Chapters: 0:00 Intro 2:00 Standard Playbook of High Fashion Leaders 2:43 Gucci's Rocketship Growth 4:28 YSL's Traditionalist Approach 5:30 Moncler's Small Player Resurgence 6:10 The Magic of Hermès 7:35 Tradition & Craftsmanship Above All 9:18 Expensive, Elusive, and Exclusive 10:15 A True Test of Loyalty If you prefer reading over watching, the written transcript of this episode is available here: medium.com/@modernmba/h%C3%A8rmes-the-modest-king-of-luxury-fashion-d128b87be499
11:26 Hermes making you buy all kinds of things you don't want, in order to be able to buy the bag you want... "is unprecedented" --> take a good look at Rolex and Ferrari. You cannot just buy any Ferrari; you first have to buy lower models (and enough of them) in order to get on the list to buy the most-wanted halo models.
Hermès was the first luxury brand to sell online. The availability to the public is better than other brands. You are conflating their items for sale with the Birkin. Anyone can purchase online and also make an appointment at a boutique. The exclusivity only happens with their purses.
Fun fact, If you send in your Hermes bag to be repaired, The same person who made the bag, will repair it. The artisan who makes the bag, has their stamp somewhere inside the bag. It is in a different spot depending on which style bag you have.
This is not true. Though it can go back to the same person for repair it is very unlikely that the same person who made the bag will be the one repairing it.
@@wyw201 The reason people buy these bags are because they’re made by hand. If a machine made Birkins or Kelly’s you’d be able to tell. The bags go to a Hermès repair shop in France, sometimes, though rare, they end up in the hands of the person who made the bag.
@@wyw201 stitching for one. The hand can do stiching patterns that machine simply cannot. Along with a lot of other things that require intricate details.
Ferrari takes it to a pretty ridiculous level. You literally have to buy a couple of “starter” Ferraris just to get on Maranello’s radar, and they judge your public appearances and profession from what I heard to be granted an invitation to purchase a limited release.
Ironically, you can buy Hermes Fragrances from any fragrance retailer and even many discounters. It’s interesting how different their models are for hand bags and clothing versus their perfumes which are like any of the other designers
Very well researched. One small detail - Hermès accepts returns for store credit but doesn’t refund. You can also deny any offer. You will get more offers if you actually like the items the brand offers. Hope the channel grows, you clearly spend a lot of time on these!
@@ElizaArika that’s not true. Hermes sell many bags online. They don’t sell Kelly, Birkin, or Constance online but many their bags they do sell online. I bought and return a Herbag for full refund
I appreciate (from what I’ve seen at least) Hermès maintaining the high quality of their bags. I went window shopping on the Burberry website and they had $3000 coats with polyester which just seams disappointing. Don’t get me wrong I’d understand if it was a rain jacket or something similar but a wool pea coat?
Tell me you know nothing about materials without telling me you know nothing about materials 😆 polyester is not about being cheap, that's not the only reason why they use it. It's also much more sustainable since you recycle it infinite times unlike cotton which is just burned or very hardly and rarely recycled into something else than clothes at the end. It has also different properties, like for example it doesn't absorb sweat as natural fibers or it's easier to create various shapes. Just because something has polyester , doesn't mean it's a bad product at all. Man made fibers are the best thing we have for sustainability. No natural fiber can be infinite times (theoretically) recycled. So depending on the vision behind the product, the polyester might fit better than other materials. It doesn't have to be only about cheaping out on something...
a wool pea coat can't be made from polyester ur probably mixing it with a polyamide/wool mix which is usally mostly wool 80/20. The polyamide doesn't make it worse or better it's just a fabric mix to make the garment either look a certain way or probably in this case more durable. High fashion usually uses advanced textile technology which to a not familiar person who reads poly/nylon and thinks cheap or bad quality but in reality in high fashion its not the case because it's a means to enhance the material.
