Although there have been fashion brands in recent times, certain brands will always stand out. These brands have maintained a high standard over time and continue to gain recognition. When we mention fashion, we’re also talking about bags. They’re a crucial part of your dressing, and sometimes, they portray the user’s personality and style. When you mention female bags, Hermès is at the top of the list. A Hermès bag is usually considered an investment. Hermès is a fashion brand that has been around for quite a while. This article informs you about the Hermès net worth to gain insight into how much the company is worth. First, let’s dive into the history of Hermès.
Hermès Background Story
Before we talk about Hermès’ net worth, it might be great for clarity if we understood the brand’s background. Hermès is a luxury goods manufacturer based in France. The company was established in 1837 and started out producing lather works. Over the years, the company widened its horizon and now produces perfumes, home furnishing, watches, and leather works. The Hermes company is over a century old and began with Thierry Hermès.
He was so skilled that his main clients were the royal families back in the 19th century. This skilled man opened a shop in 1837 in the heart of Paris. He started with saddles and usually took detailed measurements for riders and their horses. His hand-stitched saddles usually took months to make. The reason was that perfection was necessary because of his clients, who included Napoleon III back them. When Thierry Hermès son took over from him as the CEO of Hermès company, he moved the store in Paris to 24 Rue du Faubourg Saint-Honore. Today, you can still find the company headquarters there. By the end of the 20th century, Hermès was dealing with royalty from around the world.
However, six generations later, the Hermès brand is famous for the Parisian family house alongside a $49 billion fortune. Pierre Alexis and Axel Dumas are at the helm of affairs at Hermès. To be clear, they are Co-chairmen of the brand. While Axel acts as the CEO, Pierre Alexis is the brand’s creative director. Pierre Alexis is famous because of his father’s involvement in making Hermès into an international luxury brand.
How the Brand Developed its Repertoire
The Dumas family is why the fourth generation of Hermès continues to stand out. Robert Dumas took the artistic and head executive role in Hermès after his grandfather died in 1951. At this point, Hermès was already a household name and recognized as a luxury brand. Their popularity was the long wait time and the ostentatious price tags. However, when Robert Dumas took the reins, sales slowed, and orders weren’t high. So, to elevate the company once again, he introduced belts and bags. In addition, the company added a silk scarf to its specialization in 1937, which was a century after the brand was born.
He also ensured that the new additions aligned with the brand’s values and traditions. When he died, his son Jean Louis Dumas became the leader of the Hermès brand and retained this role for almost three decades. He moved the company’s finances from its lowest point to be worth over a billion dollars. Sales grew from just $82 million to over $446 million. He diversified Hermès, adding clothing and jewelry to the repertoire. He also opened the company to global operations and opened stores in several countries. Today, Hermès owns over 300 stores around the world.
Jean Louis Dumas also took the company public in 1993, although 75% still stays within the family. He handed the company’s rein to his son in 2002. Hermès partnered with Bugatti Veyron 16.4 to create a leather interior. The car continues to be one of the most expensive globally at $2.1 million. The brand also teamed up with Eurocopter to design an $8 million helicopter. Hermès’ net worth is vast as they’re one of the wealthiest families in the world.
How the Birkin Bag Came to Be
One of the main signature products of Hermès is the Birkin bag. The bag usually takes over 25 hours to produce, and its cost runs into six figures. Nevertheless, it is a popular staple on the arms of celebrities and princesses alike. However, not many know the history of the Birkin bag.
In 1984, Jean Louis Dumas, who was still head of Hermès at the time, met Jane Birkin on the plane. She’s a famous actress and singer, and she was carrying a distressed bag. He inquired about the bag and offered her a partnership with Hermès. This encounter came to define Hermès’ Birkin bag as a fashion status symbol. We’ve seen it on celebrities like Kate Moss, Kim Kardashian West, and many more. Unfortunately, this Birkin bag never leaves the workshop until it is perfect, and the company usually burns imperfect Birkin bags.
In 2015, they sold a rare Himalayan Nilo crocodile Birkin bag for $185,000. It became the second most expensive bag sold at an auction; the first was a Birkin bag. This bag features 242 diamonds and white gold.
