On July 10, 2025, the very first Birkin bag, custom-made for Jane Birkin in 1984, went up for auction at Sotheby's in Paris. After an intense ten-minute bidding war, the bag sold to a private Japanese collector for €7 million (approximately $10.1 million including fees). This made it the most expensive handbag ever auctioned—and even the second most expensive fashion accessory ever, surpassed only by Dorothy's legendary ruby slippers from The Wizard of Oz.
AI-generated artist's impression of Jane Birkin and a Hermès Birkin bag.
In 1983, actress and singer Jane Birkin sat next to Hermès director Jean-Louis Dumas on a plane. Birkin complained about the lack of space in the Kelly bag, another iconic Hermès design named after Grace Kelly. Birkin had recently become a mother and needed a nice diaper bag. Dumas drew a new design on the spot, using a sick bag. The new design was first produced in 1984 under the name Birkin bag. The custom bag for Birkin had features not found in later Birkins, such as a fixed shoulder strap and brass hardware, later replaced by gold-plated rings, clasps, and studs on the bottom. Furthermore, the bag features Birkin's initials "JB" on the flap. Jane Birkin used the bag daily for years. She added her own touch by adding charity stickers to it. In 1994, she donated the bag to an AIDS charity auction, and it was first sold in 2000. Since then, this first Birkin has remained in private collections. Birkin's history, story, and musical and film heritage have earned it the status of "the Mona Lisa of handbags."
In recent years, auction prices for designer bags have risen sharply. However, all the records are held by Hermès. Before the July 10, 2025, auction, the world record for a handbag was held by a Himalayan crocodile Kelly bag with diamond hardware. This bag sold in 2021 for the then-astronomical sum of $513,040. Birkins have also sold for hundreds of thousands of dollars in the past, such as the Neige (Snow) White Matte Alligator Limited Edition Birkin 20 Faubourg Sellier Bag, which sold for nearly $350,000.
Designer bags have long been popular as investments. In recent years, returns on Hermès bags have already exceeded those of other art, real estate, and watches. The incredible yield of the July 10th Birkin auction confirms the appeal of rare, historically and culturally significant items as investments. Birkins have historically shown an average annual return of 14%.
The sale of the original Jane Birkin bag shows that buyers are placing more value than ever on the provenance of a designer bag. Bags worn by celebrities or used in iconic moments will increase significantly in value in the coming years. Signs of wear are no problem at all; quite the opposite, in fact. Signs of wear add value to the object. This is remarkable, considering that bags purchased as investment items actually decrease in value when damaged. It's also no surprise that the buyer of the JB bag is from Japan. In the online course on identifying designer bags, which I took at Sotheby's Hong Kong at the end of 2022, three-quarters of the participants were from Asia Pacific. New auction houses are even specifically targeting the Chinese and Japanese markets.
The sale of the first Birkin bag for €7 million confirms that fashion accessories have evolved from status symbols to museum-worthy objects. This auction sets a new standard for future designer bags, enhanced by their rarity, provenance, and cultural significance. Historical pieces are expected to increasingly feature prominently at auction, resulting in substantial sales.
Overview of record prices for designer bags auctioned between 2005 and 2025. Hermès stands out with a spectacular €7 million auction price in 2025, followed by Louis Vuitton and Chanel with peaks around €1 million and €300,000 respectively.
Sharp price increase for bags with provenance.
Bags worn by celebrities (such as Jane Birkin, Princess Diana, Rihanna) or used in iconic moments will increase significantly in value in the coming years. Rare bags with a celebrity past could increase in value by 15 to 25% between 2025 and 2027.
Just like art, watches, and sneakers, high-end bags (particularly Hermès, Chanel, and Dior) are classified as alternative investments. Experts predict that over the next five years, a growing number of "bag funds"—investment funds for vintage bags—will be established. A growing number of auction houses are publishing reports on the "return on handbag investment." Moreover, financial institutions will increasingly offer insurance and appraisals for bags.
Digitization and NFT links to physical bags.
Luxury houses and auction platforms are using blockchain to guarantee authenticity and ownership. It's projected that by 2026, more than 50% of high-end bags auctioned will contain digital certificates of ownership such as NFTs,QR codes, or blockchain IDs. Sotheby's is already using this, and other platforms will surely follow suit.
Collections centered around fashion brands, movie characters, or musical icons are curated as "collectibles." British auction house Kerry Taylor, which specializes in auctions of historical costumes and haute couture, has been organizing auctions for several years focusing on the private collections of the rich and famous, such as Karl Lagerfeld and, more recently, American actress and model Peggy Moffitt. In the coming years, we can expect auctions along the lines of "Bags of the Stars of the 2000s" or "Bags from Sex and the City (SATC)." The prices of iconic bags like the Fendi Baguette from SATC or Diana's Lady Dior are rising to €500,000 or more.
Consumers are buying more consciously and prefer pre-loved or vintage over new. Hermès and Chanel are safe bets in this regard, with demand for vintage Hermès bags from before 2000 expected to increase in value by 20%. Prices of modern, so-called sustainable collections such as Stella McCartney x Gucci will also increase in value.
AI-generated mockup of American celebrities and their Birkin bags
Quality trumps quantity: A single bag with history will be more valuable than ten standard models.
Early mover advantage: Investing now in niche models (such as limited edition Birkins, Karl Lagerfeld's personal Chanel prototypes, or first editions by Virgil Abloh for Louis Vuitton) is a win-win situation.
Auctions are becoming more global and emotional: Buyers want not just an object, but a story, an icon, a piece of culture.
F.l.t.r. 1. the Chanel Diamond Forever 2.55, the most expensive individual Chanel piece ever auctioned ($261,000) with 334 diamonds and a white-white gold structure 2. The Louis Vuitton Speedy “Millionaire” bag – designed by Pharrell Williams and launched in 2023 for approximately €1 million 3. The Himalaya Niloticus Crocodile Birkin.
