This is the third in a series highlighting operations of foreign luxury brands in Korea. ― ED.
By Park Jae-hyuk
Hermes has long been regarded by Koreans as one of the three top luxury brands, along with Chanel and Louis Vuitton. The French fashion house, however, has been long-criticized for making ill use of its high standing, given its negligent attitudes toward retailers and consumers.
This month, the Seoul High Court ruled against Hermes in favor of Korean fashion brand PLAYNOMORE in a copyright lawsuit filed by the French luxury brand, reversing a previous ruling.
Last May, a Seoul district court accepted Hermes's claim that the Korean company's Shy Family and Shy Girl bags infringed on the design of Hermes's signature Birkin and Kelly bags and ordered PLAYNOMORE to pay Hermes 100 million won ($87,000) in damages.
However, the appellate court said PLAYNOMORE's unique "cartoon-eyes" design represents the bags' identity, noting the partial similarity in design is not enough to prove the claim that the Korean brand violated the laws regarding fair trade and freedom of competition.
"I hope major brands will not file indiscriminate lawsuits against small local brands anymore," said Kim Chae-yeon, designer and founder of PLAYNOMORE.
After the verdict of the high court, criticisms rose that Hermes brought the Korean firm to court to send a warning to design knockoffs.
The nation's leading retailers have also complained of Hermes and other major luxury brands taking advantage of their popularity to make unreasonable offers.
"For interior designs of the major luxury brand outlets, duty free operators should fully pay the money now in order to accommodate them," an official of a duty free operator said. "In the past, the luxury brands had paid at least half the sum."
Some critics argue that Hermes has problems in customers relations as well.
Korean consumers wishing to buy Hermes bags have to wait up to three years after their order is placed. The local affiliate, which is led by CEO Han Seung-hun, explained that the long lead time is inevitable, as the products are manually made by master craftsmen in France.
However, the rareness aroused doubts of people that the bags are unequally offered to high-profile figures, considering that they have been used as bribes in the corruption and influence-peddling scandal involving President Park Geun-hye and her confidant Choi Soon-sil.
Hermes Korea was also under fire for poor after-sales service and for exploiting their interns with low salaries. Plus, the Korean branch's key corporate information, such as sales and profits, has remained a secret, as it changed itself into a limited liability company a few years ago.
Suspicions are that the firm made the change so as not to disclose its balance sheets and income statements.
The Korea Times tried to contact Hermes Korea officials but they were not available for comment.
Founded in 1837 by Thierry Hermes in Paris, Hermes specializes in leather, lifestyle accessories, home furnishings, perfumes, jewelry and watches.
By Park Jae-hyuk
 |
 |
| Hermes Korea CEO Han Seung-hun |
This month, the Seoul High Court ruled against Hermes in favor of Korean fashion brand PLAYNOMORE in a copyright lawsuit filed by the French luxury brand, reversing a previous ruling.
Last May, a Seoul district court accepted Hermes's claim that the Korean company's Shy Family and Shy Girl bags infringed on the design of Hermes's signature Birkin and Kelly bags and ordered PLAYNOMORE to pay Hermes 100 million won ($87,000) in damages.
However, the appellate court said PLAYNOMORE's unique "cartoon-eyes" design represents the bags' identity, noting the partial similarity in design is not enough to prove the claim that the Korean brand violated the laws regarding fair trade and freedom of competition.
"I hope major brands will not file indiscriminate lawsuits against small local brands anymore," said Kim Chae-yeon, designer and founder of PLAYNOMORE.
After the verdict of the high court, criticisms rose that Hermes brought the Korean firm to court to send a warning to design knockoffs.
The nation's leading retailers have also complained of Hermes and other major luxury brands taking advantage of their popularity to make unreasonable offers.
"For interior designs of the major luxury brand outlets, duty free operators should fully pay the money now in order to accommodate them," an official of a duty free operator said. "In the past, the luxury brands had paid at least half the sum."
Some critics argue that Hermes has problems in customers relations as well.
.jpg) |
However, the rareness aroused doubts of people that the bags are unequally offered to high-profile figures, considering that they have been used as bribes in the corruption and influence-peddling scandal involving President Park Geun-hye and her confidant Choi Soon-sil.
Hermes Korea was also under fire for poor after-sales service and for exploiting their interns with low salaries. Plus, the Korean branch's key corporate information, such as sales and profits, has remained a secret, as it changed itself into a limited liability company a few years ago.
Suspicions are that the firm made the change so as not to disclose its balance sheets and income statements.
The Korea Times tried to contact Hermes Korea officials but they were not available for comment.
Founded in 1837 by Thierry Hermes in Paris, Hermes specializes in leather, lifestyle accessories, home furnishings, perfumes, jewelry and watches.
![Biden takes office as 46th president [PHOTOS]](http://img.koreatimes.co.kr/upload/newsV2/images/a001_3244e8e107351.jpg/dims/resize/268/optimize)
