👜 Birkin: The Handbag That Costs More Than Your House | 48

Wondery Plus subscribers can listen to the best idea yet early and ad-free right now.

Join Wondery Plus in the Wondery app or on Apple Podcasts.

Jack, can I tell you what I love about your Luke?

My look?

No, no, no, no, you look.

Your Luke.

Okay, go ahead.

Tell me.

Even though your career has gone from finance to entrepreneurship to tech, your wardrobe hasn't changed.

You know?

Some might call that stubborn or outdated.

I call it classic.

Okay, okay.

If I had to sum up your style, here it is.

Chalet chic.

I like that.

Usually you'd have like a slim fit flannel on, a flat brim hat, and like a pair of sunglasses that scream, I spend my money like I fry my bacon.

Does that make sense?

Not completely, but I'm very into it.

I guess I'm saying, Jack, is what I love about your wardrobe is that it is the reflection of you.

It's your identity.

And you have owned that for the 15 years I've known you.

Can I have a turn?

Yes, yes, yes.

Nick's signature look is what I call a Goldilocks button-down shirt.

Not too pressed, not too wrinkled, and always a button-down collar.

Khakis, not jeans, but never khaki color.

They're like navy black and sometimes white.

And then sneakers from a brand you've never heard of, but that you would love to tell us about.

I do appreciate, Jack, that we're both still wearing Slim Fit in the high hopes that that trend actually returns one day.

Fashion is cyclical.

But besties, there happens to be a product that is inspired by one person's legendary sense of style.

And it's a product that has never been cyclical.

In fact, it has only gotten more and more popular each and every year it has existed.

We're talking about the Birkenbag.

It's called a Birkenbag?

A Birkenbag.

Oh my God.

A Birkenbag?

You've heard of it?

Yes, Rory Gilmore, we have.

Because the Hermes Birkenbag is the most expensive, coveted, and hard-to-get handbag in the world.

Every single one is handcrafted over 18 hours by a single craftsman and made from leather in varying degrees of exotics.

From calf skin all the way to alligator, crocodile, and even, if you're lucky, a diamond-coated ostrich.

And for this handcrafted bag, prices start at around $12,000 on the low end.

Yeah, by the way, that's $12,000 if you get it directly from its luxury manufacturer, Hermes.

But sorry, doing that is next to impossible because of their infamous wish list.

You might be on standby, waiting up to five years for that phone call.

Unless your name is Cardi B.

Kate Middleton or happens to rhyme with Ardashian, in which case you'll get the bag right away.

But a used Birkin bag, oh,

that can go for up to $450,000.

And a handbag selling for more than a house?

Yeah, we had to look into this.

The bag is named for a pop culture icon, Jane Birkin, who helped invent the bag on a late-night flight from Paris to London.

But that flight was only the Birkin's beginning.

It would take the fashion world more than a decade to catch up to its mystique.

Because while most industries are focused on efficiency, Hermes is not.

And that's part of the secret sauce to the Birkin's success.

So today, besties, we're getting into how Hermes turned a simple tote into the holy grail of handbags.

And how Hermes jumped ahead of its rivals to become the number one luxury stock in the world.

They do a fraction of the sales of Louis Vuitton and yet they're the same $250 billion size.

We'll also hear how Sex in the City transformed Hermes and why this bag is now possibly a better investment than your 401k.

Here is why the Hermes Birken bag is the best idea yet.

From Wandering and T-Boy, I'm Nick Martel and I'm Jack Kravici Kramer and this is the best idea yet.

The untold origin stories of the products you're obsessed with and the bold risk takers who made them go viral.

I got that feeling again.

Something familiar but new.

We got it coming to you.

I got that feeling again.

They changed the game in one move.

Here's how they hook up the rum

Parents, welcome back to one of the busiest times of the year.

Back to school, but you can make it a whole lot easier with Uber Eats.

Right now, you can get up to 40% off back to school essentials.

