Hermes Birkin bags have built a reputation for rarity, but changing resale demand is changing the conversation

For years, owning a Hermes Birkin bag meant more than carrying an expensive purse. Its limited availability has made it a status symbol, while the prospect of selling it at a substantial profit has turned it into an alternative investment for some buyers. However, this equation is beginning to change.

How the Birkin sales market is changing

London-based retailer Cai Baochun, who began selling Birkins online and via social media in 2020, has stopped stocking the bags as second-hand prices fall. “I don’t want to lose money,” he told Reuters.

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According to Reuters, the resale value of an unworn Birkin has fallen more than $6,000 from its peak in 2022, reflecting a market where increasing availability is putting pressure on premium buyers who were once paid to secure the coveted handbags.

The change is particularly visible in the Birkin 25, one of the sought-after models of the brand. Its unworn black version now sells for around £24,000 on the resale market, according to luxury retailer Antoinette Hunter, founder of Lilac Blue.

A prototype Birkin bag designed by French luxury brand Hermes for actress Jane Birkin has sold for $10 million(AFP)

That’s around £4,000 less than its 2022 price. Cai puts its asking price for the bag at around £20,000, while the same model sells for £9,390 in Britain, Reuters reported.

Why did Hermes care about scarcity

Named after the late British-French actress Jane Birkin, the Birkin has long been central to Hermès’ luxury positioning. Access to the bag was often linked to wider customer spending with the brand, including purchases of scarves, clothing and shoes.

Six retailers told Reuters the practice remains common, although measures vary by region and store.

The two dealers estimated that customers could spend $10,000 to $20,000 on other Hermès products before being offered a Birkin or Kelly, another sought-after handbag. The company says the Birkin takes 15 hours to make, but doesn’t disclose production numbers or its sales policy. Hermes declined to comment to Reuters.

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For years, this arrangement benefited both the fashion house and the resale market. Customers had an incentive to spend more, while sellers could command significant premiums from buyers who didn’t want or couldn’t get the bag outright.

Sarah Davis, founder of California-based Fashionphile, described the arrangement as a “win-win”. The company said its Birkin stock has increased 32-fold in 15 years, illustrating how much bigger the resale market has become.

More bags, lower premium

The proliferation of online resale platforms such as Vestiaire Collective and The RealReal has made it easier to buy and sell used luxury goods. Hermès has also gradually increased production and opens an average of one workshop per year.

Jane Birkin with her iconic Hermès Birkin Bag.(Vogue Scandinavia)

Together, these developments have made it easier to find Birkins on the secondary market. Of nine retailers polled by Reuters in the United States, Europe and Asia, six reported a fall in retail prices over the past year, while five said demand had eased.

Read also | Global customers can’t get enough of Hermes Kelly

Brokerage firm Bernstein said retail prices for a Birkin 25 averaged around 1.7 times higher in the third quarter, up from 2.6 times higher than in 2022. UBS analysts, meanwhile, estimated that the global supply of Birkin and Kelly bags was six to seven times higher than before the pandemic.

This shift matters because the Hermès leather goods division accounts for 44% of the group’s revenue. Its shares also lost nearly 40% of their market value in 2026, Reuters reported, as investors assessed slower growth and questioned the durability of its scarcity-based strategy.

Is the Birkin losing its appeal?

Not quite. Hunter added that demand for Hermes’ most exclusive bags remains strong even as their resale becomes less profitable. But she warned that falling resale prices, along with rising retail prices, could eventually make buying direct from the brand less attractive.

“If Hermes continues to raise prices and resale prices continue to fall, the margin will be squeezed and perhaps less attractive,” she said.

Hermes CEO Axel Dumas has previously pointed to the limits of expanding production, citing the availability of highly trained artisans and quality leather. Some sellers are also reporting firmer prices for certain bags, indicating that the market is not moving uniformly.

The Birkin remains a recognized symbol of luxury. But the question is whether, despite shifts in resale and supply demand, the iconic Birkin can maintain its aura.