'Dissatisfaction Expressed': Hermès CEO Voices Discontent over Pre-owned Birkin Bags in Second-hand Market
Hermès, one of the few luxury brands not affected by the slowdown in the luxury segment, is facing an unexpected challenge: the resale of its iconic Birkin bags. According to the company's CEO, Axel Dumas, this practice damages the relationship between Hermès and its genuine customers.
Dumas views the resale of Birkin bags, particularly the presence of new Birkin bags on the secondhand market, as a cause for concern. He refers to resellers as "false customers" who buy bags from Hermès solely to resell them, thereby blocking access for real customers and undermining the brand's direct relationship with its clientele.
The CEO emphasized that there should be "only one Birkin bag and one place to get it," implying that buying directly from Hermès is the only acceptable way to acquire the luxury handbag. The flourishing resale market inflates prices beyond the original retail price, but it frustrates the brand as it dilutes its authentic consumer base.
Koyaana Redstar, an expert in authenticating vintage designer bags, shares Dumas' sentiments. She states that buying a bag to resell isn't worth it, as it's a gamble. However, she does mention that it's possible to make money with some classic bags from brands like Hermès and Goyard if bought at the regular retail price and resold on the secondary market.
The popularity of the Birkin Bag has led to a flood of counterfeits and fakes, making it difficult for consumers to distinguish between genuine and fake products. In the US, the selling price of a Birkin Bag is over $10,000 (about €8,700). Seeing Birkin bags on resale sites puts Dumas in a bad mood, as it indicates the presence of counterfeit bags.
Despite these challenges, Hermès continues to be a strong seller in the luxury market. The company reported a quarterly revenue of €8 billion in the last quarter, representing an 8% increase in revenue compared to the same period last year.
However, Dumas is not happy about the trend of reselling Birkin bags. He expressed his displeasure about brand new Birkin bags appearing on resale platforms, stating that sometimes false customers come into Hermès stores to buy the bags and resell them, preventing the company from serving its real customers.
When Redstar authenticates a bag for resale, she often finds that the seller is disappointed when she offers prices below the retail price. This highlights the inflated prices on the resale market and the gamble involved in buying a bag solely for resale.
In conclusion, while the resale market for luxury items like the Birkin Bag may seem lucrative, it poses significant challenges for brands like Hermès. The company is committed to maintaining its direct relationship with its customers and ensuring the authenticity of its products.
What concerns Hermès CEO, Axel Dumas, is the resale of Birkin bags, particularly those that appear on the secondhand market, as they are often sold by "false customers" who buy them solely to resell, thereby disrupting the brand's relationship with genuine customers and threatening the authenticity of its consumer base.
Dumas and Koyaana Redstar, an expert in authenticating vintage designer bags, believe that buying a bag solely for resale isn't worth it due to the gamble involved and the inflated prices on the resale market that can make it difficult to profit from the sale.
