Is Hermes's Platinum Bag Burning This Year?

Two years ago, Luxury goods Baghunter, an online retailer of handbags, has found that the return rate of Hermes platinum packages is the highest, with an average annual value growth of 14.2% by comparing the return on investment in gold, stock and platinum packages over the past 35 years. Two years later, today, Birkin The value is still recognized.

According to the world clothing and shoe net, in February 19th, Jefferies & Company, an investment bank in Wall Street, said in a statement that hermes handbags, including platinum bags, are the most valuable luxury goods.

The Rachel Koffsky, a luxury handbag auctioneer at Christie's auction house, has conducted data showing that from 2011 to 2017, the two market value of accessories, including handbags, increased from 5 million to 26 million pounds. " Hermes Platinum packages usually bring positive returns. She said. From the report of Jefferies & Company, you can also see the value changes of platinum packages, such as the Himalaya platinum package priced at Euro 29 thousand and 600 in 2010, and the price could be 157 thousand and 500 euros when sold as a second-hand bag in 2016. In the meantime, if someone buys Hermes shares, it will grow by 432%.

As Gregory Rohan of Dallas Heritage Auction Co told New York Times in 2014, if you spend $20 thousand on an Hermes bag, you can add 60% to 150% according to the popularity, color, color and size of the style when you sell it.

Hermes Himalaya alligator skin series (photo source: purseblog.com)

Hermes handbags are very attractive in the investment market, but other luxury goods can only be seen. Jefferies & Company reminds people that some brands, such as Chanel, Louis Vuitton and Gucci, tend to depreciate with time.

In fact, the conversion of hermes handbags from luxury goods to investment products depends not only on precious cortex and top-level handwork, but also on the predetermined rules of appetite. Those who have known Hermes must know that they want to buy a bag not only to have money, but also to buy other products for a certain amount before they can reserve a bag. This rule is called "distribution". This shopping threshold allows hermes handbags to become products that people of certain social status and loyal customers can buy. The investment bank's platinum bag is the classic style of many celebrities. It is said that she has more than 800 collections.

The Thailand net, the beloved mother of Hermes. (photo: her journal)

The birth of platinum package dates back to 1981. Jean-Louis Dumas, who was CEO of Hermes at the time, saw all the things Jane singer Birkin dropped out of the bag when she was flying. She complained to Dumas that it was hard to find a bag with an inner bag. So Dumas promised her to design a new package. It was said that he had painted the idea of design package on the garbage bag of the aircraft. Three years later, the Birkin bag, that is, the platinum bag, was officially published.

The platinum package has over 90 different combinations of different cortical, style and color materials, and the cheapest one will cost more than ten million RMB. Among the many platinum packages, the white Himalaya Nile crocodile skin is the most valuable material. In the 2017 spring auction of Christie's auction house in Hongkong, an anonymous bidder who only used mobile phone to shoot a platinum bun with a diamond clasp in Himalaya for 2 million 595 thousand and 700 yuan, the price was 562 thousand yuan higher than the previous year.

In recent years, the sales performance of Hermes has maintained a steady growth in the pursuit of hermes handbags. According to the first three quarters of fiscal year 2017 fiscal year report, by September 30th, sales reached 4 billion 50 million euros, an increase of 10% over the previous year, higher than analysts estimated 8.5%. Driven by the strong purchasing power of China and other Southeast Asian countries, sales in Asia, excluding Japan, were 1 billion 463 million euros, up 13.3% over the same period last year. Leather goods and harness are still the largest sales of the brand, reaching 2 billion 58 million euros, the only growth rate behind perfume.

Although leather is firmly in the seat of Hermes's star product, Hermes has not put all his eggs in one basket. Rogerio Fujimori, an analyst at RBC, once said that in addition to the bag with investment value, the group has more than 10 handbags product lines, including more low-end products targeting more people, in order to reduce consumers' dependence on classic models such as Kelly and Birkin.

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