▲ （IC photo / 图）
From porcelain tableware to jewelry necklaces, to hanging accessories, Hermes's distribution is varied, a fly swatter costs 3,000 yuan, and a tissue box costs 7,000 yuan.
This article comes from Southern Zhou Know
Text | The beginning of the editor|Liu Yunshan
If the wallets of the middle class were harvested by Archaeopteryx, lululemon, and Ralph Lauren, then the more well-funded high-net-worth individuals were captured by LV, Chanel, and Hermès.
Among them, Hermes is one of the best, but this top luxury has also encountered a word-of-mouth storm recently.
On March 19, the French luxury brand Hermès was prosecuted in California, USA, for allegedly violating antitrust laws by allowing only customers with a "sufficient purchase record" to buy bags of specific models of its brand.
One plaintiff said that he had spent tens of thousands of dollars on Hermès products, had bought a platinum bag, and was blocked from buying again, while others had been repeatedly hinted by store staff that they needed to be dispensed.
As we all know, if you want to buy a popular classic Hermès bag, you need to accept the distribution, and this is the case all over the world.
There are also domestic consumers who are deeply hurt by Hermès's distribution system. Ms. Du from Ningbo, Zhejiang Province, told the media that she spent more than 1.4 million yuan on a number of Hermès products, including necklaces, cups, belts, etc., but the clerk still claimed that she was "out of stock" and refused to sell her the bags she wanted.
tossed around, spent millions, and didn't even see the shadow of the bag, how can people not be angry. So the question is, why should luxury goods be distributed?
1
Luxury goods distribution, what is matching?
Hermès has long been known for its high-end luxury, exceptional quality, unique design and exquisite craftsmanship. Hermès Birkin is every lady's dream. As a leader in the luxury industry, Hermès has played a very good role in the sales strategy and supply management mechanism of "distribution"6.
However, the word "distribution" is likely to be a "prohibited word" in Hermès brand stores, and can only be beautified by "consumption accumulation".
In January this year, a reporter called the official Hermes customer service center to ask about distribution, and the official customer service replied: "We at Hermes do not have the term 'distribution'." Reporter: "What if the clerk has this behavior?" Hermes official customer service center: "We can only tell you that Hermes does not have an official 'distribution' of this statement, please also know here." ”
In fact, the distribution that has been circulating for many years has never been officially confirmed by Hermes, and it is already a well-known tacit understanding in the industry.
Don't dare to mention it openly, but also do it secretly, is it okay if luxury goods are not matched?
As the saying goes, if something is already rotten and flooded, then it may be less attractive to the rich. What luxury goods need to do is to maintain the scarcity and uniqueness of the product by limiting the supply of the product, so as to increase the value and attractiveness of the product.
However, Hermes is not fearless about this kind of sales model, and it is also a little "weak-hearted", otherwise there will not be any official and positive response - this does not hinder the continuation of this system, and it may not work if it is not allocated, because the distribution is really fragrant for the brand!
Through distribution, a layer of invisible purchase threshold is set first, and it invisibly screens its own user customer group first, and it is also a good combination to stimulate further consumption of users.
It is said that for every platinum bag sold in the world, three to five Hermès backlogs are sold short at the same time. According to media reports, at present, in the Chinese market, the minimum ratio of Hermes distribution is 1:0.5, which is generally 1:1, and a higher level can reach 1:1.5 or 1:2. That is to say, if a consumer wants to buy a 100,000 yuan Hermes bag, they must first buy at least 50,000 yuan of other Hermes products.
Therefore, in 2023, when global luxury consumption is sluggish, Hermes still has achieved good results. According to the financial report, Hermes' revenue in 2023 will reach 13.427 billion euros, a year-on-year increase of 21% (at constant exchange rates), and its net profit will be 4.311 billion euros, a year-on-year increase of 28%, and the Chinese market is even stronger.
At the FY2023 analyst conference, Axel Dumas, the sixth-generation Hermès family/CEO, mentioned that Chinese customers have a fascination with Hermès.
In the eyes of the Chinese people, Hermes is a luxury product standing at the top of the pyramid, and Hermes is equivalent to a noble identity and status. You are not carrying Hermes, but Hermes blessings, bringing status and status symbols, as well as the impression that others look at you, and the distribution rules can make consumers feel that buying luxury goods is a privilege and status symbol.
So Hermes is a consumerist game where rich people are matched into the game.
（IC photo / 图）
2
Hermes, the consumerist game of the rich
When you search for the term "Hermes distribution" on a social platform, tens of thousands of notes flock to you, and there are many senior distribution experts who tell you how to distribute goods efficiently. The water of distribution is already deep, everyone is engaged in a blind money competition, as for how much can be bought, it depends on your friendship with the cabinet sister.
If you want to buy, you have to adapt to this set of distribution rules, and if you don't accept it, that's good, you can't buy it. In the end, Hermes's distribution has become an extremely crazy and boring game in the rich class, and people in the circle, in order to maintain their identity and status, will always unconsciously fall into a whirlpool, pain and happiness.
From porcelain tableware to jewelry necklaces, to hanging accessories, Hermes's distribution is varied, a Hermes fly swatter costs 3,000 yuan, a Hermes tissue box costs 7,000 yuan, and a Hermes magnifying glass costs 15,000. Many rich people also complain that Hermes is difficult to distribute, and it is difficult to say that there is no show-off component, after all, this is a trouble that ordinary people do not deserve to think of.
Even now facing lawsuits, it has not hindered people's enthusiasm for Hermès, which is still in short supply. After all, these luxury goods have formed a complete set of narrative structure and discourse system, and die-hard fans are more and more abusive.
It is worth noting whether this rich man's horse breeding game is not flawless, once and for all.
Many brands are consumers who have the initiative to choose what style and color of the bag they want, while at Hermes, everything is reversed, and only consumers who are eligible to buy platinum bags will be eligible to buy bags, but which bag can be bought, what size, color, leather, etc., is simply not up to themselves.
For high-net-worth customers, such a consumer experience is greatly discounted, being spoiled as a prince and princess in other luxury stores, and rushing to Hermes to ask for someone, so in contrast, it is easy to cause the loss of customers.
Moreover, frequent price increases are touching the "ceiling" of customer psychological acceptance.
On January 1, 2024, Hermes completed the increase in the price line of all products, of which the Kelly bag mini generation rose to 56,500 yuan, an increase of 10,000 yuan, an increase of 21.5%, and the Birkin30 handbag broke through the 100,000 yuan mark, an increase of 13%.
Hermès' share price has also soared in the past year, rising by nearly 40%. Frequent price increases can bring an increase in sales in the short term, but in the long run, it is tantamount to drinking water to quench thirst. After all, there are American noblewomen who can't bear it anymore and have filed a class action lawsuit against Hermes, and consumers in more countries will gradually wake up.
For brands, focusing on polishing products, not engaging in unreasonable distribution, and not engaging in discriminatory marketing is the way to establish themselves in a longer way. I hope that the day when Hermes will not have to distribute goods will come as soon as possible.
(Source: Southern Weekly)