How the market works

The Hermes market operates through a primary channel that is deliberately restrictive and a secondary market that prices the restriction. Hermes controls allocation of its most desirable bags through boutique relationships. To receive an offer to purchase a Birkin at retail, a customer typically needs a purchase history with the boutique that the sales associate considers appropriate. This system creates a retail price that is below secondary market price for the most desirable configurations

The secondary market operates through specialist resellers including Fashionphile, Rebag, and Vestiaire Collective, through auction houses including Christie's and Sotheby's whose handbag sales have become significant category events, and through private sales. The premium over retail for a desirable Birkin in a desirable configuration can be two to four times the retail price.

CollectorGrade take

The Hermes allocation system is not an obstacle to collecting. It is the architecture of the value proposition. The retail prices that create the secondary market premium are a consequence of deliberate scarcity management.