The Hermès Bag Investment Guide
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The Hermès brand requires no introduction no less so their it bags Kelly, Birkin and Constance, but if we had to say something about them, it is that they epitomise French luxury. Hermès is an inter-generational brand, recognised worldwide and which dominates the luxury market thanks to its exceptional quality. Their inimitable skill for reinventing their classic handbag designs in the most luxurious leather and colour combinations has propelled them to the top of collector wish lists.
What began as a harness workshop in Paris in 1837, is now an internationally renowned brand with over 300 stores globally and a revenue of over USD 8.3 billion as of 2021. Last year, leather goods represented 46% of the overall revenue share of Hermès worldwide, and those figures exclude the secondary market.
Any Hermès connoisseur will know about the brand’s quota bag system, and for those that might not be familiar, it’s a way for the brand to limit the number of Birkin’s, Kelly’s or Constance bags you can buy at any one time over a certain period of time in store, providing of course, that you shop sufficiently in Hermès to be granted such a privilege. This policy was put in place for their most coveted styles, since they have a limited production and are in high demand. That said, thanks to the secondary market it has made things a lot easier for collectors to get their hands on an example of the Hermès Holy Trinity.
Any of the aforementioned Hermès bag styles make a safe investment, with the Birkin leading the way, however, when choosing to invest there are other factors to take into consideration.
To help you navigate through the complexities of investing in a Hermes handbag, other than for personal joy, we turned to experts Alice Léger, Manager of Fashion & Luxury Accessories department at Artcurial and Matthieu Delcros, founder of 16 Montaigne and Hermès reseller, to put together a complete guide to bag a solid investment.
The style
Aside from making the ultimate fashion statement and being worn by the crème de la crème of celebrities, Hermès bags owe their longevity and success to their exceptional craftsmanship. In this in guide, we will explain which of their coveted styles have become a safe and savvy investment.
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• The Birkin
The Birkin bag originated from an encounter between Jane Birkin and Jean Louis Dumas on a flight from Paris to London in 1981. During the flight, neo-mum Jane confided in him that she was struggling to find a handbag that was practical and elegant to fit both her and her child Charlotte’s belongings. Amused, Dumas, who at the time was the president of the Hermès house (until 2006), decided to take on the challenge. During the flight Jane Birkin took pen to paper and after several encounters between the two, the Birkin was born. Little did Jane know, that thanks to her invaluable feedback, the leather sophisticated tote, named after her would become one of the brand’s most coveted styles. When it first came it out in 1984, the bag retailed for approximately €2000.
Easily identifiable due to its flared silhouette, the Birkin consists of two pieces of leather stitched together, a flap and two rigid handles.
“Each Birkin bag requires no less than 48 hours’ work to create and is available in 5 different sizes 20,25,30,35,40. For several seasons micro-bags have been trending (the 20 & 25 are therefore in high demand now) however, requests for large sizes have been growing since this summer and XXL models have reappeared on catwalks.”
“The most popular and valuable size on the market at the moment is the Birkin 30, which has taken over from the Birkin 35” confirms Alice Léger, Hermès Accessories Specialist at Artcurial.
Smaller models and especially the 25 are also extremely in demand amongst women, whereas men (yes, the Birkin bag is attracting more and more male consumers) seem to be opting for the bigger styles for everyday use. In fact, the male demographic also seems to be joining the band of collectors. Terrence Lee and Preston Tan are two of many Hermès Bag collectors to be featured frequently on male-focused bag collector Instagram pages such as @birkinclub4boys and @birkinmen.
Birkin records at auction
Metallic silver and bronze chèvre Birkin 25 with Palladium hardware, Hermès, 2005, sold for $136,490 at Sotheby’s Hong Kong in April 2022, sets the record for the highest price paid for a leather Birkin.
Ombre Varanus Salvator Lizard Birkin 25 with Palladium hardware, Hermès, 2019, sold $137,500 at Sotheby’s New York in March 2020, sets the record for the most expensive Hermès Ombre Lizard Birkin 25 to have sold at auction.
Black matte alligator Birkin So Black 30 with black chromed silver metal hardware, Hermès, 2010, sold for 114,400 € at Artcurial Monaco in July 2021, sets the record for the most expensive bag sold at Artcurial.
Neige Faubourg Birkin 20 featuring a matte Alligator body and banks of snow on the iconic Hermès Orange window awnings, Hermès 2021, sold for $302,400 at Sotheby’s in December 2022, sets the record for the most expensive Birkin ever sold at auction.
• The Kelly
Princess Grace wearing the Sac à Dépêches bag in 1956 to conceal her pregnancy bump. The bag was loaned by the palace archives in Monaco to the V&A in honour of the Grace Kelly exhibition in 2010.
