Reasons to Shop a Hermes Bag and Not a Chanel or LV
Some people invest in property, and some in vintage cars: and certain individuals invest in handbags. Yes, you heard it correct, handbags. We are not talking about your everyday run-of-the-mill handbag here, though. We are talking Hermes handbags. Handbags that are so sort after, they blow even the big name brands such as Chanel and Louis Vuitton clean out of the water.
There is no disputing the quality of the bags made by Chanel and LV but what puts Hermes out in front of its two main rivals is the exclusivity that the French luxury goods manufacturer offers its clients. Although there is no waiting list for Hermes bags, other than the Birkin, unlike Chanel and LV, it's this exclusiveness that has given way for a rise in demand for the company's luxurious handbags.
Authenticity plays a big role in society these days. Consumers want to be seen to own something different, something original; they don't wish to be known as having a sheep mentality of someone who follows the crowd. Unlike LV, which is highly exposed in its marketing strategy, investing 42.9% of its sales on advertising in 2017 Hermes takes a far different approach.
Hermes, by comparison, spent a paltry 5%. of revenue on advertising. The luxury goods manufacturer takes the subtle approach and lets the quality and elegance of its magnificent bags do the talking rather than the mass exposure LV chooses to take. Once any luxury item is seen as being available everywhere, exclusiveness is watered down, and its eliteness loses its sparkle.
There is no better way for a company to boost sales than to get a celebrity to endorse its product. From shoes to clothes and cosmetics to perfumes, top stars are always willing to give a helping hand, at a price, of course, to companies who wish to persuade buyers to part with their money. The endorsement of handbags is no different. Well, not where Chanel and LV are concerned it isn't.
Film star Angelina Jolene was reported to have received $8.5 million from LV in 2011 to represent the brand in one single ad campaign. If that isn't screaming, come and get me; what is? On the other hand, Hermes rejects celebrity endorsements, which again is more evidence of its exclusive, and some would say elusive brand.
Chanel, like its French competitor Louis Vuitton, also falls into the trap of overexposure, with their bags on sale in a huge amount of shops around the globe. Hermes, on the other hand, limits both its production and places to sell its key products. The companies aim is not to meet the demand of customers but to amplify it. As mentioned initially, the only bag from Hermes that has a waiting list is the Birkin.
Waiting lists for these bags can stretch as far as six years, that's if you're able to get on such a list in the first place as this is determined by your reputation with the company and your purchase history.
Let us finish as we started and talk about investments and, in particular, investment in a Hermes Birkin bag. Considered the holy grail of Hermes bags, the Birkin will set you back anything from $9,000 up to a staggering half a million dollars. It may seem extreme, but when you consider their stock value compared to playing the stock market or investing in gold over a thirty-five year period, guess which one came out on top?
Not only did the coveted, exclusive luxury items never decrease in value, but their worth also grew a staggering five hundred percent over this period. In contrast, gold and stock market prices consistently fluctuated. I wonder how much Victoria Beckham's $2 million Hermes bag collection will be worth when she finally decides to hand them down to daughter Harper?