Hermes, the luxury giant that was previously known as the unstoppable fashion house is seeing their sales dropping by 94% in China, allegedly. According to China Observer, which released an in-depth video regarding the situation, millionaires are leaving the country, and this is the result of that.
Hermes sales allegedly dropping by 94% in China
Additionally, Jing Daily reported back in April, Hermès’ Q1 sales missed expectations due to weaker Chinese demand and sluggish Asia-Pacific growth. Despite outperforming rivals through scarcity-driven exclusivity and ultra-wealthy clientele, global trade tensions and tariffs have clouded the luxury sector’s outlook. Price hikes are planned.
Netizens commented on the China Observer video that such luxury fashion houses are overpriced to begin with. The brand’s bags can easily set you back by RM30,000-40,000 for even their non-popular options. However, fashion lovers state the quality of the fashion is usually impeccable.
Unlike other fashion houses, where they’ve allegedly increased their prices significantly and are also allegedly reducing their quality. But, Hermes has maintained both steadily over the decades.
Regardless, the current economic situation of the world isn’t the best right now, and even for the wealthy, spending RM40,000 for a handbag isn’t exactly a priority for them.
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