JAKARTA - Hermès CEO, Axel Dumas, has spoken out about the phenomenon of Birkin bag prices soaring far above their original price on the resale market.
According to him, one of the main causes of this price spike is the actions of buyers who purchase bags not for use, but rather to resell them for personal profit.
"Sometimes we get approached by fake customers who come into the store just to buy Birkin bags and then resell them. They prevent us from serving our customers, and that's a big concern for us," said Dumas, as quoted by Fortune.
The Birkin bag is more than just an ordinary bag. With retail prices starting at US$12,000 (Rp196 million) and reaching hundreds of millions to billions of rupiah, the Birkin is known as a high status symbol.
It's no wonder that many global celebrities like Cardi B and Victoria Beckham have been seen carrying this bag on various occasions.
However, due to limited production and a very strict purchasing process, many parties are exploiting the scarcity to make a profit. Birkin bags purchased from Hermès boutiques are then resold at double the price on the secondary market.
“I don’t like seeing our new bags go straight into the resale market. I’m interested, and it puts me in a bad mood,” said Dumas.
In fact, used Birkin bags can be valued higher than gold or stocks. Some analysts say that, in some cases, the growth in the value of Birkin bags on the secondary market has outpaced that of official Hermès stores.
For example, a Birkin bag belonging to the late Jane Birkin recently sold at a Sotheby’s Paris auction for US$10 million (Rp163 billion). According to Dumas, this deviates from Hermès’ philosophy of viewing its products not just as merchandise, but as works of art.
“We see these bags as the product of imagination, hard work, and high-level craftsmanship. They’re not just commodities,” Dumas explained.
Hermès itself has long resisted involvement in the resale market like some other luxury brands. They prefer to maintain the exclusivity and mystery behind the purchasing process for this legendary bag.
However, this exclusivity has not been without criticism. Hermès was sued by two Californian customers who accused the brand of unfair practices by requiring the purchase of other products before they could purchase a Birkin. Despite this, Dumas remains steadfast in her position.
“We are not interested in adapting to the resale market. We prefer to serve those who truly appreciate our products,” she said.
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