Everything from notebooks, colored pencils, calculators, and glue sticks to lunchbox favorites like string cheese, juice boxes, fresh fruit, and lunchables.

No need to juggle one more errand.

Just open the Uber Eats app and get everything you need delivered fast.

That's school supply shopping simplified.

Offer on September 16th, Terms Apply C app for details.

Order now on Uber Eats.

Night has fallen over Paris.

The airport's Air France departure gate is one of the last few pockets of activity.

Well-dressed travelers juggle carry-ons and wait for their boarding call.

Next stop, London's Heathrow Airport.

It's 1981.

Kim Carnes is singing about Betty Davis Eyes, and Phil Collins can feel something coming in the air tonight.

Speaking of pop jack, there's actually a famous actress and singer right here in the terminal with us.

She's tall, she's got long hair, and soft brown bangs falling over her face.

Her name is Jane Birkin.

Jane Birkin is beloved in France as a performer and style icon.

But surprise, she's actually English.

Jane has starred in pivotal New Way films.

She's recorded breathy pop songs, and she's known for her unique sense of style.

But the main reason every French person knows her name is that for a dozen years, she was partnered up with France's favorite crooner, Serge Gainsborg.

Here he is in a duet with Jane herself.

That song was so scandalously steamy, it gets condemned by the Vatican.

You know, the Pope, not a Gainsborg fan.

No, no, no, no, no.

For most of the 60s and 70s, Serge was part Frank Sinatra, part Harry Styles, and together, Serge and Jane made a terrific power couple years before Tom Holland and Zendaya.

The two were photographed everywhere at parties, selling, or shopping with their daughters.

And everywhere, Jane would be snapped with her signature purse, a large woven wicker basket slung over her right arm.

It's basically a picnic basket.

It looks like it's straight out of a Martha's Vineyard grandmother's house.

It's great for the French lifestyle.

You grab a baguette, a couple bottles of Bordeaux, boom, you toss them in this picnic basket, and you are off to go.

But in 1980, Jane and Serge break up and she moves in with another French film director named Jacques Douoyon.

Well, not that it is any of our business, but Jacques has a pretty bad temper.

And a couple of days before Jane's night flight over to London, Jacques intentionally runs over her famous basket bag with his car.

So now that she's at the airport getting ready to board, Jane's carry-on is not organized the way she likes it.

Instead of her cool wicker basket, she's got a random temporary replacement.

Nick, picture a big floppy canvas tote.

It's stuffed with passport, wallet, lipstick, and a leather-bound Hermes appointment book all jumbled together.

But besties, Jane is about to get a double dose of serendipity.

First, she scores a seat upgrade.

Bye-bye, coach.

Hello, first class.

I definitely had pictured her flying first class already.

I did too, Jack.

Turns out not Jane's style, but she will accept an upgrade when offered.

Now, the second piece of good luck actually seems more like rotten luck at first, because once she's on the plane, she goes to stow her tote bag above her on the overhead and her Hermes planner hits the ground, spilling its contents everywhere.

Reminder notes, receipts, cocktail napkins from the airport lounge suddenly scattered all over her seatmate's feet.

Her seatmate?

Looks like he flies first class all the time.

He's an impeccably dressed Frenchman with dark eyebrows and kind eyes.

He's a good sport as he helps her gather up her receipts and her face.

But he does suggest that maybe her planner needs some pockets.

So Jane says, what can you do?

Hermes just doesn't make it with pockets.

That's when the man says, Hermes, I am Hermes.

To be clear, Jane's seatmate with the eyebrows isn't literally Hermes.

His name is Jean-Louis Dumas, a fifth generation descendant of the luxury labels founder, Thierry Hermes.

Hermes was founded almost 200 years ago in 1837, when the U.S.

had had 26 states and was only on its eighth president.

Hermes has always been a fine leather company, but in the beginning, that leather was used to make horse saddles.