@@Lucifer0022 Yeah, you know absolutely nothing about materials...💀Please do not again try to educate people before educating yourself properly... Polyester can't be recycled infinite times. It is potentially toxic to the environment by shedding microplastics and to you by leaching estrogenic and similar chemicals that are often used in the production of specialty polyester, to be more durable, water-wicking, etc. Polyester in itself is sweat inducing and makes you smell horrible, everybody can attest to that. To make polyester without these drawback you must use specialty polyester (which is unneeded if you use merino-blend tees), so your tech-fabric gym shirt is likely harmful for you. It is incredible cheap to produce, thanks to China building and industry around it, so 99% of use cases are to cut costs or boost subpar materials durability, handfeel, etc. Such as the case for short staple length cotton and polyester blends. Better choices for lining fabrics instead of polyester are naturally-sourced cellulose based fibers such as cupro (bemberg), viscose/rayon and lyocell. Man-made fibers are not the best thing for sustainability, far from it, the incredible cost of R&D and such would make breakthrough fabrics initially expensive plus the additional patenting of technologies preventing wide scale adoption and use, the case of lyocell. Natural fibers by contrast are already undergoing such changes already as they are agricultural products. Man-made fibers are prone to marketing, such as Gore-Tex, which is still uses potentially toxic ePTFE, a teflon fabric, in most of its jackets even after the promise of stoping it, or the lie that it is breathable AND water-resistant, instead of breathable OR water-resistant as it should be by the simple logic of osmosis, while the natural solution is ventile or a bit of wax on canvas! So just STFU! 💩
Reminds me, my Chinese friend (owns 5 properties and 2022 Mercedes) walks into Rolex the other day, tries on a Daytona $40,000 AUD, says she wants it and they say "sorry you don't have enough Rolex points for this watch" she walked out empty-handed.
Having 5 properties for example in the UK is quite common now, especially for the middle class. Having a Mercedes’, even something high powered is a dime a dozen. Every other 18 year-old drives a brand new A/ C class (or bmw/audi) in west London.
@@dlc85007 sadly we are not on the level…with Rolex and many other brands it’s really not about how much money you have but rather how much you spend (regularly) and kiss ass. And the Daytona is an invitation only model. I’ve heard that you need to have spend upwards of something crazy like £200k for a steel daytona.
@@dlc85007 There's a big difference between owning 5 small or ordinary houses, 5 large detached houses or 5 apartment blocks (which can have anything from 10-20+ units each). Just saying someone owns a property gives very little info.
@@tonyatthebeach I was trying to paint the picture of how she's rich but I guess the 6 properties she has now doesn't cut it for some people as I thought it obviously would. Anyway she's rich, tried to buy a Rolex Daytona, and got shut down because not enough Rolex points
I live in an area where you never really see luxury stuff out and about, but I visited Los Angeles and San Diego a month ago and was floored by how prevalent they are in these areas. Everywhere you go, you see the red and green anything, the Louis Vuitton handbag, the ysl purses. It's interesting to learn about the history of how flaunting logos goes in and out of style with the times. We really are in an upswing of it now I guess.
@@jonnyfendi2003 Maybe in America all people wear Gucci and LV and takes buses are Poor, 😏 but here in UK I know many Well Off People who use public transport because it’s hard to get parking in central London, they leave their cars at home.
This is hilariously underrated channel. Love it, don't stop. I think it's fascinating that the only brands similar to Hermes in terms of their appreciating value and ruthless markups are haute horologie - Patek Phillippe, Audemars Piguet, and Vacheron Constantin. There's also Rolex which is a different can of words but also is the hypebeast par excellence, its "waitlist" policies are very similar to Hermes.
Hey man, I’m a big fan of your videos, but I think you should do a little more diligence on this particular topic for a cleaner video - I’m by no means a fashion expert but a couple of things from the first few min: -coach and Tory Burch are “lower end” fashion that never competed with high fashion, so the segment is a little different -Givenchy pronunciation is quite off -you can also touch on gucci/balanciaga/etc lowering price points for branding w/youth (more sales of lower priced items like caps, slippers, accessories, vs handbags) -you can touch on the concept of Veblen goods + Hermes capturing consumer surplus (utility of having a birkin vs. price paid for that bag) by having them effectively pay for it by buying other less desirable things Will add more notes as I watch, keep up the good work - one of my favorite new channels!!
theres still way to much money going to the top of that chain. The rest of these companies churning out mass-produced "luxury" clothes are a joke. It disgusts me how many people who are barely making enough money to live are convinced by this scam.
if you're spending that kinda of money you kinda want it to be hand-made by a single master craftsperson. i mean nowaday what kinda of stuff do you get to say that about? its huuge brag rights for rich people and they know it!
Wow a handmade bag. Wowie! That’s a giant step for humanity. It’s a fraud and people are dumb, narcissistic, insecure and rich lowlifes enough to support it
It's all about exclusivity. The harder it is to produce or obtain something, the more valuable it is. I used to be one of these doofs who couldn't comprehend why someone would spend $3000 dls on a Burberry trench or $1800 on a Gucci clutch but as I've gotten older and started purchasing luxury items and realizing how well they retain their value and the air of sophistication they produce I get it now. There's nothing wrong with wanting/buying nice things. Just be careful not to let it put you in debt to do so.
