Now that Chanel has officially entered the Hermès price pool, what are your thoughts on those brands positions in the market / luxury community? How do you feel about people comparing the two and how comes Hermès did a better job rationalizing their profit margin to the audience?
Cant really compare both brands coz of the different experience and "difficulty" in getting bags from both brands differ in terms of time, effort and cost.
I recently got my first birkin 25 of my choice (etain, ghw , togo) via a reseller route. I had to pay a premium above the retail price at an equivalent to the pre-spend ratio 3:1, I just didnt want to embark in a long marathon "relationship" with an SA, involving in pre-spend on items that I do not fancy and yet at the end of the day run a risk of not getting the bag of my specifications.
This very smart marketing pyschology of Hermes of playing hard to get definitely works on the human pysche of not getting what they want or crave ,and then eventually getting them hooked and addicted to the "Game" and continue playing it until they get the bag of their choice.
With almost fewer boutique globally (carrying waaay fewer product variety) and also rather muted marketing /advertising campaigns with equally uninspiring fashion run ways shows compared to Chanel, I guestimate that H prolly do enjoy a higher profit margin than Chanel actually.
After my experience of buying from a reputable H reseller in Singapore, I figured that many of them got new H bags stocks directly from the boutique and they prolly have built strong relationship with H SA's to get first dip of the bag stocks. I was completely astounded when this reseller pulled out a 3 drawer full of NEW rodeos/pegasus bag charms when i asked to see a few of them as they are almost impossible to get from the boutique direct . They also carry quite a variety of H accessories which are also mostly New too
For Chanel as someone said it before, it is slightly easier to acquire a bag and also lower acquisition cost However going forward, i do see Chanel becoming more like H in terms of the relative ease of getting the popular bags which will be getting harder in the future . Chanel has instituted quota bag rule , also requiring customers to also buy their other products like jewellries, rtw and all these on top of increasing their bag prices