Squiz Shortcuts - The Birkin bag

Your Shortcut to… The Birkin bag

The very first Birkin bag - the one made by Hermès for British actress Jane Birkin - is about to be auctioned in Paris, and even though it’s well-worn, it’s expected to fetch hundreds of thousands of dollars... The bag’s creation story is legendary, and over time it’s become one of the most coveted items in the world. So in this Squiz Shortcut, we’ll look at:

• the story of le Birkin

• how it became much more than a handbag

• and why it’s now big business…

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Let’s rewind a bit, what’s a Birkin?
It’s a style of handbag made by French luxury design house Hermès. Our research tells us they retail in Australia anywhere from $12,000 to $200,000, but in case you’re ready to rush out and buy one - you can’t. It doesn’t work that way… They are very hard to get - there’s not even an official waitlist.

So, how do people buy them?
If you want one directly from the brand, people in the know say your best chance is to visit an Hermès boutique, establish a rapport with the sales staff, make a few purchases, and, if you’re lucky, over time, you might be offered the opportunity to buy a Birkin… But that’s only when they’re available.

How often is that?
Not very… The stores receive a limited number of Birkin bags twice a year, and the style is a surprise. So it’s a case of ‘you get what you get and you don’t get upset’.

What if you don’t like it?
Oh don’t worry… You can bet that the resale value won’t let you down - especially if it’s a rare design or made from exotic leather like the one Kylie Jenner was recently seen with after the Bezos/Sanchez wedding. 

Tell me everything…
That bag, called the Snow Faubourg Birkin, is a super-rare design. It’s made from matte alligator leather, and she’s rumoured to have paid more than $450,000 for it second-hand. And, if you can believe it, there’s another version of the Birkin that’s set to top that. 

Which one is that?
It’s the original bag that was named after British actress Jane Birkin. You might know her from several French films as well as a few Agatha Christie adaptations like Death on the Nile - or maybe from the song je t’aime moi non plus, which was quite a scandalous track she recorded with her husband Serge Gainsbourg in the late 1960s.

Go on…
The song was banned in several European countries because of its suggestive content - it caused quite a stir, but was also a huge hit. So that’s who the bag is named after. And the original bag that was actually made for her will be auctioned off this week by Sotheby’s in Paris.

What condition is it in?
It’s well worn… it’s scuffed and has marks left by stickers that Birkin decorated it with, but it’s expected to fetch a 6-figure sum, which in Aussie dollars, could be in the millions.

Why is one handbag worth so much money?
The OG Birkin can command that sort of price because it’s seen as a collectable piece of fashion history - up there with Princess Diana’s black sheep sweater. We’ll get into why Birkins are big business in a little bit, but part of the bag’s legend comes from where it all started, which was on a flight from Paris to London in 1984…

What’s the story there?
Jane Birkin was seated next to the chief executive of Hermès, Jean-Louis Dumas, and they got chatting. She was carrying a bag at the time, which fell to the ground and everything fell out. In an interview about it with CNN, she said Dumas pointed out that her bag should have pockets, and she said “What can you do?... Hermès don’t make it with pockets”... to which he had a pretty iconic response… He said “I am Hermès”.

Nice one…
Yep, and Birkin says that he asked her to sketch what she wanted, and she did - on one of those plane motion sickness bags - and a month later Hermès called her to come and see what they’d created. So that’s how the bag was born and why it’s called the Birkin. 

Did she realise what a treasure she had?
Nup… Birkin didn’t treat her new bag as anything special. By her own account, she filled it with nappies and baby bottles, stuck stickers on the sides for various causes she was into, and she even hung a pair of nail clippers to the inside. Those clippers are still attached, so that’s a bonus for whoever buys it… 

Handy…
Exactly - but the fact that the bag was so practical, and so used and loved by Birkin, has only increased its worth. Sotheby’s Global Head of Handbags and Fashion, Morgane Halimi says the bag is “a true one-of-a-kind”. She says the original Birkin “is more than a handbag, it’s a cultural artefact. It represents the birth of one of the most iconic designs in modern fashion.” And Birkin herself was a style icon, so the handbag she carted everywhere that was named after her soon took off in popularity… 

How did Hermès meet that demand?
Fashion industry experts, collectors and business commentators are all in agreement when they speak about the “genius” of the brand’s strategy when it comes to the Birkin. In a nut shell, that strategy is to drip feed the handbags to its stores and limit buyers to a very exclusive few. It’s called scarcity marketing… 

Can you explain that a bit?
Yep - it’s where a limited/controlled supply drives up the perceived exclusivity of a product. That creates a sense of urgency for those who are in the market for it, which then drives up demand, and demand combined with rarity pushes up value. And a few well-placed celebrity selfies don’t hurt either - although, rumour has it, celebs have to wait their turn just like anyone else.

How did Jane Birkin feel about all of that?
She didn’t care for all the fuss about the bag. Although she owned 4 more of them during her lifetime, she said in an interview in 2012 that she found them to be “heavy” and their prices “snobbish.” She died in 2023 at 76yo, but the bag she inspired has continued to be a best-seller not only for Hermès, but for high-end used-fashion retailers and auction houses specialising in luxury goods. 

So it’s big business?
Oh yeah… Hermès recently overtook LVMH as Europe’s largest luxury fashion house, and it’s achieved huge local growth in the post-pandemic years. Here are some quick figures for you: Reports say Hermès Australia raked in sales of $578 million last year, up by 21% on its 2023 results. And globally, although the US has threatened to impose steep tariffs on European goods - which Hermès says it will pass onto customers - it’s yet to make a dent in demand.

What tariff rate is the US looking to put on French luxury goods?
US President Donald Trump has threatened to whack 50% tariffs on them... But Hermès Executive Chairman Axel Dumas says he expects American customers to maintain their loyalty despite the price increases. And that’s backed up by analysts quoted in The Financial Times, who’ve predicted that the luxury goods industry will grow by 3% this year - which is down from 5% due to economic uncertainty, but it’s still an increase.

That’s good news for Hermès
Yep - because collectors say the Birkin has transcended fashion and is now considered a legitimate investment. The bags are expected to increase in value year on year, similar to collectable artwork - and a good example of that is Jenner’s Snow Faubourg bag we mentioned earlier. It’s a replica of the Hermes flagship boutique on Rue du Faubourg Saint-Honoré, and it ranks among the top 6 most expensive handbags of all time. But as we mentioned, there could soon be a new record set…

By the OG…
Exactly - in the meantime, we’ll settle for the more budget-friendly Wirkin… 

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Onto our Recommendations

Listening: Our colleague Tenita has recommended an episode of the podcast Acquired about the history and business strategy of Hermes… And just a heads up, it’s a bit of a time investment (it’s 3 hours long), so maybe tackle it in installments.

Watching: If you’d like to have a sticky beak at the OG Birkin and (who knows!) maybe put in a bid for it, here’s the Sotheby’s auction site. 

Looking: And for interest’s sake, here’s a link to Kylie Jenner’s snow Faubourg bag as well…

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