Two prospective buyers of Hermès Birkin bags have taken legal action against the luxury brand, filing a complaint in a Northern California district court on March 19. They allege that Hermès is leveraging the scarcity and desirability of its iconic Birkin bags to artificially inflate prices and enhance its own profits.
The plaintiffs contend that Hermès’ selling practices, which require the purchase of other products to gain access to the perpetually sold-out Birkin bag, constitute an “illegal tying arrangement” that violates US antitrust laws. This complaint sheds light on the enigmatic distribution tactics employed by Hermès, where coveted items like the Birkin and Kelly bags are offered intermittently and typically to clients with a purchase history at the brand.
Hermès’ strict control over its distribution channels, including exclusive sales through its own stores and a policy of never marking down merchandise, contributes to the allure and scarcity of its luxury goods. The brand’s retail experience varies from location to location, with handbags like the Birkin and Kelly often not available for online purchase or display in stores.
Customers speculate on the allocation process for these coveted bags, with some allocated via waitlists, others at the discretion of sales associates, and still others reportedly offered on a first-come-first-serve basis. The ambiguity surrounding this process has given rise to social media discussions and tutorials on how to navigate the “Hermès game” to increase the chances of securing a desired bag.
While Hermès has stated that it strictly prohibits the sale of certain products as a condition for purchasing others, the lawsuit against the brand underscores concerns about access and fairness in the luxury retail sector. The outcome of this legal challenge could have implications for similar practices employed by other luxury brands, particularly in regions like China, where barriers to obtaining sought-after products have been criticized by consumers.
Despite the controversy surrounding its distribution tactics, Hermès continues to thrive in the luxury market, with Birkin sales remaining robust and contributing to the brand’s overall revenue growth. The brand’s emphasis on exclusivity and scarcity not only fuels demand but also enhances its mystique, appealing to investors and loyal clientele alike.
