It is the most coveted wallet in the world and is only available through invitation from the renowned French manufacturer.
And now, fashion industry insiders have revealed the fascinating secret behind the coveted Hermes Birkin bag that has wealthy bag lovers itching to snap it up.
Made from materials such as crocodile, alligator, and leathers with prestigious names like Tadelakt and Monsieur Glanet, Birkin bags are handcrafted over a minimum of 18 hours. If you buy directly from Hermes, the “base” model costs around $11,400 before tax, but special editions can go for hundreds of thousands of dollars.
But it costs Hermes about $1,000 to make an expensive handbag, analysts said. The Wall Street Journal.
Avid shoppers will go out of their way to get their hands on this wallet. They are produced in limited quantities and are usually only available to customers with a long purchasing history with the brand.
Insiders told The Wall Street Journal that Hermes shoppers must be willing to spend $10,000 on other items such as shoes and scarves before they are invited to purchase the base model.
To purchase a rare, limited-edition handbag, Hermes patrons would reportedly have to spend around $200,000 on other items in the store.
Even when presented with a coveted offer, shoppers are only shown one bag they are encouraged to purchase and are not allowed to specify its color.
Those lucky enough to get their hands on an Hermes Birkin can sell it to online resellers for around $23,000, who then list it for around $32,000.
Bag lovers say this proves that bags are a good investment — but forget about the thousands of dollars you had to spend on other items before you could get your hands on a Birkin.
“Each piece is handcrafted by skilled artisans in the Hermes atelier in Pantin, France,” Rachel Kofsky, international head of handbags and accessories at Christie’s, previously told DailyMail.com.
Cofsky explained that the bag was designed after a “chance meeting” with British film star, style icon and singer Jane Birkin in 1983.
Frustrated by her inability to find a handbag in the right size, Birkin sat on a plane to London with Hermès CEO Jean-Louis Dumas and sketched out an idea of the bag she wanted.
Birkin, who died in 2023, received annual royalties from Hermes in return for creating the now-famous handbags.
The story behind the creation of this luxury bag alone has captivated buyers around the world and boosted its popularity.
“It’s a great story,” David Dubois, an associate professor of marketing at the INSEAD School of Business, told the WSJ.
This bag was originally sold on the shelves of Hermes boutiques in the early ’90s, so it’s not like it was all that hard to come by.
Matthew Rubinger, chief commercial officer at online marketplace 1stDibs, said a dramatic economic shift occurred between 2008 and 2009, at the height of the financial crisis.
“When[limited editions]started going over $100,000, that’s when things got serious,” Rubinger explained, adding that the idea of a no-logo bag is easy to adopt from season to season and will never go out of style.
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For many fashion lovers, these iconic accessories are the ultimate status symbols, reserved for celebrities, socialites and the ultra-wealthy.
Some of Hollywood’s top actors, singers and models, including Kim Kardashian and Jennifer Lopez, have been spotted carrying Birkin bags.
Kim, a huge Birkin fan, is said to have a collection of bags ranging from $50,000 to $500,000.
This “It bag” created such a craze that people did everything they could to get their hands on it, including currying favor with Hermes employees.
Some people have brought freshly baked cookies, offered tickets to Beyoncé or private jet trips to the Cannes Film Festival, or even handed over stacks of cash to their pals just to get a Birkin.
Additionally, shoppers will likely spend thousands of dollars on other Hermes products just to prove their dedication to the French luxury brand.
Birkin collectors explained that serious buyers who want to “qualify” for a Birkin must invest in other items that are less glamorous than the handbag, such as watches, shoes, silk scarves and even an $87,500 canoe.
When new shipments arrive, Hermes salespeople refer to a specific list of wealthy customers waiting to purchase a bag.
The employee must explain why the customer deserves the bag and get a manager’s approval before proceeding.
As a result of this detailed process, the company was sued by two customers, who claimed that the company forced them to go through extremely expensive procedures just to have a chance to purchase the bags.
In March, California natives Tina Cavaleri and Mark Glinoga founded the brand. They filed a class action lawsuit alleging that in order to get a Birkin, customers had to buy other luxury items from the retailer.
according to Fashion LawsHermes was accused of antitrust violations and unfair trade practices for taking advantage of the “unique popularity, phenomenal demand and limited supply” of designer bags.
Tina and Marc accused Hermes of using the hard-to-find bags to boost sales of other products, claiming that shoppers are often told to build rapport with salespeople and work their way up to buying other items from the brand before ultimately acquiring a handbag.
The company responded in a recent court filing that it does not require customers to purchase other products in order to get the famous bag.
But even once customers have been offered a coveted bag, they often don’t get to choose which color or size they can take home, leading them to seek out resellers to fulfill their specific needs.
Reselling Birkin bags purchased from Hermes is considered a dirty secret, with no women or men willing to speak publicly about it to The Wall Street Journal for fear of being blacklisted by the brand.
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Some customers are skipping the risky process of buying a bag in a boutique and focusing solely on resellers.
Michelle Burke, founder of Privé Porter, a “private collection store of new Hermès bags,” described the Birkin resale market as a “buy now button.”
While the company clearly tells customers on receipts that they “may not resell for commercial purposes, directly or indirectly, any Hermès products purchased from our boutiques,” it is aware of such transactions because they ultimately help the brand.
In January, the brand decided to raise the prices of its exotic leather Birkin bags by 20 percent, which many resellers believe was done to take advantage of their business.
Resellers were unaffected by the price spike and sold to their customers without a significant markup.
Analysts say the number of other like-new Hermes items for sale on resale sites shows people are spending thousands of dollars on items they don’t even want.
Of the Hermes items listed on The RealReal, about 35 are in like-new condition, far outnumbering the 20% offered by rivals such as Louis Vuitton, Gucci and Prada.
One can assume that these shoes, scarves and other non-Birkin accessories were purchased solely out of a desire to ensure they got the bag.
And even if you do end up spending enough to buy a Birkin, retailers claim they are only offering a maximum of two Birkins per year.
Hermes reportedly has no plans to increase production of the bag, and making it a limited edition would not only help maintain the bag’s reputation, but also boost sales of other Hermes products as people desperate to buy a Birkin bag.