Hermes is the legendary French luxury brand, and as of August 30, 2025, the company has introduced a new personalisation option to its iconic Birkin bags, which will allow customers to have their handbags customised with unique embroidery and hardware choices.

This is a new option that has been introduced at the flagship stores of Hermès in Paris and Tokyo, aiming to enhance the brand image for high-net-worth customers who seek exclusivity.

This is in response to the US tariffs on European luxury items, such as a 15 per cent tariff on leather goods, which are causing American shoppers to travel to Europe and thereby increasing demand for customised Hermes products. This strategic enhancement underscores Hermes’ commitment to craftsmanship and personalisation in a competitive luxury market.

Hermes Elevates Birkin Customisation

The new personalisation experience, called Birkin Atelier, will enable clients to customise their Birkin bags with their own embroidery, initials, patterns, or custom patterns and a selection of uncommon hardware finishes such as rose gold or matte palladium.

Available initially in select boutiques, the service caters to Hermes’ elite clientele, who value the brand’s artisanal heritage. Hermes CEO Axel Dumas said that the effort is a continuation of the brand’s attention to exciting the desire of people by providing unmatched uniqueness.

Every personalised Birkin, which requires more than 20 hours of crafting, adds to the exclusivity the bag is a symbol of, and the waiting lists are reportedly months long due to production scarcity.

This aligns with Hermes’ strategy to maintain its market advantage amid economic headwinds. In 2023, the brand registered EUR13.4 billion in revenue, and growth is propelled by its leather goods segment, which features the Birkin and Kelly bags.

Nevertheless, the new US duties, which will take effect in August 2025, have led to the American consumer spending more, and a 35cm Birkin will now cost more than $12,000 in the US, as opposed to $ 10,500 in Paris with VAT refunds. This price difference is driving a luxury shopping spurt to Europe, where Hermes has a personalisation service that is an added attraction.

Tariff-Driven Shopping Exodus Boosts Hermes Boutiques

Euro-American luxury brands have been badly affected by the US tariffs, which were reintroduced under President Donald Trump, leading to a 48 per cent increase in the number of Americans travelling to Europe with the aim of shopping during the summer of 2020, based on travel industry data.

Hermes has a long-standing boutique on Rue du Faubourg Saint-Honore in Paris, which has now become the favoured shopping destination of the wealthy who want to avoid paying inflated prices imposed by tariffs. This is enhanced by the Birkin Atelier service, which provides Americans with the opportunity to design unique bags at a reduced cost, including VAT refunds of between 12 and 20 per cent in France.

Travel advisors also say that clients are planning Hermes boutique visits with cultural tours, including museums or dining experiences, to rationalise transatlantic travel. An example is a personalised 30cm Birkin that sells at 11,000 in Paris could save a buyer almost 2,000 in the US, including any possible customs charges.

This economic motivation, combined with the customisation of a custom bag, has resulted in an increasing number of people booking their appointments at the personalisation studios at Hermès, and some are even doing so months in advance.

Retail Challenges and Hermes’ Resilience

The luxury market is going through rough seas, and such retailers as SSense sought bankruptcy protection on August 29, 2025, attributing the tariffs as the primary reason. Hermes, however, enjoys the advantage of its close-knit production and family ownership that enables it to operate on high margins and exclusivity.

Compared to its rivals, such as Louis Vuitton, owned by LVMH, which has experienced a drop in sales, especially in some of its segments, Hermes recorded growth in 2025, thanks to its leather goods and jewellery sectors. The Birkin Atelier service will also enhance the demand, especially among hobbyists who consider customised bags as an investment that could be resold quite profitably.

The talks in the industry, including the Modern Retail Podcast, emphasise that even affluent shoppers are looking to find value in the face of inflation and tariffs. Hermes can address this trend by leveraging its personalisation service, as this experience is high-end and can justify its high cost.

The brand’s emphasis on craftsmanship, with each Birkin hand-stitched by tailors in France, serves as a differentiator from mass-produced luxury items and has helped the brand reach its peak popularity in a market that has been overly cautious of quality deterioration.

Future Outlook for Hermes and Luxury Retail

In the future, Hermes plans to roll out the Birkin Atelier service to other boutiques, with the intention of launching it by mid-2026 in New York and Singapore. Nevertheless, the brand has a low production capacity, which makes it exclusive, and waitlists are long, and demand is strong.

With tariffs still being debated, the Hermes boutiques across Europe are poised for a steady influx of American consumer foot traffic, which will boost the local economies. The opening of Birkin Atelier showcases Hermes’ ability to innovate while remaining true to its heritage.

With the luxury market adjusting to the economic and geopolitical environment, the emphasis on bespoke craftsmanship that has characterised Hermes makes it one of the leading brands in the changing world of luxury fashion, as US consumers flock to Europe to get their unique piece of luxury history.