‘Better investments than gold’: What makes handbags worth $20k?

Sunday, 8 September 2024

Aotearoa’s largest ever collection of the exclusive Hermès luxury handbags are being auctioned at Webb’s upcoming auction on Sunday.

New Zealanders have the opportunity to bid on 27 Birkins, which will be at Sunday’s auction. A Crocodile leather Birkin, estimated to be worth up to $28,000, was auctioned off for $38,240 earlier this year.

What makes a handbag worth $20k?

Sonja Blatt from Scottie’s Boutique in Auckland’s Ponsonby says craftsmanship matters in luxury bags.

“The [Birkin] bags are crafted with exceptional quality and meticulous attention to detail, requiring up to 40 hours of work from skilled artisans. Their saddle stitch, a hallmark of their craftsmanship, is hand-sewn and cannot be replicated by machines.”

Head of fine jewels, watches and luxury accessories at Webbs, Christine Powers, said owning a Hermès Birkin is like holding a piece of “financial art”.

“These bags aren’t just accessories; they’re better investments than gold, with recent auctions seeing them sell for up to double their original price.”

Is quality and investment all that’s behind the price-tag?

Powers says the upcoming auction is a landmark event for New Zealand’s luxury market

”[It’s] an unprecedented chance to own what many consider the pinnacle of luxury and wealth.”

A staff member at Muse Boutique Ponsonby say they love Birkins and the quality, but say a lot of the price is down to “prestige.”

“I’m going to say it’s a status thing because there are still beautiful bags for cheaper [that] are still beautifully made.”

“I must say … second hand [luxury] bags aren’t selling. They go up in price but they’re still for sale.”

Hermès is facing a lawsuit in California over claims it only sells Birkins to “worthy” customers.

Birkins aren’t advertised on the Hermès website, or displayed for sale in physical stores.

“Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag [in a private room],” the lawsuit said.

Customers might only be offered the opportunity to buy the exclusive handbags after other items had been purchased, it alleged.

Webb’s Auction House says Hermès’ Birkins were launched in 1984 after former chairman Jean-Louis Dumas saw British actress Jane Birkin struggling to carry her belongings.