Good or Bad?

[Les Tambours]

I'm a middle class poacher obviously as I don't have a title and loads of old money! India and China are growing fast and awash with a new middle class desperate to buy into the kudos of Hermes that we value. My only concern is that the quality doesn't drop. If that happens Hermes has had it and will languish in the doldrums for years ( or go under) as Gucci did from the 70s after turnings its attention to selling cheap watches.

Having a presence in China may help the brand actually by allowing it to squeeze harder on the fakers there.

 

[IntlSet]

I can't believe they used Warren Buffet as an example. The guy has lived in the same ordinary ranch-style house in a middle-class neighborhood practically his entire adult life. He has never been a consumer of luxury goods. The article insinuates that Warren Buffet chose to donate his money due to the fact that he can't spend it on luxury goods since luxury goods are now too accessible.

The logic of this is so flawed and ridiculous.

I do agree that luxury goods are shockingly easy to get your hands on. I don't believe Birkins are as exclusive as the general public believes, or Chanel for that matter. With enough dogged purchasing (no matter where the money comes from, be it debt or cash), nearly anyone can have a Birkin. With credit cards, personal loan lines, and celebrity culture, purchasing luxury goods has somehow become a norm.

 

[HiHeels]

IntlSet that was a very intelligent post. thank you.

 

[winternight]

I think Hermes is concerned with making money, I just don't think they've been as good at it as some other luxury retailers for reasons that don't (at least to me) seem to have much to do with product quality controls. The WSJ article today was interesting because it really pointed out some production issues (with Gaultier's cloths) and questionable business decisions - like dropping their best selling line of bags. I get the feeling the family has so much control that not the best business decisions are really being made.

I don't know if I did see alot of Hermes bags or scarves or bracelets around I would be less interested in them because I prefer to stand out - not necessarily a question of the price of the item - but I just can't wear something I'm going to see 20x in a day for the most part.

 

[pigleto972001]

Sigh. Hermes need to slow down ....

yep, add Hermes proper to the "Taking it Slow" thread!

slow it down, H!

 

[hello2703]

I think Hermes is concerned with making money, I just don't think they've been as good at it as some other luxury retailers for reasons that don't (at least to me) seem to have much to do with product quality controls. The WSJ article today was interesting because it really pointed out some production issues (with Gaultier's cloths) and questionable business decisions - like dropping their best selling line of bags. I get the feeling the family has so much control that not the best business decisions are really being made.

I don't know if I did see alot of Hermes bags or scarves or bracelets around I would be less interested in them because I prefer to stand out - not necessarily a question of the price of the item - but I just can't wear something I'm going to see 20x in a day for the most part.

I disagree. I think dropping that line of bags was a good decision, in the same line as Tiffany dropping their silver jewellery. Maybe for the immediate turnover and growth it's not a good decision, however for the *brand* it is a good decision which in the long term will pay out.

On the other hand they would be daft not to cash in on the Chinese and Indian markets.

Let's face it: Hermes bags ARE available to everybody. Everybody who is willing to drop a load of cash. If you can't get it from the store and don't mind paying a premium, you can get it from a reseller. If you want that Birkin, you can always get it. The only question is the price you are willing to pay.

I still don't think that you're likely to see a dramatic increase of Hermes bags, at least not in Europe. The percentage of women willing to flop their credit card on the counter at Hermes for a Birkin is not *that* big.

If Hermes manage to walk the tightrope between expansion and maintaining quality, there's no reason why they shouldn't expand. They're still a breed apart from the Guccis and LVs of this world.

 

[rainrowan]

I'm sure Hermes had expansion plans in place and years in the making.

If I understand correctly, it takes an apprentice ten-plus years to fully master a Hermes handbag. Logically, there are master craftsmen making Hermes bags now, but they are also training apprentices all these years to be the "next generation". My guess is that the apprentices work on smaller Hermes goods during those years and observe and practice on handbags with a very close eye by their supervisors. Who's to say Hermes doesn't already have multiple the number of craftsmen or apprentices-in-waiting who will step up when the expansion is actualized? If they didn't plan this part of it, it would be corporate suicide!

I like the fact that it will be made available to more people who can obviously afford it (I'm not one of them LOL). I see Hermes as catering to old money but now they are catering to the demands of new money as well.

It is possible for us (meaning the people who buy H on this forum) to have more opportunities to get special orders and more variety of bags with less waiting time. It's still exclusive, since only the wealthy can afford it.

 

[kat99]

I prefer the Hermes company being run by a single family rather than like a public corporation because there is a cohesive, consistent strategy behind it unlike Gucci/LV which constantly have to report their results to shareholders.

It is the very, super rich in Asia/India that are going to be buying Hermes goods...not "middle class" if that is what plauges Hermes so. To be honest most of the middle class buyers are going to be coming from the West. Asia/India, while they do have a middle class, is much smaller and it tends to be the super rich and the very poor.

I do not blame Hermes for wanting to expose themselves to a larger audience. I do fear for their quality and feel a little snobby that I don't want the brand to become obsequious but then again I just recently got into Hermes a year or so ago so once you join its easy to think you've been there forever...haha.

 

[HiHeels]

the women walking up and down madison avenue do not seem to mind that the bags are ubiquitous.
if the only reason they are okay with the prevalence of the bags is because it is seen on members of their own social circle, and if it would upset them to see a "mall rat" carrying one (i haven't been, but i believe the KoP store is already in a mall), then they can run to coach and buy themselves a less coveted bag.
if the quality suffers then i wouldn't lament others carrying the brand since i would not buy any more, and i would be content that what i have predates the decline in quality IF it comes to that.