How the Hermès Price Increase 2024 Will Impact the Secondary Market

We can all agree that the hottest luxury event of the year is the Hermès price increase. 

The 2024 hikes have already been released, and the impact will definitely send a ripple through the resale market. 

If you've been dreaming of getting an iconic Birkin, this is your need-to-know guide.

We're tracking the latest Hermès price changes for bags in the US and Europe. Here’s everything you need to know about it. 

Hermès Price Increase in the US

Birkin and Kelly bag sales are restricted to just two bags per year per customer. This exclusivity is exactly why Hermes religiously increases its prices every year, especially in the US.

Hermès Price Increases on Quota Bags

First, let's explore the new Hermès prices for their most sought-after bags: the Birkin, Kelly, and Constance.  

These iconic bags are often called "quota bags" due to their limited availability and the special systems boutiques use to manage sales. Let's dive into how the 2024 price increases will affect these highly-coveted handbags.

Hermès Price Increases on Other Handbags

The 2024 Hermès price increase has also impacted beloved classics like the Lindy, Picotin, and Evelyne – see our detailed breakdown below for the latest numbers.

Hermès Price Increase in Europe

Since Hermes bags tend to be more affordable in Europe than in the US, many Birkin fanatics tend to buy from European retailers for better deals. Here’s how the prices have increased in that region.

Hermès Price Increases on Quota Bags

Here’s a complete breakdown of the Hermes price increase on quota bags.

Hermès Price Increases on Other Handbags

Here’s a complete breakdown of the Hermes price increase on other handbags, including the Lindy, Evelyne, Constance, Picotine, and more. 

How the Hermès Price Increase Will Impact the Secondary Market

The Hermes price increase has had a major impact on the secondary market, specifically the Birkin and Kelly models. 

Continued Demand for Investment Pieces

Hermès bags, especially the Birkin and Kelly, are considered investment pieces that hold their value well in the secondary market. The strong demand and limited supply will most likely lead to even more growth in the pre-owned market for these iconic styles.

Shift Toward Lower-Priced Luxury Goods

With the price increases, some consumers may prioritise spending their money on “affordable” luxury goods. For example, instead of buying a pre-owned $5,000 Chanel handbag, they may opt for a $2,500 Wallet on Chain. This "lipstick effect" is seen in the luxury resale industry each time there is economic uncertainty.

Tipping Point for Consumer Pushback

It’s also possible that Hermès and other luxury handbag brands will reach a tipping point where consumers start pushing back on the price increases. If this happens, it could lead to a drop in demand in both the retail and resale markets. Of course, the ultra-wealthy will still continue to demand the most rare and exclusive Hermès handbags.

Hermès Dominates the High-End Market

Despite the price increases, Hermès still dominates the high-end luxury handbag market. Chanel's prices have reached levels close to Hermès in recent years, but its bags still fetch less on the secondary market. Even Louis Vuitton still struggles to sell significant amounts of handbags priced above $4,000.

Why Did Hermès Increase Their Prices?

According to the brand’s official statement, Hermès increased its prices in response to global inflation. The price surge was a strategic move by Hermès to address the rising costs of raw materials and labor. Plus, we all know that the global market is also experiencing major inflation. 

Conclusion

The Hermès price increase has added a new dimension to the resale market. With the right knowledge, you can find quality pre-owned pieces at competitive prices. If you, too, want to get your hands on a more affordable Hermès item, you should have a look at some pre-loved stuff.