Handbags are useful things. Not only can you put your stuff in them, but they can also, to a certain extent, insulate you from the skittishness of investors. Sales of luxury goods maker Hermès' ready-to-wear range were flat in the last quarter, but the French label's leather-goods division, which includes the coveted Birkin and Kelly handbags, actually grew 9.4%. Still, “the halo effect of the Birkin doesn't make Hermès completely immune from a slowdown, it just buys the company more time than its rivals”, says Carol Ryan in The Wall Street Journal. But the premium that Birkins and Kellys command on the secondary market has come under pressure.
That raises questions “as to whether Hermès's allure is waning amid a slew of new products from rivals, most notably Chanel, but also LVMH's Dior”, says Andrea Felsted on Bloomberg. The volume of Birkin and Kelly handbags on the secondary market in the US is three times bigger than in 2020, according to analysts at Swiss bank UBS, which suggests demand has slumped. That said, the bags still command a premium over their store-bought counterparts, even if rival Chanel isn't exactly helping. Chanel has “caused a frenzy with handbags designed by its new creative director, Matthieu Blazy,” says Felsted. “Resale values for Hermès bags have moderated… Notably, the premium at which Hermès Birkin, Kelly, Mini Kelly and Kelly Pochette change hands in the secondary market compared with retail prices has fallen from its peak in 2022”. That doesn't make them a bad investment. A recent study by vintage handbag shop FashioNica found that while the US benchmark S&P 500 stock index returned 43% between 2022 and now (ie, a full market cycle, according to the authors), the Hermès Mini Kelly II bag did even better, gaining 302%. Good things do come in small sizes.
For a long time, the Birkin and Kelly 25s (so called because the base of the bags measures 25cm across) were considered mini bags. Then, in 2019, Hermès released the Birkin 20 – in particular the Birkin 20 Faubourg, modelled on the Hermès' flagship shop front in Paris. In the years since, says Aurelie Vassy for Sotheby's, “the Birkin 20 has evolved from a conceptual design into one of the most sought-after mini handbags in the collector market”. “While Hermès has not officially released a standard leather version [of the Birkin 20], collectors anticipate one based on the success of the Mini Kelly II,” says Vassy. “If introduced, it would probably become one of the most in-demand bags in the Hermès line-up.”
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What to look for in a mini bag
Hermès mini bags hold their value particularly well on the secondary market. Several Mini Kellys in exotic skins and rare finishes appeared at Heritage Auctions' spring sale last month, including one Matte Vert D'eau Alligator, which sold for $41,250, including the buyer's premium. The features that determine a bag's value are the material, the colour, vintage, rarity, whether it is a limited edition, which styles are currently in fashion and the overall condition of the bag.
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Mini bags made from exotic skins, such as Niloticus Crocodile or Matte Alligator, are sought after by collectors. Sotheby's has a Beton Matte Mississippiensis Alligator Birkin 25 with gold hardware from 2023 to buy now for $98,000. The secondary market also places large premiums on new seasonal colours within the first year after release, says Aurelie Vassy for Sotheby's. If offered the opportunity to buy a new mini bag, it can make sense to sell into the resale market during the period when “demand is high and supply remains limited”. That's doubly true if the style is bold and the bag has attracted the attention of other collectors. Such limited editions can command hefty premiums. In March 2025, a limited edition Day Faubourg Birkin fetched $152,400 with Sotheby's in New York, which was slightly above its high pre-sale estimate.
The mark of a good collection isn't how big it is, but how well curated. So, don't be afraid to sell some of your collection if it means you can acquire bags that are a better fit. “As collectors [also] become more experienced, many begin to focus less on what is newly available and more on what is increasingly difficult to find,” says Vassy. “This is often the point at which a Birkin collection shifts from boutique buying to true collecting.”
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