Hermes 2024: Decoding the Latest Price Increase in the US Market

Hey fashion lovers and Hermes aficionados! It’s your girl, bringing the hottest scoop straight from the luxe lanes of Hermes. The latest update from the luxury fashion world, Hermes has introduced its new pricing in the United States, following suit with the recent increases seen in Europe. These adjustments are noteworthy. So, grab your lattes and let’s dive into these chic changes!

PHOTO CREDIT - STEPHNORA PETERSON

So, here’s the tea. The 2024 price escalations are as varied as our moods on a Monday morning. We’re talking about jumps from a subtle 3.7% for the adorable K25 in Togo to a bold 9.6% for the B25 in the same Togo leather. It’s a rollercoaster with most hikes lounging comfortably in the 4-7% bracket. But here’s where it gets juicy. The 25cm cuties, everyone’s crush, are playing the extremes in price hikes. It’s like watching a fashion face-off between the subtle and the dramatic! Peeking into the 2023 closet, the plot thickens. The B25 Togo was the humble diva with a 3% increase, while the K25 Togo was the showstopper, jumping a whole 10%. Flashback to 2023, and the K25 was reigning at $10,900, outshining the B25 priced at $10,400. Fast forward to 2024, and voila, the price gap between these trendsetters is just a mere $100 – a slim $11,400 for the B25 and a sleek $11,300 for the K25. Is this Hermes’ way of playing fairy godmother, balancing the scales of style? Oh, the intrigue!

PHOTO CREDIT - STEPHNORA PETERSON

However, Hermes' pricing strategy doesn't always follow a predictable pattern. For instance, despite the general trend of Epsom leather being pricier than Togo, the Epsom K28 is currently priced identically to the B30 in Togo. This raises interesting questions about consumer preferences and the rationale behind these pricing decisions.

Now, let’s zoom out and look at the big picture. Hermes has been defying economic trends and showing robust sales growth. Despite global economic uncertainties, Hermes’s sales have been thriving. In the third quarter of 2023, their sales rose briskly, surpassing expectations. This demonstrates the brand’s resilience and its ability to cater to a clientele that sees Hermes not just as a purchase but as an investment in luxury. In the US, despite smaller price hikes, sales grew by a whopping 20%, with the Madison Avenue store in New York contributing significantly. This growth isn’t limited to the US; in Europe, sales grew by 18.1%, with no slowdown in sight, even amidst geopolitical uncertainties.

Furthermore, Hermes planned price hikes of 5% to 10% in 2023, a notable increase compared to their traditional approach. This decision came after a sharp rise in sales and in response to rising costs and currency fluctuations. The brand’s strategy reflects confidence in its high-end products, with no signs of a slowdown in any of their markets. This includes a strong rebound in China after COVID-19 disruptions, contributing significantly to their revenue growth.

So, what does all this mean for us, the fashion-forward and Hermes-loving crowd? It’s clear that Hermes continues to be a strong player in the luxury market, with its iconic handbags remaining highly coveted. Whether you’re eyeing the latest Birkin or Kelly, or perhaps something from their new collection, staying updated on these price trends is crucial for any serious collector or enthusiast.  Which of these models would you prefer at the current prices? 

Stay tuned as I continue to update this article with the most recent pricing information for Hermes quota bags in the United States.