Hermès Faces Class Action Suit Over Birkin Sales Practices

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Ok, I have to admit when I first saw the letters "SLG" I immediately thought small leather goods. Lol. Then I noticed his name. Maybe this should be posted in the "You know you're addicted to Hermes" thread. :biggrin:
LOL speaking of SLGs, I wonder if they're secretly hoarding Pegases and Rodeos of all sizes "in the back." They did not make it easy for me to get my Pegases and I am in California, so maybe I ought to join JK
 
Anyone wonder if the outcome of this suit will impact the value of B/C/K on the resale market (either for better or worse)?
I think it's giving them a ton of publicity and everyone is going to want one to show they "could" get one or to make a point that you can "just" get them through the resale market. So I think the demand and price will increase if it has not already. I am not sure what could possibly happen to make the price come down. I guess make the pre-spend transparent, but that would mean your bags are worth more, saving the customer the hassle of buying stuff they don't want. In Europe do they really not care about pre-spend? People make it sound like it's fairy tale, but I have heard that you could still be told they don't have any bags at all at the time and you need an SA to "work with". I follow an influencer who spent like $30K before ordering their Kelly in Germany and I was surprised because I thought you don't have to prespend. But maybe she wanted to buy the other stuff regardless.
still, I don't see them being able to offer bags to everyone in the US even if they are more forthcoming and stop tying sales, and still keep the quality they are famous for, unless they really do have plenty in the back and they've been lying all this time. but once those are gone? 4 year long waiting lists? and price increases? so I just see them increasing in value. non QB too! I know members here seem to get everything they want, but newer customers cannot simply walk in for non quota bags anymore. It seems on the preloved market they maintain their value, but I see picotin going up quite a bit, probably because it is inconvenient to have to ask and be told no "you must build a relationship" and not everyone lives near an Hermes store to do that conveniently.
 
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unless they really do have plenty in the back and they've been lying all this time

My SA told me that they have bags in the back. But corporate restricts the percentage of store revenue that comes from leather goods, so the SAs can’t sell too many of them even when they are available.

He also said during the pandemic, they had so many bags in the back they were running out of room to store them. Still didn’t mean they were able to sell them though.
 
My SA told me that they have bags in the back. But corporate restricts the percentage of store revenue that comes from leather goods, so the SAs can’t sell too many of them even when they are available.

He also said during the pandemic, they had so many bags in the back they were running out of room to store them. Still didn’t mean they were able to sell them though.
I’ve been told there are bags in the back but most of them have been alloyed to clients. So there aren’t “unclaimed” bags usually.
 
Yup, hordes now yelling, "I wanna Birkin, give me my Birkin now!!" :pout: :biggrin: I just find all this publicity embarrassing. My love for Hermes has been waning a bit anyway, and I find the level of desperation and somewhat unhinged desire really unflattering to the brand. For a longtime fan, the changes in the shopping experience have been disappointing. But, as a stockholder, the outsized interest in the brand has been great. So, I'm a bit conflicted! Regardless, will be interesting to hear what happens with this case.
Eventually the Hermes cult will tire of being manipulated. I have no interest in going through all kinds of gymnastics just to buy a handbag that I will be afraid to use because the “value” will be affected. I just walked out of Hermes Barcelona after waiting 40 minutes to get into the store and then I was told it would be 40 minutes longer. All I wanted was a shawl that was right there, in the case but there was no one available to take process a payment! It’s insulting and I would think even more so if one wanted to spend 5 figures on a handbag. There’s something wrong here.
 
I think it's giving them a ton of publicity and everyone is going to want one to show they "could" get one or to make a point that you can "just" get them through the resale market. So I think the demand and price will increase if it has not already. I am not sure what could possibly happen to make the price come down. I guess make the pre-spend transparent, but that would mean your bags are worth more, saving the customer the hassle of buying stuff they don't want. In Europe do they really not care about pre-spend? People make it sound like it's fairy tale, but I have heard that you could still be told they don't have any bags at all at the time and you need an SA to "work with". I follow an influencer who spent like $30K before ordering their Kelly in Germany and I was surprised because I thought you don't have to prespend. But maybe she wanted to buy the other stuff regardless.
still, I don't see them being able to offer bags to everyone in the US even if they are more forthcoming and stop tying sales, and still keep the quality they are famous for, unless they really do have plenty in the back and they've been lying all this time. but once those are gone? 4 year long waiting lists? and price increases? so I just see them increasing in value. non QB too! I know members here seem to get everything they want, but newer customers cannot simply walk in for non quota bags anymore. It seems on the preloved market they maintain their value, but I see picotin going up quite a bit, probably because it is inconvenient to have to ask and be told no "you must build a relationship" and not everyone lives near an Hermes store to do that conveniently.


