The Hermes Birkin Is The World’s Most Exclusive Handbag
When Hermes opens its new Miami Design District flagship on 6 November, local clients will find a selection of leather goods,fashion, and accessories chosen specifically for them.
Every Hermes outpost is run like an independent boutique, with a store director who visits Paris each year to buy pieces he/she believes will appeal to the location’s particular flavor.
But certain items resonate, no matter where in the world they are. Consider the Birkin Sellier 40, the latest version of what an observer might call the original It Bag. Crafted out of Hunter cowhide the 40-cm-long style is unlined, with raw-edge straps, palladium hardware, and a retail price of $14,900.
The Sellier 40 will be available in Miami, although “available” is a relative term.
Hermes Birkins of all shapes, sizes, and styles sell out instantly, with wait lists typical of 10 or 15 years ago. The Birkin really holds up, says Robert Chavez, Hermès’s CEO in the U.S. “Customers appreciate the quality, craftsmanship and timeless style.” ‘
The iconic French leather house’s client’s appreciate a product that takes 18 to 20 hours to make from start to finish, all done by 1 craftsperson who starts by selecting just the right piece of leather or exotic skin for the bag and ends with a series of painstaking quality control tests. And they also appreciate careful, shadow marketing, high prices, limited supply, and a permanent air of exclusivity. This strategy has kept the Birkin the most elite handbag in the world.
In Hermès’ FY 2014, sales of leather goods and saddlery reached $2-B, up nearly 13% from Y 2013. And in Q-1 of Y 2015, category sales are up 25% from last year. That is at a time when most luxury brands are struggling globally, and when major currency imbalances between regions has dampened shopping on the higher end.
The 178-yr-old company does not report how many Birkins are sold every year, or what percentage of that leather sales figure is attributable to the line.
Secrecy and success are intertwined.
The classic 25 cm Birkin starts at $9,400, more than 2X what it was in Y 2000, and any exotic-skin styles reach well into 5 figures. The new 40 cm in Crocodile is priced at $68,000. And while other “Quiet Luxury” labels have emerged as competitors to Hermès, no one, not even Chanel is able to justify those sorts of figures for its goods.
The real fortune of the Birkin is that no other brand has built an iconic bag in that price range.
Stay tuned…
HeffX-LTN
Paul Ebeling
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