'Displeased' Hermès CEO voices discontent over the emergence of second-hand Birkins in the marketplace
In the world of luxury fashion, Hermès continues to stand out, bucking the trend of a slowdown in the high-end market. However, the success of one of its most iconic products, the Birkin Bag, has led to a new challenge for the brand: the resale market.
Introduced in 1984, the Birkin Bag, which costs over $10,000 in the US, has become a symbol of status and exclusivity. However, the popularity of the bag has also resulted in a flood of imitations and counterfeits. But it's not just the proliferation of fakes that concerns Hermès CEO Axel Dumas. He is particularly troubled by the resale of new Birkin bags by "false customers" who buy them just to resell.
Dumas emphasized that the Birkin Bag should be acquired directly from Hermès to maintain its exclusivity and authenticity. The presence of newly purchased Birkins appearing on secondhand resale platforms undercuts this bond with the brand's true clientele. He expressed his displeasure, stating that it puts him in a "bad mood" to see brand-new Birkins on resale sites.
"Sometimes, false customers come into our stores to buy the bags and resell them, preventing us from serving our real customers," Dumas said. "That's a real problem for us."
The resale market disrupts Hermès's ability to serve its authentic customers, damaging the brand's exclusive relationship with them. This concern is shared by Koyaana Redstar, an expert in authenticating vintage designer bags, who warned that buying a bag to resell is a gamble.
Online, Birkin bags are often resold at exorbitant prices. But even when sellers find buyers, they often find themselves disappointed when the resale value does not meet their expectations. This was evident earlier this year when a $78 version of the Birkin Bag at Walmart went viral on TikTok, a stark contrast to the thousands of dollars the authentic version sells for.
Despite these challenges, Hermès continues to thrive. In the last quarter, the company reported a quarterly revenue of €8 billion, an 8% increase compared to the same period last year. However, the issue of new handbags being sold on the secondary market continues to harm Hermès' relationship with genuine customers, a concern that Dumas has made clear he takes seriously.
Redstar, too, cautions against the practice, stating that it's not worth the risk. For Hermès and its customers, the best way to ensure the authenticity and exclusivity of the Birkin Bag remains buying it directly from the brand.
- Hermès CEO Axel Dumas is troubled by the resale of new Birkin bags, as it undermines the exclusive relationship between the brand and its genuine customers.
- Koyaana Redstar, an expert in authenticating vintage designer bags, warns that buying a bag to resell is a gamble, especially with the Birkin Bag, as the resale value may not meet expectations.
