Bag Production Post-C-Virus

[acrowcounted]

From my understanding, the bag shortage is a fully orchestrated tactic from Hermes corporate. They blew away their global sales goal numbers for leather goods and have now cut off the supply to stores to have control of those numbers. They don’t want to set too high of a bar for subsequent years. This is not a production issue of hoping the supply chain will catch up before the holidays. Though some of the new stores and flagship stores will continue to trickle out bag sales, H would be happiest, in a perfect world, to not sell another bag this calendar year.

 

[glena0710]

From my understanding, the bag shortage is a fully orchestrated tactic from Hermes corporate. They blew away their global sales goal numbers for leather goods and have now cut off the supply to stores to have control of those numbers. They don’t want to set too high of a bar for subsequent years. This is not a production issue of hoping the supply chain will catch up before the holidays. Though some of the new stores and flagship stores will continue to trickle out bag sales, H would be happiest, in a perfect world, to not sell another bag this calendar year.

Hmmm... any chance that this is basically it?

Birkin bag maker Hermes tempers expectations after stellar growth

Birkin handbag maker Hermes (HRMS.PA) said it expected sales of its leather goods division to "normalise" after stellar growth in the first half of the year, flagging a slowdown of sorts even as it rides a sharp rebound in the luxury sector.

www.reuters.com

Dumas himself said that the strong leather goods sales in the first half of 2021 will not continue into the second. "Shortages" are even explicitly mentioned. Given that H increases leather production by a fixed rate each year, if bags were flying off the shelves earlier this year, I guess they need to basically halt sales for now to stay within their projected figures.

 

[Build-a-B-K-collection]

Hi, does anyone know If their is a shortage of B25/K25 in Paris FSH? Hoping now fashion week is over us mere mortals get a chance to be offered a bag. does anyone know what the situation is like in London too. Thanks

 

[880]

If you love Hermes, there is still plenty to buy (and I only buy what I love). Covid was a black swan event (well, maybe not; maybe the new reality, who knows) and, in the beginning, stores perhaps panicked and sold off their current shipments more quickly than normal. It seems like chanel and Hermes are constricting supply now due to those banner sales earlier, but it’s also possible that stores allocations changed, IDK. I don’t blame them if the decision was made from corporate to slow things down or to prioritize new customers, it’s a business after all. But, I’m pretty happy with my H relationship, bag purchases, and what I already own.

At some point next year, my SA is still thinking about an exotic H or a fun unusual variation for me; theres plenty of time. (And honestly I adore my far less popular craie mini Della cavalleria almost more than my Birkins or kellys) In the mean time, if one is so inclined, there is other stuff to buy like RTW (chanel, Hermes, Dior and brunello still have a nice array). (Though i do think Dior managed it’s RTW supply chain somehow a bit better than Hermes or chanel, but that’s JMO). I am sorry for SA’s who have to deal with unhappy customers who just seem to want a holiday bag. For example, there were people on line outside chanel (without appointments) who would be very disappointed if they only want a popular bag.

incidentally, I was a bit irritated by this years delay on some H tableware, but DH decided he also adores a brand called hering Berlin, so it’s all good. . .. these are very 1% problems to have, and I am grateful to have them. I also don’t really look at social media, but that’s entertainment, not real life, and everyone’s circumstances are different.

@Build-a-B-K-collection, you could inquire on the Paris FSH and London threads for a more up to date answer. I was in Italy for most of September (Milan, Rome, Venice), and the H boutiques I visited, though open to walk in traffic, were extremely busy helping their regulars, to the point where it was difficult to get help even in fine jewelry or RTW. (There were plenty of gorgeous bags, but not for tourists).

