Hermès Faces Class Action Suit Over Birkin Sales Practices

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#228
This is such a fun thread thank you to everyone who contributes - and of course thank you to those who had the idea for the lawsuit! I think it’s a most hilarious first world problem. (:hrmm:)
As I only shop in London/Paris no first hand experience of prespend - as far as I am concerned it’s an urban myth.

Posted this before but putting it in context: it’s a common sales practice to reserve limited edition or hard to source items for long standing/regular customers. The french do this for every day items like a special cheese :lol: Chanterelle Mushrooms or a sought after wine. Birkins is just an extension of this perfectly ‘normal’ shopping practice. If we can’t buy the special cheese we may have to do with the mass produced processed cheese (or go dairy free).
 
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#229
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#230
ladysarah said:
This is such a fun thread thank you to everyone who contributes - and of course thank you to those who had the idea for the lawsuit! I think it’s a most hilarious first world problem. (:hrmm:)
As I only shop in London/Paris no first hand experience of prespend - as far as I am concerned it’s an urban myth.

Posted this before but putting it in context: it’s a common sales practice to reserve limited edition or hard to source items for long standing/regular customers. The french do this for every day items like a special cheese :lol: Chanterelle Mushrooms or a sought after wine. Birkins is just an extension of this perfectly ‘normal’ shopping practice. If we can’t buy the special cheese we may have to do with the mass produced processed cheese (or go dairy free).
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There lies the error.

People keep calling Birkins "limited edition", "hard to source", "precious", "scarce" (or whatever synonym you choose to use)--but they are not. And people keep comparing the details of the lawsuit with cheese or restaurant reservations, etc.

Special treatment or reserving things for top-tier or VIP customers is different from tying (which is what the lawsuit alleges) and/or requiring pre-spend with the promise of receiving an associated good.

If we can remember that, and stop continuously trying to diminish the merits of the plaintiffs' case or mock the plaintiffs & the attorneys' small grammatical error, we can have a more intellectual conversation.
 
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#232
CTLover said:
It could also be that in Asia, there are no laws preventing such practices, so the boutiques there can engage in them. Here in the US we have comprehensive anti-trust laws which, even though not strictly enforced these days by the DOJ, are still a threat because US laws allow consumers themselves to bring the case in get treble damages. Any corporate attorney worth his salt in the US, would know that and be schooling all managers that any such practices could lead to lawsuits.
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We've got the laws where I am as well but the practice is common - altho not many SAs will come out and openly admit it, very few will
 
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#233
FrenchNewbie said:
There lies the error.

People keep calling Birkins "limited edition", "hard to source", "precious", "scarce" (or whatever synonym you choose to use)--but they are not. And we people keep comparing the details of the lawsuit with cheese or restaurant reservations, etc.

Special treatment or reserving things for top-tier or VIP customers is different from tying (which is what the lawsuit is about) or requiring pre-spend with the promise of receiving an associated good.

If we can remember that, and stop continuously trying to diminish or mock the merits of the plaintiffs' case, we can have a more intellectual conversation.
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Birkins are not openly readily available from the Hermes store. There is far less supply than demand (artificial or not, doesn’t matter). That makes them LE in my mind. If you have a secret for how to easily source a B25 Himalayan directly from an H store for retail by the end of the month, please share with the class. Otherwise, I think we can agree that they are “hard to source”.

No need to police how people are replying. You may not agree with their opinions but let’s not unilaterally shut people down and be condescending. The plaintiff’s case is extremely weak, impossible to prove on a company wide scale (ie maybe one SA somewhere said “this for that” in writing and they could show that one SA broke the law but that doesn’t establish it as a company policy), and based on self centered entitlement. That’s my intellectual opinion.
 
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#234
CTLover said:
Again, I think "pre-spend" has more to do with the client that comes in and makes it known they're only there for a Birkin, and will likely disappear once they obtain their holy Grail. Also, why should someone just be able to walk into an Hermès boutique, with no history or ever buying anything from the brand and get a Birkin? That would be every resellers dream and make bags even more scarce for those of us who don't buy other products just to get a Birkin, but because we actually love the scarves, shoes, etc.
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Tbh I don't know if this is just my opinion from the resellers I've seen around me but to me it seems that we're equating a person who is 'loyal' to the brand and buys frequently as the 'good' hermes customer and def not a reseller when it fact the resellers I've seen sell all categories of Hermes products with 90% of the easier to find items at prices slightly lower than the boutiques and the BKCs certain belts shoes etc with extremely higher profit margins... I wouldn't begin to suggest what the 'right' way for Hermes to conduct its business is cause I wouldn't have the faintest clue but it would be naive to say that the so called loyal customers aren't resellers, in fact the more 'loyal' and the more offers they get the more their financial gain in the long run (since they do sell bags from others as well)
using this model they appeal to the ones that are interested only in certain products and can get them at a cheaper price and ofc they still have the customers that are after BKCs or hard to find items and aren't willing to wait or 'play the game'
 
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#236
My prediction: Hermes is not going to let this lawsuit get to the discovery phase. They don't want the details of how they actually run their business out in the public. They'll settle (which by no means is an admission of guilt).

And then those two clients - and anyone else who joined in - will be promptly blacklisted.

I also foresee Corporate coming down hard on the specific boutiques/SAs involved - whether the alleged tied selling occurred or not.

Grab your drink and a bowl of popcorn everyone!
 
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#237
S0nia said:
The fact that after 20 years you still have to prove loyalty demonstrate that it is not about loyalty but about milking you pre-spend for each quota bag.
Loyalty is not something you should have to re-establish all the time. Once you've been deemed as loyal, you are loyal, unless you do something disloyal. Constantly proving your loyalty is about squeezing you $$.
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Agreed 100%!!!
 
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#238
FrenchNewbie said:
If we can remember that, and stop continuously trying to diminish or mock the merits of the plaintiffs' case, we can have a more intellectual conversation.
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I don’t particularly want to have an ‘intellectual’ conversation about this @FrenchNewbie in fact I cannot take this ‘legal’ case at all seriously, it’s based on hearsay and it’s a publicity stand at best.

In my book Birkins are very much like limited edition cheese, not enough to go round… it might be infuriating, but there you go…
 
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#239
ladysarah said:
I don’t particularly want to have an ‘intellectual’ conversation about this @FrenchNewbie in fact I cannot take this ‘legal’ case at all seriously, it’s based on hearsay and it’s a publicity stand at best.

In my book Birkins are very much like limited edition cheese, not enough to go round… it might be infuriating, but there you go…
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Well I was only making a general statement in my reply and didn't reference any one person in particular---but since you felt the need to call me out @ladysarah, I'll do the same.

If you don't want to have an intellectual (i.e. not mocking or making fun of the plaintiffs' socio-economic standing and their lawyers' grammar) conversation or take it seriously...then why did you comment at all; why not just skip the thread and go about your day? That way, you wouldn't have to waste your time "taking it seriously". :lol:
 
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