The Hermès Birkin: At the Forefront of Fashion for 41 Years
On a 1983 flight to London, famed actress Jane Birkin was upgraded to first class. When boarding the plane, she dropped her straw bag from the overhead compartment, a commotion that caught the attention of Louis Dumas, CEO of Hermès, who was also on the plane. During their time in the air space, the duo discussed and designed a more practical handbag which would stylishly hold a slew of daily necessities. This string of coincidences resulted in the Hermès Birkin, a now famed leather handbag. 41 years later, the Birkin is among the most sought after fashion accessories in the world, with prices ranging between $11,000 to $380,000 USD, depending on model, materials, and hardware.
However, having a bag this notable is not a one-off for Hermès. The Birkin’s big sister is the Kelly – named after Grace Kelly, Princess of Monaco. The Kelly’s modern design was launched in the 1930s, and has remained a fashion icon for nearly a century. Together, the bags deliver over $2.1 billion USD in sales for Hermès annually, approximately 17% of the company’s total annual revenue.
Steady popularity over nearly half a century is unheard-of, especially in the world of microtrends and fast fashion. How has Hermès managed to not only maintain the Birkin bag’s status, but to allow it to rise in popularity over time? The answer lies within unchanged craftsmanship, “quiet” marketing, and how brands convey status in the modern world.
The Winning Hand in the Birkin Game
Want to buy a Birkin? Get in line. The demand for Birkins is seemingly endless, causing wait times that can last years. First-come, first-serve is a bygone idea at the average Hermès boutique. Rather, Birkin-seekers must be ready to play the “Birkin Game”.
A shopper cannot just get in line or put their name in a hat – there’s a reason it is dubbed a game. The complex buying system contributes to the status of the bag – only the “best” customers get one. Hermès keeps the bags exclusive through the "offer" system. Offers are based on the availability of bags at each boutique, meaning sales associates handpick who is worthy of a Birkin. These offers are so hard to come by that customers willingly compromise the style, colour, or material of their Birkin bag to “win” the game.
Even then, patience or a kind-hearted sales associate may not be enough to secure the bag. For most onlookers, a purchase history with Hermès is essential to be considered for the bag. Current demand levels for a Birkin suggest a purchase history valued at 200% to 500% of the bag itself is necessary to advance in the game. This practice has been dubbed “Birkin Bait”, which is seen in the form of ready-to-wear, furniture, and other departments. Think of each purchase as a playing card in the game, with each one helping customers get closer to the winning square – a Birkin.
Complexities and expenses associated with buying a Birkin directly from Hermès have produced an overflow of impatient fashionistas readily welcomed by the second-hand market. Buying the bag through reputable resellers such as Sotheby’s or TheRealReal makes the Birkin significantly more accessible for the average consumer. However, for a Birkin, second-hand, is not synonymous with a cheap purchase – Birkins retain an average of 103% of their retail value.
What makes the Birkin’s price tag worth it?
Quality craftmanship upholds the Birkin’s individuality in a plethora of designer goods. Each Birkin is made with a minimum of 18-hours of hand-stitched leather work and is identified by a unique serial number. This quality-first practice can justify the high price point, another reason why the bag is considered an “heirloom”. Hand-stitched bags are more impressive since other high-end fashion companies, such as Louis Vuitton, have been known to use sewing machines in the creation of some purses and bags.
These factors of exclusivity lead the Birkin to be described as a “symbol of ultimate status”, but what does this status symbol really mean? Given how few Birkins are in circulation, the typical Birkin crowd includes high-status individuals including British royalty adjacent, Pippa Middleton, and supermodel, Kate Moss. Holding a Birkin means anyone who gets their hands on the bag has something in common with this crowd of people.
The Birkin also manages to remain an “it” bag with relatively few alterations over time. With a biannual haute couture season across the fashion industry, stylish bags come and go while the Birkin remains. In fact, the bag is styled to accommodate an individual’s approach to fashion. This trend arises from Jane Birkin herself, who notably decorated her Birkin with jewelry, watches, and even a harmonica.
Strategy (or lack thereof)
In an advertising approach as interesting as the bag itself, Hermès does not traditionally advertise for the Birkin. Instead the brand’s advertising campaigns feature more attainable, lower priced products such as twillys, a popular thin scarf, frequently seen on a Birkin’s handle, with prices beginning at $275 CAD. But does this lack of typical exposure pose a threat to Hermès’ success in the market? Or does it contribute to the status and intrigue of the bag?
Hermès’ quiet marketing strongly differentiates from it one of their largest competitors, Louis Vuitton-Moet Hennessy (LVMH), the world’s largest fashion empire. In 2022, LVMH spent over $10 billion USD on advertising. Like Hermès, LVMH has spectacular reputation, housing iconic brands from across the luxury market including Tiffany & Co. and Christian Dior. The house creates genius campaigns however, these are significantly “louder” than that of Hermès. For example, a 2024 advertisement features Roger Federer and Rafael Nadal in the Dolomite mountain range wearing Louis Vuitton backpacks that retail for $4,400 CAD.
Continued relevance through pop culture and social media demonstrate that the Birkin does not need heavily saturated advertising campaigns to sustain its popularity – its name is enough to maintain a reputation. For example, a 2001 Sex and The City episode depicts Samantha’s troubles when buying her own Hermès piece, needing to wait five years to make her $4,000 USD purchase, “For a bag?”, where the sales associate is quick to correct her with, “It’s not a bag, it’s a Birkin”. Similarly, in the influencer space, Birkins hold prime real estate in Kylie Jenner’s handbag closet, which has an estimated valuation of $1 million USD.
What issues threaten the Birkins success?
A 2015 investigation by PETA revealed the “gruesome” treatment of crocodiles, which are slaughtered to produce crocodile Birkins. Before her 2023 passing, Jane Birkin requested that her name be removed from the crocodile-skin bag if these conditions continue. Despite these reports, this specific model of the bag remains incredibly sought after, with third-party prices upwards of $300,000 USD. However, increases in consumers’ awareness of ESG practice could change this in coming years.
The Birkin Bait practice could be considered controversial. Two Californian, loyal Hermès shoppers have launched an anti-trust lawsuit against the brand for “illegally [forcing] customers to spend thousands of dollars on ancillary products to gain access to the bag”.
Remaining a Fashion Icon into The Future
Does so-called scandal really affect Birkin sales? Simply, no. In first quarter of 2024, Hermès’ revenues increased 17% compared to 2023. Moreover, in the current challenging state of the luxury industry, Hermès stock continues to outperform versus their primary competitors, LVMH and Kering. With the Birkin as a significant contributor to Hermès revenue and profit, the company is in a strong position.
Another indicator that the Birkin will continue its smooth sailing is the history of the Kelly. Not only has this clutch paved the way for the Birkin, but the Kelly has been a must-have item since 1852 when it was released in its original form. Since then, the bag took its current form in the 1930s, before becoming the Kelly, known and loved by fashion-forward individuals, in the 1950s. If the Kelly can stay so sought-after, with just a name and size change, the Birkin may be able to do the same. Timely changes – social media, widely circulated fashion magazines, and pop culture - also work in the Birkin’s favour, increasing its market power.
In sum, the Birkin faces very few obstacles in continuing its run. Neither a starting price of $11,000 USD nor lawsuits can limit customer demand for the bag. If Hermès maintains their elegant positioning in the fashion-world and maintains the craftmanship of a Birkin, the bag has another 41 years of success ahead of it.