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Yetis, yesterday you heard part one of our deep dive episode on the Hermes Birkin bag.
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We told you how it started with a family in France that pivoted from horse saddles to handbags.
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And then it was transformed by an actress who just dropped her makeup on an airplane and became the most expensive bag in history.
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And now we're going to dive deep into the mysterious business of the Birkin.
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So here is part two of our episode on the Hermes Birkin bag. The best idea yet.
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Airbnb.
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Yetis, Our show actually started as a side hustle over 10 years ago. It began in secret outside of our bank jobs.
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We were worried we'd get fired, so we didn't tell our bosses and we even left our names off the website.
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Now, that was our side hustle, a media startup. But there are other side hustles that are a lot less risky than that.
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Quick break, switching topics to one of our favorite sponsors, Vital Proteins.
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At the Hermes shop on Madison Avenue in New York City. Jewelry sparkles under the glass. Silk scarves dangle Enticingly. And sales attendants and security guards dress in dark tailored suits. A blonde woman in a bright pink blouse strides up to the sales rep parked in handbags. She's come to claim the object of her desires. A cherry red Birkin 35 Rouge with gold plated hardware. She's been mesmerized by it for weeks, studying it as it sits in the display window. If she can just have this bag, it'll mean she's made it.
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But the sales cleric cheerfully pours cold water on her dreams and says something that will change our May's history.
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It's 4,000. I know.
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And there's a waiting list. I assumed five years for a bag. It's not a bag, it's a Birkin.
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It's not a bag, it's a Birkin.
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That is possibly the most famous state.
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Statement ever made about a purse. And the source is the HBO show Sex and the City.
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How could we Forget?
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It airs August 2001, featuring a whole B plot about Samantha scheming to get a Birkin. And spoiler alert on a 25 year old episode. Her plan backfires disastrously.
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It's no accident that Sex and the City becomes a launchpad for the Birkin. When the show debuted in 1998, it quickly became celebrated not only for its modern take on relationships and female friendships, but for its but also for its high fashion name drops as every luxury brand makes a recurring cameo.
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Thanks to this show, millions of viewers on Walmart budgets learn to tell a Jimmy Choo drop heel from a Louboutin pump. This media exposure becomes an accessible gateway into the world of luxury at zero marketing cost to Hermes.
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Even for legacy brands like Hermes, getting a product on Sex and the City is kind of like an author getting picked for Oprah's book club. It changes everything.
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Now we should point out, Jack, that by the time The Baton Rouge 35 makes its HBO debut, the bag is already in a much stronger position financially than it had been in the mid-1980s. Thanks to Hermes scarcity, strategy and the bag's high quality focus, the Birkin became more and more sought after in luxury circles throughout the 90s. And in 1998 the New York Times style section even ran a big splashy spread on the so called British bag wars. But here's the fascinating detail. It wasn't the bag wars between Hermes and Chanel. It was the bag wars between Hermes and Hermes.
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In one corner, the Kelly bag popularized by Grace Kelly, and in the other, the Birkin bag. The whole article is about which Hermes Handbag is the most elite.
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Although as you're describing it, Jack, since both are made by the same luxury house, the real winner here is Hermes.
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Clearly.
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But the style section, it is one thing. Sex and the city and its 5 million plus weekly viewers, that is way, way more exposure.
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Plus, the Birkin scene in the show highlights one of the bag's most controversial selling points. There's a waiting list. I assumed five years.
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Ah, the infamous wait list, which Hermes calls a wish list. But it's a wait list. It becomes a sacred rite of passage on the long road to getting a Birkin of your very own.
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What the season ticket wait list once was for New York Giants fans, the Birkin wait list is to fashionistas. This list is what elevates the Birkin bag from mere luxury good to holy grail product.
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I mean, Jack, you can walk into a Rolex store and you walk out with a Rolex watch, but you cannot walk into an Hermes store and walk out with an Hermes Birkin bag. But let's jump into the numbers. Actually, we can't, because Hermes loves being coy with its facts and figures. We mentioned earlier that the number of Birkins manufactured per year is a protected company secret, and. And so is the true starting price for the purse itself. But underneath these highly proprietary numbers is a secret. The Birkin wait list is only sort of real.
