The baggage are getting scooped up at document premiums within the pandemic period, in response to Birkin resellers. Public sale home Christie’s says that one among its two highest promoting purses in historical past is a Birkin fabricated from crocodile pores and skin that went for practically $390,000 in November (The opposite was a Kelly bag, additionally from Hermès, that bought for near $450,000).
At reseller Privé Porter, premiums are presently 50 to 100% of the retail worth, mentioned CEO Jeffrey Berk, “apart from some collector variations, which may go as excessive as 10 instances the retail worth.”
Birkin baggage, which retail from $9,000 to greater than $500,000, are made by French luxurious items firm Hermès.
Hermès solely produces a restricted amount on the market annually. Getting a Birkin immediately from its maker is a tough feat — one usually achieved by superstar standing or as a minimum, a spending historical past with Hermès. So resale values are a superb indicator of demand. Hermès declined to remark for this story.
That demand for Birkins hasn’t slowed is one more indication of America’s two-track financial system. Whereas the nation misplaced thousands and thousands of jobs final yr, the wealthiest Individuals had been largely unscathed by the pandemic’s financial woes and adjusted how they had been spending their cash.
“The clientele for a Birkin or Kelly purse instantly wasn’t touring, shopping for a home or a Bentley,” Berk mentioned. “She had loads of money and wanted to park it in an indulgence.”
A Birkin wonderland
Privé Porter opened its first retailer in November in Miami’s upscale Brickell Metropolis Centre mall. It is a Birkin wonderland, stocked with at the very least $2.5 million price of the enduring Birkin and Kelly baggage at any given time lining the partitions in a wide range of colours and kinds.
As for the most popular trending Birkins by the pandemic? Individuals are shopping for smaller fashions. And “pink is at all times the most well-liked shade in relation to Hermès baggage,” mentioned Berk.
Among the many most costly Birkins on the retailer proper now could be a pair of tiny baggage — simply 20 centimeters in width — that showcase the surface of the enduring Hermès retailer in Paris, one throughout the day and the opposite at nighttime. The value for each: $450,000.
Because the nation went into lockdown final March, Berk thought luxurious items gross sales would stall.
“We thought this was it for us,” he mentioned. “However final March and April was our largest gross sales months ever.”
The reseller logged $3 million in gross sales every month when within the months prior it took in half that quantity per thirty days.
Luxurious items reseller The RealReal mentioned it, too, noticed demand for Birkin purses strengthen throughout the pandemic.
“It appears counterintuitive that in a yr the place most individuals had been caught at house, demand for high-value purses was extremely sturdy,” mentioned Sasha Skoda, The RealReal’s head of ladies’s style. She famous that gross sales of Hermès merchandise grew by a 3rd over the earlier yr, with the Birkin purse “being one of the coveted kinds, particularly amongst millennials.”
Another funding for the rich
On its platform, essentially the most sought-after kinds are additionally the smaller-sized (25 cm and 30 cm) Birkins.
Skoda mentioned Birkins are nonetheless in excessive demand in 2021 and are seeing sturdy resale values because of this. To date this yr, the resale worth of Hermès’ purses is up 28% in comparison with final yr, she mentioned, and Birkins are main the best way with their common promoting worth up over $4,000 year-over-year.
Given the present surge in pricing, Skoda mentioned “it is an opportune time for sellers to earn again a good portion (or much more) on their authentic funding.”
Entrepreneur Kay Cola, who based her hair and skincare firm OrganiGrowHairCo in 2016, mentioned she continuously invests in shares, actual property and cryptocurrency.
Birkins caught her consideration final yr when she was researching various investments. “The Birkin bag sparked my curiosity due to how a lot the costs go up yr over yr,” mentioned Cola, who can also be a Grammy-nominated songwriter.
Cola purchased her first Birkin final yr from luxurious reseller The RealReal. “I liked the fashion of the bag. It is elegant. And it is an funding,” she mentioned. In a matter of months, Cola has spent greater than $100,000 so as to add as many as 10 Birkins and a few Kelly baggage that she’s acquired both immediately from Hermès or different Birkin resellers like Privé Porter.
As a lot as she’s having fun with the enduring purses for her private use with plans to go them on to her two daughters, they’re additionally a security internet for her. “Ought to something occur to my enterprise sooner or later, I’ll have loads of wealth within the purses to fall again on,” she mentioned.