A recent Reuters article states that Hermes, the luxury giant, previously known to be an untouchable brand are down by 6% in their shares. However, other luxury brands like Gucci and Burberry, have seen better days as well.
Hermes stocks down
YouTuber, Sophie Shohet states that Hermes is previously known as a brand that would not decline. Her theory is that the luxury brands have been increasing the prices of their items hoping that people would continuously purchase from them. But that worked during the Covid lockdowns.
Hermes was originally known for their equestrian items, but lately, their Birkin and Kelly bags have been one of the most coveted bags in the fashion world. But, the brand has a strict manufacturing process where the bags in particular, are hand made. Thus the manufacturing process is time consuming. This is according to the brand.
Now, a number of luxury brands have been experiencing an alleged quality decline, with a sharp price increase. Hermes on the other hand, has continued on to be praised for their immaculate quality. There are some who are unhappy with the brand in lieu of their quota system.
This is in relation to the reduction of customers in China, so it seems. Additionally, Sophie Shohet discusses that the current economic situation is rather bad. She adds that, for the UK in particular, prices for everyday goods have gone up and consumers are unable to spend on pricey pieces made by these luxury brands.
Regardless, it appears that no matter how strong a brand is, they are not immune to the current economic situation.
Follow us on:
Read More News at #latestmalaysia #BusinessNews and #WorldFuture