Hermès Net Worth
In 2021, Hermès became the 5th most prominent fashion company with a market value of $128.6 billion. This achievement is quite huge for Hermès as a single branded company. In comparison against LVMH who is its 10.3 percent stakeholder, you can see Hermès achievement in its value. Hermès’ net worth is $16 billion, and it owes this to its strong heritage and iconic products like the Birkin bag.
Hermès revenue continues to grow with orders coming in the full financial year. As long as people keep investing in products like the Birkin bag, the revenue growth will continue. However, 45% of Hermès revenue comes from its saddlery and leather goods. Despite the bad press from animal rights organization PETA, Hermès leather goods revenue continues to increase. Therefore, it’s safe to say that Hermès’ net worth is safe and will continue to enjoy ongoing growth.
Why Hermès Bags Are So Expensive
Many factors determine the price of a Hermès bag. Therefore, if you’re seeking the quality that Hermès brings to the table, then you should expect a premium price tag. Factors determining cost include material, size, color, model, and even the type. This brand produces many luxurious handbags; keep reading to discover the top five on the list.
The Evelyn Bag
This bag is simple but quite an understated luxury. It is ideal for running errands, and it comes with a thick crossbody strap you can easily throw over your shoulders. Despite its simplicity, this bag is undeniably Hermès with the large H symbol in front. It comes in four sizes and various colors. An Evelyn bag costs between $1800 and $6000, and the primary determinant of the cost is the size and material. The smallest size usually sells at $1800, while the largest might cost between $4500 and $6000.
Garden Party Tote
This bag is relatively more affordable at a $2000 - $3000 price tag. It is a practical offering from Hermès and is simply a quintessential tot. Although this bag still features Hermès’ famous craftsmanship and quality, its affordable price is fantastic. The Garden party tote is also quite versatile because you can dress up for an evening dinner with it. Alternatively, you can use it for a casual outing making sure it carries all your essentials. It is an entry-level Hermès bag and is quite durable. The exciting part is that it comes in different colors. A cute feature it comes with is the snap closure at the top of the bag.
The Constance Bag
If you want to move up in the price range, then the Constance handbag is for you. With bags like this, it’s easy to see why Hermès’ net worth is high. It is quite a statement piece that’s ideal for special occasions. The Constance bag shows Hermès leatherwork perfection and features the large H symbol known with Hermès bags. Additionally, The materials used for this bag are gold, palladium, or even silver-colored enamel. The bag costs between $4000 – 30,000 and comes in different shapes and sizes. The standard leather options cost $4000 to $9000. However, if you want rare styles which feature exotic leathers, they cost $15,000 – $30,000.
The Kelly Bag
Another option amongst the Hermès bag collection is the Kelly bag. This bag got its name from the actress Grace Kelly. However, it has been around for decades under the name Haut a courroies. It wasn’t till 1956 that the bag gained fame due to Grace Kelly’s involvement. Since then, it became the Kelly bag we know it to be today. The bag is available in the Sellier and Retourne style. The Retourne is soft and relaxed, while the Sellier features a rigid and sharp silhouette. In addition, the Kelly bag features detachable leather shoulder straps. The company used different leather materials in creating this Hermès bag, and it comes in different colors and sizes. It usually costs $9000 to $40000 to purchase. Therefore, it is a scarce commodity and quite desirable.
The Birkin Bag
This bag contributes an immense amount to Hermès’ net worth. It is a legendary Hermès bag that’s now a symbol of wealth, status, and luxury. Hermès is quite restrictive when it comes to selling its Birkin bags. Most people without a client relationship with a boutique turn to the resale market to get the Birkin bag. The bag’s value depends on the leather, color, and size. A simple Birkin bag costs around $9000, but the exotic choices usually cost around $20,000 - $30,000. The most expensive options are those made with the ultra-rare Himalayan crocodile. These options typically sell from $400,000 upward. Birkin bags are so valuable and rare that many people buy them as investments.
Hermès continues to thrive in the face of arising adversities. Although this brand has been around for close to centuries, it remains one of the top fashion brands in the world. Hermès’ net worth is admired at $16 billion and seems to be on the rise with every year. As a top fashion brand, every item produced by Hermès is considered luxury and is always worth more in the resale market. As long as Hermès stays true to their iconic products and brand tradition, they will continue to thrive. It continues to grow outside of France in areas like Asia. Therefore we expect their total revenue to soar. Hermès will remain one of the most expensive brands for a long time to come.