@Justlikewhatilike, yes, interest rates are another thing to be grateful! I try to forget about any deposits or preorders. I try to think of it as a future discount lol

 

[Justlikewhatilike]

If you love Hermes, there is still plenty to buy (and I only buy what I love). Covid was a black swan event (well, maybe not; maybe the new reality, who knows) and, in the beginning, stores perhaps panicked and sold off their current shipments more quickly than normal. It seems like chanel and Hermes are constricting supply now due to those banner sales earlier, but it’s also possible that stores allocations changed, IDK. I don’t blame them if the decision was made from corporate to slow things down or to prioritize new customers, it’s a business after all. But, I’m pretty happy with my H relationship, bag purchases, and what I already own. And, yes, at some point next year, my SA is still thinking about an exotic H or a fun unusual variation for me; theres plenty of time. (And honestly I adore my less popular craie mini Della cavalleria almost more than my Birkins or kellys) In the mean time, if one is so inclined, there is other stuff to buy like RTW (chanel, Hermes, Dior and brunello still have a nice array). (Though i do think Dior managed it’s RTW supply chain somehow a bit better than Hermes or chanel, but that’s JMO). I am sorry for SA’s who seem to have to deal with unhappy customers who just seem to want a holiday bag.

incidentally, I was a bit irritated by the delay on some H tableware, but DH decided he also adores a brand called hering Berlin, so it’s all good. . .. these are very 1% problems to have, and I am grateful to have them. I also don’t really look at social media, but that’s entertainment, not real life and everyone’s circumstances are different.

Everything is delayed. Jewellery and porcelain items that I wanted could take up to 1 year.

Although interest rates are all time Low, but doesn’t mean it’s a nice feeling that deposits are taken for those long awaited for items. Lol….

 

[acrowcounted]

From my understanding, the bag shortage is a fully orchestrated tactic from Hermes corporate. They blew away their global sales goal numbers for leather goods and have now cut off the supply to stores to have control of those numbers. They don’t want to set too high of a bar for subsequent years. This is not a production issue of hoping the supply chain will catch up before the holidays. Though some of the new stores and flagship stores will continue to trickle out bag sales, H would be happiest, in a perfect world, to not sell another bag this calendar year.

2021 sales have reportedly exceeded 2019 by 40% already. H is happy to make us wait until 2022 to delay further sales numbers…

Birkin bag maker Hermes shrugs off China slowdown, sales beat forecasts

Sales at Birkin bag maker Hermes grew by 31% in the third quarter, beating market expectations even as the pace of the rebound from the fallout of the coronavirus pandemic slowed down from the previous three months.

www.reuters.com

 

[AmalieLotte92]

2021 sales have reportedly exceeded 2019 by 40% already. H is happy to make us wait until 2022 to delay further sales numbers…

Birkin bag maker Hermes shrugs off China slowdown, sales beat forecasts

Sales at Birkin bag maker Hermes grew by 31% in the third quarter, beating market expectations even as the pace of the rebound from the fallout of the coronavirus pandemic slowed down from the previous three months.

www.reuters.com

With only 10 weeks left in 2021 (and the holidays right in the middle of the final quarter), H must feel really good about where it stands. From Thanksgiving on to Chinese New Year 2022 (Oh! And Valentine's Day!), it's going to be interesting to see what inventory looks like in the U.S.....

 

[Justlikewhatilike]

Recently read about global broken supply chains during the pandemic.

Not too sure how this affects production because most items are made in France but I’m sure the materials cannot be all from France.

Upcoming would be the annual price adjustments. I hope there would be no shocks on levels of price adjustment.

 

[haute okole]

is there such unicorns in this world? Have you met these mythical creatures? kidding…… I see what you mean.

Hahaha! There is a whole thread called Purse Peace in the Hermes forum. These mythical creatures may exist! In my case, I reached purse peace for a hot minute, and then I hopped on Instagram and saw a limited edition Birkin that killed my peace.

 

[haute okole]

If you love Hermes, there is still plenty to buy (and I only buy what I love). Covid was a black swan event (well, maybe not; maybe the new reality, who knows) and, in the beginning, stores perhaps panicked and sold off their current shipments more quickly than normal. It seems like chanel and Hermes are constricting supply now due to those banner sales earlier, but it’s also possible that stores allocations changed, IDK. I don’t blame them if the decision was made from corporate to slow things down or to prioritize new customers, it’s a business after all. But, I’m pretty happy with my H relationship, bag purchases, and what I already own.