In the the times when money supply grows every year, but time supply stays the same - time is what Hermes chooses to charge for it’s handbags. That’s what makes their products an ultimate flex - not everyone can spend so much time.
Randomly came across your Casper video, never really thought about watching videos about business but your videos are very well made and really interesting! I hope this channel takes off, but either way, I'm subbed and excited to watch all your videos :) awesome job!
I'm a socialist at heart so probably not your target demographic but I want to better understand modern capitalism and business. I think it's a real blindspot for many people, and I'm always open to new information - my political views are always evolving and whether I'm a socialist or capitalist, we live in a capitalist world and I want to understand it. Your videos are a great introduction for someone with no real business knowledge, I really appreciate them!
Thank you for the kind words and support! Love your perspective - I intentionally don't target any audience and keep any politics out of my own content. Economics is how most war is waged these days (i.e international response to Russia's invasion of Ukraine). Corporate America is ruthless, violent, and companies are always coming up with strategies to stay ahead. This channel's audience seems to be a mix between day traders looking to understand a company enough to "invest" in it, company fans/enthusiasts/haters, or just the curious. I genuinely hope to foster that diversity organically and look forward to your future comments.
I don’t buy any luxury brands, but Hermes has really nailed it while still sticking to their core philosophy. Instead of going the easy route to churn out products fast, they take their time to make expensive products by hand. Unlike conglomerates that are hell bent on profit rather than making luxury goods actually luxury.
I really love your taste and style always so chic. My faves would be the kkuwan leather backpack and the Swarovski pave diamond ring so gorg. Thank you for your recommendations.
Fantastic combination of sense for sustainable consumer business concepts and numbers. Aside from growing this channel (which will undoubtedly happen), I would also recommend you start your own consumer business.
I watched your Casper video and thought you were a well-established channel with millions of subs. I really enjoy your videos. Wish there were more of them. I subbed, I look forward to your future uploads.
No refund policy is illegal in many countries, Like in my country Kuwait 🇰🇼 “ Oil Gulf Country “ , Hermes can’t say shit about the no-refund policy or the entire store would be closed for a single complaint.. and I’ve heard many countries have the same policies by law .
Man, your videos are some of the most interesting, thoroughly researched and eye opening videos on TH-cam. You’re doing amazing and your channel is going to continue to grow without question
I’ve never really be able to wrap my head around the high-end luxury products…particularly for those that aren’t super wealthy. The only reason to spend that kind of money for those protects is to show them off….that’s probably why I don’t get it. Who cares what people think of your shoes or purse? You can get amazing quality products for a fraction of the price; the only difference is a logo on the side. It all sounds foolish if you don’t have so much money, that you light it on fire just to get rid of it.
Some of it is cultural too or maybe a symptom of the current or yesteryear generation but people have loved to represent a lifestyle, brand or product for a long, long time because as humans that how we identify our tribe (people with common ideals, passions and so on) I find it odd since it's not like a lot of these things are exactly good looking truly fashionable pieces either, most are wildly impractical unless you simply just walk around and set some things down and even from a functional perspective most are pretty much useless. All I know is I see far more people wearing all these gawdy awful, expensive stuff with no fashion sense or style because that's something you can't buy...or a lot of people wearing it hoping to come across as affluent but aren't.
That's what these companies massive advertising budget is for. Billions of dollars are spent targeting peoples psychology and inadequacies to trick them into believing that purchasing an overpriced item will solve all their problems.
When you have so much money you can buy almost anything, you still crave exclusivity, you want things to be “out of your reach” but then come within your reach. These strategies play perfectly into psychology and are employed by brands like Ferrari as well
From all High Fashion brands, the ones that I like the most are Coach, Loewe and Hermes, stores like Gucci, Prada, LV, etc, just look tacky and of very bad taste to me, for good and for worse I cannot afford something from the brands I like (other than my nice Coach backpack), but going to the stores is always a pleasure.
decent video. however, i think you wording could be clearer. it is actually possible to purchase hermes products and bags online. in fact, they were one of the first high fashion houses to operate an online store. what cannot be purchased online is their hermes birkin, kelly and constance bags.
@@vanitymarks8798 honestly, knowing that Modern MBA is just some dude with with a business degree and male pattern baldness butchering up luxury brand names is kind of funny and made his business analysis more credible in a way. It's like, I want my CPA to be an expert in accounting, not fine wines, you know?
This may be unique in the world of fashion or even commerce but is common in the gaming world - gacha systems and grinding. From the perspective of human psychology, they are tapping into a slightly different emotional mechanism/reward system.
