Hermes in the Global Economy

Yesterday’s article Hermes Declines to Follow Chanel’s Lead left me wondering exactly what the disparity would be due to the devaluation of the Euro in comparison to US prices. The results are shocking:
RegionBirkin 30Birkin 35
US $ Equivalent$7194$7887
RegionKelly 28Kelly 32
US $ Equivalent$6862$7246

(prices serve as guides only and are subject to currency fluctuations; prices do not take into consideration any VAT refunds; US equivalents were calculated based on today’s currency conversion rates; all prices of the bags are based on togo leather & retourne stitching)

Let’s break down the numbers. What are the possible implications for both the customer & the company?

  • As the US dollar has grown in strength against the euro in recent months, the cost of Hermes bags in Europe has become correspondingly less expensive.
  • Hermes, for the same bag, could get 10,900 USD selling the bag in the US vs $7,194 USD in France (see chart).
  • US (& Asian) markets might see an increase in exclusive inventory to compensate for the European profit shift
  • The devaluation of the euro against the dollar  makes purchasing Hermes in Europe highly attractive for Americans and Asians.
  • But, Hermes’s stringent retailing strategy protects the brand’s exclusivity and prevents the gray markets from flourishing. They are keeping themselves insulated from what other leading brands like Chanel are facing.
  • Hermes might experience greater domestic brand loyalty as a result of the decision to keep euro prices status quo.

So my fellow handbag aficionados, shall we book a non-stop flight to Paris? After all, even including the price of airfare, the Birkin is still cheaper than at home…

Love PurseBop

Published: April 9th, 2015
Updated: May 27th, 2017

Leave A Comment

Your email address will not be published.

7 Responses to “Hermes in the Global Economy”

  • WOOOOWWW!!! I didn´t know the prices in the US and Europe were so different. Always thought prices in the USA were better than the rest of the world in everything, including bags… Won´t be buying an Hermès anytime soon, but if I were, I´d def go to Paris to get it LOL! Loooove Paris!!! Thank you for the info hun, I never saw anything like this in the net (and I´m always searching for bag prices hehe). Have a wonderful weekend! XOXO

  • WHAT A WASTE OF MONEY!! With the prices of these atrocious bags, I can easily buy a car, a house, go on vacation, pay my bills, feed a family, donate to charity, adopt a pet at a shelter, pay my child’s tuition, buy presents for my family and friends, fill my closet with clothes that I wear EVERYDAY, buy gas for my car, fix my car, feed my kids… DID I MENTION… DONATE TO CHARITY?

    Might as well take that $10K and throw it down the crapper. What a waste of money.

  • They are an investment. If you were able to get a new one for 10k. You could easily seel it for 15k. Birkins & Kellys are a preforming assest.

  • I’m tired to see this type of crap messages. “donate to charity, adopt a pet, feed the children..etc” We Have done all that, and you telling us we can’t enjoy our success? can’t spoil ourselves? We earned what we have, there are some poor ones out there that didn’t work hard like us. Stop whining.