Hermes 20 New Shops!!!

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#16
To me that is sad though because it is taking advantage of its loyal customer base. I guess if Hermes only wants to cater to the ultra rich and celebrity clientele, then it shouldn't be a problem.
 
#18
Well, what *could* happen to sort of slow it down, is that some tv show (cashmere, whatever its called) to use some other brand in its costuming and make it popular. There are more exotic brands than Hermes--its just the one we know about. There are a few, albeit very few, companies that make handmade exotic bags that are not on the market for everyday people. It depends upon what kind of exclusivity people want. I do think though, and this is only my opinion, that the brand is on the cusp of dilution. Even though the bags are still very expensive, the popularity is growing (how fast has this subforum grown?) and as the economy gets worse, people may spend less money on big items (cars, houses) and more on smaller luxuries that have status in society. Therefore, as we are seeing evidience of, there will be more demand for H bags and they'll have to make more. On the other hand, with the current global warming sustainability awareness, material status items like H bags may become unpopular. Its really hard to say. I for one, though, will be happy to see some of the boutiques rennovated. Especially the NM ones.

I agree with the other posts, H has gotten greedy with their pricing. I think this may have to do with pre and post Euro conversion.
 
#19
jag said:
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.
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I absolutely 100% agree with this :yes:
 
#20
Hermes did reduce prices in January - February 2001 due to the strong American dollar. I checked my scarf inventory, 36" silk twills went from $275.00 down to $250.00. 55" Cashmere/Silk shawls priced at $750.00 decreased to $650.00. I didn't note the exact figures, but I thought Birkins were around $4,600.00. I, too agree they have been ridiculous with price increases. My one friend cannot believe I place an order for a bag, if it takes 2 years to be made, I have to pay the increased price. She tells me the company has no incentive to deliver the bag, but rather more reason to be take their time with delivery.
 
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