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Would you call a $10,000 bag expensive? Pierre-Alexis Dumas, the artistic director of the luxury brand Hermès, would disagree.
In an interview on "60 Minutes" that aired Sunday, Dumas said the 186-year-old luxury fashion house's bags weren't "expensive" but "costly."
Hèrmes is perhaps best known for its Birkin bag, a tote the brand introduced in the 1980s that starts at around $10,000 but, in some variations, can cost six figures.
Expensive means "a product which is not delivering what it's supposed to deliver, but you've paid quite a large amount of money for it, and then it betrays you," Dumas, 58, said.
He said a "costly" product is priced highly because it is made "properly, with the required level of attention, so that you have an object of quality."
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Dumas, who became artistic director of Hermès in 2005 and whose father was CEO of the Hermès group, said each bag the company sell is hand-sewn with its saddle-stitching by artisans trained for the task for years.
The limited resources and time required to complete a product contribute to the final price, which can also depend on size and materials.
Even if Hermès clients have the money to splurge on a Kelly (named for Grace Kelly) or a Birkin (named for British actor Jane Birkin), they might have to wait years for it.
Martin Roll, global business strategist and senior advisor at consulting giant McKinsey, told Business Insider Hermès' brand identity is centered on the scarcity of its product.
Roll said this strategy was critical to the brand's longevity and ability to withstand tougher economic cycles, such as the slumping demand in China that is hitting the luxury industry.
"They know very well that, like all the luxury brands, Hermès could run the risk of being over-saturated," Roll said, adding that the brand's continued family ownership is also an advantage.
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"You have that stability in the ownership," he said. "And you have leadership stability."
On "60 Minutes," Dumas dismissed rumors that Hermès artificially drums up the scarcity of its product, saying, "That would require a marketing department, which the Maison doesn't have."
"I always like to say Hermès is an old lady with startup issues," he said.
He also denied that the brand withholds bags to add to their scarcity.
"Whatever we have, we put on the shelf, and it goes," he added.
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It's the most wonderful time of the year to be a shopper — but anyone who wants lasting bang for their buck knows to look beyond 2024's biggest trends and choose styles that will last.
Two experts from The RealReal, chief creative officer Kristen Naiman and associate director of fashion Noelle Sciacca, broke down which brands and trends shoppers should add to their carts now before they sell out or get more expensive on the secondhand market.
Using customer data, including about which designers are seeing spikes in search queries, the company can predict budding trends, Naiman said on "The Cutting Room Floor" podcast last week.
The RealReal prices its items based on several variables, including seasonality, condition, availability, and demand, measured through search volume and how quickly items sell out.
The more popular a brand gets, the more expensive it can become, Naiman said on the podcast.
These are the hottest brands to buy this season to be on-trend — and avoid overpaying for — next year, according to Naiman and Sciacca.
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"Bally is super hot right now," Naiman said of the Swiss brand, which is already popular among "diehard, interesting fashion people."
It's only a matter of time before it goes mainstream, she added, telling "The Cutting Room Floor" host Recho Omondi that if she wants to buy an item from Bally, she should "do it now."
The brand began to surge earlier this year; Bally sales were up 42% year-over-year in August, Sciacca told Business Insider.
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Romeo Gigli is "really trending right now" for vintage-lovers, Naiman told Omondi. The Italian brand became a staple in the 1980s and early 1990s for its romantic style and soft tailoring.
Although its popularity dwindled over the years, Naiman predicted a resurgence.
Styles from the designer's heydey are "particularly captivating consumers," Sciacca said.
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Miu Miu is among the hottest labels of 2024, with retail sales up 86% in the first half of the year. Sciacca and Naiman don't foresee that changing.
Searches are surging on The RealReal, particularly for the brand's bags and sunglasses, with queries up 100% and 212% year-over-year, Sciacca said.
Handbags from Loewe continue to be popular as well.
The label's Puzzle Tote "is selling for an impressive 90% of its original price, while searches for the Flamenco bag have jumped 87% year-over-year," Sciacca said.
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"Moschino is a brand to watch as expressive styles gain momentum over uniform dressing," Sciacca said. "We're kicking off 2025 with a Moschino spotlight on-site."
The Italian designer is known for its lighthearted take on fashion.
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Both Ralph Lauren and Alaïa are seeing surges in search queries on The RealReal. The former is experiencing a 57% increase in searches this quarter compared to last year, while searches for the latter have risen 29% year-over-year.
For Alaïa, there is particular interest in handbags, including the most recent styles and vintage pieces from the 1980s and 1990s.
