Hermès doesn't like the idea of resell

That Hermès was a conservative brand, at least operationally, has been known for some time. So it is no surprise that its CEO, Axel Dumas, said he was against the idea of resell during the latest conference with analysts to discuss the results for the first half of 2022. To be exact, Dumas said that if Hermès invested in resell as, for example, Kering did, «It would be to the detriment of our regular client who comes to the store». In fact, it is well known that to an even greater extent than other fashion houses, Hermès cultivates a very close relationship with its privileged customers by granting them access to exclusive areas of its boutiques, but more importantly by allowing them to purchase the full range of its much-desired products. And even though in the secondhand market Hermès bags often cost more than they do in store (basically, you pay to skip the waiting list), the brand does not need to expand into a market that would undermine its virtually pristine aura.

«We produce with one thing in mind: quality», reiterated Dumas, adding that the disproportion between supply and demand is fully justifiable if it means maintaining product quality. Hermès' legendary Birkin, for example, takes 15 hours to assemble by hand - and the brand plans to open five new artisanal workshops in France that will be activated over the next five years, increasing the brand's production capacity. Hermès' leather goods production has grown relatively little on an annual basis, between 6 and 7 percent, but this is part of the brand's strategy of setting production "ceilings" so that its bags are always available in limited quantities. Hermès, however, is not the only one to say it is against resells: LVMH also prefers to offer repair services for its products rather than resell them. But rather than seeing the position of these companies as a hostility to resell, their interest in staying firmly on this side of the market, letting the secondhand market proceed its course without outside interference, ensures that neither industry is overly distorted.