We are all familiar with the rising prices these days. This has also affected the luxury industry,  particularly the French luxury brand Hermès. Hermès has seen a significant price increase in  recent years. In this blog, we’ll take a closer look at the price hikes at Hermès. 

Photo: Pursebop.com

The increase

The price increases are determined in New York by the investment bank Morgan Stanley. This is  a major global financial services company headquartered in New York, USA, offering a wide  range of financial products and services to businesses, governments, institutions, and  individuals—including Hermès. 

Recently, Hermès raised its global prices by 6.5%. This is relatively high compared to the rest of the luxury sector, which has seen an average increase of only 2%. The difference is striking and  noteworthy. Since 2020, Hermès prices have risen by 16–18%. The increase also varies by  region: 

• Europe: +4.5% 

• United States: +7% 

• China and South Korea +10%

Photo: Vogue.com

Reasons

Hermès raises its prices to maintain its exclusivity. Higher prices strengthen the perception of luxury and scarcity, keeping the brand desirable and prestigious. The demand for iconic  products, such as the Birkin and Kelly bags, often exceeds supply, which justifies the higher pricing. Additionally, inflation plays a significant role, as rising costs of raw materials and  production make price increases necessary to sustain profitability. 

Despite these price increases, Hermès remains exceptionally popular, which shows that  customers are willing to pay more for the luxury and status that the brand represents.

Photo: byrdie.com

Those on the waitlist for Hermès products should keep a close eye on the price hikes.  Customers on the waitlist are required to pay the updated price, not the price from the time they joined the list. While these price hikes may seem like just a few percentage points, they can translate into thousands of euros in additional costs for Hermès’ pricey handbags. So be aware that prices can always rise.