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The Guardian - UK

Lifestyle

Rupert Neate Wealth correspondent

Luxury brand Hermès plans new factories as handbag demand soars

Hermès bags on display at Bonhams in London. — Hermès bags on display at Bonhams in London. Rare bags by the brand have proven popular at auction, with some selling for almost £300,000. Photograph: Guy Bell/Rex/Shutterstock

Hermès, the French luxury goods maker, is opening three new factories as it struggles to keep up with demand for its £5,000-plus Birkin and Kelly handbags.

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.

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