[Luxury World] "Hermes Online Store Order Forced Cancellation" Outrage... Will the Lawsuit Spread to Korea?

Hermes Faces 'Antitrust Law' Violation Lawsuit in the US
Hermes General Bags Hard to Find in Domestic Stores
Frequent Cancellations on Official Website
"Brand's Marketing Domain... Consumers Likely to Lose"

"Unlike when Twilly was taken out for shoes, there was a noticeable hesitation from the seller when asked if there was a bag."

This is a review from a consumer who experienced an 'open run' (the phenomenon of waiting for a store to open and rushing in) to visit the French luxury brand Herm?s store. Purchasing a bag from this brand is famously known as 'like picking stars from the sky,' to the extent that one must have a purchase history of Herm?s products worth around 100 million KRW, including Twilly (a type of scarf), accessories, and shoes, to get their hands on the brand's popular handbags.

As Herm?s becomes embroiled in a lawsuit in the United States, debates continue among domestic consumers. American consumers have filed a class-action lawsuit claiming Herm?s selectively sells handbags to certain customers, and similar criticism of Herm?s' sales strategy is emerging domestically.

According to the luxury industry on the 22nd, two consumers from California filed a lawsuit in the Northern District Federal Court of California, arguing that "Herm?s' practice of screening whether a consumer is a sufficiently ‘valuable’ customer when selling Birkin bags is unfair."

Through the complaint, these consumers claim that "Birkin bags cannot be purchased online, nor are they displayed in offline stores," and that Herm?s sales staff require consumers who want to buy Birkin bags to purchase other items such as shoes, scarves, and accessories, which they argue violates antitrust laws. The high demand and low supply of Birkin bags give Herm?s strong market dominance, and Herm?s uses this to engage in ‘bundled sales’ by making consumers buy other products, which is a violation of antitrust laws.

Herm?s Kelly Bag. Photo by 10 Corso Como Instagram

'What is a Birkin bag?'

The Birkin bag, the subject of this lawsuit, is a handbag considered a symbol of Herm?s. It is Herm?s' signature product inspired by the late Jane Birkin, a British singer and actress who was the most beloved British woman in France and regarded as a ‘fashion icon.’

Herm?s handbags are known to be handcrafted stitch by stitch by local artisans, whose training period lasts over five years. The Birkin bag is crafted by the most experienced experts among these artisans. It is supplied in extremely limited quantities and priced much higher than other Herm?s bags or products. Prices vary depending on the bag's size and leather, but typically range from 20 million KRW to over 100 million KRW. It is among the highest-priced luxury handbags.

However, the Birkin bag is a product that cannot be purchased even with cash, to the extent that it is called a 'top 1% handbag.' One must get on a waiting list and wait 2 to 3 years to purchase it, and for some limited editions, the quantity is so small that ordinary consumers can hardly even see them.

The Kelly bag, another representative handbag of Herm?s, is similar. It is known that only customers with accumulated purchase records are informed about product availability. Frequent visits to offline stores to increase purchase records and even getting a 'face stamp' from the seller are necessary to become a 'candidate' to buy these bags. It is said that one must have a purchase history of about 100 million KRW worth of Herm?s products over 3 to 4 years to get on the waiting list for Birkin and Kelly bags.

These two products are not sold on Herm?s' official website.

Herm?s Birkin Bag

Domestic consumers express frustration over "Herm?s online mall order cancellations"

In Korea, voices lamenting the difficulty of purchasing Herm?s Birkin and Kelly bags are pouring in. The most 'frustrating place' is the Herm?s online mall. It is a battle just to add products listed on the official website to the shopping cart. Fortunately, even if you succeed in adding items to the cart and complete payment, you cannot be assured. You may receive a message within 2 to 3 hours saying 'the order is canceled due to lack of stock.' There are also cases of forced cancellations citing 'issues found during inspection.'

Consumers raise questions, noting that cancellations are rare for products like shoes or accessories but frequent for bags. Just as sellers hesitate to readily show bag products offline, there are stories that online bag buyers are also being screened. Herm?s states that "orders are canceled if there are defects in the product or if stock is unavailable."

Experts say that the brand's 'right not to sell' should also be respected. This is part of a 'demarketing' technique that controls sales volume to increase product value. Professor Seoyonggu of the Department of Business Administration at Sookmyung Women's University explained, "So-called premium luxury brands actively engage in demarketing, and Herm?s is an example. When a brand becomes scarce, consumers try harder to buy, so it is difficult to see this marketing technique as mocking consumers."