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| Hermes' Birkin Bag / Korea Time file |
By Kim Jae-heun
Chanel opened its online store here in 2018 but it has seen limited sales of cosmetics due to its headquarters' management policy. It could be seen as Chanel's last shred of pride to maintain the policy of selling their handbags and clothes in exclusively offline boutiques.
Yet it is not out of the realm of possibility that it could soon start selling these traditionally offline products online, as Hermes does.
Hermes, which launched its online service June 3, showed how successfully a luxury brand can transition to online sales with most of its luxury items selling out on the day the service was launched.
Nearly all the items from slippers priced in the 800,000 won range to comparatively cheaper handbags priced at 2 million to 3 million won went out of stock.
The demand for Hermes items exceeded the supply online. There are four handbag types available for sale in the women's section as of June 14.
This totally went against the theory proposed by so-called experts that people will not purchase luxury items online because they want to check them out prior to payment.
Hermes' success could influence Chanel's decision on whether to sell leather goods online amid the prolonged pandemic that is decreasing its sales in many countries with the notable exception of the Asia region. Chanel is the last luxury brand to maintain a policy of not selling products online among the so-called "big three" luxury brands.
Chanel Korea failed to respond to the question of the possibility of selling other goods online besides cosmetics here.
It came as a surprise when Hermes said it would commence internet sales. It had long refused to operate online sales claiming this diminished the brand's image. It now operates online stores in Europe, the United States, China and South Korea.
Along with other luxury brands such as Chanel and Louis Vuitton, Hermes has long been pursuing its business based on boutiques where it invites customers to experience firsthand its high-end fashion goods before purchasing them.
But it could not bury its head in the sand to the reality that many young customers were shifting toward online shopping amid the continued COVID-19 pandemic which became a decisive point for Hermes in its decision to start an online business.
A factor contributing to the success of Hermes' online shopping is its low entry barrier compared to boutiques.
Anybody in any age group can visit the website and take time to surf around Hermes goods online without feeling burdened to buy something as when Korean sales staff shadow customers in its stores.
This boosted sales of small extravagances such as key chains, scarfs and neckties.
Currently, stock is selling out faster than the warehouse can secure new inventory. Customers have to keep coming back to Hermes' website to check if availability updates have been made.
Meanwhile, Hermes's most expensive, signature items ― the Kelly and Birkin bags ― are not on sale online. This applies for Hermes' French online customers too. Only VIP customers with a certain item purchasing history are eligible to purchase these two handbags. The bags' prices are in the 20 million won to 30 million won range.
Prior to Hermes, French luxury jewelry brand Cartier opened an online store here May 25, as, in the same month, did Italian fashion house, Prada. Louis Vuitton and Chanel started their online stores in 2018.
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