When it comes to Branded, basically it refers to Bags. So which brand could sell at the highest price?
Immediately, you would think of many famous brands such as Louis Vuitton, Chanel, or Prada, Hermes, etc.
Of course, at the time of purchasing, the more expensive the item is, the higher the resell price could be. However, it also depends on the brand position, popularity or conditions of the bag.
[Originally was sell in high price, Even USED also could be traded at high price] …As a result, which brand could be easily sold at the highest price for a reused bag…? Many people in the secondhand industry would say “Hermes”. (Of course, this is limited to bags only, watch and wallet are different stories.)
In fact, even when you look at used goods distribution sites, Hermès is often sold at extremely high prices…This time, we would like to take a closer look at its charm and reasons.
Table of Contents
1. Three reasons Hermes is a popular brand
1-1. Pure value of Material・Method
Firstly, Hermes is well known for its unique rule [One craftsman handles the entire process from the beginning to the end].
Since the industrial revolution, division of each manufacturing process became normalization, even for branded products. To make a Kelly or Birkin, it requires more than 20 hours for an experienced craftsman to complete, however, Hermes still maintains this traditional producing method which is very rare in this era.
Hermes was originally well-known as a horse harness factory, after that it continued with the same craftsman quality, which played a role in establishing the brand image.
Hermes uses variety of materials, such as [Togo (male calf leather)], [Taurillon Clemence (bull leather)], and [Epson (embossed bull leather)], which are high-quality cowhide.
The popular products in high-quality leather to ensure a unique touching texture is a key factor to support Hermes brand image too.
※There are also products that made from alligator leather and crocodile leather, and the value of these products is several times higher.
1-2. Value of Brand status
Another factor that supports Hermes image is [The Brand Image itself].
Of course, the commitment of materials, method and culture that made Hermes impeccable.
However, the factor that made Hermes even higher is [High Brand status itself]. People who own Hermes are known for wealthy people, Hollywood celebrities and famous athletes.
(For example, Kelly was renamed after Grace Kelly, whom was the former Queen of Monaco and owned Kelly. Birkin was named by Jane Birkin, who was seated next to the Director of Hermes on an airplane. The famous bags were created from there).
It can be said that [Connections with celebrities that are related to how the bag was born], [Owners of Hermes bag is high status] has enhanced the brand image even further.
Nowadays, Hermes is known as the top brand among the group of high-end brands including Louis Vuiton, Chanel, Gucci.
1-3. Value as an Asset
The last factor that creates Hermes brand position is Hermes can be considered as an asset for investment.
The price of Hermes is revised every year, the price continues to rise by numbers of ten thousand Yen in Japan each time revised. Of course, the increment is not applied to all Hermes items, but for the most luxury items like Kelly or Birkin. If compared with 20 years ago, the value of the bag has already increased a lot.
Additionally, the supply has been greatly reduced, leading to high secondhand market prices for ultra-luxury like Birkin and Kelly bags.
If you have been to Hermes store, you would know that there is limited purchase for Kelly and Birkin. They only allow to purchase up to two bags in a year. Furthermore, it’s not only because Hermes wants to limit to [Not anyone can buy], but they also want to prevent the buyers buy to resell. In that case, they would give feedback with no stocks available.
Despite the demand is high, the supply is limited hence that might be one reason the value increased as an asset.
2. What are the classic items that are traded at particularly high prices?
2-1 Kelly and Birkin are classic
Kelly and Birkin have the highest transaction price, it is said to be Hermes face. The price is subject to the sizes, such as 25cm, 28cm, 32cm, 35cm for Kelly; 25cm, 30cm, 35cm, 40cm for Birkin.
The price of brand-new bags is also subject to material. The lowest price is material such as Togo or Epson, also costs SGD10,000~SGD17,000 for Kelly, SGD10.500~SGD14,500 for Birkin (in 2021).
We notice that in many transactions, the price for secondhand bags is higher than the original price in some cases, due to no stock available, or good condition unused bags.
2-2 Depending on the model, the used price may be higher than the new price
Of course, it’s a different story if it gets a lot of wear and tear, but the selling price of a new product is raised by several tens of thousands of yen every few years. Even if it’s like-new, the USED market price is still low. The fact is that prices have increased significantly, nearly quadrupling in 20 years.
Because of this reason, many people try to purchase with resale intention in mind even at official Hermes stores. For example, if you suddenly ask the staff if they have Kelly in stock, they will not give you a clear answer…
You might hear that if you buy a new item and resell it immediately, you could make a profit of several hundred thousand yen. Of course, Birkin and Kelly are rare items that are hard to find in stock… so it’s understandable why stores are cautious.
It is said that regardless of whether your wanted bags Kelly or Birkin in stock or not, it’s better to build a relationship of trust before purchasing. The value of acquiring and owning it may be increasing!
2-3 Hermes has other hidden classic models
We have introduced the most luxury bags which can be considered as an asset to invest. However, Hermes still has many other classic bags besides Kelly and Birkin.
When it comes to bags, brands such as Bolide, Hautacroix, Evelyn, and Garden Party are also famous, although they are not as well-known as Kelly Birkin.
Also, when it comes to wallets, there are some models that are quite well known, such as Bean, Dogon, and Azap. In addition to bags and wallets, Hermès scarves are also very popular and come in many variations. They are so popular that many collectors want to collect them without using them.
Unlike Birkin and Kelly, the second-hand market prices of these items do not threaten new prices or rise to the point where they become investment items, but they tend to be traded at high prices, lifting to the name of Hermès, the “King of Brands”.
3. If you have an unwanted Hermes item, you can check its value
In general, when brand-name products get older as they are USED repeatedly, the price naturally drops. At the same time, new models are being released one after another. Many customers wonder that if their item is from just a few years ago, will the value has dropped significantly.
However, not only Hermes is in demand, but the USED market is also more active and in demand than customers think.
Buyers who really like a particular brand will not mind finding and buying the model that is from a slightly previous year. On the other hand, a new model might be difficult to buy, so they will look in the reused (used) market
In that sense, unless it has deteriorated significantly over time or is damaged, it is often worth more than you think.
Especially for Hermès, the price of new items has risen not just for Kelly and Birkin items. Since the brand’s image has been strengthened, regardless of the item, there are cases where prices are unexpectedly high.
If you have unnecessary Hermes products around you, it might be a good idea to check their value through an appraisal.
