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The Hermès Birkin could well be one of the most interesting pieces in the luxury market. Why? Because buying and owning one goes against the rules of economics. The Birkin is a case of freakonomics . Planet Money‘s podcast discusses the hype that the Birkin has generated, and why women from all around the world are willing to spend $10,000 to $300,000 on one handbag.
As interesting and informative as the podcast was, it missed one of the main points as to what makes this item such a valuable one. This factor is not often brought up in the luxury space but is key to anyone interested in buying one. What makes the Hermès Birkin so valuable is simply, but most importantly, its resale value.
A dear friend of The-Collectory was able to find and buy an Hermès Birkin in Paris for $10,000. Putting aside the fact that finding a Birkin in the first place is another task on its own, she was able to find and buy it. After a few months, she came across several friends who desperately wanted to buy it from her at any given price. She then decided to sell her Birkin for $17,000, making a 70% return on her investment. That is about 10 times the average stock market annual return - and which she was able to make in 6 months.
That is what Smart Luxury is - being savvy with your purchases, investing in pieces that are worth the money, and getting a return on your investment when you see a great opportunity. That is why we always encourage our clients to be smart shoppers, so they can buy the handbags they have always dreamed of, knowing that it is the smartest purchase they will make that year.
This is a cherished story written by one of our favorite clients about her love for Louis Vuitton. Her story is unique to all of us handbag lovers, as it highlights how one cherished piece can keep alive those very stories that will never be forgotten.