The Birkin Bag Dilemma: Accusations of Unfair Practices at Hermès Unveiled

2024-03-23 19:52:33

Two American customers of the French luxury house Hermès accuse the brand of unfair commercial practices. She would save her Birkin bags only for sufficiently loyal buyers. For Marie-Hélène Rheims, brand strategy consultant, large luxury groups must now learn to “manage the wait” and the frustration of wealthy buyers.

Happy is he who, like the Hermès customer, obtains the Birkin of his dreams… The salespeople of the French luxury brand would in fact be instructed to reserve the famous handbag, inspired by the singer Jane Birkin, for customers with a “sufficient purchase history”. This is what emerges from a complaint filed Tuesday in a San Francisco court.

The two plaintiffs, Tina Cavalleri and Mark Glinoga, accuse Hermès of violating American competition laws. Clearly, the luxury brand would strongly encourage its customers to make additional purchases (shoes, scarves, jewelry) to earn the right to buy the emblematic accessory of the Hermès house.

“Reserved for customers” supporting the brand

After spending tens of thousands of dollars at the saddler-leatherworker, Tina Cavalleri was able to obtain the famous bag. But when she contacted the Hermès store to buy another one in September 2022, she was told that it was reserved for “customers who have always supported our company”, a way of suggesting that she make other purchases.

Mark Glinoga “attempted several times to purchase a Birkin bag” in 2023, but was told “that he had to purchase other items and accessories,” according to the complaint.

Hermès orders its sellers “to use Birkin handbags as a means of forcing consumers to purchase additional products,” the plaintiffs denounce. According to them, employees receive a 3% commission on sales of accessories (shoes, belts, jewelry, scarves, etc.), which encourages them to support this system.

We are in a society where when we have the means, we want everything, right away.

Marie-Hélène Rheims, specialist in brand strategy

Marie-Hélène Rheims, specialist in brand strategy, does not comment on this supposed practice. Interviewed in Forum, she notes, however, that the Hermès group finds itself increasingly torn between two constants: “limited production” and “exponential demand” from consumers.

“We are in a society (…) where when you have the means, you want everything, right away,” underlines the founder of Rheims consulting.

Problem: the handmade Hermès bag is not produced any faster. To create the famous Birkin, the craftsmen need “an incompressible deadline of just under 20 hours of work”, explains the Geneva resident.

>> Listen to the interview with Marie-Hélène Rheims in Forum: Hermès’ exclusivity strategy heavily criticized: interview with Marie-Hélène Rheims / Forum / 6 min. / yesterday at 6:10 p.m.

Make the customer wait

For this type of “highly desirable” object, brands must therefore find ways to manage the impatience of customers, ready to pay crazy sums of money to obtain the coveted item.

In the watchmaking, luxury automobile and fashion sectors, “waiting lists” are common.

And for Birkins, the demand is so strong that the company can dictate its law. “Hermès, moreover, recently announced an increase in their price, without this causing the slightest problem,” recalls the consultant.

“What is reassuring is that we realize that money cannot buy everything,” smiles Marie-Hélène Rheims. Maybe that’s the moral of the story…

Doreen Enssle

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