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Hermès’ Success Has Been Driven by Scarcity
While most luxury brands drive exposure through social media marketing, celebrity partnerships and fashion shows, Hermès which started as a saddlery and which still hand-stitches the lion’s share of its leather bags hasn’t. Its main products haven’t changed much in decades; it does not have TikTok, and doesn’t give celebrities free handbags.
Hermès Birkin and Kelly bags made with unique materials are worth collecting since they tend to appreciate in value in the secondary markets, given Hermès’ operating model which makes it difficult for discerning consumers to get the exact bag of their dreams.
A Sales Strategy That Results in Constant Demand
The Birkin bag is arguably Hermès’ most exclusive handbag, costing at least $10,000, sometimes up to 6-figure, and racking up years-long waitlists. It’s not a handbag one can purchase at a department store, walk in off the street and buy at a boutique, or order online, and specific styles sometimes rack up very long waitlists.
To buy directly from Hermès, customers must cultivate a history with the brand, similarly to when purchasing specific watches from Rolex. Experts say wannabe Birkin buyers must shop loyally at Hermès for years, and some say spend hundreds of thousands of dollars before they get the opportunity to purchase the Birkin bag they want.
Hermès Collectors Are Also Purchasing High-end Replicas
Founded by a New Yorker ex-head of private sales at one of the world’s most renowned auction houses, Handmade Birkin Bags is passionate about creating handmade bags of authentic quality using imported leather and original hardware. The founder had relationships with an affluent clientele of the brand and selected tanneries in Europe.
CEO Lauren says “it’s all in the details. Hermès bags are made from the finest leathers in the world. No matter how your bag looks, it has to feel and smell luxurious. The hardware has to be precise and sturdy. The stitching needs to be hand stitched with a genuine saddle stitch. It’s a fully handmade process that requires excellent skills and meticulous attention to detail. Our customers typically own a collection of Hermès bags, so they appreciate the highest quality of materials and craftsmanship.”
The Hermès Replica Market
The market is flooded with low quality dupes, and mid-tier bags being sold as high-tier in communities like Reddit and social platforms like Instagram. Connoisseurs of the brand understand that handmade bags with authentic materials are not found in these platforms, and as Lauren says we do not entertain new customers unless they have been referred by an existing customer, given their budget and quality expectations are generally misaligned with reality. Customers with other sellers tend to be those that are not able to procure the bag of their dreams from Hermès itself, while most of our customers are Hermès collectors who also continue purchasing from Hermès, and in several cases like to have two versions of the same handbag for different occasions.
Consumers who are fortunate to have referral access to Handmade Birkin Bags understand the intricacies involved in producing the highest quality handmade bags at a reasonable price, and typically purchase several bags every year given there are thousands of possible permutations when you combine the different colors, leather and hardware options.
Lauren recommends when purchasing the first Hermès bag to make sure it’s a bag you love and are planning to use, rather than just buying it as an investment. Typically, a Birkin or Kelly 25 with a well-known color like Etoupe is a good choice, but it always comes down to personal preferences, given you can choose from over 250 Hermès colors.
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