It is possible to get a quota bag in Germany with small pre spend (like a perfume, scarf, Twilly) but I really doubt that you can get one without any pre spend at all (is there anyone here? My friend was rejected, she hasn't spend any Euro at Hermes and her wish was cancelled). I haven't heard of that at least
And I really doubt that you can get on the waitlist again and again every year after year with tiny pre spend. I fear these times are over. I know quite a few people who have gotten their dream bag (very small pre spend = 300 - 1000 Euro) once but never got a second wishlist appointment
Is anyone here with different experience?
 
Eventually the Hermes cult will tire of being manipulated. I have no interest in going through all kinds of gymnastics just to buy a handbag that I will be afraid to use because the “value” will be affected. I just walked out of Hermes Barcelona after waiting 40 minutes to get into the store and then I was told it would be 40 minutes longer. All I wanted was a shawl that was right there, in the case but there was no one available to take process a payment! It’s insulting and I would think even more so if one wanted to spend 5 figures on a handbag. There’s something wrong here.

So annoying to not be able to buy your shawl sitting right there in the case! I've never cared about what other people have, and am not often after what other people want, so it feels very weird to be mixed up with all this because of my love of the brand. I agree on all your points, but do wonder if they'll tire. Some of these Hermes fans seem to have incredible commitment, stamina, and very deep pockets (along with a huge amount of angst)! When something I'm doing in my free time begins to feel unfulfilling, I step away (like you did). Simply cost benefit analysis.

I really don't understand the plaintiffs' end game. Do they think they'll be welcomed back into the store if they win?
 
So annoying to not be able to buy your shawl sitting right there in the case! I've never cared about what other people have, and am not often after what other people want, so it feels very weird to be mixed up with all this because of my love of the brand. I agree on all your points, but do wonder if they'll tire. Some of these Hermes fans seem to have incredible commitment, stamina, and very deep pockets (along with a huge amount of angst)! When something I'm doing in my free time begins to feel unfulfilling, I step away (like you did). Simply cost benefit analysis.

I really don't understand the plaintiffs' end game. Do they think they'll be welcomed back into the store if they win?
I miss the days of walking in the stores, seeing items on the shelves, including bags, and just being able to buy them. There used to be plenty of bags on the website as well. Including GPs, Bolides, etc.
 
The amended complaint [pdf] was FUNNY. Stray thoughts:

Mengyao Yang joins the Hermes blacklist by appearing as the third Plaintiff. On the most recent declaration filed by the Defense, however, Ashley Bauer is not just an attorney working for Hermes's retained lawfirm, but ALSO states she is willing to testify in H's favor. This, to me, is akin to one's mom grading their paper for school. I'm sure there are many Hermes customers who would be willing to come to their defense without ALSO hailing from the same law firm representing them. I'd also have a hard time not being like, "so, you stated earlier you earned the right to purchase your own Birkin based on being loyal to the brand. Might testifying here today also be an indicator of that loyalty?"

Back on the amended complaint. Grade A trolling to use Hermes's own successful lawsuit against Rothschild to highlight the brand's uniqueness and exclusivity in a lawsuit against them. I lol'd.

Glad to see this point added (one that some of us have made here):

33. Defendants have systematically exploited their dominant market position in the luxury handbag market to engage in a deceptive and manipulative pricing scheme, artificially inflating the true cost of their Birkin handbags and reaping supracompetitive profits. The nominal retail price of a Birkin bag is a facade, masking a hidden lottery system that forces consumers to purchase substantial amounts of Hermès Ancillary Products to “qualify” for the mere opportunity to buy a Birkin. This predatory practice not only drives up the true price of the Birkin bag – which includes the cost of these coerced Ancillary Product purchases – but also generates additional revenue for Defendants from consumers who never “qualify” and are left with Hermès Ancillary Products that they never would have purchased but for their desire to acquire a Birkin bag.

The artificial suppression of the nominal retail price of Birkin handbags is evidencedby their robust resale value, which consistently and significantly exceeds the original purchaseprice. This stark disparity between the initial cost and the secondary market valuation unequivocally demonstrates that the advertised price is not the true price consumers ultimately pay and exposes Defendants’ manipulation of the market to extract supracompetitive profits.35. For example, a standard leather Birkin handbag can resell for 1.5 to 3 times its original retail price

Yes!!! I at least think this gives the Plaintiffs something quantitative from which to work. I don't know if it'll be enough to answer Hermes's overall claim which is, "even if we did do this (which we don't), it doesn't matter from a legal standpoint."

Trial by jury request is interesting. Who might a group of average Joe citizens ultimately dislike more: a company that convinces people to part with their money in hopes of getting a 10k handbag, or the people willing to pay $800 on a pillow in hopes of said 10k handbag?

Also painful: the schedule stipulation setting the hearing for a motion to dismiss for Oct 3rd, and a case management conference proposed for December 5th. I now put 50/50 odds as to this case having any kind of resolution--be it dismissal or a trial verdict--before the opening of Hermes Scottsdale (which has been promised and delayed for... 6+ years now).
 
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