Hermes bags are some of the most sought-after luxury items in the world. The French brand is known for its timeless and classic designs that have remained popular for decades.
These bags are not only a fashion statement but also an investment that can appreciate in value over time. So, how much do Hermes bags really go up in value? Let’s find out.
Why Are Hermes Bags so Expensive?
Before we dive into the appreciation rate of Hermes bags, let’s first understand why they’re so expensive. Firstly, these bags are crafted from the finest materials such as crocodile skin, ostrich leather, and calf leather.
The impeccable craftsmanship involved in making each bag also adds to its cost. Moreover, Hermes uses a meticulous production process that can take up to 24 hours to create a single bag.
The Appreciation Rate of Hermes Bags
Hermes bags are known to appreciate in value over time due to their rarity and exclusivity. The brand produces limited quantities of each bag, making them highly coveted by collectors and fashion enthusiasts alike. Some of the most popular styles such as the Birkin and Kelly bags have seen a significant increase in their resale value over the years.
According to a recent report by Baghunter, the value of Hermes Birkin bags has increased by 500% since 1980. In 2019 alone, the value of these bags increased by an average of 13%. Similarly, Kelly bags have also shown a steady appreciation rate over time.
Factors That Affect the Appreciation Rate
Several factors influence how much a Hermes bag appreciates over time. Firstly, the condition of the bag plays a crucial role in determining its resale value. A well-maintained vintage Birkin or Kelly bag can fetch a higher price than one that shows signs of wear and tear.
Another important factor is the rarity of the bag. Limited edition or discontinued styles can fetch a higher price due to their exclusivity. The material of the bag also affects its value, with exotic skins such as crocodile and alligator commanding a higher price than calf leather.
The Bottom Line
Investing in a Hermes bag can be a wise decision as it not only serves as a fashion statement but also appreciates in value over time. However, it’s essential to do your research and invest wisely. Always buy from reputable dealers and ensure that you’re getting an authentic product.
In conclusion, Hermes bags are not only luxurious items but also valuable investments that can appreciate in value over time. The appreciation rate varies depending on several factors such as condition, rarity, and material. However, if you’re looking for a timeless and exclusive piece to add to your collection, a Hermes bag is undoubtedly worth the investment.