Hermès Price Than Outrage

When Hermès revealed that its 2023 price increases would range from 5% to 10%—more than double the typical 2-4% annual adjustment—the luxury world braced for backlash. After all, Chanel faced fierce criticism for its repeated price hikes on the Classic Flap. Yet Hermès heard barely a whisper of complaint. Why the double standard?

The Announcement That Didn't Spark Outrage

On October 20, during its Q3 2022 earnings call, Hermès executive vice president of finance Eric Du Halgouet told Reuters that price increases for 2023 would reach 5-10%, citing rising costs and currency fluctuations. Social media buzzed, but not with anger—rather with urgings to buy Birkins and Kellys before prices rose. Contrast that with Chanel's hikes, which triggered cries of "I'm done with Chanel" and "the quality isn't worth it."

Brand Heritage: Artisanship vs. Personality

Hermès began as an equestrian workshop in 1837, catering to the wealthy with a focus on craftsmanship. Chanel, founded in 1910 as a hat shop, was built on fashion and the persona of Coco Chanel, later Karl Lagerfeld. While both are luxury titans, Hermès' identity rests on quality and tradition, not a founder's celebrity. That distinction shapes how customers perceive price changes.

Scarcity and Supply

Basic economics: when supply is tight, buyers tolerate higher prices. Birkins and Kellys are notoriously difficult to purchase, while Chanel Flaps, despite recent restrictions, remain more accessible. Hermès also refrained from hiking prices during the pandemic's peak, earning goodwill. Moreover, Hermès bags often retain or increase in value on the resale market, unlike Chanel Flaps, which typically sell for less than retail.

Expectations and Transparency

Hermès communicates its annual increases, typically in Q1, giving customers time to prepare. Chanel, by contrast, raises prices with little warning. That predictability softens the blow, even when the percentage is higher.

The Collector's Perspective

Some longtime Hermès collectors quietly welcome price hikes, as they boost the value of bags already owned. For them, a 10% increase is negligible compared to the appreciation of their collections.

Why Chanel Faces More Criticism

Chanel's price hikes since 2019 have totaled a 34% increase, often during the pandemic, and its bags are more readily available. Consumers question the value proposition. Hermès, on the other hand, is seen as the pinnacle of luxury—the brand others aspire to be. As the saying goes, "the Hermès of ice cream" denotes the best. That status shields it from the backlash Chanel endures.

Conclusion

Hermès' 2023 price hike may be steep, but it's unlikely to dent demand. The combination of scarcity, heritage, and resale value keeps customers loyal. For those dreaming of a Birkin or Kelly, the advice remains: buy sooner rather than later. But as always, getting one is easier said than done.