BREAKING NEWS from Paris Hermes fired 2 SA's for underground Selling !

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The bold part is the only thing H can do, is to control who they sell the bags to. And control their SAs not to lie, take bribe etc.

But the question is how can they tell apart a genuine customer vs another looking to resell? I guess they will never know.
They can certainly control their SAs to be honest and to uphold their integrity.
 
But the question is how can they tell apart a genuine customer vs another looking to resell? I guess they will never know.
They can certainly control their SAs to be honest and to uphold their integrity.

"Genuine customers" resell all the time. I think people forget that in order to stock their businesses, resellers generally have a broad network of people who buy at Hermes and then resell to them. Lots of whom post on PF all the time. So all the reseller villification is a bit of a mystery to me.

People are free to buy from the boutiques, buy used, buy new (or used) from resellers. In all cases, you are probably paying more than store price because of the way Hermes works (purchases leading to being offered certain things, usually).

Although it's possible that SAs at FSH were in fact outed for taking incentives from clients to get bags, I find it hard to believe that other SAs would have been casually mentioning this to customers.

Just my .02!
 
I think Hermès should take a look at those stores that sells brand new Birkins and Kelly.
There are several of such stores that are specialized in selling Brand New Hermès and Chanels in latest colors and in the most exotic skins.

Asia especially, are flooded with such stores. Online too.

Something should have been done long ago.
Firing 2 SAs arent gonna help much.
Seriously.
 
I think Hermès should take a look at those stores that sells brand new Birkins and Kelly.
There are several of such stores that are specialized in selling Brand New Hermès and Chanels in latest colors and in the most exotic skins.

Asia especially, are flooded with such stores. Online too.

Something should have been done long ago.
Firing 2 SAs arent gonna help much.
Seriously.

What do you expect Hermes to do with those stores? It's not illegal to sell bags above retails prices. And they are not going to tell Hermes where they got their bags from and they don't have any legal obligation to tell. Hermes to hire private investigators to investigate them? Like I said, the only thing Hermes can do is to control their own staff. They don't have any legal standing to control anybody else.
 
All this sounds like very old news to me.
I have been hearing those stories for ages, always the same sound...
....meanwhile Hermes is reporting fantasmabulous income for first semester 2013, 47% of it coming from Leather dpt : bags and SLG , not including belts, nor leather accessories as CDCs.

The only thing they actually need is increasing income from other depts, in order to balance production. They have been trying hard, with the RTW and Jewelry dpts, but it takes time, and the competition is HUGE.

Besides, they NEED the resellers business . This takes a huge part of their BRANDING (& free of any additional investment) . They will keep going with the SCARCITY as well, for the same reason. Whatever huge their production actually is, they will keep turning actual availability in scarcity, using the 1B 1K rule or whatever other rule helps them to achieve this goal.

The hard part is to keep all this together, in an acceptable presentation to us , customers, and that is not what they do best....

Last but not least, firing corrupted employees is absolutely necessary. No doubt. No alternative.
 
All this sounds like very old news to me.
I have been hearing those stories for ages, always the same sound...
....meanwhile Hermes is reporting fantasmabulous income for first semester 2013, 47% of it coming from Leather dpt : bags and SLG , not including belts, nor leather accessories as CDCs.

The only thing they actually need is increasing income from other depts, in order to balance production. They have been trying hard, with the RTW and Jewelry dpts, but it takes time, and the competition is HUGE.

Besides, they NEED the resellers business . This takes a huge part of their BRANDING (& free of any additional investment) . They will keep going with the SCARCITY as well, for the same reason. Whatever huge their production actually is, they will keep turning actual availability in scarcity, using the 1B 1K rule or whatever other rule helps them to achieve this goal.

The hard part is to keep all this together, in an acceptable presentation to us , customers, and that is not what they do best....

Last but not least, firing corrupted employees is absolutely necessary. No doubt. No alternative.
Yes, ideed! Btw, chatting a few days ago with an SA about those huge queues at the bag department, the guy told me that for each bag made, he has over 100 demands...
 