That's right, Hermes' signature saddle stitch was practically waterproof, a smart choice for the 1800s when literal horsepower is how most people got around.

But then, the very first automobile arrives, making horse-drawn carriages a thing of the past.

So Hermes' saddle business is on the downswing.

But that proprietary stitching may have some other applications not threatened by Henry Ford's Model T.

So in the 1920s, Hermes pivots their business from outfitting horses to outfitting people.

We're talking golf jackets, jewelry, sandals, and yes, handbags.

Thierry hands control of the company to his son, who hands it to his son, who has three daughters.

And because of early 1900s patriarchy, it's those daughters' husbands who end up running Hermes.

The husband who will eventually lead the entire company is named Robert Dumas.

Robert is a talented designer as well as a businessman.

And in 1935, he designs a purse that will change everything about the handbag scene.

Now, Jack, I know this is an audio medium, but let's describe this particular handbag because the details are critical.

The bag Robert creates is shaped like a trapezoid, wider at the bottom than at the top.

It has four metal studs called clue that act like little feet, keeping the bottom from getting dirty if you set the bag on the ground.

It closes with the zipper, then a top flap that can be belted shut with a slender horizontal strap.

It's cute, Nick, but why is this bag so revolutionary?

Well, Jack, it's revolutionary because when it comes to women's purses, size matters.

In the 1930s, pocketbooks were small and flat.

They were more like a birthday card than a purse.

But this trapezoidal Hermes bag that Jack just described, it's roomy.

It's secure.

Robert Dumas calls it a sac a des peche, or translated, the bag for important documents.

Hmm, sounds like the kind of thing Jane Birkin could have used on that transcontinental flight.

You are right.

Like, this is exactly the kind of thing that a Jet Sedden actress would really enjoy.

And in the 1950s, this nifty bag of Roberts gets its champion, the actress, Grace Kelly.

If you're a fan of Hitchcock movies, then you know exactly who Grace Kelly is.

The classic blonde beauty who starred in films like Rear Window and To Catch a Thief.

In fact, Jack, in that last film, Grace's character was given the Hermes Sacca des Pesche as a prop.

But funny thing, Grace herself falls in love with this prop and she actually keeps it after they finished filming.

It becomes a permanent part of her wardrobe.

The paparazzi start snapping pics of Grace getting in and out of cars, going to film premieres, and traveling with her new husband, Prince Ranye of Monaco.

all with this handbag.

When Grace and her prince are expecting their first child, Grace even puts this purse in front of her belly to keep her baby bump out of the tabloids.

And this bag becomes the luxury accessory.

It is so associated with Princess Grace that Hermes eventually renames it the Kelly.

When the bag's designer and head of Hermes, Robert Dumas, dies in 1977, his son, Jean-Louis Dumas, takes over.

And this brings us back to that flight to London where Jane Birkin is apologizing as she picks up the loose contents of her replacement bag from Monsieur Dumas's lap.

As Jane stuffs the Hermes planner back into her tote, Jean-Louis is probably thinking, uh, ma'am, why not just get a Kelly bag?

It literally has three ways to stay shut.

It is the most practical luxury bag that you can buy.

Jane is well aware of the Kelly, but it's too small for her.

Her wicker basket could hold two full bottles of wine and the rest of her stuff.

The Kelly cannot.

Well, basically, Jack, the rest of the flight, Jane turns into a one-woman focus group and tells Jean-Louis her ideal bag would be like the Kelly, only bigger.

Like four times bigger.

Halfway between a purse and a suitcase.

What she's after is the Goldilocks size.

And then the head of Hermes stops her and he says, whoa, whoa, whoa, show me.

So Grace grabs a vomit bag that's sitting in front of her.

Whoa, whoa, whoa, where's this going?

Don't worry, Jack.

Jane is, she's not feeling queasy.

She just needs some scrap paper.

So she starts sketching her idea on this little barf bag as Jean-Louis, the head of Hermaise, looks on.