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What? Yeah, it's actually true. You even see it in the episode of Sex and the City. Samantha is able to cut the Birkin wait list line by pretending it's for her client, Lucy Liu. When it's for Lucy, the wait list mysteriously disappears and the bag is delivered to Samantha's hotel. This Birkin wait list feels a lot like the reservation system at a Michelin star restaurant. A table for some rando.
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I'm sorry, sir, that is a 10 month wait.
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How about a table for Bobby De Niro?
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Right this way, sir. It's not fair, but it's life. And it is the appeal of luxury.
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Birkin fans of the 2000s take to the Internet and start online forums dedicated to bucking the Birkin system. Most of them say if you're not famous like Lucy Liu, the best way to land a Birkin is to buy your way up the food chain.
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Now, this may be Hermes greatest financial hack because it means buying other non bergen Hermes items first. Before you get your Birkin. Like Jack, you got to splurge on the $100 socks, the $500 scarves, the $1,500 loafers.
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It's like Hermes has a file on all of its customers, like a dossier on how many things you've purchased and how deserving you are of a Birkin bag.
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I was thinking it's more like a move out of the mafia. The don is not going to help you out unless you give a little paola, if you know what I mean.
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Yeah, it's a handbag pro quo.
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You even see this reflected in Hermes compensation structure. Employees make a sales commission on every Hermes product that they sell, from the boots to the belts, except for two items, the Kelly bag and the Birkin bag.
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They're literally disincentivized to sell you one.
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Of those bags, which, of course, helps the company maintain its air of exclusivity.
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And this practice of steering customers slowly up the Birkin chain has actually put Hermes on the receiving end of a class action lawsuit, which we covered on our daily show, the best one yet. The plaintiffs accuse Hermes of antitrust violations.
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Now, because we prefer to not get sued, the case is still pending as of this recording and we have no further comment. But in the meantime, if you do want a Birkin, you allegedly either have to be famous or accrue a collection of really swanky Airmates $100 socks.
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Actually, Nick, there is one other way.
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So if you don't want to turn your Birkin hunt into its own escape room challenge, you do have one more option. Authorized resellers. And this becomes a whole new financial wrinkle in our story that is out of Hermes control, but they still benefit from. You see, in the early 2000s, luxury resellers start cropping up. Sites like First Dibs and Madison Avenue Couture provide ways for shoppers with more cash than patience to get access to authenticated Birkins. But in providing greater access to the bag, these new online platforms unintentionally drive up the prices even further.
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These ready to nab Birkins cost, at minimum, double. Like a scalper that scooped up all the cowboy Cardo tickets, these resellers massively mark up prices on the secondary market.
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Basically, Jack, you're paying more to avoid the wait list. Today, a lower end Birkin bag goes for $12,000 if you wait your turn and get it off the wait list. Every slight upgrade, though, like the togo leather instead of the chevre, or gold plated hardware instead of the brass, that's going to make it more like 15,000 bucks and up.
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By contrast, the very cheapest Birkin available right now on the reseller Madison Avenue Couture is $24,500. That's a 2x markup.
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Oh, and limited edition Birkins go for way, way more like the Birkin 25 Wicker picnic edition available at Sotheby's. This thing evokes Jane Birkin's beloved picnic basket purse. It can be yours today for around $80,000. Yeah, same price as a used S class Mercedes Benz. So, Jack, Hermes has pulled off a retail feat, creating a holy grail product that fashionistas would sacrifice a pinky just heritage brand. Plus the limited supply, plus the mysterious purchasing process. It means the reseller price point can go way, way, way up above retail.
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But this also creates a real pressure cooker situation. With so few bags and so much demand and such a high price, something has to break.
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And something does break, Jack. So we're going to have to hang a left turn off Madison Avenue and head downtown into the back alleys of Hermes counterfeiting rings. Yetis this episode is brought to you by prizepix. You and I, we make decisions every day. But on prize Picks, being right can get you paid.
