Why Hermes Birkin bags are a good investment

A Hermes Birkin 25 has a retail price of $10,000 and can be resold for over double or more.

Luxury handbag expert Claudia Ricco, founder of pre-owned goods brand Rewind Vintage, told the South China Morning Post: "Consumers increasingly think about a bag’s second-life potential through resale and also the longevity of an item."

The average Chanel or Hermès bag increases in price by around 12 per cent per year, she added, making investing in them more lucrative than other assets.

Deloitte and Credit Suisse reported that the Hermès Birkin saw returns of 38% on average in 2020, the highest of all luxury bag collectibles.

Hermes said last week that wealthy Chinese clients had snapped up its products in the fourth quarter, helping it beat sales and margin forecasts, according to Reuters.

The likes of French luxury giant and Louis Vuitton-owner LVMH, and Swiss jewellery company Richemont, have also benefited from the resilience of their wealthy customers against the cost-of-living crisis.