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Luxury firm Hermès overwhelmed by demand for pricey handbags

While stock markets soar, making the world’s wealthy even richer, French luxury brand Hermès says it is to open three new factories to meet demand for its pricey handbags, like the so-called 'Birkin bag', and has opened a leather-working school to train more craftspeople to make them.  

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Hermès, the French luxury goods maker, is opening three new factories as it struggles to keep up with demand for its Birkin and Kelly handbags that sell in excess of 6,000 euros, reports The Guardian.

The company said on Friday it planned to open new leather goods factories in the French towns of Louviers, Sormonne and Riom before 2024 in order to increase and speed up its production of the expensive bags.

It has also recently opened its first leather-working school to train more craftspeople in the art of handbag making.

The company, which already has more than 4,300 leather workers on its staff, said it was hiring more than 400 artisans each year. However, Hermès said it needed far more to keep up with demand for its handbags, which has jumped during the Covid pandemic as soaring stock markets have left the world’s richest people with a lot more disposable income.

The bags have become must-have collectibles for the super-rich and celebrities, including Victoria Beckham, Katie Holmes, Rita Ora and Kelly Brook, with some women owning hundreds of the most sought-after designs.

Rare Hermès bags have also proven extremely popular at auction, with some selling for almost £300,000 [36,000 euros].

Read more of this report from The Guardian.