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I'd say dupes are a challenge when it comes to anything. But counterfeits are a special challenge for luxury. And to define our terms here, counterfeits are dupes that illegally try to pass for the real thing.
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Like if I decide to buy some off brand AirPods at the airport from some company I never heard of, that's.
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A dupe and that's legal.
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Okay, but if I buy knockoff AirPods, that claim to be made by Apple, that's a counterfeit. Exactly.
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In 2021 alone, counterfeit goods accounted for an estimated $467 billion in global trade. That is bigger than the global markets for solar and wind energy combined.
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Back in 2012, then CEO of Hermes, Patrick Thomas, told the press that 80% of products online sold under the Hermes name are fakes.
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80%. Now, much of that 80% involves obvious fakes. In fact, you can find dozens of helpful videos online that'll help you spot the differences between a real and a fake. The cutout of the leather on the.
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Left is uneven, whereas the one on.
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The right is very precise.
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Tldr the differences come down to quality, quality of materials, and quality of craft. Most knockoffs are made in factories using substandard leathers and metal. So the fakes have some obvious tells, even if they're not obvious to your besties at brunch.
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But what happens when even experts can't tell the fake from the real? This is what makes the Birkin counterfeit rings of the 2010s so devious. Because they're inside jobs.
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Remember earlier we mentioned that Hermes allows its artists to create bags for their own personal use. Well, they call this policy bon au Personnel or good for the staff.
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And this does seem good for the staff, right? This kind of policy discourages employee theft. If you're allowed to make your own Birkin for yourself, there's less incentive to swipe one when no one's looking.
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But here's the plot twist. In 2008, a handful of Hermes employees decide they're less interested in the business bags for themselves and more interested in making those dolla dolla bills in that secondary market. So they work together to funnel hundreds of bon au personnel bags to buyers in Asia over four years.
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These insiders sell around 800 of these personal bags in the Asian market. And because it works, they go further. And they set up secret workshops in France and Hong Kong to make more unsanctioned bags with stolen materials.
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The employees in the factories of Hermes start squirreling away extra leather and hardware here and there. They're going full Shawshank redemption on this thing. And they're siphoning off materials bit by bit.
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One employee supplies them with Hermes signature orange boxes. Another gets them hooked up with a dealer of exotic animal hides. They charge around two thirds of the retail price. Say $30,000 for an exotic hide bag that's worth $45,000 in the store.
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It's totally illegal, but it is clever pricing. It's enough of a markdown for luxury shoppers to be interested, but it's still high enough to be believable, right?
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If I see a Birkin on sale on Canal street for 50 bucks, I know it's a fake. But a $45,000 bag marked down to 30,000 seems like this is probably the real deal.
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And remember, in all material ways, these counterfeit bags are the real thing. Same leather, same hardware, same expert crafters. But instead of being sold by Hermes, these rogue employees have set up URL' that seem like outlet stores, like Hermes outletstore.com or this is real. The fake nonprofit Hermes birkin-bags.org By the.
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Way, don't bother typing in those URLs, because if you do, you'll see a message telling you that the websites have been shut down and that Hermes has taken legal action.
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Speaking of legal action, of course these guys get caught.
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In fact, there are two different trials in France in 2020 involving Hermes counterfeit rings.
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Hermes is actually awarded more than $13 million in damages, and people, including 16 ex Hermes employees, go to jail.
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Still, the French government estimates that the amount made by the counterfeiters was more than $22 million.
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Hermes continues to do battle with the fakers to this day, under the leadership of current CEO Axel Dumas. That's the son of Jean Louis Dumas, Jane Birkin's seatmate from the beginning of our story.
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And that battle wages on thanks to products like the working bag. That's Walmart's attempt at a Birkin dupe, and it retails for just 78 bucks.
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It's still kind of a legal gray area there. You know, it's a working man's Birkin. Its official name isn't the Workin, by the way. It's the Kamugo genuine leather handbag. But whatever the name, when it hits Walmart's website, this dupe immediately sold out. And we know why.
