$50K Hermes Bag Is Recession-Proof

In tough times, designer's bag sales are up
By Evann Gastaldo,  Newser Staff
Posted Jun 10, 2009 3:02 PM CDT
A model presents an ensemble by French fashion designer Jean-Paul Gaultier for Hermes in Paris, March 11, 2009.   (AP Photo)
camera-icon View 2 more images

(Newser) – High-end designers everywhere are closing down storefronts, but somehow Hermes’ sales are up. The iconic brand has managed to beat the recession by ignoring it, continuing to sell $50,000 bags that require years on a waiting list to own. “Hermes’ position is unique; it is at the very top of the pyramid in terms of luxury goods,” one analyst tells ABC News.

“The people who can afford these goods are not affected by the recession,” an expert points out. “That’s why the brand is recession-proof.” Only 3,000 of the most sought-after bag, the crocodile-skin Birkin, are made each year, and sold exclusively through company-owned shops, where clients like Victoria Beckham—reported owner of $2 million in Birkin bags—are lucky enough to purchase them.