End of an era? How the Hermes Birkin bag is losing its scarcity appeal
- Earlier this month, UBS analysts downgraded Hermes shares to "sell," citing growing secondary-market supply of Birkins and Kellys that could weaken the brand's scarcity-driven business model.
- Hermes shares have lost nearly 40% of their market value this year, as the company expects to report quarterly sales growth of 5.2% on Thursday, marking its weakest growth in six years.
- Brokerage Bernstein reports that auction premiums for Birkin 25 bags have dropped from about 2.6 times the retail price to about 1.7, with resale prices falling by around £4,000 since 2022 to around £24,000.
- London-Based Cai Baochun has stopped stockpiling bags as resale prices fall, while cooling demand for other luxury goods makes it harder for customers to meet spending requirements traditionally needed to purchase a Birkin.
- Hermes CEO Axel Dumas noted in July that some observers fear overproduction could hurt exclusivity, though the company, which says a Birkin takes 15 hours to craft, faces questions on why it does not increase volume.
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14 Articles
China and the secondhand market are putting pressure on Hermès - RetailDetail EU
The French luxury house Hermès is seeing its growth slow to its lowest level since the COVID-19 pandemic. The Chinese market, in particular, is proving disappointing, while analysts are questioning the exclusivity of the iconic Birkin and Kelly handbags.
Is the Birkin Losing Its Magic? How Hermès’ Iconic Bag Is Losing Its Scarcity Appeal
Cai Baochun, a London-based reseller, has stopped buying Hermes’ Birkin bags as their resale prices have fallen from a peak in 2022. Previously, he made significant profits on these bags, which retail for $10,000 but could be resold for double that amount. The current decline is around $6,000, reflecting a change in the market for […]
The iconic Birkin bag from Hermès has been a lucrative business for years. Now, prices are falling on the second-hand market, and the luxury giant's stock has taken a major hit.
End of an era? How the Hermes Birkin bag is losing its scarcity appeal
Londoner Cai Baochun used to make a fortune reselling Hermès’ iconic Birkin bags for more than double their retail price of $10,000. But he has stopped buying and stockpiling them in large quantities as secondary market prices have fallen. “I don’t want to lose money,” Cai said, […] The article Hermès: Birkin resale prices are falling was originally published on AlphaTV.
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