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In order to buy a favorite Hermes brand bag, consumers must buy other products in the store before they have the chance to buy the desired products. Recently, some media have reported that Hermes has an invisible "distribution standard". Hermes China customer service responded that if the salesperson asked the consumer to distribute goods for the purpose of buying bags, which violated the company's regulations, the consumer could complain and the company would deal with it seriously. Recently, a reporter from the Economic Information Daily found in Shanghai that in the process of customer consumption, Hermes stores still have distribution behavior, and these blockages and pain points in the consumer market are always difficult to eliminate.
In "buy buy buy", "hide cat"
The so-called "distribution" means that if consumers want to buy a hot product, they must first buy other relevant products and the amount reaches a certain proportion before they have the opportunity to buy the product. In this case, it is often necessary to pay extra for a hot commodity. For example, if you want to buy a popular Hermes bag, a bag is priced at 80000 yuan, and you need to purchase other items of around 80000 yuan or even higher value.
With regard to the doubts of consumers and the media, Hermes China said that the company has no such regulations and no claim of distribution. The package will be sold to customers as long as there is inventory, no reservation, and no display. However, a reporter from Economic Information Daily found that Hermes' response was not consistent with the facts.
At the intersection of Huaihai Middle Road and Songshan Road in the center of Shanghai, there is a four-storey building, which is the fifth "Hermes House" in the world in Shanghai. Ms. Yin, from Shanghai, has bought Hermes' products in "Hermes House" and Hermes Shanghai Guojin Center store. She told the reporter that the popular styles of Hermes counter basically need to buy a certain amount of other goods to be eligible to buy. The so-called "distribution" phenomenon is widespread in domestic and foreign counters, especially in China, which is a hidden rule that cannot be explicitly stated for many years.
"Hermes's approach is very covert. In my purchase experience, sales did not say the word 'distribution' in person, but implicitly implied what to buy again, because there was a precedent in which the salesperson expressed that 'distribution' was complained by customers." Ms. Yin said, "It seems that it is not compulsory at all, but it is necessary to buy other goods at the same price or higher than the popular bag first, which makes people feel that their rights and interests as consumers have been violated."
Mr. Chen, a VIP customer of Hermes, admitted to the reporter that the salesperson clearly appeared the word "distribution" in his communication with him. Mr. Chen, a ten-year-old customer of Hermes, told the reporter that Hermes provided him with "one-to-one" service personnel. The other party never taboo to mention the word "distribution", and would also help him make some distribution arrangements. "Green onions are unsalable and meat is in short supply, so we buy meat and green onions. Hermes's consideration is that the marketing strategy of using best-selling products to drive the inventory to go, not only solves the liquidity problem of the backlog of goods, but also makes the popular products more valuable," said Mr. Chen.
Ms. Ji from Shanghai is a frequent visitor of Hermes Shanghai Henglong Plaza. In an interview with reporters, she said that when she proposed to buy a certain bag, the sales of the store clearly stated that it required "rationing" and told that the "rationing" items did not contain leather goods. "This brand is very proud and charming. There is no fixed standard for the proportion of 'distribution'. The salesperson has certain authority to determine the proportion of 'distribution'," Ms. Ji told reporters.
Distribution" has become a disguised "feedback"
In view of the public concern about Hermes' invisible "distribution standard", when the reporter asked Hermes' Shanghai counter staff whether they would change their marketing strategy, the salesperson said that almost every year there would be news about Hermes' "distribution", but in fact, the qualification of buying a pop bag for customers with consumption records is a "feedback" to customers.
A person who once worked in Hermes Beijing franchise store said bluntly: "In the franchise store, 'distribution' is a sensitive word, and sales cannot be exported. But it is not what the customer wants to buy, and sales should take, especially not directly sell the bag to customers without accumulated consumption."
"We have never said 'distribution'. People with a certain consumption record can be eligible to buy a bag of hot money, which is a feedback to customers. People without a consumption record want to buy a bag of hot money, so we can only ask customers to fill in the waiting list." The clerk of Hermes Shanghai counter added, "If you have a bag, sell it, and the bag wall in the store will be empty."
According to the latest results released by Hermes Group, Hermes Group's revenue in 2018 was close to 6 billion euros, its net profit increased by 15% to 1.4 billion euros, and its operating profit increased by 6.4% to 2 billion euros. Among them, sales in China are particularly strong. The performance report shows that in addition to the good sales results of the classic bag and the new bag, the market sales of Hermes footwear products and bracelets are also considerable.