Hermès products, to have the opportunity to purchase a standard Birkin model. For those vying for a rare limited edition, it’s estimated that spending around $200,000 on additional items in-store is required.
Even when an invitation to buy a Birkin is extended, customers are presented with only one bag and are not permitted to choose its color.
Individuals fortunate enough to secure a Birkin from Hermès can resell it to online platforms for approximately $23,000, with these resellers listing it for an average of $32,000.
While some view these high-end purses as valuable investments, the significant amount spent on other Hermès products before acquiring a Birkin is often overlooked by bag enthusiasts.
‘Each Birkin bag is meticulously crafted by a skilled artisan at the Hermès atelier in Pantin, France,’ stated Rachel Koffsky, the international head of handbags & accessories at Christie’s, in an interview with DailyMail.com.
Koffsky shared the story behind the Birkin bag’s creation, which originated from a serendipitous encounter in 1983 between British style icon Jane Birkin and Hermès’ chief executive Jean-Louis Dumas. Frustrated by the lack of the perfect-sized handbag, they sketched the concept for the iconic bag during a flight to London.
In exchange for inspiring the renowned purse, Jane Birkin received a royalty from Hermès annually until her passing in 2023.
The fascinating backstory of the luxurious Birkin bag has captivated buyers worldwide, contributing to the bag’s allure and popularity.
‘The narrative surrounding the Birkin bag adds to its appeal,’ commented David Dubois, an associate professor of marketing at Insead business school, to the Wall Street Journal.
Customers who are lucky enough to score a bag sometimes offload them to resellers for more than double the retail price. (pictured: An Hermès store in Hong Kong, China)
Actor and singer Jennifer Lopez is seen carrying a black Birkin bag as she steps out in NYC in April
The Birkin bag was initially more accessible, being sold directly on shelves at Hermès boutiques in the early 1990s. However, a shift occurred during the 2008-2009 financial crisis, drastically changing the bag’s availability and exclusivity, according to Matthew Rubinger, the chief commercial officer at 1stDibs, an online marketplace.
The ‘it bag’ has caused such hysteria that people have done nearly anything, including sucking up to Hermès employees at the stores, to get one. (pictured: Cardi B showing off her Hermès Birkin Faubourg bag)
In March, two Californians, Tina Cavalleri and Mark Glinoga, slapped the brand with a class-action lawsuit, alleging that they were required to purchase other luxury items from the retailer in order to obtain a Birkin
Individual Hermès sales assistants have specific lists of wealthy clients waiting to snag a bag that they consider once a new shipment comes in
However, even after customers are offered one of the coveted bags, they are often not given a choice of color or size, leading them to turn to resellers for their specific preferences.
Reselling a Birkin from Hermès is seen as a secret practice, and those who engage in it are hesitant to speak out publicly for fear of repercussions from the brand.
Some customers have chosen to skip the challenging process of acquiring a bag from a boutique and instead rely solely on resellers.
Michelle Berk, the founder of Privé Porter, a store specializing in fresh Hermès bags, likened the Birkin resale market to a “buy-now button.”
While Hermès prohibits the resale of its products for commercial purposes, the company acknowledges that the secondary market ultimately benefits the brand.
In a move that some resellers believe targeted their business, Hermès raised the price of its exotic-skin Birkin by 20 percent in January. Despite this, resellers managed to continue selling to customers without passing on the full price increase.
The abundance of pristine Hermès items available for resale indicates that consumers are spending significant amounts on products they may not necessarily desire just to have access to the sought-after Birkin bag.
TheRealReal has around 35 pristine Hermès items listed, more than the 20 percent of items from competitors like Louis Vuitton, Gucci, and Prada, suggesting that some purchases were made in anticipation of obtaining a Birkin.
Even after making substantial purchases to qualify for a Birkin, customers are reportedly limited to acquiring a maximum of two bags per year from the retailer.
Hermès reportedly has no plans to increase production of the Birkin, opting to maintain its exclusivity to enhance the bag’s allure and drive sales of other Hermès products to customers eager for a chance to purchase the coveted bag.
