Hermes Handbag Sells for More Than $200,000?!

You’ve heard of Hermes bags fetching for $10,000 a pop, with former Spice Girl Victoria Beckham owning 100 of them in 2009. We even touched on Mary Kate and Ashley Olsen’s Glazed Crocodile Backpack for the row, which, at nearly $40,000, seemed to be the zenith of fashion opulence. Yet, this week, a Hermes handbag went for more than $200,000 at an auction in Dallas, Texas.

The bidder paid $203,150 for the Hermes Exceptional Collection Shiny Rouge H Porosus Crocodile 30cm Birkin Bag with Solid 18K White Gold and Diamond Hardware. The price is supposedly a world record for the highest price for a handbag sold at a public auction.

We’ve discussed that sales of luxury goods increase in times of economic distress, and Hermes is a prime example. Over the past few months, we have seen celebrities sporting these handbags, maybe more so than usual, and in Bing’s most-searched fashion brands of 2011, the top 10 were nearly all luxury designers, although Hermes didn’t make the list. Other high-end handbag brands, such as Gucci, Chanel, and Louis Vuitton, did, however.

Just how much of a demand is there for Hermes goods? In the same week the brand sold a handbag for the price of a house, thieves in Houston, Texas, broke into the Hermes of Paris store to grab several purses, which were valued at $7,000, watches (priced at $50,000), and other expensive items.

The question is, even with this great demand, should fashion cost this much? With all the talk in the media of the one-percent versus the 99-percent in income and economic stability, the high price on such a handbag can be considered an indicator of such a wealth gap and an example of in-your-face flaunting the disparity in purchasing power. But, income gap or not, should a handbag be priced this high?