Ok, Ok, OK...today is price increase day...so, let's talk

#61
piaffe said:
I think you are being hard on H!

I don't think you - or any of us who are non-gazillionaire regular nobodies - is "not the customer Hermes is after". Au contraire. I think we are *exactly* the customer H wants. We appreciate the quality and craftsmanship of the products, we recognize true luxury, and we have been (at least historically) prepared to make sacrifices elsewhere in our lives to make it work. We are knowledgeable about the brand. We care about the colour of the HW. Box and VL leathers are not the same thing. The way swift takes etoupe is fundamentally different from how chevre takes etoupe. It matters to us. I would think H vastly prefers you and I to, say, a Lindsay Lohan - whose stylist probably just hands her a Birkin to carry around as a status symbol. Of course it is a business, and will care about customers who spend $$$; but H has not completely sold its soul. It retains all of the traditions that have made it the great house it is - when it could easily farm out production to other countries, reduce standards, etc.

Maybe I have completely bought Dana Thomas' thesis - but I genuinely believe H will always care about the yous and mes of the world. We may never afford croc. We may only afford a new Birkin ever 2 or 3 or 5 years. But if we continue to appreciate H, in whatever volume makes sense for our personal circumstances, H will continue to appreciate us.
Click to expand...

Do you really think this is true? I think it's a bit of over-glamorization.

I personally think H does keep it's traditions because it's good business practice for them in the long run. They could farm out production to other countries or reduce standards, but then it would lose it's exclusivity, which is exactly what it tries to market.

In all other aspects - the face of H is simply the face of your SA or your store manager, and if they like you for whatever reason - whether you are appreciative of H, whether you will spend lots of money at the store, whether you have a wonderful smile, everything is fine.

It's just another company, in the end.
 
#62
i think with the price increase, my DH might need to get a 2nd job so that i can continue to afford this very bad addiction!! LOL!!!!

kidding aside, i don't think the price incease will really affect my spending at H. honestly, i don't buy a lot of the non bag items that often. and when i do purchase something big, it's a joint decision with DH. besides, i think we both went outta control in 2007 at H so i think we'll try to slow down this year....unless..... :graucho::P;):wlae:
 
#63
merika said:
Do you really think this is true? I think it's a bit of over-glamorization.

I personally think H does keep it's traditions because it's good business practice for them in the long run. They could farm out production to other countries or reduce standards, but then it would lose it's exclusivity, which is exactly what it tries to market.

In all other aspects - the face of H is simply the face of your SA or your store manager, and if they like you for whatever reason - whether you are appreciative of H, whether you will spend lots of money at the store, whether you have a wonderful smile, everything is fine.

It's just another company, in the end.
Click to expand...

I actually *do* think this is true! Again, I think I have completely accepted Dana Thomas' thesis in Deluxe: How Luxury Lost Its Luster. Without offending fans of, say, LV or Prada, Hermes very much is a different company. Yes, it's a business. And *of course* its VIPs will always be royals and big spenders. But it has consciously refused to go down the path of LVMH (the LV group) - LVMH pioneered a different business model, LVMH created the mass "luxury" market.

My view is that H markets true luxury (luxury in the pre-LVMH sense of the word) - not simply exclusivity (after all, a Fendi baguette or other It bag can be "exclusive"... exclusive and luxury are not conceptually equivalent). A majority of consumers today do NOT want H luxury - they want designer, trendy, It. There is a confusion between luxury and "designer". I think H has retained its character as a purveyor of luxury, and I think that there is always room for those of us who want to indulge in that luxury - even in limited doses.
 
#64
piaffe said:
I actually *do* think this is true! Again, I think I have completely accepted Dana Thomas' thesis in Deluxe: How Luxury Lost Its Luster. Without offending fans of, say, LV or Prada, Hermes very much is a different company. Yes, it's a business. And *of course* its VIPs will always be royals and big spenders. But it has consciously refused to go down the path of LVMH (the LV group) - LVMH pioneered a different business model, LVMH created the mass "luxury" market.

My view is that H markets true luxury (luxury in the pre-LVMH sense of the word) - not simply exclusivity (after all, a Fendi baguette or other It bag can be "exclusive"... exclusive and luxury are not conceptually equivalent). A majority of consumers today do NOT want H luxury - they want designer, trendy, It. There is a confusion between luxury and "designer". I think H has retained its character as a purveyor of luxury, and I think that there is always room for those of us who want to indulge in that luxury - even in limited doses.
Click to expand...

Agree with you totally on this! :yes:
 
#65
Regarding the Dana Thomas DELUXE book, I wonder if Hermes is purposely trying to clear out their lower income customers the way Tiffany's did when cutting back on their sterling jewelry line. The price increase coupled with the termination of the FT canvas bags and other lower end pieces makes me think this might be something they are pursuing. Let's face it; overexposure quickly turns bad for business. Louis Vuitton is not only copied heavily, but there also seems to be one on every arm and many people have felt distaste for the brand as a result.

With 20% hikes on leather bags that were already pricey, it could completely change the look of the clientele.

The SAs I have worked with that I was able to chat with always mention that Hermes loves for one to love the brand and become an Hermes customer for life. They want me to have not only an Hermes bag on my arm and others lining my closet shelf, but they also Hermes towels in my bathroom and the other house-ware products to be purchased. In 2007 I felt a distinct push from SAs steering me to buy house-wares. One SA even said to me that it would change my status as a customer if bought something from house-wares.

