French luxury design house Hermes has unveiled a diary-sized paper bag with a price tag of Rs34,800 ($125), sparking a conversation about the stark contrast between luxury pricing and minimum wages in Pakistan. This extravagant paper bag is available in A4 and A5 sizes and is intended for carrying a diary or perfume.
The price disparity becomes even more apparent when compared to the minimum wage for a laborer in Pakistan, which is Rs32,000. Additionally, other Hermes products exhibit exorbitant pricing, such as a 7.5-inch paperweight priced at Rs822,000 ($2,950), surpassing the annual basic income of a college lecturer in Pakistan.
Hermes is renowned for its high-end sandals, handbags, and accessories, with some of its products reaching astronomical prices. For instance, Hermes sandals are priced at Rs21.4 million ($76,000), and the world’s third most expensive Hermes Kelly Gold Rose bag costs Rs557.4 million ($20 million). The brand is known for its exclusivity, with waiting periods of 3 to 4 years for the most expensive handbags.
While luxury brands like Hermes cater to a wealthy clientele, the pricing of such items highlights significant economic disparities. The brand is associated with one of the richest families globally, owning wealth exceeding $151 billion, according to Bloomberg.
In a comparison to real estate prices, a 1,500 to 2,000 square feet house in Karachi’s Defence area ranges from Rs200 million to Rs320 million, while a bungalow in Lahore’s Defence is priced at Rs70 million. The pricing of luxury items like the Hermes paper bag accentuates the widening gap between luxury markets and basic living expenses, raising questions about the accessibility and ethical considerations of such extravagant products in the broader context of global economic inequalities.
