Build story · France · 1984–2023
Hermès Birkin: the bag you can't simply buy
Hermès makes each Birkin bag by hand and limits supply, so customers often can't just walk in and buy one. Scarcity has helped make Hermès one of the most profitable luxury brands in the world.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Birkin created
- 1984
- Craftsmanship time per bag
- around 18 hours or more
- Hermès revenue (2023)
- about €13.4 billion
- Operating margin (2023)
- above 40%
What happened
The Birkin was born in 1984 when actress Jane Birkin sat next to Hermès chief executive Jean-Louis Dumas on a flight and complained she couldn't find a good-sized leather bag. He sketched a design for her.
Each Birkin is made largely by a single craftsperson, often taking around 18 hours or more. Hermès doesn't advertise the bag and controls supply tightly; customers usually need a purchase history with the brand to be offered one. Resale prices often exceed retail prices, and rare models have sold for hundreds of thousands of dollars at auction.
Hermès reported revenue of about €13.4 billion in 2023 with an operating margin above 40%, among the highest in the luxury industry.
Timeline
- 1837
Hermès founded as a harness maker.
- 1984
Birkin bag designed.
- 1993
Hermès lists on the Paris Bourse.
what made it work
- Artificial and real scarcity drives desire.
- Craftsmanship justifies high prices.
- Access tied to relationship with the brand.
the lesson
Limiting supply of a desirable product can make demand — and pricing power — grow rather than shrink.
Apply it to your business
- 1Consider whether limited availability could raise perceived value.
- 2Tell the story of craftsmanship behind your product.
- 3Reward loyal customers with exclusive access.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.