Hermès Birkin Bags at Costco? This Is Actually Genius!

Source: IG

Wait a second. Hermès Birkin Bags selling at Costco? Yes, you read that correctly.

Select Costco stores in Shanghai have been selling the ultra exclusive Birkin Bag on a limited basis for $14,000 USD, apparently well below the normal retail price.

When the bags do become available? An absolute frenzy of long lines filled with people showing up ready to buy.

It's not the first time Costco has offered select luxury items such as Rolex watches, Versace clothing, and Ooni pizza ovens. Even cars from time to time.

But the Hermès Birkin Bag is different because it’s the ultimate in luxury. There are actual wait lists for this bag at most other places. So how could you possibly walk into a warehouse store (no offense) and simply pull it out of a display case?

Doesn't that destroy the exclusivity? Doesn't that cheapen the brand?

I thought so at first. Then I really dug in.

It’s actually quite smart. Hermès is capitalizing on the high-low mentality of the new generation of luxury shopper. The sharp contrast between Costco's warehouse aesthetic and a $14,000 handbag is making the Birkin even more of a gotta-have item.

The juxtaposition is the marketing.

It reminds me of when Balenciaga did an IKEA-inspired blue bag for $2,000 a few years ago. Same move. High-low done right. It sold out in minutes, leaving people asking for it to come back ever since.

Source: GQ

The Birkin Bag at Costco in such a limited way is a win-win as well.

For Costco: draws crowds and sparks new memberships.

For Hermès: gives the brand a spark with a younger generation. Shows they're hip enough to take risks. It's like a TikTok promotion but for $14,000.

For both: cultural cache and buzz. Talkability that is earned, not paid for.

So while at first glance this feels like a shocker, when you really think about it, it's new age marketing. Would it work in every market? Definitely not, but if it works in one or two and spreads virally then it’s working overtime.

As a marketer, I'm sold.

What about you and your brand? What can you do that’s unexpected?

What's your experience? JIM