And this is the first blueprint of what will become Hermaise's star product.

Something that will change the entire fashion industry.

As the landing gear drops and ears start popping, Jean-Louis folds the vomit bag neatly away and puts it in his pocket.

It really doesn't take long to fly from Paris to London.

No, it doesn't, Jack, but apparently it is just long enough to change history.

With Jane's sketch safely tucked away, they bid each other adieu with a promise that Jean-Louis will make her drawing a reality.

Once she deplanes, Jane forgets all about this until a month later when she gets a call inviting her to Hermes in Paris.

Every Hermes store is a work of art with multiple floors of their latest silks, suits, fragrances, and handbags.

The store smells like crisp champagne, cured calf skin.

And is that money I smell?

I believe that is Frank's jack.

But our friend Jane has buzzed right up to the design studio, and it's there that she's handed a large handbag made of cardboard, because this is how Hermes works out its prototypes.

To her surprise, this cardboard model really does look just like what she drew up for Jean-Louis.

Like an oversized Kelly bag, but a little more casual and wider at the top, so it's less trapezoid and more rectangle.

Like the Kelly, this prototype has a secure top flap that locks and those little feet at the bottom, the clue, that help it stand up on its own.

But the main difference between this new bag and the Kelly, the handles.

The Kelly's got just one handle right on top and you can't carry it open.

The flap needs to be closed for the whole thing to work right.

But this new bag has two handles, which means you can put it on one arm and rummage around in it with the other hand.

Part purse, part tote bag.

It's perfect for a woman on the go, just like Jane.

So Jane steps back and admires this cardboard purse on her arm.

It looks sharp.

The Hermes designers invite Jane's opinions on the leather types, and she obliges.

Until finally, they suggest, what if we named it

after you?

Jane stops.

What?

I mean, this makes sense, right?

Like, the Kelly was named for Grace Kelly, but it took years to adopt that name.

Why not just go ahead and use Jane's name right now, since she herself has been so instrumental in conceiving the entire thing.

Jane is flattered and Jane agrees.

And three years later, in 1984, voila, Jane returns to that very same shop to pick up a finished calf skin leather version.

This is the first official Birkin bag.

When she tries to pay for her new Birkin, the sales clerk insists this is a gift.

But frankly, Hermes is getting the massive bargain here.

The name of a generational style icon to christen their newest product.

We did discover that Hermes also gives Jane an annual royalty for the use of her name, which she immediately diverts to various charities.

But still, this is a steal for Hermes.

I mean, Jack, calling their bag a Birkin is no mere endorsement or licensing deal.

This is all about identity.

We've covered many products on this show that use proximity to celebrity to get ahead.

Some, like Juicy Couture, even make it the basis for their entire marketing strategy, relentlessly shipping tracksuit samples to JLo's home.

But when you hit your product to a celebrity's actual name, the relationship goes much deeper.

Case in point, Jack, let's look at Air Jordan's.

That sneaker brand is forever associated with Michael Jordan and his incredible basketball career.

Now, long after he hung up his jersey, the brand is worth $7 billion.

An endorsement is temporary.

A name is forever.

So when Jane steps out of that Hermes shop with the very first Birkin in existence on her arm, she has no idea what this bag will become.

She's just happy she has a brilliant new tote that she can fit her whole day into.

And it feels a little more grown up than her wicker basket did.

But this is just the beginning of the Birkin bags journey.

Believe it or not, the next leg of that journey doesn't go well.

It's your man, Nick Cannon.

I'm here to bring you my new podcast, Nick Cannon at Night.

I've heard y'all been needing some advice in the love department.

So who better to help than yours truly?

Nah, I'm serious.

Every week, I'm bringing out some of my celebrity friends and the best experts in the business to answer your most intimate relationship questions.

Having problems with your man?

We got you.

Catching feelings for your sneaky link?

Let's make sure it's the real deal first.

Ready to bring toys into the bedroom?

