Hermès has announced that it will open two new leather production sites in France within the next two years to meet the increasing demand for its leather goods including the Birkin and hire 500 employees.
According to an article on Bloomberg, Hermès has announced that it will open two new leather productions sites in France within the next two years. The brand will open the productions sites to meet the increasing demand for its leather goods including the Birkin bag, which starts at around $10,000, and hire 500 employees. Leather goods production will increase by 8%.
One production site will be located near Bordeaux while the other will be near Paris. Each production site will employ about 250 workers.
Increasing production is an important goal for the brand as it wants to shorten it’s waiting lists. The brand has posted an increase in sales and profits for years including in 2015 and 2016 when luxury sales decreased and less people were buying luxury good sales than before. There is, however, an increasing demand for luxury goods now and the brand wants to meet the demand.
The Birkin Bag is priced the way it is because of the demand and its exclusivity, though. Increasing production of a bag that is said to be rare and exclusive isn’t exactly the best way to keep the bag in demand. Handbags that saturate the market quickly go out of style. For example, the Céline Luggage Tote.
Most people, however, can’t afford a Birkin. The bags start at around $10,000 and can retail for over $100,000 and sell for much more than that at auction. Also, even if you buy a used Birkin on websites like eBay, you’ll still usually pay more than $5,000. Prices also increase every year.
Increasing production, while making the bag less rare, probably won’t make the bag less exclusive. More people might be able to get the bag but it’ll still only be people who can’t actually afford to get it.
So, what do you think? Do you like the Hermès Birkin? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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