Hermes 20 New Shops!!!

  1. This Information is from Bloomberg financial report as of the end of March.

    March 22 (Bloomberg) – Hermes Kelly and Birkin handbags expanded its main Japanese store.
    Hermes plans to open its 42nd outlet there in Osaka next month.
    Price Rises in Japan
    The company has raised prices of its products in Japan by 50 percent in five years and implemented an 8 percent increase on Jan. 15.
    Paris Store
    Hermes plans to add or renovate at least 20 shops this year, particularly in the U.S. and China.

    Keep your eyes and ears open:wtf: :wtf: :wtf:
  2. That is just scary! I really don't like the idea of Hermes mass producing its bags! Especially since they are using the increase in production as a means to raise the prices (for no good reason IMO) and ultimately such an increase could (and in some cases is) negatively impact its workmanship.

    Sorry for the rant, but it's really shocking!
  3. LOL! But exactly what I was thinking! Although they claim they have to make up for their big losses as a consequence of the sliding yen.
  4. Hmmm..... I am skeptical!~
  5. Me too. Not good news.
  6. I totally second that, and this news doesn't make me happy at all. Scary. Very scary.
  7. Indeed bad news....:yucky: :sad: :nuts:
  8. Well, it makes me really consider what I purchase!
  9. This is not good news at means that sometimes the quest for more money....quality of the product could suffer. They're management books writtern about this "management style".
  10. To help you understand this madness of "20 new or remodeled shops" the report also said that "Hermes" had suffered a big loss in recent years as a consequence of get this "lack of demand" apparently some locations (countries)had no demand for the bags whatsoever. To make matters worse, they stop producing one of apparently their favorite bags at the time which was the toile/leather. Hermes as a company is not that strong. For instance LV makes appx. 50% more than Hermes. Hermes is owned by 3 very rich familes which can afford the fluctuations in their stock, and apparenty they do not intend to sell anytime soon. We know they take pride in their craftmnship, but it is a business. My biggest concern is, what if one of the families decides to sell? Then and only then we should be really worried, for the craftmanship and for our investmenst in their bags!
  11. One more thing..We lOVE their bags, but business is about supply and demand!
  12. what happened to Hermes being exclusive. :sad:
  13. Well, I understand the business philosophy to a point. But I think it is quite another story (GREED) when a business who has established a history and loyal following by charging more than any other designer, and rightfully so, because of the quality of its workmanship, then begins inexplicably raising its already inflated prices while at the same time lowering its quality in order to bring more products into the market place. Perhaps Hermes would do much better at increasing its overall productivity and bottom line if it kept the prices of its products fair and reasonable while maintaining the integrity of its product. Really, why isn't $5000 sufficient to charge for a handmade bag such as a Kelly or Birkin made of togo or clemence? At what price is deemed high enough?

    Unfortunately, Hermes has turned off many potential clients because of its store policies and efforts to choose who is qualified to be a buyer. It has taken many customers years to build a relationship with an SA just to be deemed worthy to buy a bag. Of course by the time that you are offered the opportunity to buy that bag, it has already increased in price by a few thousand dollars. I for one am completely turned off by that kind of policy. If I did not love the product so much, I would have turned away from Hermes a while ago. But having said that, there is only so much I would pay for a non-exotic handbag. And if the quality suffers because they are beginning to produce more bags, then I will have a very hard time justifying paying even the current retail price, let alone if they try raising the price again. Hermes should be careful of pricing themselves out of their market.
  14. It sounds like it could be another LV purse situation in terms of lesser quality!
  15. Wonder if they're testing the market to find to find the "breaking point"? How high can they go before demand really takes a nose dive (judging by the number of people traipsing through the NY location, they're not there yet)