Let's talk about it.

Consider this a non-judgment zone to ask your questions when it comes to sex and modern dating in relationships, friendships, situationships, and everything in between.

It's going to be sexy, freaky, messy, and you know what?

You'll just have to watch the show.

So don't be shy.

Join the conversation and head over to YouTube to watch Nick Cannon at night or subscribe on the Wondery app or wherever you get your podcast.

Want to watch episodes early and ad-free?

Join Wondery Plus right now.

How hard is it to kill a planet?

Maybe all it takes is a little drilling, some mining, and a whole lot of carbon pumped into the atmosphere.

When you see what's left, it starts to look like a crime scene.

Are we really safe?

Is our water safe?

You destroyed our top.

And crimes like that, they don't just happen.

We call things accidents.

There is no accident.

This was 100%

preventable.

They're the result of choices by people.

Ruthless oil tycoons, corrupt politicians, even organized crime.

These are the stories we need to be telling about our changing planet.

Stories of scams, murders, and cover-ups that are about us and the things we're doing to either protect the Earth or destroy it.

Follow Lawless Planet on the Wondry app or wherever you get your podcasts.

You can listen to new episodes of Lawless Planet early and ad-free right now by joining Wondry Plus in the Wondery app, Apple Podcasts, or Spotify.

When the very first Birkenbags hit the scene in 1984, Air Maze has high hopes.

This isn't Zara.

They're not rolling out 50 new styles every season.

When this century-old brand crafts a new thing, that is a big deal.

Oh, and at $2,000 a piece, or around $6,000 today, this Birken bag is for real people.

If price is a signal, the signal here is this bag transcends fashion or function.

This is a work of art.

At first, these bags are offered in two sizes, the Birken 35 and the Birken 40.

And that number tells you how many centimeters wide the bag is at the bottom.

Later, Hermes will make smaller versions, the Birkin 30 and the Birkin 25, but for now, it's just the roomy ones.

And luxury connoisseurs will quickly learn that there's much to love about these bags, from the fine quality leather to the unique top flap shaped like an M, with special cutouts to fit around that critical second handle.

Closing this handbag feels as satisfying as two Lego pieces snapping together perfectly.

But the real standout feature is Hermes' approach to craftsmanship that basically ignores the entire industrial revolution.

You see, today we're used to assembly lines in manufacturing to maximize efficiency.

One worker stitches the bag handles, another cuts the base, another glues the little feet on, so on and so on.

Right.

But that is not how Hermes rolls.

For Hermes, one single artisan is responsible for assembling each Birken bag.

Each one takes roughly 18 hours to make.

And get this, these artisans take two years to train.

It's like a master's program in stitching.

And Hermes recruits 200 craftspeople for its leather goods division every year.

The one bag one maker system that Hermes has reinforces that each Birkin is a work of art and people will pay a premium for art.

And given the effort and the price, Hermes develops a clever system to guard against knockoffs.

Basically, they make a secret code.

Yeah, it's like an anti-dupe strategy here.

When the craftsperson is finished, they stamp each bag with a discrete little mark to indicate the craftsperson and the year.

It is so small and so hidden that it is often called the blind stamp.

It's kind of like something straight out of the Da Vinci code.

Yeah, 1995 bags have a Y with a circle around it.

2013 bags, that's a cue inside a box.

Oh, and Jack, if your leather is exotic, there is a symbol for that too.

One that's much more prominently displayed right near the clasp.

A square means that the bag is made of Mississippiensis alligator, while two dots mean that it is Nieloticus crocodile, which are two species of reptile you probably didn't even know-code into a bag.

No, you didn't.

A shooting star means the bag was made for an Hermes artisan's personal use.

More on that later.

What you need to know now is that these mysterious, subtle, but impactful details start weaving together a lore around the bags.

If you know, you know, and very few know.

But Jack, after all that, the focus on craftsmanship, the exquisite leather, the Kelly-inspired classic style here is the shocker.

