A Birkin bag is the last word standing image—one that cash alone can’t purchase. The notoriously unique strategy of buying the enduring purse, which may price between $8,000 and $450,000, is now the goal of a class-action lawsuit.
In a grievance filed in a federal court docket in Northern California on Tuesday, two buyers allege that French luxurious home Hermès violated antitrust and enterprise apply legal guidelines by solely providing Birkin purses to clients who have already got a purchase order historical past with the model.
Plaintiffs Tina Cavalleri and Mark Glinoga alleged that Hermès executed a “scheme to exploit the market power” of the Birkin by “requiring consumers to purchase ancillary products…before they will be given an opportunity to purchase” the bag.
“In other words, consumers are coerced into purchasing ancillary products from Hermès by virtue of wanting to purchase the Birkin Handbags,” the submitting reads. “This is anticompetitive, tying conduct.”
This apply of “tying” purchases, in keeping with the plaintiffs, artificially inflates the price of buying a Birkin bag and limits client selection, violating federal and state antitrust legal guidelines, and the California Enterprise and Professions Code.
Hermès has not responded to the lawsuit. The corporate didn’t reply to Fortune’s request for remark.
Can anybody purchase a Birkin?
Brief reply: no. In response to the lawsuit, plaintiff Cavalleri has spent tens of hundreds of {dollars} at Hermès—and already owns no less than one Birkin. In September 2022, Cavalleri contacted Hermès about buying one other Birkin bag however was advised specialty luggage are going to “clients who have been consistent in supporting our business,” in keeping with the lawsuit.
The opposite plaintiff, Glinoga, made a number of makes an attempt to buy a Birkin—however “was told on each occasion he needed to purchase other items and accessories,” the submitting reads. Glinoga went residence empty-handed each time, in keeping with the lawsuit.
One can not merely stroll into an Hermès retailer and ask for a Birkin—as a substitute, alternatives to buy the bag are supplied to the model’s most loyal clients. Clients who’re can enquire in-store, however the remaining choice of who will get supplied a Birkin is as much as gross sales associates, according to Byrdie.
And even when the fortunate clients are prepared to shell out 5 or 6 figures to purchase the bag, they could not get to select the mannequin their coronary heart needs.
“Hermès only allows boutiques to purchase a select number of Birkins on a bi-annual basis and the style of Birkin bag delivered to boutiques is rarely known ahead of time,” according to Sotheby’s. “As a result, customers must either make do with the available Birkin bag offered by the sales associate or patiently wait for the style they want to become available.”
And so, shopping for a Birkin not solely requires hundreds of {dollars}—it might probably additionally require a purchase order historical past with Hermès, rapport with a gross sales affiliate, and pure luck. Although the highlight is now on Hermès, fellow luxurious manufacturers Rolex, Celine, and Chanel have additionally been accused by social media customers of implementing the “tying” apply, according to The Enterprise of Trend.
Why are Birkins so costly?
The Birkin bag was “born in the sky, in 1984, on a flight from Paris to London,” according to Hermès. The late actress Jane Birkin was seated subsequent to Jean-Louis Dumas, govt chairman of Hermès on the time, when she confided in him that she couldn’t discover a bag that suited her wants as a younger mom.
The actress told CNN in 2020 that she sketched out the design on a sick bag—and Dumas added to the design by taking inspiration from present Hermès luggage.
The earliest variations of the bag have been bought for round $2,000 in 1984, according to Enterprise Insider. Over time, the Birkin has risen in standing as a celebration of workmanship, a trendy flex, and an funding piece—and it’s impressed a sturdy resale market that has outperformed the S&P 500 in some years.
For collectors, a part of the enchantment of Birkins is that they maintain their worth effectively in comparison with different luxurious items—on on-line luxurious retailer Farfetch, the most affordable second-hand Birkin goes for $11,500, whereas the costliest one is listed for $48,502. As for the costliest Birkin ever bought, the “Himalayan Diamond Birkin” holds that report. It fetched $450,000 at a Sotheby’s sale in 2022—due to its helpful parts of Niloticus crocodile pores and skin and 9 to 10 carats of diamonds.
For luxurious fans, the mystique and unattainability of the Birkin solely provides to its desirability. And contemplating the present financial panorama, a Birkin is maybe one of many extra secure investments one could make.
