What's happened
The luxury resale market is thriving in 2025, driven by rising primary prices, tariffs, and demand for investment pieces. Hermès Birkin and Kelly bags are highly sought after, with some reselling for double or more their original value. The market is expected to grow significantly by 2030.
What's behind the headline?
The surge in luxury resale value underscores a fundamental shift in consumer attitudes toward ownership and investment. Hermès' strict control over bag production and distribution creates scarcity, driving prices upward and making these items akin to collectibles. The market's growth is further supported by tariffs and inflation, which push buyers toward secondhand options. While the market offers lucrative opportunities for investors, it also introduces volatility, as demand cycles and trends can shift rapidly. The high resale values of bags like the Mini Kelly 20 demonstrate how specific models can outperform traditional investments like gold, highlighting a new asset class for wealthy collectors. However, the legal challenges Hermès faces over its distribution practices could impact future supply and pricing dynamics, adding an element of risk for investors.
What the papers say
The NY Post highlights the potential for Hermès Birkin bags to double in value over five years, emphasizing their status as investment assets. Meanwhile, Business Insider UK discusses the broader luxury resale market, noting its rapid growth and the influence of tariffs, with brands like Van Cleef & Arpels, Rolex, and Cartier leading the charge. The articles contrast the high-value, niche market of Hermès bags with the expanding general luxury resale sector, which is increasingly driven by consumer demand for jewelry, watches, and even rare handbags like the Chanel grocery basket. Both sources agree that scarcity, craftsmanship, and market demand are key factors fueling this boom, but they also warn of market volatility and legal risks.
How we got here
The luxury resale market has grown rapidly over recent years, fueled by increased primary market prices, tariffs, and consumer interest in investment-grade jewelry and watches. Hermès bags, especially Birkins and Kellys, are tightly rationed, making them highly desirable on the secondary market. The market's expansion reflects broader economic trends and shifting consumer behaviors.
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Hermès International S.A., or simply Hermès, is a French high fashion luxury goods manufacturer established in 1837. It specializes in leather, lifestyle accessories, home furnishings, perfumery, jewellery, watches and ready-to-wear.