Hermes is one of the most popular luxury brands, making the most giant waves in the fashion industry today. Known for its exquisite fashion items that combine timeless designs with excellent craftsmanship, there’s no doubt that these items come with a high price. While that’s the reality about luxury brands, Hermes has taken its price slightly higher.
The brand announced a price increase in 2022, the manifestation of which sparked so much conversation. Fashion enthusiasts and casual observers worldwide debated and speculated about the implications of these changes. While these debates didn’t change the brand’s position, it’s crucial to have a deeper understanding of it to determine how the move will inform future trends from the brand.
Hence, this post will discuss everything you need about the Hermes price increase. This attempt will help lay a solid foundation to show the price increase in specific Hermes fashion items. So please sit back as we take you through this new development.
How Much Has Hermes Raised Its Prices?
It’s not the first time that Hermes has increased its prices in the long history of the fashion brand. It’s a common occurrence for most luxury brands. However, the recent price increase by Hermes was so significant that we have to explain how much the brand has raised its prices recently.
Over the last few years, Hermes products have had an average 1.5% – 2% price increase. Through the years, whoever owns a Hermes bag will surely get a higher value next year. In 2022, there was a new increase as the price of some products became 4% higher.
On October 20, 2022, when Hermes executive vice president of finance, announced that there would be a substantial price increase, there was so much debate about it. Eric du Halgouet announced that the price changes on some items will go from 5% – 10% in 2023. For example, a Kelly bag that previously cost $10,000 will now cost about $11,000.
So, if you’re exploring how much Hermes has raised its prices, it’s safe to say they have done so significantly. It’s also worth noting that this increase cuts across all products, especially their bags. There are several reasons for this price increase, and we will explain some of them in subsequent sections.
Why Did Hermes Raise the Prices of Its Fashion Items?
There are reasons for the hike in the prices of Hermes products, and rightly so. Some of the reasons include the following:
1. It Was a Response to Higher Inflation
One of the reasons Hermes gave for justifying the price hike is that the decision was a response to global inflation. Undeniably, when there’s inflation, the cost of manufacturing tends to increase, affecting the overall cost of a product. The cost features a rise in raw materials, transportation, and labor prices.
Naturally, the brands need to account for the additional expenses on manufacturing whenever there’s inflation. So, if a price increase presents a viable explanation, they take it. Hermes essentially did this to retain the quality of the products it sent out for sale.
2. To Retain Exclusivity
Another reason we can infer from the increase in the price of Hermes products is to retain exclusivity. Many luxury brands raise their prices to maintain their status as luxury brands and ensure the brand remains desirable to its target market. So, this was a strategic move to increase the product’s value further.
While some may contend this reason, it’s important to note that specific consumers don’t care about inflation. That’s not to say they don’t realize the price increase, but it translates into something entirely different for them. For example, they could perceive the price increase on the product as exclusivity, which means that what they have is only accessible to a handful of consumers.
3. To Increase Value
Another reason we perceive Hermes increased its price is to drive up the value of its items. While this may appear favorable to the brand, it’s also favorable to the buyers. For example, if you bought a Kelly bag last year, and the price increased this year, what you purchased the previous year has increased in price and value.
The same logic applies to whoever will be buying at the updated price. They will understand that while purchasing the bag is for the sake of fashion, it’ll also be simultaneously for investment. Higher prices drive up resale value, making it a win for whoever purchases them at any point.
How the Recent Increase in Hermes Prices Affects Collectors
The increase in the price of any goods affects every party involved. However, some parties feel the hike more than others. The effect of the price hike in Hermes products is positive for collectors. That’s because while the typical consumer wears their bags around, collectors preserve them.
Collectors purchase these bags and store them in climate-controlled vaults. This would allow the bag to appreciate value regarding rarity or inflation. Collectors value their purchase as an investment that could bring a massive return more significant than the initial selling price.
Therefore, the price increase would help them gain profits on new bags and add value to bags they already have in store. So, while paying the current price for the new bags may sting, the possibility of getting more in return is a heartwarming consolation for them.