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Is it possible the Workin gets a scarcity bump of its own? Only time will tell.
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Even with the counterfeits, the dupes, and the knockoffs in this market, even after 40 years and half a dozen sessions, Birkin bags have grown sales every single year. And they have never been more coveted than today. Just ask our buddy Shibuzi. Real Birkins, along with their sister bag, the Kelly, have helped launch her maze the company to the very top of the luxury sector. And these two bags now account for 25% of Hermes total revenue.
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The other 75%, covering everything from jewelry and fashion to home furnishings and fragrances.
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This past April, Hermes surpassed LVMH Louis Vuitton to become the number one luxury stock in the world by market cap. And here's why that's so notable. Hermes is a much smaller company. They do a fraction of the sales of lvmh, and yet they just surpassed LVMH in valuation.
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More Specifically, Hermes did $15 billion in sales last year, while LVMH did six times that. And yet Hermes is basically worth the same amount.
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And Hermes is accomplishing all of this without selling any Kelly or any Birkin bags online. And, Jack, that only fuels the demand even more, since you've got to plan a trip just to get on the wait list. I mean, wish list. But if you do finally secure that holy grail handbag, it pays for itself.
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Because get this. Analysts have found that the value of Birkins has grown faster than the S&P 500. Just owning a Birkin bag, it gains value. It appreciates between 14 and 38% per year. You would have a better return owning a Birkin bag than investing in the stock market or in fine art.
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Okay, so what you're saying is to pull all of my assets out of insurance companies and railroads and double down on these handbags.
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I think I'm saying that Nick Birkins are officially the Bitcoin of bags.
A
One sec, Jack. I gotta call my broker. This isn't financial advice, but the Birkin is my new 401K ZipRecruiter. Yeah, it is. Have you ever heard of the Crockpot recruiting strategy?
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So Jack, now that you've heard the story of the Birkin bag and Hermes, what's your takeaway?
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The formula for making a holy Grail product? Scarcity plus quality times friction. Scarcity just means you don't make that many. Like when Enzo Ferrari insisted on making one fewer car than the market demands.
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Okay. And then Jack, there's quality, which is what makes your product valuable. Long term scarcity alone can drive up short term demand. When a product's on trend, think the beanie babies. But without elevated product quality, the trends move on. Demand collapses, and what was trendy turns into a fad.
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Finally, there's friction. How hard does your customer need to work to get your product now? Most of the time, friction is considered bad for business. You want to make it as easy as possible for your customer to buy your product. But when you're also leveraging scarcity and quality, friction is key to selling the experience. Scoring a Birkin becomes more than a transaction. It's an adventure. Like Indiana Jones trying to get to the holy grail.
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Scarcity plus quality multiplied by friction.
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That's it. What about you, Nick? What's your takeaway?
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Time is our greatest weapon. It's a quote from Jean Louis Dumas, the former head of Hermes, the one who sat beside Jane Birkin on that plane ride. You see, everything about Hermes really comes down to time. From the 18 hours it takes to craft a Birkin to the two years it takes to train the artisan, to the nearly 200 years that the brand has been around.
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And don't forget the years you might spend on the wait list.
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Sorry, wish list. Yeah, it's five more right there. They refuse to rush their product or their process. And in a world of Temu, Shein, H and M, Amazon prime, and same day delivery, Hermes insists that you take your time. Don't call them, they call you.
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In a fast fashion, instant, one click world. Time is heritage. It's the ultimate brand differentiator. You can change price, you can change a design, but you can't change the founding date of a company. Time, in every sense, is Amaza's greatest weapon.
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Before we go, it is time for our favorite part of the show, the best facts yet.
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These are the hero stats, the facts, and the surprises that we discovered in our research but couldn't fit in the story.
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All right, Jack, what have you got in your bag? Open it up. Over there, man.
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Remember Jane's very first Birkin? The one she was gifted by Hermes? Well, after using it for years, she donated it to a French AIDS charity in 1994. Then she bought a new Birkin bag and used that one until it was beaten up and ready to be donated. She kept doing this to raise money for good causes. In 2011, one of her Birkins raised $162,000 for tsunami relief after the Fukushima Dis roster in Japan.
