Paris Match. On March 19, Hermès was the subject of a complaint filed by two Americans in San Francisco. According to the complainants, the French leather goods manufacturer would provide access to its Birkin bags on the condition that customers have a certain ‘history’ or ‘purchase profile’ linked to so-called ‘auxiliary’ products. How did we get here ?
Osanna Orlowski. Hermès’ strategy is to arouse strong desire. Successful bet, the Birkin request [le sac le plus convoité du monde] is stronger than the supply, thus causing a growing waiting list for this model whose sales price is in the five figures. But we currently feel a certain weariness on the part of consumers. More and more people are exasperated by commercial policy and the marketing of the scarcity of luxury homes. This is also the reason why they turn to other purchasing channels, such as second hand offered by resale platforms or auction rooms, to buy the much desired bag in a less complicated, more convenient way. healthy.
Is the bag more than ever a safe investment?
The figures of Hermès’ winning trio, the three most iconic It bags of the brand, speak for themselves. On the second-hand market, the Birkin traded on average for 9,868 euros in 2018. In 2023, 14,934 euros, an increase of 51% in five years. And 197% in fifteen years. As for the Kelly, it sold on average for 5,550 euros in 2013 and 19,980 euros in 2023, therefore a growth of 260% in ten years. And as for the last One on the podium, the Constance, its value has increased tenfold in ten years. If these increases are obviously explained by the scarcity effect, the price of new goods and inflation have nothing to do with it. For example, Chanel’s Timeless has seen an increase of almost 284% in ten years, going from 2,250 euros to 8,650 euros. This model, like other iconic ones, such as the Speedy by Vuitton, is therefore a safe investment which will maintain a market value, and whose price is not about to fall.
How do you explain that this accessory has become a financial investment in the same way as an apartment, a work of art or a Cac 40 share?
It is a fairly recent phenomenon, unlike the worlds of jewelry and watchmaking, which have attracted investors and collectors for a very long time. It is quite simply linked to the explosion of the second-hand market, and I would therefore date its appearance between five and ten years. And the reason is simple: customers today know that the luxury handbag is a product that is easy to resell. Which therefore makes it an investment piece like a financial investment. Understand: it is not going to have a 70% discount straight out of the store. But the goal is not always speculation. If a designer bag from a major brand certainly has a liquid value, the return is rarely the only reason for the purchase. Indeed, it remains a fashion accessory that we will be able to enjoy. Which is another part of the profit. In most cases, clients are more interested in investment than speculation. It remains to be seen what the next few years have in store for us.
At the top, the Kelly Himalaya from Hermès sold at a record price…
Is the added value automatic?
It is important to remember that what has the biggest impact on the resale price is the general condition of the bag. To maintain its investment value, and possibly hope for future capital gains, it must be carefully maintained, preserved and pampered. So be careful of scratches, stains, rain… And it is very important, not to say fundamental, to keep your certification of authenticity, your original box and paper.
This variation of the Kelly in Nile crocodile is very rare. One of the models holds the record for the most expensive bag in the world: 365,545 euros, sold at Christie’s in 2020.
Paris Match / © Dorian Prost
What is the bag of all records?
This is the Kelly Himalaya from Hermès, sold for $437,330 [soit 365 545 euros] at an auction organized by Christie’s in Hong Kong, November 27, 2020. Made of diamond-encrusted Nile crocodile skin and hand-dyed in a white and beige tie-dye reminiscent of the colors of the highest chain of mountains of the world, it is the rare pearl of any collector. Only one or two models are created each year by the saddler-leatherworker, making it one of the most popular It bags on the planet. We have one on sale right now at Collector Square for 178,000 euros, but it doesn’t have the diamonds!
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Hermes again…
It is a house apart, with a unique history and know-how. For example, a Birkin bag is entirely handmade and requires fourteen hours of work.
When artificial intelligence gets involved…
Have social networks helped to make these bags icons of fashion and finance?
Yes quite. It’s amazing how Instagram and TikTok increase focus on the same products. The more a bag is seen on the feeds of celebrities, influencers or even anyone else around them, the more demand explodes. We could have imagined that social networks would help promote more confidential labels and diversify the offer. On the contrary, they increase attention to the same topics. Today and especially in the world of luxury, everyone wants the star bag and seems ready to do anything to get it…
And if you had to bet on an outsider, who would it be?
At Collector Square, we tend to recommend the safe bet, therefore an iconic model. But we also know that over the course of history certain models reissued by luxury houses have seen their popularity take off. I’m thinking, for example, of the Saddle from Dior, presented for the first time by John Galliano during the spring-summer 2000 ready-to-wear collection show and reissued by Maria Grazia Chiuri in 2018. If I had to now To make a bet on the future, I would probably bet on the limited edition of Louis Vuitton with the Japanese contemporary art artist Takashi Murakami, launched in 2003. These colorful monogram bags were everywhere, we don’t see them anymore, so why not a comeback?
Luxury bags, signed Hermès, Gucci and Chanel, designed in Lego, caused panic on social networks in December. Generated by artificial intelligence (AI), these small brick It bags were decoys. When AI exceeds our dreams… What do you think?
This story reflects the infinite desire and the power of imagination around these pieces that have become icons! But, beyond the image that these mirages represent, I remain convinced that these objects arouse the desire for ownership, with this idea of traditional, material possession. And this status symbol which represents success, social success, accomplishment.
