Luxury titan Hermès reopened its Guangzhou store this week, racking in $2.7 million sales in one day, as originally reported by WWD. Located in China’s Guangdong province, the store had reportedly received a shipment of rare Hermès products, which tempted Chinese influencers and luxury consumers alike out of their homes to spend. The staggering amount is a positive indicator that Chinese consumers are ready to start purchasing again — if the product is right. As one of the most desirable luxury brands in the world, Hermès appears to be a mainland favorite, with buyers ready to purchase what the brand has to offer.
The Jing Take:
Data from the online marketplace, Baghunter, recently suggested that collecting the brand’s coveted Birkin bag could bring more stability — and profit — than investing in gold. The average value of the bankable Birkin has increased by 14% over the past 35 years: It is now considered a financial asset that experiences the least volatility. Throughout COVID-19, reports flagged that the secondary market price of an Hermès Birkin bag went up during the crisis, while the value of a Rolex watch, for example, dropped. The verdict? Forget gold and put your money in Birkins.
The Jing Take reports on a leading piece of news while presenting our editorial team’s analysis of its key implications for the luxury industry. In this recurring column, we analyze everything from product drops and mergers to heated debates that sprout up on Chinese social media.