In the early 1930s, Robert Dumas, who was the son in law of Emile Hermès, launched the now iconic Kelly bag. A trapezoid bag with two triangular gussets and a handle. Story has it that in the 50s the Hollywood star turned princess of Monaco; Grace Kelly was photographed holding the bag over her stomach to conceal the early signs of her pregnancy. The bag rose to international fame and was re-named after her.
Hermes Kelly Sellier 25 Bag Blue Celeste Palladium Epsom Leather - 1stDibs
Prior to that the Kelly was known as the Sac à Dépêches. The first prototype was introduced in 1892 but `was not officially launched until 1935.
The Kelly bag is mostly worn by women due to its extremely feminine lines, however the Kelly’s masculine counterpart Haut à Courroie is commonly worn by men, as is the Dépêche briefcase confirms Matthieu Delcros.
Kelly records at auction
Matte White Himalaya Niloticus Crocodile Diamond Retourné Kelly 28 with 18k White Gold & Diamond Hardware, Hermès, 2021, sold for HK$4,000,000 / US$515,416 at Christie’s Hong Kong in November 2021, sets the record for the most valuable handbag ever sold at auction.
Matte White Himalaya Niloticus Crocodile Diamond Retourné Kelly 25 with palladium hardware, Hermès, 2019, sold for HK$ 3,375,000 / US$437,330 at Christie’s Hong Kong in November 2020, sets the world record for the most expensive handbag sold at auction.
Gold Epsom Kelly 28 with gold hardware, Hermès, 2021, sold for $45,500 at Sotheby’s Hong Kong in October 2021, sets the record for the most expensive "regular" leather Hermès Kelly ever sold at auction. Sotheby’s defines ‘Regular’ as a leather bag that is not exotic, custom, or limited edition, and holds no rare or exceptional attributes.
Shiny Black Porosus Crocodile Sellier Kelly 25 with 18k white gold and diamond hardware, Hermès, 2019, sold for HK$1,500,000 at Christie’s in Hong Kong in November 2020, sets the record for auction price for an Exceptional Kelly.
• The Constance
Credit : Moda Operandi
The Constance is a Hermès flagship model, which at the time of its release was not popular at all. Only several years ago did Constance start gaining the public’s appreciation, when the logo trend picked up and today it is at the top of everyone’s wish list. “15 years ago a boxed Constance bag would sell for 300 euros on the re-sale market,” confides Alice Léger. What a shame I was too young at the time!
Credit: Sotheby’s
The bag’s rise in popularity can be attributed to the logo trend, which rose to sensation particularly in the Asian market. Matthieu Delcros confirms that the vast majority of bags bought in store are acquired with the intent to be resold in the Asian market. Its strong desirability makes it as difficult to obtain as a Kelly or Birkin, despite not undergoing the same quota system. Today on average a Constance sells on the secondary market for an average of €13 to €14K depending on its finishing.
THE LEATHER
Hermès offer a multitude of different types of leather and similarly to their colours (which you can read more about here) they can be discontinued. Some leathers are extremely rare and sought after.
On the second-hand market, the price of bags whose leathers are no longer produced may soar, such as vintage models in box calf, for example, or the shaded lizard, explains Matthieu Delcros.
Depending on the colour, you will sometimes not have the choice of leather finish (or hardware) such as on the Rose Sakura model, which is only available in smooth Swift leather and in a Palladium Hardware finish.
The most effective way to choose your leather, is to take into consideration your lifestyle and the care you will give your bag, advises Matthieu Delcros, who adds: “Some leathers are more advisable for Kelly’s due to their rigidity, such as the Epsom. Choosing a more structured leather will make the bag more resistant to friction particularly at the level of the strap. The same applies for the Constance model”.
Grained leather appears to be particularly in at the moment with Togo and Clemence Taurillon proving extremely desirable for Birkin styles. On the other hand, precious skins have become harder to sell, presumably due to animal welfare organisation awareness. Ostrich and Lizard, which monopolised the market for such a long time, are not sought after as much. In saying so, there is still a very small niche market seeking the Ostrich styles, which were extremely popular in the 80s and have slowly picked up in the last three years. Matte alligators, on the on the hand, seem to retain interest but mostly on smaller models, adds Matthieu Delcros.
There is, however, a very strong chance that all exotic skins will be discontinued on the European market and that vegan leathers will be developed instead to attract an ever-growing clientele, says Alice Léger.
Smooth Leathers
· Box Calf is probably one of the most iconic leathers in the Hermès range. It also happens to be one of the oldest Hermes leathers to still be produced. Created in the 1890s, Box Calf is the of exquisite quality and boasts a subtle crackled grain which develops a sheen over time.
