Would Hermès ever get into the sustainability market?

[bluerosespf]

I almost never start new threads, but this is something I've been thinking about a lot lately.

Sustainable fashion, through renting like Rent The Runway or recycling like Eileen Fisher Renew or The Real Real, is an emerging market. Now, I don't think H would ever rent bags - that would feel gauche. But does anyone think there would ever be a day that they would take back their own bags for resale? It has to gall people in H finance when they see a current season bag being resold at a 50%+ markup - that's literally money that could go to H.

There are a number of upsides to this:
Being able to purchase a preloved bag directly from H is a move against counterfeiting
H have always promoted the durability of their bags
H would be able to sell the same bag more than once
Anything around sustainability is good press
It would cut down on bag flippers, people who buy just to resell
It would cut down on unscrupulous SAs who sell bags knowing they're for resale

Potential downsides:
Cutting into the revenue from purchases of new bags
H would need to be competitive with the money/credit that would go to the person selling her bag back

This is just spit-balling on my part. What does everyone else think?

 

[Rouge H]

My take is to let Hermes carry on with what they do best and leave the headaches to the secondary market.

 

[tonkamama]

Where and how is H sourcing the “preloved” bags? From resellers or existing customers? At what price point (operating costs and profits wise) worth all the troubles in order for H to sell back to the same group of people? I agree just let Hermes carry on what they do best.

I almost never start new threads, but this is something I've been thinking about a lot lately.

Sustainable fashion, through renting like Rent The Runway or recycling like Eileen Fisher Renew or The Real Real, is an emerging market. Now, I don't think H would ever rent bags - that would feel gauche. But does anyone think there would ever be a day that they would take back their own bags for resale? It has to gall people in H finance when they see a current season bag being resold at a 50%+ markup - that's literally money that could go to H.

There are a number of upsides to this:
Being able to purchase a preloved bag directly from H is a move against counterfeiting
H have always promoted the durability of their bags
H would be able to sell the same bag more than once
Anything around sustainability is good press
It would cut down on bag flippers, people who buy just to resell
It would cut down on unscrupulous SAs who sell bags knowing they're for resale

Potential downsides:
Cutting into the revenue from purchases of new bags
H would need to be competitive with the money/credit that would go to the person selling her bag back

This is just spit-balling on my part. What does everyone else think?

 

[the_black_tie_diyer]

Hi!

Interesting idea for a thread.

Will Hermès have to adapt to future markets and cater to a new type of client/customer at some point? Yes.

Can I personally see Hermès running a "2nd hand"-branch or rental service? No.

Focussing harder on sustainability through recycling, change in/of materials, supply chain, restrictive policies, adapting to markets demands to stay relevant, (...). Yes.

Two things come to mind immediately, thinking of coming/future generations:

- Severing all ties in regard to farming, production and sales of exotic leather items.

- Use of lab grown diamonds where applicable.

Then again, Hermès is Hermès. Just like LV is LV, Rolex is Rolex, (...).

I think we're going to see a lot of hit and misses, on the quest to surviving **** storms, cultural/economical/environmental change and staying relevant, by other big & popular brands first, before we see vast institutions like Hermès move in a definite new direction.

Nothing lasts forever & never say never.

Kind regards,
Oliver

 

[fabuleux]

One could say that Hermès is already encouraging more thoughtful consumption because of the company's price tags. I used to buy several luxury bags each year, but with Hermès I can only afford maybe one a year! Hermès makes me greener! Also, because their items are much more classic than what other luxury houses are releasing, I don't feel the need to buy constantly.

 

[lara0112]

sustainability is by no means an issue of second-hand/pre-loved goods. Severa luxury top-end brands are very much focussed on sustainability and its various elements (ecological, economic, social). Kering (mother company to many like Gucci etc) was voted second most sustainable company in the world last year.

Hermes has built its own idea of sustainability into its company - their products are life-time purchases, are built to last and can be repaired, which is offered by no one other luxury handbag/ lifestyle brand. (one of their mottos is: luxury is that which can be repaired) etc

on the other hand, their operations are so environmentally taxing (dyeing hides etc), it might be hard to argue this in a true environmentally friendly fashion. They are, however, the very opposite of fast fashion (willing to give as much time to their designers and creators as is needed) and as such, encourage more thoughtful consumption.

 

[Love Of My Life]

Hermes is at the top of the luxury pyramid market. It's familiar territory for them, comfortable & secure.
They have more than a loyal base , the history of the company is timeless.
They will do well under any circumstances & whatever environmental issues come into play, they will
put much thought before they make any moves...

