HERMÈS is a brand loved all over the world, and among them, “Birkin” is famous as an item that women admire. In fact, do you know that this Birkin is attracting attention as an investment target?
This article summarizes the advantages and disadvantages of investing in Birkin, and how to get started. If you are interested in branded products and asset management, please refer to it.
What is Hermès Birkin?
Birkin is a handbag manufactured and sold by the luxury brand Hermès. In addition to the material and design, it is also highly regarded for its practicality such as the wide opening and is now gaining popularity to the extent that it is synonymous with luxury bags.
Because of its popularity, there are women all over the world who are willing to buy a second-hand product even if it costs more than the regular price. Let’s take a look at how the market price changes to see how much the property is actually worth.
The graph above shows the transition of the domestic sales price of the Birkin 30 (*) . In 2022, the price is more than doubled compared to 2010, and it can be seen that the price has increased significantly since 2016.
( *) A Birkin with a width of 30 cm. There are also Birkin 25, Birkin 35, Birkin 40, and Birkin 45. They are categorized by width.
The standard color of Birkin 30, which is sold at a price of 2.5 million yen on Komehyo Online.
It is difficult to purchase a new Birkin at a fixed price in secondary distribution, and many models are traded for over 1 million yen. So, if you buy a Birkin in near-new condition at full price, you can get a big return in just a few years of storage.
Benefits of Investing in Hermès Birkin
So what makes Birkin attractive compared to other financial products and assets? Here are four benefits of investing in a Hermès Birkin.
No Decline in Value for 35 Years
It is said that the Hermès Birkin has never dropped in price since its birth in the 1980s. There is also a survey result that the asset value rises by an average of 14.2% per year, so if you keep the bag purchased for 1 million yen for 10 years, it will be calculated that you can get a return of about 2.7 million yen.
We will introduce standard products to see what kind of Birkin is actually gaining popularity.
Black Birkin 30, which is also said to be the royal road color. The reference retail price was about 1.47 million yen, but as of December 2022, even second-hand products are sold for around 2.6 million yen.
Etoup’s Birkin 25 sold at a reference retail price of about 1.33 million yen. The selling price of unused items exceeds 3 million yen.
Not only the aforementioned Birkin 30 but all Hermès Birkins have gone up in price. Even second-hand items that are large in size will cost more than 2 million yen, so you can aim for a return even if you sell them after using them yourself.
Many Models are Soaring
So far, we have introduced the Birkin, whose retail price has doubled, but there are many models that have risen more than that.
For example, the price of Himalayan Birkin, which has a beautiful gradation to pearl white, skyrocketed around 2017 due to rumors that production would be discontinued. Originally, the reference retail price was slightly higher than 10 million yen, but the 2014 model has been sold for about 42 million yen.
The Himalayan Birkin, which is different from the one in the above auction, is priced at about 17 million yen even for a second-hand item with a feeling of use.
In addition, the Birkin Shadow, which appeared in the 2009-10 Fall/Winter Paris Collection, is also a premium bag due to its rarity. The belt can be adjusted from the inside, and the fact that it has specifications that set it apart from other Birkins is one of the attractions that will tickle the hearts of fans and collectors.
Shadow Birkin sold at a reference retail price of about 1.55 million yen. As of December 2022, an unused item is priced at about 5 million yen.
Birkin can be said to be an asset with many opportunities as an investment target, as various other models are soaring.
Stable Distribution and Popularity
Liquidity can be a hurdle when investing in real assets. For example, real estate such as condominiums and buildings has low liquidity compared to general financial products, so depending on the property, it may not be possible to sell immediately.
In that respect, Hermès Birkin has a stable distribution and popularity, so it has the characteristic of being easy to control liquidity risk. Especially famous models can be easily cashed by simply taking them to a specialty store.
However, there are some Birkins whose prices are dropping.
A unique color Birkin 35 sold at a reference retail price of 10 million yen or more. Currently, a clean second-hand product is priced at about 6 million yen.
Not all Birkins are soaring, so it is necessary to be aware of “points that lead to popularity” and “trends” before purchasing products.
