A gamechanger, in the bag: the Birkin by Hermès
Ever wondered how the rich can manage to spend thousands of dollars on a daily basis? Here is one luxury item that can cost up to an average person's annual income: a bag
Welcome to the seventh issue of the Game Changer series! Today I will be talking about a bag only the one per cent can comfortably afford: the Birkin.
The Birkin is an infamous handbag because of its expensive price tag. To learn more, I did an in-depth research on how this bag became the “it bag” and has remained so — only increasing in value. I also interviewed Astrid Superstar to understand how exclusivity matters to one’s identity.
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Happy Reading!
-Tanzila Patel
The Birkin by Hèrmes
If you were given a choice between the down payment for a luxury condo downtown or a tote bag, what would you choose?
While the answer to the question is quite simple for a lot of people — they’d take the condo — there are some people who might choose the bag, particularly if it’s a bag with a very famous brand attached to it: Birkin.
Unlike other tote bags, the Birkin bag is different. This bag which was created because of, well, a complaint — one made by a tired mom. She was tired of not finding the right bag.
In 1984, Jane Birkin, a well-known musician and actor, was collaborating with Jean-Louis Dumas, then CEO of Hermes. Birkin voiced concerns about her bags, saying they were lacking functionality and weren't able to keep up with her busy lifestyle.
Soon after, the Birkin bag was born. It takes Hermès a minimum of 18 hours to craft each bag to perfection from start to finish. To get one, having the funds isn't the only power you need. In order to buy the Birkin, you must have a purchase history with Hermès and can only buy whichever model you are offered at that moment.
Hermès makes sure the quality of the bag is top notch to justify the costs. There is no limit on how much a Birkin costs but the cheapest one starts at about $10,000. On the other end of the spectrum, the white Matte Crocodile Himalaya Birkin with Palladium Hardware has a price tag of $192,000 USD. That’s enough for the the down payment on a two-bedroom condo in Toronto.
The brand has avoided the mistakes made by some other luxury retail brands that have seen their brand image falter. Birkin bags have kept a strong image and consistently managed to deliver quality pieces. High price tags in luxury retail bags aren’t a new concept but the timeless nature and the scratch-proof quality of the bag have resulted in an increase in value for older model bags. As a point of comparison, Chanel’s timeless bag could potentially get you 80% of the retail value if you wanted to sell an old one, but there's historically been no way but up — an increase in value — for the Birkin.
Astrid Superstar, part of the core team of Fashion Art Toronto, says part of Birkin’s appeal is getting something entirely unique.
“I think it is all about exclusivity — I want to be the only one who gets to own this in the world,” says Superstar.
Exclusivity is one of the biggest reasons brands cite for high prices. Brands such as Supreme and OFF White create hype around products by doing releases in a limited quantity — often with one-time-only releases.
This business model is the opposite of more traditional approaches, where companies make more products to respond to increased demand.
In the fashion world, the business model is instead about creating as much demand as possible but with very limited products — which makes it easier for brands to raise the prices for the highest bidder.
Celebrities like the Kardashian-Jenner family, Beyonce and Drake — yes, even Drake — are notorious collectors of the Birkins. They are known to own multiple Birkins, and often show off their luxuries on their social media platforms.
Vanja Vasic, executive director of Fashion Art Toronto, says that she doesn't believe or follow trends, but is appreciative of timeless pieces.
The popularity of the Birkin doesn’t come from marketing. Hermès doesn't run ads for the Birkin. In fact, you can’t even buy the bag on their official website. You have to build your customer portfolio to be considered. Once you prove your loyalty to the brand you are offered a limited choice of styles and are expected to make a decision to make the purchase or not.
Most of the time, people purchase.
Fashion influencers like @Luxecollective and many other luxury enthusiasts are known for recording their journey of buying and reviewing expensive bags on their social media platforms — gaining a lot of followers in the process.
Birkins are often compared to investing in stocks or real estate because of their high resale value. Their scratch-proof material also makes it easier for collectors and investors to ensure good quality.
But, while it is an investment with an almost guaranteed profit in the end — if buyers sell — it is nearly impossible to get your hands on one unless you have a purchase history and at least $10,000 lying around your house.
📊 According to Canada.ca you need to put down at least 5% of the selling price if you wish to buy a condo in downtown Toronto which comes around to $20,000. Would you rather cover a condo’s down payment or buy a Birkin — which could double in value next year?
Related Reading
Harper’s Bazaar| The Most Iconic Celebrity Birkin Moments Ever — The Birkin may be an outrageous expense for the general public but for celebrities it is a staple piece. Read about some of the iconic celebrity moments featuring the Birkin.
Forbes| The Perfect Balance: How Luxury Brands Can Maintain Exclusivity And still be relatable online — Joseph DeAcetis talks about how luxury brands remain relevant while still being unaffordable to the most.
BOF| Anyone Can Now Invest In A Rolex or Birkin. But Should They? — Thinking of investing in a fashion piece? Read this piece to recognize the risk behind making these purchases.
About the Author
Tanzila is a content writer and a journalism student who is interested in writing about all things fashion, business and lifestyle. She constantly looks forward to having interesting conversations over iced lattes and meeting new people.
Have a cool idea or topic to talk about ? DM me on twitter or email me at tanzilayp@gmail.com
Birkins, how iconic!