If crocodile skin is cheaper than ever, why are croc birkins more expensive than ever?!

That explains why crcodile shoes have almost doubled in recent years. How can the industry be saved if Hermes has a monopoly on the tanneries? I smell an investigation..

I am confused! On the one hand there is surplus of crocodile skins on the farms but, on the other hand, Hermes is hoarding the skins, thus driving up the prices. Does that means the missing link in all this is the lack of tanneries that can process more skins and sell them to Hermes' competitors and keep the prices in check?

The idea that there are more crocs than ever yet the fashion houses are struggling to get their hands on these skins seems oxymoronic.

Apparently each crocodile only costs about US$100 - I don't care how much hand stitching etc Hermes say they put into their bags - prob a few hours worth - it's not quite worth the US$20k markup!!!

There are definitely more crocodile skins than ever all round - the prob is they are not getting sold cos of the bad economy, therefore clever Hermes is hyping it all up and telling their customers that there are none and hence driving up prices! They'd have to after all with all those crocs sitting around with nothing to do! Seeing a crocodile birkin on the shelf with no home is definitely a regular ocurrence nowadays! Hey - seeing the most sought after regular cow hide birkins are pretty standard even!

I don't know why but, I'm a little disturbed by this.
Oh, Hermès. I thought you could do no wrong.

For once, I'm not surprised! That's typical for the Hermès-Policy! We souldn't blame them, but all the people buying their overpriced products.

that was a really good article, thanks Tina!

Just an FYI - crocodiles and alligators are two different animals, the article mentions nothing about crocodiles. Crocodiles aren't raised in Louisiana. The entire original article is about alligator skins.

If I was ever to buy a crocodile bag, I would like to invest my money on the well being of the animals on the farms instead of a greedy company, which stitches the skins together. Think how luxurious the lives of the crocs and alligators would be if they cost, say 10K each. A truly new meaning for a luxury bag!

Because ladies you are not paying for the cost of the materials that go into the bag you are paying for the name on these overpriced bags (not that this is news to anyone).

so, vertical integration or price-fixing?
obviously there isn't enough information in one article to make a case for either, though it would make a really good investigative piece.

We're not hearing the whole story, it does hint there's market manipulation going on.

The NY times article is about the North American (NA) alligator farmers. NA alligator can only be farmed in the US. The transport of live animals including eggs is highly regulated by the US government. While NA alligator is farmed exclusively in the US, the skins are exported and tanned all over the world. I believe 90% of NA alligator hides are exported. There are only 3-5 alligator tanneries left in the US the largest is owned by a European fashion house.

Hermes and other fashion houses use NA alligator, Porsus and Nile Crocodile skins. It is the Porsus crocodile that Hermes is farming and tanning in Australia. All three types of skins are exquisite, just stunning. Even an expert can hardly tell the difference. They are used interchangeably.

With the drop in demand for raw skins from farmers, and reduced consumer demand, you would expect a drop in price for tanned skins. I haven't seen any drop from my distributors.

My guess is Fashion houses that own the tanneries control the price. With demand down they are using their inventory harvested in previous years or harvested by them.

It's like De Beers and the diamond industry. Did you know that they have warehouses of those rocks, but they only release it a little bit at a time to control the cost? Well I guess it's the same with Hermes. The world is out to make money off you, didn't you know?

This article is very informative!! It sucks what Hermes is doing, but I guess you have to do what you have to do in order to stay where you are in the world of Fashion.

I was happy to read that the rest of the Crocodile isn't wasted, but used!!! I am happy when I read that! That was the only thing in that Article that made any sense!!!

I get home delivery of the times and read that, and I can say it made me mad because Hermes has such a good reputation but now knowing they are so greedy, I have lost respect.

I have been an Hermes fan for almost 2 decades but have never succumbed to the lure of the alligator/croc Birkin no matter how mouthwatering. Instead, I indulge on non-brand reptileskin bags (croc/alligator/lizard) in Asia where the quality can rival those made in Firenze or Paris. My beef now is that the good manufacturers have raised their prices steeply too quoting the crazy prices Hermes, Chanel, LV et al. charge for exotic skins and thus their own now inflated prices seem 'cheap' in comparison. I'm hoping the current economic slump will have made some reduce prices because I'll be in Bangkok at year's end and will be looking out for some bright coloured croc bags for next year.

Haven't any of you read the book "Bringing Home the Birkin"? Good insight into the marketing practices of Hermes. Anyone who is into Birkins should read it.

I think the photo of the crocodile about to be skinned is creepy. While the bag's look nice, it's insanely cruel. Animals deserve to live without fear too.