The Birkenbag sales fail to meet expectations.

This is the 1980s, otherwise known as the me decade.

Madonna's singing about being a material girl, and Wall Street traders are giving commencement speeches about how greed is good.

So you've got brands like Louis Vuitton and Yves Saint-Laurent and Chanel enjoying a major 80s sales surge.

So you'd think luxury products fit in perfectly with 80s materialism and flashy wealth.

But this is the problem for Hermes because Birkin is expensive, but it isn't flashy.

By contrast, Chanel's handbags with their gold flourishes, quilted to black leather, and prominent interlocking double C logo, they are all about the flash.

That double C logo from Chanel becomes the ultimate 80s status symbol.

By 1984, Chanel is number one in the handbag market.

Basically Jack, Chanel is screaming their brand while Air Maze is just whispering it.

And in the 1980s, consumers want their logos to yell.

Now, a lot of companies might respond to this challenge by following the leader.

Increase the size of the Air Maze logo and advertise everywhere like Chanel does.

But Air Amaze does not.

In fact, Air Maze exercises exercises a level of discipline we have seen from no other company we've covered.

They keep their design exactly the same despite every trend going in the opposite direction.

Slow and steady, you will never see a giant H anywhere on a Birkin.

In fact, the only branding at all is a tiny little stand hiding under the flap that says, Hermes Paris made in France.

And instead of pushing Birkin sales, they limit production, like really limit production.

We can't say how many Birkins Hermes makes in a year because the secret is guarded more closely than Satoshi Nakamoto's true identity or Beyonce's next album dropped.

But estimates range from 70,000 bags a year to a mere 12,000 bags.

And now to sprinkle on some more context by our math, Michael Kors comes to have over a million bags with that brass MK brand on it.

This scarcity plan.

and mystery of Hermes is not unlike Ferrari's, which we talked about in our Ferrari episode.

Enzo Ferrari deliberately kept production numbers low to drive up his car's value.

Ferrari said he's always making one less car than the market demanded.

Well, Hermes does the same with Birkin.

And you know what?

It works because wealthy people really don't like being told they can't buy something.

If they hear a purse isn't available, that's the purse they want.

Throughout the 90s, demand for Birken rises steadily, and so does its price, until something happens that breaks Birkin mania wide open

at the Armée 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.

But the sales cleric cheerfully pours cold water on her dreams and says something that will change Armay's history.

It's 4,000.

I know.

And there's a waiting list.

I assumed.

Five years.

For a bag?

It's not a bag.

It's a Birkin.

It's not a bag.

It's a Birkin.

That is possibly the most famous statement ever made about a purse.

And the source is the HBO show, Sex in the City.

How could we forget?

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.

It's no accident that Sex in the City becomes the launchpad for the Birkin.

When the show debuted in 1998, it quickly became celebrated not only for its modern take on relationships and female friendship, but also for its high fashion name drops as every luxury brand makes a recurring cameo.

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.

Even for legacy brands like Hermes, getting a product on Sex in the City is kind of like an author getting picked for Oprah's book club.

It changes everything.

And now we should point out, Jack, that by the time the Birken 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 Birken 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 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.

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.

Although, as you're describing it, Jack, since both are made by the same luxury house, the real winner here is Hermes, clearly.

But the style section, it is one thing.

Sex in the city and its 5 million plus weekly viewers, that is way, way more exposure.

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.

Ah, the infamous waitlist, which Hermes calls a wish list, but it's a waitlist.

It becomes a sacred rite of passage on the long road to getting a Birkin of your very own.

What the season ticket waitlist once was for New York Giants fans, the Birkin waitlist is to fashionistas.

This list is what elevates the Birkin bag from mere luxury good to holy grail product.

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 so is the true starting price for the purse itself.

But underneath these highly proprietary numbers is a secret.

The Birken waitlist is only sort of real.

What?

Yeah.