2022 and 2023 Prices of Hermes Products Based on Currency
While Hermes doesn’t publish the prices of its bags, the following is a crowd-sourced detail of the 2022 and 2023 prices of some Hermes products based on currency:
Prices of Some Small Leather Hermes Goods in USD
| Products | 2022 Price ($) | 2023 Price ($) | Percentage Increase |
| Kelly To Go Wallet Box Leather | $6,150 | $7,600 | 24% |
| Kelly To Go Wallet Chevre | $4,700 | $5,500 | 17% |
| Kelly To Go Wallet Epsom | $4,575 | $5,500 | 20% |
| Constance Long To Go Epsom | $5,350 | $5,500 | 2.80% |
| Constance Slim Wallet Lizard | $4,950 | $5,950 | 20.20% |
| Constance Slim Wallet Epsom | $2,675 | $2,875 | 7.50% |
| Budy Charm | $560 | 430 | 3.60% |
Prices of Hermes Quota bag in USD
| Products | 2022 Price ($) | 2023 Price ($) | Percentage Increase |
| Mini Kelly 20 Epsom | $8,250 | $8,700 | 5.50% |
| Mini Kelly 20 Chevre | $8,900 | $9,450 | 6.20% |
| Mini Kelly 20 Matte Gator | $28,500 | $31,500 | 10.50% |
| Kelly 25 Epsom Sellier | $10,600 | $11,300 | 6.60 |
| Kelly 25 Retourne Matte Gator | $36,100 | $42,000 | 16% |
| Kelly 28 Epsom Sellier | $11,200 | $11,800 | 5.30% |
| Kelly 25 Togo Retourne | $9,900 | $10,900 | 10% |
| Kelly 28 Togo Retourne | $10,600 | $11,300 | 6.60% |
| Kelly 32 Togo Retourne | $11,300 | $12,000 | 6.20% |
| Birkin 25 Togo | $10,100 | $10,400 | 3% |
| Birkin 30 Togo | $11,300 | $11,600 | 2.70% |
Prices of Other Hermes Bags in USD
| Products | 2022 Price ($) | 2023 Price ($) | Percentage Increase |
| Mini Lindy Clemence | $6,400 | $6,650 | 3.90% |
| Picotin Micro | $3,200 | $3,325 | 3.90% |
| Picotin 18 | $2,875 | $3,025 | 5.20% |
| Picotin 18 Eclat | $3,000 | $3,325 | 10.80% |
| Picotin 18 Monochrome | $3,325 | $3,525 | 6% |
| Picotin 18 Pocket | $3,600 | $3,775 | 4.90% |
| Picotin 22 | $3,150 | $3,325 | 5.50% |
| In-the-loop 18 | $4,350 | $4,500 | 3.40% |
| Geta | $5,800 | $5,950 | 2.50% |
| Evelyne 16 Amazone Clemence | $1,900 | $2,050 | 7.80% |
| Bolide 1923 25 Epsom | $6,300 | $6,850 | 8.70% |
What Makes Hermes Products So Special?
Hermes has retained its reputation in the fashion industry for so long because people know the brand offers only special products. But what makes their products, especially the bags, so special?
They are Made from Quality Materials
By merely looking at some Hermes products, you will realize that they are made from quality materials. The bags, for instance, are made from materials unique to the atelier. These materials are hard to find because the brand sources them exclusively for each product.
Additionally, the bags are carefully cut, sewn, and polished by the hand of a single artisan. This artisan commits their expertise to each item to create an exquisite result. The meticulous production process and the quality of the final product make the bag so special.
They Have Limited Production and Sales
The fact that Hermes products are luxury products means they aren’t mass-produced. Every production is limited, and the information about the style, leather, and color are kept secret till launch. This also applies to the information about where and when the products are shipped.
Essential personnel like the Sales Manager and Sales Associates have no information on transferring the bags from the production house to the store. The products are subjected to limited sales when they reach one of their official 315 stores. The secrecy in the production and logistics of the final Hermes product makes them special when people eventually see them.
They are Extremely Scarce
Another factor that underscores the special nature of Hermes products is that they are incredibly scarce. The fact that the brand releases limited editions of some of its products means they take time to come by. This drives the value of the products high and makes them special when you eventually see them.
Additionally, people who buy these products understand their rare value. So, they also preserve them only for important events. But whenever they wear the product, it appeals to people who are enthusiastic about high-fashion products and casual observers.
What the Future Looks Like for Hermes
While the price increase takes so much attention about Hermes, we must note that the brand is still committed to innovative style that resonates in their productions. They are also committed to excellence that’ll help them stay ahead of the competition in the luxury fashion industry and retain appeal to the ever-changing consumer preferences.
So, looking to the future, one can expect the brand to retain its quality, exclusivity, beauty, and innovation. Products from the brand will continue to symbolize luxury and elegance for those who wear them. So, as an admirer and customer of the Hermes brand, rest assured you’re in for a more extensive package from the brand in the future.
Can I Buy Second-Hand Hermes Products Despite the Price Increase?
The satisfaction one gets from buying something new is genuinely different from buying a second hand. But with a luxury item, you’ll be pleased to have the product because it has a high value. So, if you’re offered a second-hand Hermes product within your budget, you should buy it.
You must understand that these products are scarce. So, consider buying if you can see the one you want, and it’s up for sale. While the current price increase also affects the prices of second-hand products, you should consider the cash commitment as an investment.
People pay so much for vintage items, and you may recover your money and more when you decide to sell. However, keep those factors from preventing you from doing the needful before purchasing the item. You must observe certain things before buying a second-hand luxury item.
Carefully evaluate the item to ensure it’s in good condition. Doing this will help you appraise the item and present a worthy amount. While it would look different from the new one, specific issues may disfigure the product. So, ensure you check correctly.
Can I Get A High Price for Second-Hand Hermes Products?
Whether it’s new or second-hand, the value of Hermes products remains high. As long as the product is in good condition, you’ll surely get a reasonable price for it, even if it’s second-hand. However, observing some tips can influence the amount you’ll get.
For instance, if you still have the packaging box and other accessories accompanying the product, adding them allows you to charge and get more for them. Also, if you visit a specialty store first to appraise the item, you get an idea of its worth, which informs the price you’ll put on it.
Conclusion
Hermes raised its prices in response to global inflation, which has significantly affected the cost of producing luxury items. While the recent increase is more significant than the previous, the brand offered reasons for the decision. Hermes is a unique brand that will remain as long as its commitment to excellence doesn’t change.