I feel like the reasons we used to buy luxury goods no longer hold true. I love the feel of well made, soft as cotton. Now that these stores are cutting corners and jacking up prices, young people don't see the value and luxury side, so they're the only ones left to see for themselves. It's sad, and I hope they'll eventually get back to basics and cut down on mass production. There are some knockoffs out there that are very well made now. Recommended *amzclothes*
“At Gucci there’s something for everyone” -nope, not really. Never appealing for ones with a more sober taste. And even their “classic” items have been absorbed by the insta-influencer crowd, which excludes other shoppers. A successful but dangerous strategy, because the brand is almost equated now with new money and tacky fashion.
disagree. from the little i know, they seem to be innovating more than any other company by actually listening to what the people want. it may be tacky to you, but i call it pushing the boundaries and being creative. the new must replace the old eventually
@@alandeutsch9987 how? slapping your logo on cheaply made crap won't stand the test of time. If anything it'll be a race to the bottom and whatever they stood up will no longer be relevant. People don't know what they want, Gucci is ugly, tacky and will not age gracefully or well beyond this era and will become some bargin bin brand or if I'm being slightly positive something like a Lacoste (started off high quality and is now just cheaper made items trying to milk their heritage, brand, logo and name)
10:11 it’s a leather bag inside a fabric bag, inside wrapping paper, inside a cardboard box, inside a plastic bag, which probably arrived inside another cardboard box. Also the store is a box.
It's important to properly pack these bags for transport and storage to retain the shape and quality of leather. Even after you purchase one, you should be storing it in the dust bag and box if you aren't going to use it for a while. If taken care of, your bag is almost guaranteed to appreciate in value.
Really interesting video! Luxury goods are such an alien world to me, but I guess I understand why some people assume it's worth it in a "quality over quantity" sense. I'd be more forgiving if I didn't find most of it so boring or even ugly. Gucci green might legitimately be my least favorite color on the planet, and I think it looks even worse paired with that garish red.
Luxury brands (like Hermes) are different from fashion brands (like Gucci, YSL). Coach is not, and has never been a luxury brand, not even a high fashion brand. And TONY Burch doesn't exist. 🤣 For people who don't understand the difference between high fashion and luxury, it's not only about the price point ($12,000 vs $2000 for a bag for example), the quality and product categories, but also the whole after-sales service.
@@hayaglamazonluxe I disagree. Gucci's quality, especially in recent years, has been disappointing. I wanted to buy a monogrammed clutch with the snake buckle, and every single bag I saw, the monograms never lined up on the seams. Plus, they are made in China in factories. Hermes is hand made. If you need to repair your bag, the same artisan who made it will fix it. The materials, attention to detail, and workmanship is not comparable.
@@kirasgirl Are we not there yet with automation that we still need to rely solely on artisans? What's the roadblock from having machines making the bags to a higher standard than humans?
@@wyw201 We don't need to rely on artisans....that's literally the whole point. The luxury is precisely that a person is hand-making the bag. They are putting their heart and soul into and ensuring it is perfect and one of a kind. There is luxury in items that are not mass produced on a factory line. Not everything needs to be automated. 🤦♀️
@@kirasgirl There are people putting their heart and soul in designing, engineering, assembling and maintaining the machines too. Not every automated effort is geared towards mass production. If a task is repetitive, you can save time, improve safety and reduce errors with automation.
resale online of the high end products is practically impossible. Hermès, LV and other have teams of people scouring EBay, Amazon and other sites looking for stuff on the secondary market. You will get blacklisted by the manufacturer. They also enforce quotas on purchasers for the iconic products: Hermès will not sell you multiple Birkins
@@XSpamDragonX Moncler is a fashion brand named after inspired by the name of the alpine village Monestier-de-Clermont, Montclair is a county in New Jersey
Those jackets might have had a history in outdoors wear but since probably the 70's aren't really associated with anything really outdoorsy in a true sense. They can't even claim their down is what is it considering they own the research that goes into it so it's likely biased, so from a practical standpoint I think it's overpriced for what it is (if you want a nice, puffy warm jacket there is many others that are well made and cheaper, warmer than Moncler) but if you're deadset on the "look" by all means enjoy.
@@DanielSzilagyi I think most people living in urban areas are fine with jackets quality and durability like Moncler. Its luxury that isnt owned by other mega corporations yet, and thats enough for me. Plus they look amazing
Hand-crafted items like bags, shoes, and hats are literally the only high fashion thats remotely comparable to things like watches and supercars. The rest of the mass produced crap these companies pump out to dumb people who think it will impress anybody with more than 3 brain cells is not.