It's actually true.

You even see it in the episode of Sex in the City.

Samantha is able to cut the Birken waitlist 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 waitlist feels a lot like the reservation system at a Michelin star restaurant.

A table for some rando?

I'm sorry, sir, that is a 10-month wait.

How about a table for Bobby De Niro?

This way, sir.

It's not fair, but it's life and it is the appeal of luxury.

Birkin fans of the 2000s take to the internet and start online forums dedicated to bucking the Birken system.

Most of them say, if you're not famous like Lucy Liu, the best way to land a Birken is to buy your way up the food chain.

Now, this may be Hermes' greatest financial hack, because because it means buying other non-Birken Hermes items first before you get your Birken.

Like Jack, you got to splurge on the $100 socks, the $500 scarves, the $1,500 loafers.

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.

I was thinking it's more like a move out of the mafia.

The dad is not going to help you out unless you give a little payoff, if you know what I mean.

Yeah, it's a handbag pro quo.

you even see this reflected in airmaze's compensation structure employees make a sales commission on every air maze product that they sell from the boots to the belts except for two items the kelly bag and the birkin bag they're literally disincentivized to sell you one of those bags which of course helps the company maintain its air of exclusivity and this practice of steering customers slowly up the birkin chain has actually put airmaze 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.

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 Hermes $100 socks.

Actually, Nick, there is one other way.

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 Hermé's 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.

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.

Basically, Jack, you're paying more to avoid the waitlist.

Today, a lower-end Birkin bag goes for $12,000 if you wait your turn and get it off the waitlist.

Every slight upgrade, though, like the Togo leather instead of the Chev or gold-plated hardware instead of the brass, that's gonna make it more like 15,000 bucks and up.

By contrast, the very cheapest Birkin available right now on the reseller Madison Avenue Couture is $24,500.

That's a 2x markup.

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 to hold.

The 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.

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.

And something does break, Jack.

So we're gonna have to hang a left turn off Madison Avenue and head downtown into the back alleys of Hermaza's counterfeiting rings.

Would you say that dupes are a challenge when it comes to luxury things?

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.

Like if I decide to buy some off-brand AirPods at the airport from some company I never heard of, that's a dupe.

And that's legal.

Okay, but if I buy knockoff AirPods that claim to be made by Apple, that's a counterfeit.

Exactly.

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.

Back in 2012, then CEO of AirMaze, Patrick Thomas, told the press that 80% of products online sold under the AirMaze name are fakes.

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 left is on the EBITD, whereas the one on the right is very precise.

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.

But what happens when even experts can't tell the fake from the real?

This is what makes the Birken counterfeit rings of the 2010s so devious, because they're inside jobs.

Remember earlier we mentioned that Airamaz allows its artisans to create bags for their own personal use?

Well, they call this policy bon aux personnel, or good for the staff.

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.

But here's the plot twist.

In 2008, a handful of Hermes employees decide they're less interested in the bags for themselves and more interested in making those dollar-dollar bills in that secondary market.

So they work together to funnel hundreds of Bono personnel bags to buyers in Asia.

Over four years, 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.

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.

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.

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.

If I see a Birkin on sale on Canal Street for $50, I know it's a fake.

But a $45,000 bag marked down to $30,000 seems like this is probably the real deal.

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 URLs that seem like outlet stores, like HermazOutletstore.com, or this is real, the fake non-profit HermesBirken-Bags.org.

By the 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.

Speaking of legal action, of course, these guys get caught.

In fact, there are two different trials in France in 2020 involving Hermes counterfeit counterfeit rings.

Hermes is actually awarded more than $13 million in damages, and 33 people, including 16 ex-Hermes employees, go to jail.

Still, the French government estimates that the amount made by the counterfeiters was more than $22 million.

Hermes continues to do battle with the fakers to this day under the leadership of current CEL, Axel Dumas.

That's the son of Jean-Louis Dumas, Jane Birkin's seatmate from the beginning of our story.

