Luxury goods are more popular than ever – this is shown by the queues in front of the luxury label shops in Zurich’s Bahnhofstrasse after the lockdown. But brands like Chanel, Hermès or Louis Vuitton also have a luxury problem. They become victims of their own success and sell more than they would like, especially to middlemen.
If too many customers can afford the expensive bags, the paint on the luxury label will quickly peel off. Then the bags become mass-produced. Chanel, for example, is now putting a stop to this and artificially shortening the supply: particularly sought-after items are being rationed, such as the «Trade newspaper»Writes. This applies immediately to some handbags and small leather goods in some selected markets. This means that there is only one handbag per customer per year.
Only two handbags a year
Similar to Chanel also applies to Hermès: With the bag models “Kelly” and “Birkin” the purchase per consumer is limited to a maximum of two purchases per year. Louis Vuitton also doesn’t let customers buy more than two handbags per calendar year.
The aim according to the “Handelszeitung”: To put a stop to the “professional buyers and resellers” and to dry up the second-hand market, which is booming in Asia in small shops and local online platforms, but also among large resellers such as Ebay and The Real Deal.
Shortage causes prices to rise
Hermès obliges customers to only use the handbags for their own use, while Chanel now uses microchips to authenticate the bags. Thanks to the artificial shortage, the luxury labels hope to be able to better control the supply.
The downside: As a result, prices are rising on the second-hand market, especially in Asia. Money that cannot be siphoned off from the luxury brands. After all, the higher prices are once again consolidating the luxury image of bags and accessories from the trendy fashion houses. (koh)