If you have never carried an Hermes on your arms or carressed it with srutinizing awe, you've probably only looked at it from afar, or merely from internet images. You might then be wondering why a Birkin or a Kelly is considered such a coveted item and WHHHHYY people are willing to pay so much for it. Each Birkin or Kelly runs upwards from 7,000 USD nowadays and has a 2-5 years waiting list attached to it.
Well, it's very simple really.
Hermes stands at the very top of timeless quality.
Here's quite a concise introduction of Hermes from CBCtv's Fashion File. There is a short part about the Lindy bag, a relatively new Hermes bag. And when you're done with that, you MUST view this revealing video of how Hermes bags are made.
Once you have finished viewing the Fashion File videos, I hope your question would have been sufficiently answered. But if it still isn't clear, then talk to Hermes owners. They would tell you that Hermes bags age exceptionally well, and that Hermes provides exquisite refurbishing service for your old Hermes bags, such that they become almost new. And of course, supply and demand makes it absolutely necessary for that exorbitant price on the bag.
Can't get enough? Read Washington Post on the comparison of the Kelly and Birkin and much more.