The iconic Hermès Birkin bag has dominated fashion magazine covers, swayed from the arm of countless celebrities, and sold for record sums of money at auctions. The instantly recognizable design, vivid colors, exotic materials, and meticulous attention to detail make the Birkin the most desired handbag in the world. A Birkin bag can sell for significant profit on the secondary market, combining its iconic status with the reputation as a genuine investment opportunity. However, why is a Hermès bag so expensive? What makes the Birkin stand out from its competitors? There are several factors at play, all of which combine and contribute to the high value of Birkin handbags.
Continuing from the previous point, the steady value growth for Birkin bags is certainly a contributing factor in the high price of Birkin bags. Since the launch of the Birkin bag, the price has risen by an average of 14.2% per year, outperforming traditional investments such as the S&P 500 and gold markets. This consistent value increase has several consequences which help to explain why Hermès is so expensive.Firstly, the average value increase far outperforms inflation and represents a significant average yearly rise in the cost of buying a Birkin.
Hardly a day goes by without a celebrity or famous figure sporting a Birkin bag for the paparazzi. Celebrities such as Lindsay Lohan, Victoria Beckham, Kim Kardashian, and Sarah Jessica Parker regularly don their Birkins in public. Even the first lady, Melania Trump, proudly displayed a crocodile Birkin when moving into the White House. Incidentally, as soon as the image of the first lady with her Birkin spread online, the demand and consequently value of that particular Birkin rose dramatically as people desperately tried to locate and purchase a similar bag. The Birkin’s big break in popular culture occurred in its 2001 appearance on “Sex and the City, ” and ever since then, the bag’s continuing presence in popular culture has contributed to demand and value.