All About the Hermès Birkin
The ultimate status-symbol handbag.
The Hermès Birkin is one of the most coveted and expensive bags in the world — inspiring dedicated blogs and Tik Toks, and commanding waitlists from Marseille to Melbourne.
It is the ultimate carriable status symbol for the successful, the famous, and the fashion-loving… but what are the economics behind it? Why does one handbag command such a premium, and who are the people willing to pay it?
Jane Birkin's personal Black Togo Birkin, which sold for £119,000 at Bonham's London auction house in July 2021.
The Birkin bag was first launched in 1984 by Hermès' then-chairman Jean-Louis Dumas, who was inspired to create the bag after seeing Jane Birkin, the British actress and singer, struggling to carry her belongings in her signature wicker basket. Dumas created the Birkin to be a more luxurious and stylish alternative, and its chic sense of practicality quickly made it a hit not just with celebrities but with stylish women worldwide.
When it was first released, a standard Birkin could be purchased retail for around $2000 USD. Today, a standard Birkin starts from around $10,000 USD, and bags made with exotic animal skins are much higher — in some cases up to half a million dollars. The economics of the Birkin’s value, and why it continues to rise, are complex, but they start with the exceptional materials (including crocodile, ostrich, and python skins), and, as Webb’s Manager of Luxury Accessories Jess Mackenzie explains, the craft:
“Each bag is handcrafted by a highly trained and skilled artisan, who must undergo 3-4 years of rigorous training before they are able to start creating their own bags,” says Jess. “These artisans are in charge of making a Birkin from start to finish, using the same tools that were used in the 19th century. This process takes at least 18 hours to complete, and the meticulous techniques used ensure the bag is of the highest quality, and will withstand a lifetime of use”.
As traditional making skills die out and the consumer (and literal) landscape becomes increasingly awash with throwaway fast fashion, hand-crafted, artisan goods are all the more prized, says Jess. They communicate not just the financial success of the owner, but their discerning eye and appreciation for expert craft too — not unlike how one would approach buying a work of art.
As with all collectible goods, the demand for the Birkin also plays a role in its cost. Put simply: despite the price tag, there are more people who want to buy Birkin bags than there are bags available. This creates a sense of exclusivity, which drives up their value even further.
“The Birkin holds a special place in the history of fashion, and being able to buy a designer handbag that will hold its value over time is very appealing to collectors,” says Jess, who adds that people have been known to wait for years to get their hands on a Birkin.
“With limited production, there is a difficulty in acquiring one from a Hermès store, and that coupled with strong demand from handbag collectors makes the Birkin highly coveted.” She points to a veritable cottage industry of Tik Tok and YouTube accounts dedicated to helping would-be owners circumvent waitlists and quota systems (where a customer is required to build up a spend history before being granted access to a Birkin).
The Birkin’s status as the pinnacle of handbag collecting means they are increasingly being purchased purely as an investment — joining traditionally male-dominated forms of collectible investment such as art, fine wines, and memorabilia. A 2016 study by Baghunter sensationally revealed that the annual return on a Birkin was 14.2%, compared to the 8.7% a year average for S&P 500 stocks and the -1.5% for gold.
The fact that bags like the Birkin are drawing more women to auction houses and investment discussions is something that excites Jess, who points out that handbag collecting is the only female-centric category in the auction world:
“With other departments, it is very common for men to do the purchasing, even with jewellery. With handbags, it is much more common to see women doing the purchasing, and taking ownership of their own collection. There is also a broad age range in collectors, starting from as young as early 20s. We love to see more women exploring alternative investments, and bags can be a great gateway into that broader collector journey”.
Dovetailing with the rise of the Birkin is the exponential increase in desire for pre-loved luxury items — a phenomenon that is redefining the fashion industry. According to trend forecasting agency Stylus, 31% of UK consumers used second-hand clothing websites to buy or sell items in 2022. This was up from 20% in 2019. A 2022 Forbes article estimated the global market value of second-hand clothing at $96 billion U.S. dollars.
Jess is noticing more collectors turning to the secondary market to purchase their desired statement bags, including the Birkin. Not only does buying at auction mean avoiding long waitlists, but with Hermès having no retail presence in New Zealand, auctions are often the only option for those hoping to take the plunge into the exclusive world of Birkin ownership.
In exciting news for New Zealand’s aspiring Birkin owners, two such opportunities will present themselves on Monday 26 June, when Webb’s puts a duo of Birkins under the hammer as part of its Fine Jewels, Watches & Luxury Accessories live auction. The first is made from vibrant Lime Epsom Leather, in size 30 with palladium hardware; the second is a Mousse Ostrich Leather example, also in size 30 with palladium hardware. Jess points out that this will be the first time Webb’s has presented an exotic ostrich leather Birkin, making it a very special opportunity for collectors. She expects interest to be high, referencing previous auction results including the $45,603.31 Webb’s secured for a dove grey model in 2022.
“Within the handbag world, Hermès bags are the most valuable and hardest to acquire on the primary market. This is why auctions are a great option. At Webb’s, we frequently see Birkin models selling above their high estimate figures, because collectors know they are investing in expert craftsmanship, and purchasing a true work of art from a brand with a rich history”.