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But the story of Jane's original bag, it ain't finished, is it, Jack?
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No, it's not. Because just this past July, that very first Birkin the one she auctioned off in the 90s, was auctioned again by Sotheby's in Paris.
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Final price, $10.1 million, making it officially the most expensive handbag ever sold at auction.
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When Jane Birkin died in 2023 through she was remembered with loving fondness by everyone. And every obituary for Jane had to mention the famous bag.
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A priceless bag named for a priceless person. And I got one surprise for you, Jack. I put in a little request. What? I called up that Hermes store on Madison Avenue.
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Am I on the wish list?
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I asked if they would make a flannel lined Birkin for my co host best friend over there. And you know what they said? What did they say? They said, buy some $100 socks and we'll call you. You're on the list.
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This is a legendary surprise.
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Thank you. And that, Yetis, is why the Hermes.
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Birkenbag is the best idea yet. Coming up on the next episode of the best idea Yet. We're stepping up to the plate and taking a swing at the most beloved.
A
And most behated team in baseball.
B
Now we're talking about the Yankees.
A
Yetis, you looked fantastic during that entire Birkenbag episode. Honestly, you should model for Hermes.
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I'm still on the wait list.
A
By the way, I got eight months to your birthday, man. I got a flight book to Paris too. Wait, are you. Are you buying me the bag too? Well, now I've committed on a recording. Now I gotta make some moves, man. Besties. If you love this episode, you gotta get more where that kid. Check out the best idea yet podcast page so you can tap and follow to get us every week.
B
We got a link in the episode description for you to follow. The best idea yet.
A
By the way, Jack and I got one more bonus episode whipped up for you for our vacation paternity leave week.
B
And then we'll be back on Monday with your usual daily T boy and the name of Nick's child.
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Birkin.
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If you like the best one yet, you can listen ad free right now by joining Wondery plus and the Wondery app or on Apple Podcasts.
A
Prime members can listen ad free on Amazon music.
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And before you go, tell us a little bit about yourself by filling out a short survey@wondery.com survey.
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We want to get to know you.
C
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Podcast: The Best One Yet
Hosts: Jack Crivici-Kramer & Nick Martell
Episode: PART 2 – Birkin: The Handbag That Costs More Than Your House
Date: September 3, 2025
In the highly anticipated Part 2 of their Birkin bag series, Jack and Nick dive into the business, culture, and enduring mystique of the Hermès Birkin bag, highlighting the strange alchemy of exclusivity, scarcity, and craftsmanship that have made it a cultural and financial phenomenon. They chart the technology of hype—from Sex and the City to the dark alleys of counterfeiting rings—and explain how Birkin has grown from a luxurious accessory into a cultural totem and even, arguably, a better investment than the stock market. The episode is packed with stories, stats, and witty banter, perfect for anyone fascinated by the intersection of business, status symbols, and cultural allure.
| Timestamp | Topic | |------------|-----------------------------------------------------------| | 02:06–05:05| Sex and the City & pop culture explosion | | 05:05–07:33| The Waitlist and Hermès sales strategy | | 08:29–10:30| Luxury resale market & wild pricing | | 13:08–17:21| Sophisticated counterfeiting: inside jobs and court cases | | 18:01–19:29| Birkin’s business impact & Hermès’ ascent | | 19:29–20:02| Birkin as investment | | 21:46–22:55| The “holy grail” product formula | | 22:55–23:52| Heritage and time as branding |
The Hermès Birkin bag isn’t merely a luxury good—it’s an enduring, brilliantly engineered phenomenon at the intersection of craftsmanship, hype, scarcity, and time.
The final word:
“Scarcity plus quality multiplied by friction. That’s it.” — Jack [22:52]
“Time is our greatest weapon.” — Jean Louis Dumas (via Nick) [22:55]
For part one of this Birkin story and more pop-business deep dives, check out The Best One Yet.