From celebrities like Kim Kardashian and Victoria Beckham to athletes like Simone Biles and more private collectors such as Singaporean socialite and entrepreneur Jamie Chua who is believed to own the largest collection, Hermès handbags continue to captivate the world’s elite. Even rapper Drake has been collecting them for years for his future wife.
But what is the history behind the brand’s two most iconic bags: the Birkin and the Kelly?
From Harness Maker to Luxury Icon: The Hermès Story
The Hermès brand was founded by Thierry Hermès in 1837 and has remained committed to its artisanal craftsmanship and core values ever since, as stated on its website. Originally a harness maker, Thierry Hermès opened a store in Paris, where his keen understanding of customer needs allowed him to anticipate trends. He gained recognition by crafting simpler and lighter designs than his competitors.
During the interwar period, his grandson, Émile Hermès, expanded the brand’s offerings beyond equestrian goods, introducing a wide range of leather products to better meet customer demand. Later, under the leadership of his son, Robert Dumas, Hermès saw some of its most iconic creations, including the brand’s first silk scarf and the legendary Kelly bag.
Today, Hermès remains a family-run business, having been passed down through six generations, continuing its legacy of craftsmanship and innovation.
The story behind the creation of the Birkin
One might picture years of meticulous sketches and countless revisions behind the creation of such a precious handbag. That hundreds of shapes, models, and color palettes were dreamt up before the final design emerged. Yet, the truth is far more unexpected.
In the 80s, Jane Birkin reigned as one of the era’s most beloved icons. Whether through the silver screen, her rise fueled by the success of La Piscine, in music, with her unforgettable duet alongside Serge Gainsbourg, or in fashion, her beauty and effortless elegance captivated several generations. She was particularly known for always accessorizing her looks with a simple wicker basket, which she praised for its practicality, perfect for carrying all her personal treasures with ease.
In 1984, boarding a Paris-to-London flight, Jane, for once, traded her signature basket for a modest Hermès handbag. But the bag, far too small for her needs, failed her: she spilled its contents at the feet of the man seated next to her. As he helped her retrieve her belongings, she apologized by explaining : “What can you do, Hermès doesn’t make it with pockets.” ; to which the man gently replied, “But Madame, I am Hermès.”
Indeed, this man was none other than Jean-Louis Dumas, CEO of the House. Intrigued, he invited Jane to describe her idea of the perfect handbag. The flight transformed into an impromptu design session, with the young actress sketching the first outline of what would become the most coveted handbag in the world on one of the airline’s vomit bags.
If Jane Birkin originally embraced the bag for its practicality, adorning it with charms and keepsakes, the Birkin has since transcended its utilitarian roots to become the ultimate emblem of luxury. Acquiring one is not a matter of simply walking into a boutique; the experience is steeped in exclusivity with Hermès mastering the art of desirability. A Birkin is rarely granted upon request: the bags are not displayed, nor are they readily available. Instead, only a select few, those whose loyalty is demonstrated through years of dedicated purchases, may receive a discreet call from their sales advisor, offering a specific model, often without regard for the client’s own preferences.
What began as a bag for life, conceived to ease the daily routine of Jane Birkin, has since become the most sought- after accessory in fashion, an icon of status and accomplishment, and an indispensable jewel in the collection of the world’s most discerning collectors.
High Fashion, Higher Returns
The Hermès Birkin bag has long been a symbol of wealth and status, but beyond its fashionable appeal, it has also proven to be a remarkable investment asset. Unlike traditional luxury items that depreciate over time, the Birkin bag consistently appreciates in value, often outpacing investments such as gold and the stock market. According to financial analyses, Birkin bags have experienced an annual increase in value of around 14%, surpassing the average returns of many traditional investment vehicles. This growth is fueled by the bag’s exclusivity, craftsmanship, and the high demand in secondary markets. Due to the meticulous handcrafting process, and Hermès’ controlled distribution strategy, supply remains limited. This scarcity, coupled with an ever-growing demand among collectors and fashion enthusiasts, makes the Birkin bag a lucrative alternative investment. 
One of the key reasons the Birkin maintains and increases its value is its ability to hold up in resale markets, often selling for double or even triple its retail price. Some limited-edition pieces, such as the diamond-encrusted Himalaya Birkin 30, have reached staggering prices of over $450,000 at auction. The exclusivity of certain materials, colors, and production techniques further amplifies their desirability. Additionally, factors such as proper maintenance, condition, and rarity can significantly impact a Birkin bag’s long-term appreciation. Investment firms and auction houses have noted the growing trend of high-net-worth individuals diversifying their portfolios by including luxury handbags as tangible assets with strong liquidity. Unlike stocks or real estate, which can be volatile, a well-preserved Birkin remains a stable and appreciating commodity. As collectors and investors continue to recognize its worth, the Birkin bag solidifies its reputation not just as an accessory, but as an elite financial asset with enduring value.
A Radical Icon: The Evolution of the Kelly Bag
The Kelly bag, now an icon of timeless elegance, was originally a symbol of emancipation. Designed in the 1930s, it was significantly larger than most handbag
s, offering women greater independence and reflecting their evolving societal roles. Unlike the Birkin, the Kelly did not bear its now-famous name from the start. Initially called the Sac à Dépêches, it took over two decades to be renamed. Its transformation into a fashion icon began when actress-turned-princess Grace Kelly fell in love with it while filming Alfred Hitchcock’s To Catch a Thief. However, it was her use of the bag to discreetly hide her baby bump in the mid-1950s that truly propelled it into the spotlight. As photos of the Princess of Monaco appeared in magazines worldwide, demand for the bag soared. Although it was already widely known as the “Kelly bag”, Hermès only officially renamed it in 1977.
Today, much like the Birkin, the Kelly is regarded as a valuable investment. While Birkins typically tops the list of the most expensive Hermès handbags, the Kelly follows closely behind in rarity, desirability, and price. One of the most sought-after variations is the Himalaya Kelly, which frequently breaks auction records. Last year, a Kelly 25 Himalaya Diamond sold for $330,000.
The main difference between the two bags lies in their design. The Kelly has a structured, trapezoidal shape, a top closure, and a detachable shoulder strap, giving it a more formal look. The Birkin, on the other hand, is more of a tote bag with two top handles and a rectangular silhouette. Another known variation is the Mini Kelly, introduced in the 1980s, featuring a round top handle (often referred to as a “bracelet handle”), which adds to its charm.
Though at first glance these bags may appear to symbolize the superficiality often associated with fashion, a more objective perspective, one that considers their origins and the investment value they hold today, invites us to truly acknowledge their status as icons of Hermès. These creations lie at the very heart of the luxury industry’s essence: it is through timeless, unchanging, rare, and yet universally recognized pieces that such a M
aison is able to shape and sustain an identity that endures through the decades, no matter if some of them were sketched in little more than the span of a short flight.