In my view, Hermes has marketed itself more astutely than any other luxury company around. They make beautifully finished items in "limited quantities", employ SAs that never seem to agree on details thus adding a mysterious curiosity, titillate us with wanting to be part of the exclusive club of customers that actually get offered bags from the back and finally let us leave the store with what has become a symbol of personal/financial achievement. Carrying a Birkin pretty much guarantees that you hardly ever have to wait around when you enter other stores. The sales personnel in all other large department stores recognize the brand and judge that they will make more money off of you versus a customer carrying a lesser name brand bag. This can be beneficial to the Hermes customer, yet I've experienced the bitter flip side as well when shopping and a price quoted to me is higher than the one quoted to another customer in my presence.

Many of the books about French culture seem to impress the quantity over quality way of living life. Chic French women are lauded for their small but perfect wardrobes and perfect accessories that are often times passed down from their mothers. As I sit and wait to see how the price hike will affect my personal budget, I plan to cherish every last bit of Hermes that I have and just enjoy them with as much joie de vivre as possible. I think that the wealthier customers will not be changed much by price hikes although they may tire of the fact that the bags are increasingly recognizable and photographed constantly on “celebrities”.
 
#68
but they were not to happy when I decided not to get the flatware/silverware. I was uber $$$$$$ and too modern for my plates.

wanna birkin? buy a plate. snap.

anyway. 20%. wow. think about in 3 years what the price of a 35cm will be.
 
#69
gazoo said:
Regarding the Dana Thomas DELUXE book, I wonder if Hermes is purposely trying to clear out their lower income customers the way Tiffany's did when cutting back on their sterling jewelry line. The price increase coupled with the termination of the FT canvas bags and other lower end pieces makes me think this might be something they are pursuing. Let's face it; overexposure quickly turns bad for business. Louis Vuitton is not only copied heavily, but there also seems to be one on every arm and many people have felt distaste for the brand as a result.
Click to expand...

I would attribute termination of lower level "entry" pieces to, if anything, a tightening of the brand, and not an attempt to get rid of lower end customers. Hermes does not want to go down the mass marketing path, or dilute its brand. It may reevaluate some of the decisions it has made. It doesn't want to be releasing a "Birkin Sport" or "Lindy Light" line!
 
#70
guccigal07 said:
anyway. 20%. wow. think about in 3 years what the price of a 35cm will be.
Click to expand...

Guccigal, let's not go there, yet...I can only
imagine. ;)

I'm all for a true luxury brand like Hermes.
& despite the price increases and the out-of-reach
factor (for some of us) - I'm very glad these bags
are not mass produced.

and as Piaffe said, there is a difference between luxury and
designer. I can see it in my small town -- you'll see
LV's around every corner (half of them probably fakes),
but you're lucky if you see a woman wearing a H
scarf.
 
#71
gazoo said:
Regarding the Dana Thomas DELUXE book, I wonder if Hermes is purposely trying to clear out their lower income customers the way Tiffany's did when cutting back on their sterling jewelry line. The price increase coupled with the termination of the FT canvas bags and other lower end pieces makes me think this might be something they are pursuing. Let's face it; overexposure quickly turns bad for business. Louis Vuitton is not only copied heavily, but there also seems to be one on every arm and many people have felt distaste for the brand as a result.

With 20% hikes on leather bags that were already pricey, it could completely change the look of the clientele.
Click to expand...


This is probably very true. I hope I don't hurt anyones feelings but I remember when I was in my 20's (in the 1980s) I never saw anyone younger than 35 carrying a Dior, Chanel, LV or Gucci bag. Now I see it worn on everyone/everyage. I think bags are very mass marketed now and it's out of proportion so I can see the fear Hermes might have.
I also am wondering too if they want to squeeze people out of their market then why open so many new stores? Does that make sense?
 
#73
lovehermes said:
[/color]

This is probably very true. I hope I don't hurt anyones feelings but I remember when I was in my 20's (in the 1980s) I never saw anyone younger than 35 carrying a Dior, Chanel, LV or Gucci bag. Now I see it worn on everyone/everyage. I think bags are very mass marketed now and it's out of proportion so I can see the fear Hermes might have.
I also am wondering too if they want to squeeze people out of their market then why open so many new stores? Does that make sense?
Click to expand...

The hermes expansion strategy is a subject of interesting debate. They have increased the prices of their items inspite of a global expansion strategy. I don't think the average mall shopper walks into an Hermes store and plonks down $8k for a bag (unlike say Coach or even LV where the general range is much more affordable). The strategy that Hermes is adopting globally is based on its strategy for Japan which has worked to its advantage. Hermes has the largest number of stores in Japan and it has become a lifestyle brand for many affluent Japanese. Similarly, many of the luxury houses in Japan are now focusing on the higher end product range (bespoke) and also developing a lifestyle concept. I believe Armani opened a flagship store in Tokyo, with the complete fashion range, florist, home decor, restaurant/bar and even has a spa!

Perhaps one of the larger intent of Hermes is to go towards the Lifestyle concept - like if one needs a towel (albeit a very expensive towel) one can pop by the Hermes store in the vicinity. It used to be that one could only look forward to making the pilgrimage to Paris to get the dream bag. It certainly help their bottom line in that people will buy the scarves, the twillies, the accessories etc (where they probably make most of their margins) even if they can't afford the bags. In the end, the number of storefronts is like "advertising" and increasing the prices of their products will enable them to maintain the "exclusivity" (or so they hope).
 
#75
I hate the price increase,:yucky: but it will not stop me from buying from Hermes if I love it, it may limit a bit the "impulse" buys, but not the things that are sitting on my wish list. I will try to buy them in Europe whenever I am there already, and get the 10% vat, the bags always do end up cheaper there esp.if you already have euros. Part of the reason the goods are more here is the $/Euro exchange & the very high import duty imposed on Hermes as a company.:sad:
 
You must log in or register to reply here.
Top
Back