Group 1 - The Hermès Birkin bag was sold for €8.5825 million (approximately $10 million) at a Sotheby's auction in Paris, making it the most expensive handbag ever sold at auction [1] - The bag was originally custom-made in 1984 for the late British singer and actress Jane Birkin by then-Hermès CEO Jean-Louis Dumas [1] - Prior to this auction, the most expensive handbag was a diamond-encrusted crocodile skin Himalaya Kelly bag, which sold for HK$4 million (about $510,000) in 2021 [1] Group 2 - The Birkin bag was launched by Hermès in 1984 and is named after Jane Birkin, who inspired its design during a flight with Jean-Louis Dumas [2] - The original Birkin bag differs from commercial versions, featuring a non-removable shoulder strap and a nail clipper, with the initials "J.B." of Jane Birkin embossed on the front flap [2] - In the first quarter of 2025, Hermès reported a 9% year-on-year revenue growth, contrasting with a 3% decline in organic revenue for LVMH during the same period [2]

Core Viewpoint - The auction of the original Birkin bag designed for actress Jane Birkin by Hermès achieved a record price of €8.5825 million (approximately ¥72 million), marking it as the most expensive handbag ever sold at auction and the second most expensive fashion item in history [1][2]. Group 1: Auction Details - The previous record for the most expensive handbag was held by a diamond-encrusted crocodile skin Himalaya Kelly bag, which sold for HK$4 million (approximately US$510,000) in 2021 [2]. - The highest auction price for a fashion item was the original ruby slippers from "The Wizard of Oz," which sold for US$32.5 million last year [2]. - Initial expectations for the Birkin bag's auction price ranged from €1 million to €2 million, but the bidding started at €1.7 million, surprising attendees [2]. Group 2: Historical Significance - The Birkin bag's high auction price is attributed to its rich backstory, originating from a chance encounter between Jane Birkin and Hermès CEO Jean-Louis Dumas in 1981 [3][5]. - Birkin's dissatisfaction with the small handbags of the 1980s led her to sketch a design for a larger bag on an airplane, which resulted in the creation of the Birkin bag in 1984 [5]. - The bag has become a cultural icon, with Birkin humorously noting that her obituary might reference the bag [5]. Group 3: Investment Perspective - The Birkin bag has historically outperformed the stock market, with a reported annual appreciation rate of 14.2% from its inception, compared to the S&P 500's average nominal return of 11.66% from 1980 to 2015 [6]. - The original bag has changed hands several times, with Birkin owning it for about 10 years before auctioning it in 1994 for charity [6]. - The original Birkin bag has unique features that distinguish it from commercial versions, including an unremovable shoulder strap and a nail clipper attached to it [6]. Group 4: Collector Insights - The auction price reflects the allure of unique items with significant provenance, as noted by the head of Sotheby's global handbag and fashion department, who emphasized the power of legendary items to excite collectors [8].