 

[Muffin_Top]

Hermès managed to make its products highly desirable, being rare as well as affordable by only a happy few. And we know that even having the money isn't enough to be able to buy!
Selling second hand would make the products more common and affordable, so in my opinion that would be the opposite of their strategy. Like making sales in shops twice a year.
I can't imagine them greenwashing their products, either.

 

[ladysarah]

Hermes has built its own idea of sustainability into its company - their products are life-time purchases, are built to last and can be repaired, which is offered by no one other luxury handbag/ lifestyle brand. (one of their mottos is: luxury is that which can be repaired) etc

on the other hand, their operations are so environmentally taxing (dyeing hides etc), it might be hard to argue this in a true environmentally friendly fashion. They are, however, the very opposite of fast fashion (willing to give as much time to their designers and creators as is needed) and as such, encourage more thoughtful consumption.

‘Hermes products are life-time purchases, are built to last and can be repaired, ’ - this!
Ultimately that is true sustainability. However I Passionately oppose any crocodile / alligator skins (euphemism is ‘exotics’) and of course fur, which is really too wasteful from an environmental point, as well as cruel. My guess is that in the next few years these things will be phased out. California has already introduced a ban and many other fashion houses, including Chanel, are going in that direction. Younger people simply don’t want those things.

 

[snibor]

No I don’t see it. And I often see “sustainability” used more as a marketing ploy than companies really doing something that matters. Without getting into the politics of it, all the fake plastic fur being produced in the name of sustainability is nonsense. Non-biodegradable fake fur items sitting in landfills.
Hermes is a unique brand and it seems to me no other brand is quite like it. No need to change what is already working. These are lifelong bags, which are inherently better for the environment.

 

[Tonimichelle]

Environmental issues aside, although I’m sure Hermes would never do this, it would be fantastic to be able to purchase preowned H bags directly from H, much like you can buy preowned cars from authorised dealers. Fully serviced with OEM parts and safe in the knowledge it was authentic and although maybe less than perfect at a slightly lower price point! I can understand however that this would be a real no no for anyone looking to make or even just retain money in a preowned piece. It would also possibly lower the desire for a brand new bag for some, so not good for Hermes but I can dream!

 

[lara0112]

Environmental issues aside, although I’m sure Hermes would never do this, it would be fantastic to be able to purchase preowned H bags directly from H, much like you can buy preowned cars from authorised dealers. Fully serviced with OEM parts and safe in the knowledge it was authentic and although maybe less than perfect at a slightly lower price point! I can understand however that this would be a real no no for anyone looking to make or even just retain money in a preowned piece. It would also possibly lower the desire for a brand new bag for some, so not good for Hermes but I can dream!

I wouldn't say never. They, like any other business, respond to global mega-trends, societal developments, and, to an extent, to customer demand (like bringing back rested colours for instance due to popular demand). None of the brands have done this yet because there just wasn't a demand for it, I would assume.

 

[papertiger]

Sustainability is not a market, it's just become one. Real sustainability is looking after what one has already and not buying more.

There are companies that have specialised in selling second-hand goods for hundreds of years, they're called 'dealers'. Just attaching the word 'sustainability' to their blurb is secondary like their market. Doesn't matter whether they sell antiques, bric-a-brac or ashes from the grate.

Furthermore, Hermès addresses sustainability through Petit H so they use up seconds, cutoffs and overstock and their spa services/aftercare so customers can enjoy their products for decades. Their traditional ethos is based on the core values of sustainability.

 

[Evia]

You could probably count the designer brands willing to repair and care for their products on the fingers of one hand these days. Most cheerfully sell you a mega expensive handbag and expect to sell you a replacement for it after just a few years of use So I’m also thinking that Hermes is already in the sustainability business.

 

[marie132]

I almost never start new threads, but this is something I've been thinking about a lot lately.

Sustainable fashion, through renting like Rent The Runway or recycling like Eileen Fisher Renew or The Real Real, is an emerging market. Now, I don't think H would ever rent bags - that would feel gauche. But does anyone think there would ever be a day that they would take back their own bags for resale? It has to gall people in H finance when they see a current season bag being resold at a 50%+ markup - that's literally money that could go to H.

There are a number of upsides to this:
Being able to purchase a preloved bag directly from H is a move against counterfeiting
H have always promoted the durability of their bags
H would be able to sell the same bag more than once
Anything around sustainability is good press
It would cut down on bag flippers, people who buy just to resell
It would cut down on unscrupulous SAs who sell bags knowing they're for resale

Potential downsides:
Cutting into the revenue from purchases of new bags
H would need to be competitive with the money/credit that would go to the person selling her bag back

This is just spit-balling on my part. What does everyone else think?

Not sure because they burn unsold items to create scarcity, and on their websitw they say they cannot guarantee an item is authentic unless bought directly from them or authorized retailers. People might try to give them back fakes and they would never take the risk.