- Hermès bags are a symbol of luxury and status even after over a century of handcrafted exclusivity.
- The brand’s handbags are great investments, with annual returns exceeding those of typical stocks.
- Despite economic challenges faced by competitors, Hermès sales continue to surge, maintaining its untouchable market position.
Trends come and go — one day everyone’s obsessed with viral TikTok dances, the next it’s a new iPhone drop or the latest Air Jordans. But Hermès has been turning heads for over 100 years. People don’t just want a Hermès bag — they dream of one, they chase one, they wait years for one. And that obsession doesn’t seem to be dying anytime soon.
Look at the example of the Birkin bag. Sure, it doesn’t spark a mad rush but the hype is just as real. At one point people had to wait six years (yes, six years — even a bespoke Rolls-Royce could be delivered much sooner) to get one but even with shorter waits today, getting a Birkin still feels like winning the lottery. Because let’s face it, Hermès isn’t only selling leather but also a symbol of status along with entry into an exclusive world.
The Story of Hermès
It all started in 1837 when Thierry Hermès opened a small workshop crafting leather goods for high-society horse riders. For decades, the brand was all about saddles and equestrian gear, until 1922, when Émile-Maurice Hermès designed a handbag for his wife because, apparently, she couldn’t find one she liked. Talk about setting the bar high for husbands everywhere.
Then, in 1935, the Kelly bag (originally called the Sac à Dépêches) was created. It was already popular among the elite, but when Princess Grace Kelly used one to shield her pregnancy from the paparazzi in 1956, the bag became an overnight symbol of elegance and increased its appeal to the general public.
Fast forward to 1984, the Birkin bag was created, and with it, Hermès secured its place in luxury history. Actress Jane Birkin and Hermès CEO Jean-Louis Dumas were seated next to each other on a flight. Birkin, frustrated with her handbag’s lack of functionality, vented about the struggle to find a stylish but practical bag, so Dumas sketched out a new design right then and there on an aeroplane sick bag.
That napkin-doodle moment turned into what is now the most luxurious handbag in the world. Over time, demand for it skyrocketed to the point that Hermès couldn’t meet production numbers and this further heightened the bag’s desirability.
Why Hermès Bags Are Worth a Fortune
But What makes Hermès bags so special, and why do they have such astronomical prices? Two words: craftsmanship and scarcity. Each Hermès bag is stitched by artisans who undergo years of training. It can take up to 48 hours to make just one depending on the style. From smooth calfskin to exotic crocodile leather, only the finest materials are used for the bag and the wide colour options further increase their visual appeal.
Then there’s the exclusivity factor. The bags aren’t mass produced which is why these bags are rarer than front-row seats at Paris Fashion Week. This has turned them into what economists call “Veblen goods,” where higher prices only boost demand. That’s why a basic Birkin starts at around $11,000 USD, but more rare versions can go over $1 million USD.
A Better Investment Than Stocks?
Believe it or not, Hermès bags have become investment darlings. The Birkin has consistently outperformed traditional equity stocks. While the S&P 500 averages about an 8% annual return, certain Birkins clock in at 16%. Even the resale market is profitable. A used but well-kept Birkin can sell for double, sometimes triple, its original price. Forget stocks and crypto — you can treat these bags like financial assets.
The “Wirkin”
Regardless, some people are not able to afford a Birkin or are just not willing to drop five figures on a handbag. Walmart has those people covered with its creation of the “Wirkin,” a dupe of the Birkin, retailing for under $100 USD. Social media went wild over it, and TikTok blew up with unboxing videos. This resulted in the dupe selling out almost instantly. Sure, the “Wirkin” won’t get you into high-society galas, but it’s still perfect for those wanting the Birkin vibe without the Birkin price tag.
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The Craze Beyond Logic
Hermès bags are definitely important in fashion but in recent times they have also become part of personal milestones.
Take, for example, the viral TikTok story of a woman who purchased a Birkin bag as a means of embracing a fresh start her divorce, as a new chapter. Or the one about a boyfriend who tried to salvage his relationship by purchasing his girlfriend two Birkins as an apology for infidelity — only for her to resell both bags and leave him anyway (Moral of the story: Sometimes, even a Birkin isn’t enough to fix a mistake). These stories show how these bags have become emotional symbols and not just arm candy.
This deep, almost illogical level of attachment is what has set Hermès apart from its competitors and in a time where most luxury brands face slow growth or reduced sales due to difficult economic periods, Hermès’ sales are only growing.
A Billionaire Brand That Refuses To Slow Down
“Hermès defies gravity.” This phrase couldn’t be truer because if there’s one brand that laughs in the face of economic downturns, it’s Hermès. While luxury powerhouses like LVMH and Kering have felt the sting of slowing sales—leading even billionaires like Bernard Arnault to take a financial hit—Hermès keeps going higher.
In 2024, Hermès raised its prices globally by up to 7%. It was expected by many that the sales would now decrease but Hermès said not a chance. The company enjoyed an 18% sales boost in the fourth quarter, breaking past a $314 billion USD market valuation for the first time ever. Hermès is not surviving the luxury slowdown — it’s thriving.
At this point, Hermès is in a league of its own, where competition feels almost irrelevant. While others scramble for relevance, Hermès moves at its own pace, letting its reputation do the talking. It’s like watching Usain Bolt cruise past the finish line while everyone else is still pushing off the starting blocks. A Hermès bag isn’t just a purchase — it’s an entry into an exclusive world. In a market where trends easily fade, Hermès stands tall, proving that true luxury never goes out of style.
