Herms Birkin bags cost anywhere from $40,000 to $500,000 per bag.Named after Jane Birkin, actress and singer, the Birkin bag is handcrafted and exclusive. This drives the Birkin's value year after year.According to a 2017 study, Herms Birkin bags' value has increased 500% over the past 35 years. This is an increase of 14% annually.Below is the transcript of the video.Narrator: Hermsbirkin bags can be as high as $9,000 and up to half a billion dollars. These bags are a symbol of luxury and elegance.- A Birkin bag- Have you heard of it?- Yes. It's a beautiful purse.Narrator: Some consider the exclusive accessory a better investment than gold and the stock market. The world's most expensive bag was the Herms Himalaya Birkin bag, which sold for $500,000. What is it about Birkin bags that makes them so expensive? Jane Birkin is the name of the bag. Jean-Louis Dumas, chief executive at Herms, was seated next to an English actress on a flight from Paris, England to London.Pilot: Please prepare for takeoff, flight attendantsNarrator: Jane loved to take a wicker bag everywhere she went. She used it for groceries and diapers. The lid fell off her basket when she tried to put it in the overhead compartment. Jane complained to her seatmate about the difficulty of finding a weekend bag that she liked. Dumas introduced himself to Jane as the head of Herms and they spent the flight sketching potential handbag designs on the backs of an airplane sick bag. Jane was presented with the Birkin bag by Dumas a year later. This spacious, yet elegant, leather design is perfect for everyday use. Birkin's functional pockets make it extremely useful, and the bag seals to stop anything from spilling. The bags are made in France by Herms using high-quality materials such as calf skin and alligator skin. Each bag is entirely hand-made.Birkins are a highly sought-after bag today, but they weren't very popular when they were first released. The Birkin was not a popular bag until the 1990s. They are now the ultimate status symbol. Victoria Beckham is reported to have a collection of more than 100 Birkins. It's worth more than $2 million. Jamie Chua, a Singaporean socialite, entrepreneur, is said to have the largest Birkin collection in the world with over 200 bags.You can't just go into Herms and grab one. There used to be a waiting list. But nowadays, you can only hope that you are important enough or have enough money to get a Birkin bag. Don't assume that you will be able choose the size or color of the Birkin bag if offered one.Herms also limits the number of Birkin bags that a client can buy per year. The dedication to keeping the bag exclusive has paid off. There is a vibrant resale market because of the difference in demand and access.According to a 2017 study, Herms Birkin bags have seen a 500% increase in value over the past 35 years. This is an increase of 14% annually. Herms' Himalaya collection is one of the most sought-after models. It comes in three sizes. The white Himalaya Birkin bag, often referred to as "the holy grail" of handbags is made with 18-karat gold hardware and more 200 diamonds. Particularly the 35-centimeter model is extremely rare and has been selling at record prices every year. It was last sold in 2019 for more than half a million dollars. The record-breaking purchase was made by David Oancea, a professional sports betting consultant, also known as Vegas Dave.David Oancea: I love breaking records, which is why I bought the Birkin bag. I have broken all the records in sports betting, so I wanted to set the most expensive-bag record. I am all about raising standards. It's also about supply and need. Steve Harvey's wife is the only one who has this model in the world. Kim Kardashian doesn't have this so I bought it for content. I was able to take videos and photos of it, which allowed me to get people talking about me.Narrator: This record-breaking sale was actually made via social media.Oancea: It was easy to sell. I posted on social media. I have over a million followers. I am looking for a bag. Priv Porter, this lady reached out to me. I was contacted by her and she promised to get the bag for me. It was quite expensive, I thought. She claimed it would break the world record. This is the record.- The most expensive bag ever made.Oancea: This deal was closed in three to four days. That's really fast. The bag is actually used by me. Many people think that I am crazy. They keep it safe and never touch it again. It's a wonderful piece of content that I have taken out twice. It's certainly worth the price, because you could offer me a million bucks cash and I wouldn’t sell it. My asking price for the item is $2 million. If I don't, I'll keep the d---.Narrator: This skin is also made from albino or white crocodile skin. It is very rare. To replicate the Himalayan snow, the expensive skin is painstakingly dyed.Mason Howell: These bags have a high retail and resale price because they are works of art. They may train for years to create these bags. Some even go on to train 10 years before they are allowed to make a Birkin.Narrator: The limited availability is another reason the bag is so expensive. It is unknown how many Birkin bags Herms makes each year, but it is believed that there are around 200,000. Birkin bags are very popular in the luxury resale industry. Priv Porter, an online retailer, sells the bags via WhatsApp and Instagram. The RealReal, a luxury reseller, has hundreds of Birkins on hand at all times, many of them priced well above their original retail price.Howell: The Birkin bag can retain its value, sometimes even exceeding it. It all depends on the leather, color, size, and hardware. Pricing a Birkin can vary because of so many factors. If you did buy a Birkin in 2004, for example, and it was retailing at $5,000, it is most likely that you can sell it for $5,000 to $6,000.NarratorHowell: You may not get the exact color or size you desire if you go to Herms. We have nearly every option. Even if it means that you will have to pay a premium, clients and people are willing to do this. There has been a lot of demand for these bags. However, no bag is exactly the same. Let's take, for example, an Etain Birkin 35 in gold hardware. We have it now and may not be able to get another one for quite some time. If that happens, someone will pay $10,000 more to acquire that bag. All these bags are handcrafted, with artisan craftsmanship. It is a work of art. There are many variations, and not one stitch is the same.Narrator: If you have $10,000 extra, it might be worth investing it in a Birkin. Be careful that you don't fall for a fake. There are many luxury knockoffs on the market, from websites like eBay to Canal Street in New York City, to websites like eBay. Birkins is no exception. Herms was sued by several websites in 2012 for selling fake products. She received $100 million in damages.The French police also cracked down on a criminal ring that was producing counterfeit Birkin bags. According to reports, the crime ring included Herms employees. Although only two of the employees were taken into custody, Herms believes that there could have been many more. Fake products continue to flood markets despite their best efforts. Fake bags have also become more sophisticated over the years. It is now difficult to distinguish between real and fake bags. There are some tricks that can help you spot a fake Birkin.Howell: A handle should not be too long. They should not be longer than the bag. The hardware should not be too shiny or protrude too far. Another important thing is the feet. It's something I never forget to check. These should be hammered in. The leather should feel soft and luxurious.Narrator: If the price seems too good for it to be true, it probably will. Although many handbag designs have changed, the Birkin seems to be here to stay. The Birkin bag is synonymous with status in a way few other luxury goods can.The bag isn't well-known, and it doesn't have a prominent logo. It is only easily identifiable by people who know the name of its maker. Herms created Birkin because it is not easily accessible, but rather exclusive. Only time will tell if the Birkin will remain so expensive.NOTE FROM THE EDITOR: This video was first published June 2019.
