Why Herms coveted Birkin bag is losing its appeal and plummeting in price
London-based Cai Baochun used to make a hefty profit reselling Hermès’ famed Birkin bags for more than double their $10,000 retail price.Now he has stopped stockpiling them as second-hand prices fall.“I don’t want to lose money,” said Cai, who started selling the bags on online platforms such as Vestiaire Collective and on social media in 2020 and rode a pandemic-era luxury spending boom.The resale value of unworn Birkins sold as second-hand online has dropped by more than $6,000 from its 2022 peak, he said.The decline reflects a broader shift in the market for one of luxury’s most exclusive products whose appeal and success have been driven by scarcity.Increasing supply of Birkin bags in the second-hand market is depressing resale premiums, according to resellers, industry consultants and analysts interviewed by Reuters, raising questions about a strategy that helped propel Hermès to become one of the world’s most profitable luxury companies.Named after the late British-French actor Jane Birkin, the handbag has been central to Hermès’ performance.
Between 2015 and 2025, group annual sales tripled to €16 billion ($18 billion) while its market value surged.Last year, Hermès posted an operating margin of 41%, above that of rivals including Chanel, Kering-owned Gucci and LVMH’s leather and fashion division, which includes Louis Vuitton and Dior.All of that was underpinned by an aura of exclusivity.Six resellers who source bags directly from Hermès shoppers said access to a Birkin is generally linked to spending on Hermès scarves, clothes and shoes, although the exact policy differs between regions and stores.
Two estimated customers typically spend $10,000 to $20,000 before being offered the Birkin or the Kelly, the brand’s other popular bag.Hermès, which says a Birkin takes 15 hours to craft, does not disclose its selling policies or how many bags it makes.It declined to comment for this story.Of the nine Birkin resellers Reuters intervie...