FASHIONPHILE’s Post

We all know about the Hermès game when it comes to getting a Birkin, however, there's now a lawsuit surrounding it which could have significant implications for luxury fashion. The outcome of this case may affect how consumers access coveted luxury items like Birkin bags. If Hermès is found to have engaged in anticompetitive behavior, it could lead to greater transparency and accessibility in the luxury market, allowing a broader range of consumers to purchase sought-after products. The lawsuit raises questions about the application of antitrust laws to the luxury fashion industry, particularly regarding the definition of monopolistic practices and their impact on competition. A ruling in favor of the plaintiffs could establish a legal precedent that influences future cases involving similar issues in the luxury market. What are your thoughts? Is this lawsuit going to change anything? Will it go anywhere? #Hermes #LuxuryFashion #Birkin

Hermès, the French luxury brand, has been sued in California on allegations that it unlawfully restricts access to its renowned Birkin handbags. The plaintiffs, Tina Cavalleri and Mark Glinoga filed a class-action lawsuit against Hermès International and Hermès of Paris, Inc's alleged practice of tying the sale of Birkin bags to the purchase of other Hermès products, effectively exploiting the bag's "unique desirability, incredible demand, and low supply” to drive up prices and profits. The plaintiff challenges that Hermès policy violates the antitrust laws by requiring customers to have a "sufficient purchase history" with the company to be able to be "eligible" to buy a Birkin bag, allowing Hermès to increase the price of the Birkin bag and sell it as a “exclusive symbol of prestige” to make profits. The complaint highlighted that Birkin bags not available for purchase through online retail platforms and are not readily displayed or available for immediate purchase in stores. The store determines a customer's eligibility to view and purchase a Birkin by establishing a suitable "purchase profile". Customers are allegedly pressured by sales personnel to purchase extra goods such as shoes, scarves, and jewelry in order to be eligible for a Birkin bag. This case contains three primary legal claims based on the Sherman Antitrust Act, 1890, the Cartwright Act, and California's Unfair Competition Law. Section 2 of the Sherman Act forbids monopolization, as well as attempts or conspiracies to monopolize, while Section 16727 of the Cartwright Act expressly prohibits some tying agreements. Since purchasing a Birkin Bag requires a buyer to purchase ancillary products and create a suitable purchase profile with Hermès, it may be argued that the company coerces its customers into making those ancillary purchases. Because the Birkin has a certain amount of appeal in the market, it influences buyers' ability to make certain purchasing decisions. The plaintiff’s complaint has underlined how Hermès's market control over these products adversely affects competition. The breach of the preceding two requirements has also been classified as an unlawful business practice under California Business and Professions Code Sections 17200. The plaintiffs are seeking unspecified monetary damages and injunctive relief to prohibit the alleged anticompetitive actions of Hermes. This case, upon its culmination, may lay down the future trajectory for how luxury brands mold their consumer-facing operations and sales strategies. #hermes #luxurybrands #lawsuit

Luxury giant Hermès is under fire in California as it's sued over allegations of exclusivity surrounding its iconic Birkin handbags. The lawsuit claims Hermès unfairly restricts Birkin sales to customers with a "sufficient purchase history," potentially violating antitrust laws. Sales associates are accused of pushing additional purchases to qualify for a Birkin, fueling concerns of coercion. Amidst claims of elitism, the lawsuit sheds light on the unique sales approach for Birkins, which aren't available online and are shown only to select customers. As the legal battle unfolds, it raises important questions about accessibility and fairness in the luxury retail sector. #insights #business #luxuryretail

This week in US antitrust law, luxury brand Hermès has come under fire for its exclusive sales tactics. Hermès' iconic Birkin handbag is emblematic of scarcity and desirability, which gives Hermès "incredible market power" that it exploits - according to a lawsuit filed on Tuesday.   Hermès typically offers Birkins to customers with a long-standing relationship with the brand and have purchased other products, such as shoes, scarves and jewellery. Only then are customers "offered" the opportunity to buy a Birkin. The plaintiffs, who were unsuccessful in securing a bag after spending tens of thousands of dollars, claim that Hermès is illegally "tying" the purchase of Birkin bags to the purchase of other items.     Unlawful tying occurs when a company has market power for one product (such as the Birkin bag) and uses that market power to force consumers to buy other goods in order to secure the desired good. Typically, the "tied" product is a less desirable one that the buyer might not buy otherwise, or may prefer to buy elsewhere, harming both the consumer and competitors. If the seller has sufficient market power in the "tying" product, these arrangements can violate US antitrust laws.   In New Zealand, tying products in this way can be unlawful under section 36 of the Commerce Act, which prohibits businesses with substantial market power from doing anything with the purpose, effect, or likely effect of substantially lessening competition in a market. It may be unlikely that this lawsuit ends up completely shaping New Zealand's approach to section 36, but I'll be following along anyway, if only for entertainment purposes. #antitrustlaw #competitionlaw

