Is a Hermes Bag Really Worth the Investment? New Study Reveals the Truth.
When it comes to designer bags, the Hermes brand is the one to invest in if you want to receive the largest return on your investment. Unlike the majority of designer clothing, where the value will depreciate over time, Hermes bags are the rare items that actually will appreciate in value.
What is it that makes the Hermes bag such a valuable investment? Nick Drewe, retail expert at online discounts platform, Wethrift has provided insight on investing in the iconic Hermes bags.
As part of our research into which designer handbags retain or increase in value, the trends team found that the Hermes Birkin bag was being resold on a verified resale website for 468.19% greater than its listed RRP.
- Limited supply
As with any product, supply and demand will impact the price, as well as the resale value. When it comes to the Birkin and the Mini Kelly bags by Hermes, the brand only produces a very limited amount per year. There are approximately 200,000 Birkin bags in circulation, and the limited production of new bags has enabled a profitable resale market to grow. - Exclusivity
When it comes to purchasing a Birkin or a Mini Kelly bag, it isn’t as simple as going online and adding it to your basket. Often, you will be required to place an order at a Hermes boutique store, and yes, there’s almost always a significant waiting list before you can get anywhere near. Also, Hermes set a purchase limit on how many of the products you can buy, making the bags even more exclusive. Unfortunately, Hermes tends to be selective over who gets priority purchases, therefore, the best method for to acquire a Birkin or a Mini Kelly is via authenticated resale sites. - Durability
The Birkin and the Mini Kelly bags are made to last – they are hand crafted with high quality materials that are extremely difficult to source. This gives them a long life span, making them the perfect collectable item to only appreciate in value over time, providing you keep it in good condition, of course. - Celebrity owners
It’s likely that you’ve seen the Birkin and Mini Kelly bags on the arms of some pretty high profile celebrities. Notable iconic Birkin bag owners include Victoria Beckham, Kim Kardashian, and Kate MossThe celeb owners have helped to make these bags an instantly recognisable status symbol. - Prominence in popular TV shows
- Not just worn by celebrities, the Birkin has also been made infamous by its appearance in popular television series, such as on the arm of Carrie Bradshaw in Sex and the City.
- Rare skins or colours
When it comes to investing in a Hermes Birkin or Mini Kelly, all of the bags will appreciate in value over time, regardless of the colour. However, short-term investors should pick neutral colours. For those looking to invest on a longer term basis to gain greater returns, do your research into the rare colours and skins. For example, the crocodile skin or brightly coloured Birkins will gain far more resale value.
It’s no surprise that there are plenty of fake Hermes bags circulating on resale sites. This is why it’s important to always used verified resale sites with an authentication service, to avoid falling victim to scammers
Other key giveaways of a fake Hermes bag:
- Check the dimensions and shape of the bag – Birkins will appear slightly curved rather than rectangular.
- Do the handles match the body material of the bag? If they don’t match exactly, the bag is a fake.
- Does the stitching look uniformed as if mass produced by a machine? Hermes bags are handsewed, and although the stitching is of high quality, it should not look uniformed.
- Check the metal hardware on the bag – if it feels light or is thin, this will signify that it is poor quality and a fake.
- Birkin bags come with a padlock hardware and key attached. The metal of the key should match up to the rest of the hardware on the bag. If the key looks toy-like, this signifies that the bag is fake.
For more information on bags that gain the highest resale value, the full Designer Discounts report can be viewed here: https://www.wethrift.com/articles/designer-discounts/
