hermes prices

M

madmad

Member
Apr 23, 2008
13
0
#1
I have just visited the Hermès online store for the first time after a while. Is it me or Hermès is completely disconnected from the rest of the economy and has again increased its prices by say 20% in one year?

In the summer of 2008, I bought a guernsey card holder for around €300. It's not sold on the website but looking at the other prices my impression is that today it would probably be between 350 and 400. Even the small Diabolo which is just two pieces of leather sewn together costs €239! The Euclide card holder, which I had seen in Boston at little more than $300 in 2008 is today at €392!! O.k. I think even at that time this "cheap" price was a bit of an anomaly because it was more expensive in several other shops so that must have been an old price, perhaps from 2007 :smile: Anyway we have easily 60% of increase in 3-4 years... Has your income increased in the same proportion during that time?
 
#3
They're following the idea that while they'll lose some customers, others will stick with them no matter what because they're viewed as "exclusive." One of my degrees is in marketing, and personally, I think they're insane. Virtually no one's income goes up that fast, and it's not like they're improving the quality--they're just making more for themselves. Tiffany tends to follow this pricing policy, and it's hurt them. Chanel, too.

As I've said many times on this board, even some of their richest customers would have to question purchasing from them just because they're Hermes. An $800 beach towel? A $300 Carmen keyring? At some point you really are getting ripped off and paying for the marketing, name and overall "mythology" of the company.
 
#6
the price increase is always a hot topic at this time every year and yet we see more and more reveals.. that goes to show that H is not losing any customers any time soon.
 
#7
yes i think the prices are madmadmad!

when i first found out about the birkin years ago, i remembered it was going for 2-3k and i thought that was a mad amount already. of course i was very young then and not earning so there was no way i could afford it.

i am very interested to see in a decade's time how people think of the prices then.
 
#8
It doesn't seem sustainable except for the most exclusive clients and the quality of workmanship on some pieces has gotten progressively poorer.

It seems that the price increases are fueling the global expansion of the brand.

The only thing that could really hurt them--is if there becomes such a global impoverishment that it will be considered extremely poor taste to wear any expensive accessory or jewelry.

I don't really see that scenario happening either.

I find I've just become much less of a collector -- and just wear the items that I have.
 
#10
Yes the pricing is insane and demand is high but a lot of demand is from new customers whilst quality issues are appearing.

IMO H could easily fall into the trap that Burberry fell a decade or so ago, by trying to update a brand and appear to a young and wealthy audience and I don't think Burberry ever recovered.

The craftsmanship is a bit of hype if you look at things like page markers, bag charms, etc. Very clever marketing idea to use up scraps from bag production. Personally, I will stick with bags (pref vintage) and silks as I believe the craftsmanship is evident.
 
#11
Bienchen said:
Yes the pricing is insane and demand is high but a lot of demand is from new customers whilst quality issues are appearing.

IMO H could easily fall into the trap that Burberry fell a decade or so ago, by trying to update a brand and appear to a young and wealthy audience and I don't think Burberry ever recovered.

The craftsmanship is a bit of hype if you look at things like page markers, bag charms, etc. Very clever marketing idea to use up scraps from bag production. Personally, I will stick with bags (pref vintage) and silks as I believe the craftsmanship is evident.
Click to expand...

I was recently able to meet a craftsman from H who makes Birkins, Jypsieres, croc items - a delightful French man who was on an exchange with the store I visit - he was with an SA here for a week and later on in the year, she will be going to Lyon in France to stay with him, visit the factory etc. Anyway, there was so much I wanted to ask him about everything to do with production (shame my French isn't up to scratch!) and I was surprised with a few things he said which differed with my understanding of H production. Even the SA was surprised (and she is experienced, worked at H for over 10 years).

I love H, don't get me wrong, but the "mythology" as Ammietwist puts it, DOES mean they are able to charge more than another retailer even taking into account the quality of skins etc.
 
#14
I haven't counted, but my impression is that not only are there fewer reveals than there were the first year or so I was on this board, but the SIZE of the reveals has decreased, too. Not surprising really if a lot of us already have large collections and aren't buying as much as we used to (economy, choice, whatever).

misssA said:
the price increase is always a hot topic at this time every year and yet we see more and more reveals.. that goes to show that H is not losing any customers any time soon.
Click to expand...
 
#15
ITA. As the brand expands into new/emerging markets, they'll increase sales via that route, and yes, quality issues can always crop up. There was the year their silk wasn't that great, and I've heard a lot of complaints about the cashmere. My own personal gripe is that their silver jewelry isn't nearly as detailed as it was about 15 years back. They've gone with simply cast and polished pieces that are much cheaper to produce while keeping the prices high.

As for Burberry, they really shot themselves in the foot. A thoroughly British brand that isn't made in Britain anymore, and yet that's the major part of their marketing. I hate to see companies trash themselves for the sake of growth.

Bienchen said:
Yes the pricing is insane and demand is high but a lot of demand is from new customers whilst quality issues are appearing.

IMO H could easily fall into the trap that Burberry fell a decade or so ago, by trying to update a brand and appear to a young and wealthy audience and I don't think Burberry ever recovered.
Click to expand...
 
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