Exclusivity vs Accessibility in Luxury Fashion Hermès Faces Antitrust Lawsuit Over Birkin Sales Practices Two Californians have initiated a class-action lawsuit against the renowned French luxury brand Hermès, challenging the exclusivity of its Birkin bag sales practices. According to plaintiffs Tina Cavalleri and Mark Glinoga, Hermès has allegedly violated unfair competition and antitrust laws by requiring customers to purchase other ancillary products before being considered for the iconic Birkin bag. This strategy, they argue, not only inflates the price of the highly sought-after Birkin but also boosts Hermès' profits through additional sales of other items. Introduced in 1984, the Birkin bag has maintained its status as the pinnacle of luxury and desirability in the fashion world, often seen as a reliable investment on par with fine jewelry. The lawsuit highlights the opaque and selective distribution method employed by Hermès, where only selected customers with a history of substantial purchases and brand loyalty are offered the chance to buy a Birkin, often in a private setting. This legal challenge brings to light the broader implications of sales practices in the fashion industry, especially exclusivity, questioning the fairness and legality of tying the purchase of one sought-after item to the acquisition of other products. As the case unfolds, it could set a precedent affecting consumer rights and sales strategies across the industry. Connect with us at Kollective.Moda for insights into how a meticulously crafted brand strategy and practice can elevate your brand's presence rather than provoke backlash. #hermes #antitrustlawsuit #birkin #salesstrategy #salespractice #brandingstrategy #brandstrategy #fashion #fashionindustry #fashionnews #exclusivity #kollectivemoda #creammoda #fashiondistributor

The outcome of the Hermès class-action lawsuit has implications not just for Hermes but the entire luxury industry. It potentially threatens to air the industry's dirty laundry and reveal to consumers the strategies brands use to keep prices high, trade secrets the industry would rather keep hidden. Get the scoop in my latest Forbes article with Michelle Mandelstein Chandler Mount Affluent Consumer Research Company. #luxurymarket #luxurybrands #classactionlawsuit #birkin #tradesecrets

Everyone wants to get their hands on a Birkin. Some are captivated by its beauty and rich history, while others view it as a savvy investment, envisioning lucrative returns when they choose to part ways with it. But does the allure of a Birkin truly rival that of gold bars? The truth is, the value of Hermes bags can indeed soar to dizzying heights, sometimes even surpassing the worth of gold itself. How is this possible, you might wonder? It boils down to a mesmerizing blend of rarity, craftsmanship, and exclusivity. Hermes Birkin bags, particularly those crafted from exotic skins or boasting unique designs, can command jaw-dropping prices on the secondary market. In fact, the price tags often far exceed the value of gold by weight. What sets these iconic bags apart is not just their material worth, but their cultural cachet. They symbolize more than just a luxurious accessory; they embody prestige, sophistication, and a certain je ne sais quoi that transcends mere fashion. Furthermore, Hermes bags have proven to be astute investments, appreciating in value over time. As demand continues to surge and the supply remains limited, owning a Birkin becomes akin to possessing a rare masterpiece—a testament to one's discerning taste and discernment. So, while gold may glitter, the allure of a Hermes Birkin shines even brighter in the eyes of many. It's not just a bag; it's a statement, an investment, and a piece of history rolled into one. In the eternal debate of gold versus glamour, perhaps the answer lies not in choosing between the two, but in embracing the exquisite allure of both.

From Cambridge Dictionary, #luxury is... "something expensive that is pleasant to have but is not necessary" So true luxury brands should be free to sell their products to whom they want and in the way they prefer. I think that there is an obsession towards democratization of luxury that is destroying entire districts of manufactoring. Luxury is not democratic. Luxury clients are not naive. They are businessmen and businesswomen, they are art, wine and rare items collectors and they buy true luxury items for a reason: they know the game very well because they are playing it in the same way in their own field. The harsh truth is that #luxury is not for wannabes, is not aspirational, is not inclusive. For this the client can buy many expensive fashion brands. That's the same for Porsche, Ferrari and the tailors in Savile Row, the most talented gardeners and so on. Thank you Pamela Danziger for highlighting this topic. For all my subscribers of SUN DeLuxe: the upcoming webinar will treat this topic. Soon more infos!

Luxury Litigation: The Birkin Bag Battle Unveils a Sustainable Style Revolution In a surprising twist, Hermès got caught in a legal tangle over its famous Birkin bags. Disappointed buyers sued the brand when their orders didn't come through, asking for compensation. This saga isn't just about fancy bags – it's also about how people are changing the way they shop. Enter the booming pre-loved luxury market, where Gen X and millennials can snag their dream items without waiting forever. And it's not just about convenience – buying second-hand is eco-friendly too. It's a story of luxury, lawsuits, and a new wave of conscious shopping, reshaping the fashion scene. #LuxuryLawsuit #BirkinBagBattle #SustainableFashion #PreLovedLuxury #ConsciousConsumption #FashionShift #EcoFriendlyFashion #LuxuryLitigation #FashionTrends #StyleRevolution

Luxury meets Litigation. In a class action, Hermès is accused of violating US antitrust regulations by "tying" goods together - making the purchase of one good contingent on the purchase of others (considered an abuse of market power). In this case, the plaintiffs claim that the ability to purchase a Birkin bag was contingent on the prior purchase of ancillary goods from Hermès. Ancillary goods that they would have preferred to choose independently (from other vendors). The difficult path to Birkin ownership has spawned an "Hermès sales expert" industry, articles in Vogue Magazine, and arguably added to the "prestige" in owning one. But it looks like it is now the US Courts that get to wade in on how this fashion house conducts business. #litigation #disputeresolution #antitrust https://lnkd.in/ehxxa6Xt