First, I'm going to make a disclaimer that I haven't had any experience with the new system (nor do I want to in the future), but reading through the whole thread was quite entertaining.
A very simple solution to the system: Harmonizing prices internationally!
The problem when people return overseas back to China is that there is no way for Chinese customs to determine how much valuable goods people have brought back. They don't even have a document to make people declare how much goods they have purchased. And even if they do make one in the future, people will likely not declare honestly. Given the 1.3B people, custom officers would have to check every single returning person which would make airports chaotic.
Thus there is a significant incentive for Chinese buyers to line up no matter at what hour of the day or night. Not only will they save on VAT, but upon returning back they do not pay any additional taxes or duties, which makes a B/K/C about 50% off retail price, not to mention no need to make a relationship with a SA or have a past history of +++ purchases.
So if Hermes is able to work with custom officers internationally to ensure that any product upon entry into whichever country will be equal price as buying from another country, AND if possible standardize a process for local clients who do make regular purchases, people will no longer feel the need to wait in line at a particular store as all stores will have the same set of practices and prices in the end.