· Smooth & buttery, the matte finish Barenia leather is made from a labour-intensive high-grade calf leather. Known for its Patina, this specific type of leather has been used on Hermès handbags since the 70s and is intended to last a lifetime.
Grained Leathers
Togo leather was first introduced in 1997 and its fine-grained texture makes it scratch-resistant and easy to maintain.
Dubbed one of Hermès’ most popular leathers, Epsom is a lightweight stamped-grain leather which is extremely durable and easy to care for.
Also, highly requested Clemence leather is mostly used to give structured bags a casual look thanks to its soft yet heavy texture. Made from baby bull hides, its aspect is flat-grained and matte. Should not be exposed to rain as it tends to blister.
Receptive to colour dye, Swift leather, previously known as Gulliver until 1999, is a supple and subtle grained leather with a semi-matte appearance. Over time, with wear the leather becomes shinier. Swift should be worn with caution as its delicate nature allows scratches easily.
Rare Leathers
The Chèvre de Coromandel is a long-lasting goat leather . Soft to touch and lightweight this rare leather is scratch resistant and extremely resilient. Sourced from male mountain goats, Chèvre de Coromandel, whose graining is slight and iridescent, makes the perfect choice for an everyday bag.
Chèvre Mysore is a goat hide which was released in 2002 shares similar properties to the aforementioned Chèvre de Coromandel. Its grained texture is smaller and more visible making it appear more luxurious to feel. Chèvre Mysore also has a pronounced sheen.
Exotic Skins
Lizard is the brand’s most delicate leather as it requires the most care to avoid the scales drying out. Due to the animal’s small size this exotic skin is most commonly found on smaller bags and accessories.
Ostrich leather is probably the most durable of exotic skins thanks to its water-resistant properties, however it is likely to darken over time due to exposure to skin oils.
Matte Alligator is as expensive as it is delicate and should be kept away from water at all costs. In terms of value, matte alligator is worth more than its shiny counterpart but both however remain less expensive than crocodile.
Shiny Alligator shares similar properties to the aforementioned Matte Alligator except this exotic skin has a shiny finish to help disguise imperfections.
The Shiny Niloticus Crocodile is delicate but its shiny finish on the small alligator scales can help disguise imperfections. Alligator is visually distinguishable from crocodile because it lacks the dot-sized “pores” that mark every crocodile scale.
The Condition
If you are a collector, or considering collecting Hermès bags, it’s important to try and maintain the bag’s condition for a best resale value. Nonetheless, it is also important to enjoy your investment and Hermès are very good at restoring. Be sure to only restore with Hermès and no other companies, as it would otherwise reduce its value.
The Hardware
I was surprised to learn from Alice Léger that hardware doesn't in fact have any particular effect on the resale value of a bag. Most clients/ collectors value the combination over the actual hardware, which alone doesn't have any particular financial return.
Year of manufacture
On the second-hand market, the year of manufacture is essential in establishing the resale value. Bags in new condition can lose value from one year to the next. The fluctuation of bags in the resell market is vastly affected by the Asian market, where affluent customers are extremely demanding, explains Matthieu Delcros.
“Stamps (reference by year) are an essential criterion in the resale of a bag. For the same model, the price can vary by several hundred up to thousands of euros,” adds Matthieu Delcros. Even a bag bought over the current year with a stamp from a previous year will have less value on the second-hand market. There are currently more offers on the market than requests and merchants are quickly put into competition.
Ultimately, the latest colours to be released are the most sought after and the year of production will determine the resale value, except of course for discontinued colour and material styles such as Doblis from the 80s that are worth a lot more.
Hermes bag outlook for 2023
Although an investment, one must remember that Hermès bags remain a fashion accessory and will therefore be influenced by over-riding trends and currently mini bags are all the hit, says Leger. With a forecast price increase of between 5 and 10% for the year 2023, Hermès shows no signs of slowing down and investing in a Hermès bag remains for me one of the best options today declares Matthieu Delcros. Providing of course, you buy the bag at a fair price.
Max Brownawell at Sotheby’s adds,' “Heading into 2023, it seems the mid-sized bags will be more popular than ever. The practicality of the Kelly 28 Retourné and the easy everyday size of the Birkin 30 are dawning on collectors everywhere. Prices for these sizes will likely continue moving towards those of smaller Birkin 25 and Kelly 25 bags as 2023 ticks on, so don’t wait to get the bag that speaks to your heart as soon as you see it! While the Hermès Himalyan Birkin, Hermès Himalyan Kelly or the Birkin Faubourg are likely to remain the hero Hermès bag leading an auction, a new year can bring surprises.”