I agree with perlerare and may I also add that, to my perception, how the house achieved the growth double digits growth in RTWs, blings blings, homes and watch departments (aka the relatively non-welcoming departments): the house simply needs you to spend more and more on those departments before they will consider selling you a coveted bag (coveted bags include the legendary B and K, the less legendary constance and lindy).

Going back to the problem of corruption, no one single house can have a very good risk management system to stop it from happening. I am sure it is only a tip of the iceberg in Paris or France. The only problem is how deep Hermes is willing to dig the fact....


All this sounds like very old news to me.
I have been hearing those stories for ages, always the same sound...
....meanwhile Hermes is reporting fantasmabulous income for first semester 2013, 47% of it coming from Leather dpt : bags and SLG , not including belts, nor leather accessories as CDCs.

The only thing they actually need is increasing income from other depts, in order to balance production. They have been trying hard, with the RTW and Jewelry dpts, but it takes time, and the competition is HUGE.

Besides, they NEED the resellers business . This takes a huge part of their BRANDING (& free of any additional investment) . They will keep going with the SCARCITY as well, for the same reason. Whatever huge their production actually is, they will keep turning actual availability in scarcity, using the 1B 1K rule or whatever other rule helps them to achieve this goal.

The hard part is to keep all this together, in an acceptable presentation to us , customers, and that is not what they do best....

Last but not least, firing corrupted employees is absolutely necessary. No doubt. No alternative.
 
I agree with perlerare and may I also add that, to my perception, how the house achieved the growth double digits growth in RTWs, blings blings, homes and watch departments (aka the relatively non-welcoming departments): the house simply needs you to spend more and more on those departments before they will consider selling you a coveted bag (coveted bags include the legendary B and K, the less legendary constance and lindy).

Going back to the problem of corruption, no one single house can have a very good risk management system to stop it from happening. I am sure it is only a tip of the iceberg in Paris or France. The only problem is how deep Hermes is willing to dig out the fact....


All this sounds like very old news to me.
I have been hearing those stories for ages, always the same sound...
....meanwhile Hermes is reporting fantasmabulous income for first semester 2013, 47% of it coming from Leather dpt : bags and SLG , not including belts, nor leather accessories as CDCs.

The only thing they actually need is increasing income from other depts, in order to balance production. They have been trying hard, with the RTW and Jewelry dpts, but it takes time, and the competition is HUGE.

Besides, they NEED the resellers business . This takes a huge part of their BRANDING (& free of any additional investment) . They will keep going with the SCARCITY as well, for the same reason. Whatever huge their production actually is, they will keep turning actual availability in scarcity, using the 1B 1K rule or whatever other rule helps them to achieve this goal.

The hard part is to keep all this together, in an acceptable presentation to us , customers, and that is not what they do best....

Last but not least, firing corrupted employees is absolutely necessary. No doubt. No alternative.
 
I was talking to my SO about this bribing issue and he said why didn't Hermes employ "secrete shoppers". Maybe they do but I don't know. Basically they pose as regular customers and go to different stores and try to bribe SAs. If anybody opens to take bribe then there would be consequences. A lot of other industries do this.
 
The only way to stop resellers is if people stop buying from them and not agree to pay double price for an item that can be bought for half the price at H. If there are more bags available at H, less people will turn to the resell market as well. I don't think anybody would pay double for something unless necessary.

We had problem here with resell market on train tickets. Some people bought up the train tickets and people were forced to buy from the resellers. The train company in the end had to personalise the train tickets to stop this. Of course this might not be a good solution for Hermes since a train ticket is only used once whereas a bag will be used for many years to come.
 
I was talking to my SO about this bribing issue and he said why didn't Hermes employ "secrete shoppers". Maybe they do but I don't know. Basically they pose as regular customers and go to different stores and try to bribe SAs. If anybody opens to take bribe then there would be consequences. A lot of other industries do this.

Heehee, this was exactly what DH said to me! clever minds. ;)
 
I've never understood why Hermes doesn't put a serial number on each bag so that it can be traced. Coach used to do this many years ago. Seems to me that would solve a lot of their problems as they could figure out who was buying and reselling immediately.
 
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