Hermes have been creating exquisite leather pieces since 1837, and are world renowned for their superb craftmanship, exquisite attention to detail and product exclusivity. Established in Paris by Thierry Hermès, the brand was originally a harness workshop, dedicated to serving European noblemen. They created their first handbag in 1922.
Adored by fashionistas and keen collectors around the world, an Hermès bag is the pinnacle of luxury investments. The brand’s range of handbags are extremely sought-after, particularly the Birkin, the Kelly and the Constance, making them a savvy acquisition, as demand is always high. Hermès are an independent company who employ hundreds of skilled tradespeople and artisans that specialise in their trade, creating a workforce able to sustain the brand’s longstanding reputation of world-class design and craftmanship.
Why are Hermès bags so exclusive?
Hermès handbags are seen as symbols of luxury around the world. Victoria Beckham reportedly owns over 100 Birkin's, and in restaurants in Monaco, Hermès handbags get their own seat!
One of the reasons for the high demand in Hermès handbags is the limited accessibility and availability to buy them new. Customers are not able to simply walk into an Hermès store and leave with whichever Hermès bag they like. Firstly, the waiting list for an appointment to buy a new Birkin can be anywhere between 3 months and six years. Secondly, when you get an appointment, you have the choice of just a handful of styles and colours that the particular boutique has on-hand. You cannot request a specific style or colour, but rather must select from what is available. Both factors mean that getting your hands on a Hermès bag, let alone in the style or colour you want, is not easy.
Another reason for the brand’s luxury status is the quality. Each Hermès handbag is handmade by just one individual, and all the materials used are carefully selected to ensure the bag is of the highest quality. The price of a Hermès bag depends on the rarity of its materials and hardware, but in general a new Kelly handbag starts at £6,000, and a new Birkin handbag starts at £7,000.
Why invest in Hermès bags?
So, why invest all that money in a bag? According to a 2016 study, the Hermès Birkin far outperformed the price of gold in the 35 years prior and had a higher return of investment rate than both gold and the stock market, increasing in value steadily every year and offering an average annual increase in value of 14.2%. This means Birkin’s had increased by 500% in value over the 35 years prior, making them a safer investment than investing in the stock market. The value continues to rise today.
The most expensive Hermès bag ever sold was an extremely rare matte Himalaya Niloticus Crocodile Birkin 30, with 18k white gold and diamond hardware. It sold in auction at Christies, Hong Kong, in 2017 for more than £293,000! It is called the ‘Himalaya’ because of the delicate graduation of the exterior, resembling the Himalayan mountains, which is achieved by the most expert craftsmen who take years to master the technique.
Image credit: Christies
Providing the condition of a Hermès handbag is cared for, bags can reach up to 80%-120% of its original price at resale. Bags should be kept away from the elements, stored in their original dust bags, and stuffed with light paper to keep the shape. Receipts and documentation should also be kept safe.
Which Hermès bag should you invest in?
When it comes to purchasing an Hermès handbag, there are two ways of investing. For those that want a safer investment, it is advised to choose classic silhouettes and colourways that will not dip in demand. These will maintain a consistent increase in value and finding a buyer won’t be hard. For those that want to make a bolder purchase, a rare bag in unique prints, colours or fabrications will become increasingly exclusive over time, and therefore will likely be worth significantly more than you originally paid.
The best styles to invest in are:
Hermès Kelly
Originally called the Sac à Dépêches, this handbag was introduced in 1935, and was later renamed the Kelly handbag in 1977 after the Princess of Monaco, Grace Kelly. The Kelly handbag has one handle and a shoulder strap and is a slightly smaller bag in depth than the Birkin.
There are 2 models of the Kelly handbag, the Sellier and the Retourne. The Sellier has stitching on the outside and has more sharply defined corners than the Retourne. The Retourne is stitched internally, so is essentially handstitched inside out until the final stages of creation where it is turned the other way.
Hermès Birkin
Perhaps the most famous Hermès handbag, the Birkin was created after Chief Executive Jean-Louis Dumas encountered English actress Jane Birkin on a flight, who explained how she couldn’t find a handbag big enough to fit her daughters bottles in – the Birkin was born.
The Birkin has 2 handles and no shoulder strap. The bag is completely lined inside which makes it heavier, and should be worn on your forearm or in your hand as the shoulder strap wont fit over your shoulder. The most popular Birkin sizes are the mid-sized bags, between 30cm and 35cm.
Hermès Herbag
Sometimes referred to as “The Kelly bag’s little sister”, the Hermès Herbag is made from durable, modern canvas and trimmed in cowhide leather, and is a great starting point for a Hermès bag investment. Created in 2000, the Herbag combines the classic elegance of Hermès handbags with a more modern design. Hermès produces this bag in 3 different sizes and in a wide range of different coloured leather and canvas combinations.
Hermès Constance
Named after the fifth child of Hermès designer Catherine Chaillet, and popularised by Jackie Kennedy (First Lady of the United States during the presidency of John F. Kennedy – and regarded an international icon of style), the Constance was created in 1959 and is an elegantly shaped and practical Hermès handbag choice admired by collectors.
The highest price a Constance has gone for in auction was $89,000 – which was a Niloticus Crocodile 24 with palladium hardware in 2016.
Discover our full collection of authentic Hermes handbags.