High Brand Awareness
Birkin investment is also attractive because it is a globally known brand. According to a survey conducted by My Voice Com Co., Ltd., Hermès ranks second among luxury brands in Japan.
|Well-known luxury brands
|No. 1: Gucci
|2nd place: Hermès
|3rd place: Chanel
|No. 4: Cartier
|No. 5: Louis Vuitton
(Reference: MyVoice ” Luxury Brands (3rd) “)
This is the result of a questionnaire targeting Japan only, and there is a possibility that it is even more famous in France, the home of France. Since there are fans and collectors in other countries, the market as an investment asset may continue to expand.
Disadvantages and Precautions of Birkin Investment
Birkin investment is not always a return, and depending on the bag, there may be a loss. Here are some pros and cons for beginners.
High Cost of Purchase
To buy a Hermès Birkin, you need at least 1 million yen. Most of the models are priced at 1.3 million yen or more, so it is an investment with a high hurdle for the necessary funds.
Especially if you are aiming for a popular model or a famous model, be prepared to need more than 2 million yen even for a used item.
Requires Knowledge to Spot Counterfeits
Fakes are common with popular fashion items, but Birkin in particular tends to have a lot of elaborate fakes. If by any chance you catch a counterfeit through secondary distribution, you will of course not be able to get a return.
Fake storage bags that are accessories are also on the market, so you need knowledge and skills to spot fakes from small discomfort. If you are unsure, buy from a reputable store that you can trust.
Requires Maintenance and Storage
Branded bags like the Birkin are real assets that can lose their shape, change color, or fade. If the appearance deteriorates, the purchase price will drop significantly, so knowledge about maintenance and storage is also necessary.
Various methods are introduced on the web, but for beginners, we recommend the “art warehouse” where you can store works of art in the optimal environment. In addition to professional storage, art warehouses also support anonymous listing and sales agency services, so you can request everything from storage and maintenance to sales.
It can be used for a few hundred yen per month, so if you start investing in real assets, be sure to consider it.
Which Birkin is Attracting Attention as an Investment Target?
Here, we will introduce two Birkins that are attracting attention as investment targets.
Birkin 25 (black color, gold metal fittings)
It is a Birkin with luxurious gold metal fittings on the black of the royal road color. Although the size is slightly smaller than the Birkin 30 mentioned above, it is very popular due to its high practicality.
The price of second-hand goods is also increasing, and as of December 2022, it is traded for around 3.3 million yen (*Sales reference retail price is about 1.33 million yen).
Birkin 30 (Crecolor, Togo)
Made of male cow leather, this is a Craycolor Birkin that gives you a sense of elegance. Even the newest ones are popular, and clean second-hand ones sell for more than 2.5 million yen.
Although it depends on the buyer, the price of products manufactured in 2020 has increased by more than 5% in one year.
How to Start Investing in Birkin
If I actually start investing in Birkin, where should I purchase the product? Here, we will introduce how to start investing in Birkin, including how to sell it.
New Birkins are sold at Hermès directly managed stores, but in fact, it is said to be extremely difficult to obtain Birkins through primary distribution. It is necessary to go through at the right time and become familiar with the store clerk, so if you are a beginner and start investing in a Birkin, aim for second-hand items.
Second-hand Birkin can be purchased at specialty stores, online auctions, flea market apps, and major recycle shops.
Where to Sell Birkin
Birkin is sold to a store specializing in purchases. There is also a way to sell it on a flea market app, but since communication between individuals is likely to develop into trouble, let’s first consider selling to a specialty store.
However, some models have a higher purchase price at online auctions, so if you are not satisfied with the estimate at a specialty store, consider listing them at an auction.
Birkin is a Luxury Bag that is Attractive as an Investment Asset
The Hermès Birkin has a variety of appeals as an investment asset. It’s a world-famous brand, and there aren’t many models whose prices drop significantly, so if you cultivate the skills to identify products, you can aim for a stable return.
However, there are risks such as purchasing counterfeits and product deterioration, so we recommend gathering enough information before starting to invest in Birkin.