Handy ASSET
Established in 1837, the Hermès brand now ranks alongside the luxury Olympus. The bags not only defy trends, but also defy the laws of fashion and have established themselves as a lasting investment. An excursion into a world of superlatives.
A word that sends bag connoisseurs into raptures: “Birkin”. This bag, designed by the British actress Jane Birkin together with the then Hermès CEO Jean-louis Dumas in 1983, is in a class of its own and stands for everything that has made Hermès the Holy Grail of luxury bags: Exclusivity. From the customer selection process to the waiting list - the ritual of owning - or should we call it “being allowed to own”- an Hermès is “part of the game” and also the process that the Parisian Maison perfects down to the smallest detail. The “Himalaya Birkin”, dubbed the “rarest handbag in the world”, and its little sister, the even rarer “Himalaya Kelly”, are even more rigorous. It is only the unique art of processing the crocodile leather in the Hermès manufacture
that reminds of the iridescent white-brown and the Himalayan mountains. Just as high as, are the prices that have made the triumvirate of Hermès bags - “Birkin”, “Kelly” and “Constance” - attractive as an investment.
High in demand
This is confirmed by a look at the prices in the reseller market. The fact that a Hermès “Birkin” outperformed gold in terms of value growth is remarkable. Even more noteworthy is that it outperformed the famous S&P 500 stock index by a long way. Even in the crisis year 2020, the world’s largest fashion portal Lyst recorded a 430 percent increase in demand for Birkins. Among them are rarities like the “Hermès Kelly Picnic Bag”. Rachel Koffsky, handbag and accessories expert at Christie’s in London, also confirms this in an interview with L’officiel Austria: “The crisis has had an unexpected effect on the handbag business. There is an increase in the buying interest in luxury bags. Because many boutiques had closed, people looked to the resell market. In June 2020, we set two world records for handbag sales at our auctions in Hong Kong.”
Investment Pieces
It is clear that we are talking about selected pieces in limited editions. The fact that Hermès sets the clasps on some models with diamonds and optional makes them either in palladium, gold or white gold also contributes to the value. Nevertheless, the demand for the classic versions of the “Birkin” and “Kelly” bags continues unabated. Tastes are different, so there is a buyer for every bag, says the expert.
Bag trio
The third “in the bag trio”, the “Constance”, is also always among impressive designs, at the forefront at auctions, and is popular among collectors. In June 2021, an “Électrique Porosus Crocodile Mini Constance 18” with 18-carat white gold and diamond fittings earned the equivalent of 158,000 euros, beating the estimate of 100,000 euros by a long way. However, it still did not set the record that a “Himalaya Kelly” auctioned in Hong Kong in 2017 brought in: over 370,000 euros. Demand will continue to grow, Rachel Koffsky is sure: “Through social media, famous collectors and re-sale platforms, the attention is increasing. The community is growing every day.” Finally, the quality of the bags is so extraordinary that they are made to last for generations.