At some point next year, my SA is still thinking about an exotic H or a fun unusual variation for me; theres plenty of time. (And honestly I adore my far less popular craie mini Della cavalleria almost more than my Birkins or kellys) In the mean time, if one is so inclined, there is other stuff to buy like RTW (chanel, Hermes, Dior and brunello still have a nice array). (Though i do think Dior managed it’s RTW supply chain somehow a bit better than Hermes or chanel, but that’s JMO). I am sorry for SA’s who have to deal with unhappy customers who just seem to want a holiday bag. For example, there were people on line outside chanel (without appointments) who would be very disappointed if they only want a popular bag.

incidentally, I was a bit irritated by this years delay on some H tableware, but DH decided he also adores a brand called hering Berlin, so it’s all good. . .. these are very 1% problems to have, and I am grateful to have them. I also don’t really look at social media, but that’s entertainment, not real life, and everyone’s circumstances are different.

@Build-a-B-K-collection, you could inquire on the Paris FSH and London threads for a more up to date answer. I was in Italy for most of September (Milan, Rome, Venice), and the H boutiques I visited, though open to walk in traffic, were extremely busy helping their regulars, to the point where it was difficult to get help even in fine jewelry or RTW. (There were plenty of gorgeous bags, but not for tourists).

@Justlikewhatilike, yes, interest rates are another thing to be grateful! I try to forget about any deposits or preorders. I try to think of it as a future discount lol

I don’t even bother to buy from anywhere else but my home store because I feel like I am cheating on my beloved SA. My home store SA is the manager of small leather goods department and said they are low on most leather goods this year and there are wait lists for shoes, sneakers etc. The Beverly Hills store does have a lot of belts, however. Even Avalon blankets are in short supply. He was also saying that there is often a 1 hour line and unless you have an established contact in the store, you cannot make appointments. Fortunately, I feel I am at purse peace at the moment. But I change my mind as often as the wind changes direction.

 

[glena0710]

From observing the bag offers and shopping threads in various countries, I can't help but notice that this bag freeze is mostly affecting N. America (or at least the US). Bags seem scarcer than usual in Europe and Asia, but people there are still getting offers and buying, versus clients in the US being told no bags until 2022. Is N. America just having especially bad supply delivery issues?
Sales in Asia this year were highest of all, so if H really just wanted to keep its numbers down, it's odd they keep sending this region bags.

 

[DrawitraLoveHermes]

From observing the bag offers and shopping threads in various countries, I can't help but notice that this bag freeze is mostly affecting N. America (or at least the US). Bags seem scarcer than usual in Europe and Asia, but people there are still getting offers and buying, versus clients in the US being told no bags until 2022. Is N. America just having especially bad supply delivery issues?
Sales in Asia this year were highest of all, so if H really just wanted to keep its numbers down, it's odd they keep sending this region bags.

America has more boutiques in total comparing in Asia. A lot more larger boutiques still receive bags. Not everyone in the US is showing off bags offered online esp those who are big spenders and resellers. We have 4 boutiques in NYC and 3+ nearby in NJ and Connecticut.

The point is ppl in us are still buying bags big time we just dont see lol .

 

[fice16]

A lot more larger boutiques still receive bags. Not everyone in the US is showing off bags offered online esp those who are big spenders and resellers. We have 4 boutiques in NYC and 3+ nearby in NJ and Connecticut.

The point is ppl in us are still buying bags big time we just dont see lol .

+1 to this.

Additionally, I think the bag shortage issue in the US is mostly driven by the increase in H lovers in past 3 years (or so), as new H boutique openings have attracted new H lovers. So, the chance of getting a desirable bag may be slimmer nowadays due to the increase in competition & increase in interest in H bags by new H lovers.

 

[glena0710]

America has more boutiques in total comparing in Asia. A lot more larger boutiques still receive bags. Not everyone in the US is showing off bags offered online esp those who are big spenders and resellers. We have 4 boutiques in NYC and 3+ nearby in NJ and Connecticut.

The point is ppl in us are still buying bags big time we just dont see lol .

This isn't true... there are almost 40 H boutiques in Japan alone! S. Korea has around 20 and mainland China around 30. The US has about 40 boutiques in total.

 

[DrawitraLoveHermes]

This isn't true... there are almost 40 H boutiques in Japan alone! S. Korea has around 20 and mainland China around 30. The US has about 40 boutiques in total.

You are right but in Japan most of the stores are small , not carrying everything .