And that battle wages on thanks to products like the Workin' bag.

That's Walmart's attempt at a Birkin dupe, and it retails for just $78.

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 Camugo Genuine Leather Handbag.

But whatever the name, when it hits Walmart's website, this dupe immediately sold out, and we know why.

Is it possible the Workin' gets a scarcity bump of its own?

Only time will tell.

Even with the counterfeits, the dupes, and the knockoffs in this market, even after 40 years and half a dozen recessions, 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 Hermes, the company, to the very top of the luxury sector.

And these two bags now account for 25% of Hermes' total revenue.

The other 75% covering everything from jewelry and fashion to home furnishings and fragrances.

This past April, Hermaez 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.

Hermaez is a much smaller company.

They do a fraction of the sales of LVMH.

And yet they just surpassed LVMH in valuation.

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.

And Air Maze 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, oh,

it pays for itself.

Because get this, analysts have found that the value of Birkins has grown faster than the SP 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.

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.

I think I'm saying that, Nick.

Birkins are officially the Bitcoin of bags.

One sec, Jack.

I got to call my broker.

This isn't financial advice, but the Birken is my new 401k.

So Jack, now that you've heard the story of the Birken bag and Hermes, what's your takeaway?

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.

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.

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.

Scarcity plus quality multiplied by friction.

That's it.

What about you, Nick?

What's your takeaway?

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.

And don't forget the years you might spend on the wait list.

Sorry wish list.

Yeah, it's five more right there.

They refuse to rush their product or their process.

And in a world of TMU, Shein, H ⁇ M, Amazon Prime, and same-day delivery, Air Maze insists that you take your time.

Don't call them, they call you.

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 Hermes's greatest weapon.

Before we go, it is time for our favorite part of the show, the best facts yet.

These are the hero stats, the facts, and the surprises that we discovered in our research, but couldn't fit in the story.

All right, Jack, what have you got in your bag?

Open it up over there, man.

Remember Jane's very first Birken, 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 disaster in Japan.

But the story of Jane's original bag, it ain't finished, is it Jack?

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.

Final price, $10.1 million,

making it officially the most expensive handbag ever sold at auction.

When Jane Birkin died in 2023, she was remembered with loving fondness by everyone.

And every obituary for Jane had to mention the famous bag.

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.

Am I on the wish list?

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 up.

Oh,

you're on the list.

This is a legendary surprise.

Thank you.

And that, Yetis, is why the Hermes Birkin bag 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 and most behated team in baseball.

We're talking about the Yankees.

Follow the best idea yet on the Wondery app, Amazon Music, or wherever you get your podcasts.

You can listen to every episode of The Best Idea Yet early and ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts.

Before you go, tell us about yourself by filling out a short survey at wondery.com wondery.com/slash survey.

The best idea yet is a production of Wondery, hosted by me, Nick Martel, and me, Jack Kravici-Kramer.

Our senior producers are Matt Beagle and Chris Gauthier.

Peter Arcuni is our additional senior producer.

Our senior managing producer is Nick Ryan, and Taylor Sniffin is our managing producer.

Our producer is H.

Conley.

Research by Brent Corson.

This episode was written and produced by Katie Clark Gray.

We use many sources in our research, including Jane Birkin's interview with Christiane Aminpour for CNN.

Then the history of the hero, The Aramais Birkin, by Amy DeKlerk and Natalie Hughes for Harper's Bazaar.

Sound design and mixing by C.J.

Drummeler.

Fact-checking by Brian Pognan.

Music supervision by Scott Velazquez and Jolina Garcia for Freeson Sync.

Our theme song is Got That Feeling Again by Blackalack.

Executive producers for Nick and Jack Studios are me, Nick Martel, and me, Jack Ravici-Kramer.

Executive producers for Wondery are Jenny Lauer-Beckman, Aaron O'Flaherty, and Marshall Louis.