Great video. Car companies like Ferrari and Porsche employ a similar loyalty system to gain access to limited production models. Those models also typically sell for over msrp on secondary market.
What I heard from my friend who used to buy at Hermes is that you have to buy other random Hermes stuff 3 to 5 times the amount of the handbag you want to get the chance to buy the handbag. So the sales person would tell you that you have to buy this amount to get the bag you want, you go pick up a bunch of random other stuff Hermes sales to reach the amount, and then pay the price of the bag to get the bag. So each bag is actually much more expensive than it's price tag. With that money I'd rather find a local leather shop to custom make a bag for me.
A fool and their money… I love these breads…because they allow me to spot shallow fools with self-esteem issues from a distance and avoid interacting with them.
@@purpurina5663 From what I understand, Hermes has ridiculously strict standards for the hides they use to make their products, especially the bags, so for each tannery and leather type, they only take the best of the best hides for themselves. Usually the other hides are either turned into other goods where exacting quality is less important, or sold to other brands/individuals for their own use. They don’t tend to just dispose of the leather themselves, even the scraps left over from cutting their own products are usually turned into something in the Petit H line. They’re overpriced for what they are, but a cool concept.
Chapters:
0:00 Intro
2:00 Standard Playbook of High Fashion Leaders
2:43 Gucci's Rocketship Growth
4:28 YSL's Traditionalist Approach
5:30 Moncler's Small Player Resurgence
6:10 The Magic of Hermès
7:35 Tradition & Craftsmanship Above All
9:18 Expensive, Elusive, and Exclusive
10:15 A True Test of Loyalty
If you prefer reading over watching, the written transcript of this episode is available here: medium.com/@modernmba/h%C3%A8rmes-the-modest-king-of-luxury-fashion-d128b87be499
I like the lack of music in the videos really suits your channel.
11:26 Hermes making you buy all kinds of things you don't want, in order to be able to buy the bag you want... "is unprecedented" --> take a good look at Rolex and Ferrari. You cannot just buy any Ferrari; you first have to buy lower models (and enough of them) in order to get on the list to buy the most-wanted halo models.
Hermès was the first luxury brand to sell online. The availability to the public is better than other brands. You are conflating their items for sale with the Birkin. Anyone can purchase online and also make an appointment at a boutique. The exclusivity only happens with their purses.
exactly. thought i may just be the way their brand operates, birkins are still a big deal
later they changed and became a courier
No it wasn't...Gucci under Tom Ford sold online when internet was still dial up.
@@jonnyfendi2003 So you assume Hermès didn't do this too?
@@R.N.19 They werent the "first" though
FYI Tory Burch not Tony Burch and Christian Louboutin makes the “red bottoms” not Louis Vuitton.
Came to the comments just to say this.
And givenchy is pronounced waaay differently
And it’s Rosé not rOse
Good catch, I didn't even notice.
Lol
Fun fact, If you send in your Hermes bag to be repaired, The same person who made the bag, will repair it. The artisan who makes the bag, has their stamp somewhere inside the bag. It is in a different spot depending on which style bag you have.
This is not true. Though it can go back to the same person for repair it is very unlikely that the same person who made the bag will be the one repairing it.
Why? This seems horribly inefficient. Hermes is not capable of training multiple personnel to fix bags? We don't have machines that can fix bags?
@@wyw201 The reason people buy these bags are because they’re made by hand. If a machine made Birkins or Kelly’s you’d be able to tell. The bags go to a Hermès repair shop in France, sometimes, though rare, they end up in the hands of the person who made the bag.
@@joed7525 What are the specific differences between a bag made by machine and a bag made by hand?
@@wyw201 stitching for one. The hand can do stiching patterns that machine simply cannot.
Along with a lot of other things that require intricate details.
The Hermes strategy is very similar to one of luxury watch makers like Rolex and elite car manufacturers like Ferrari
Or like me. I make cutting boards and they're so exclusive I have yet to sell one.
@@sparsparkster5997 🤣🤣🤣🤣
People love getting cucked
Patek Philipe not Rolex lol. Rolex is machine made
Ferrari takes it to a pretty ridiculous level. You literally have to buy a couple of “starter” Ferraris just to get on Maranello’s radar, and they judge your public appearances and profession from what I heard to be granted an invitation to purchase a limited release.
Ironically, you can buy Hermes Fragrances from any fragrance retailer and even many discounters. It’s interesting how different their models are for hand bags and clothing versus their perfumes which are like any of the other designers
They do it because perfumes are a cheap way for people to buy into a brand and feel like they own a part of that high end brand
Very well researched. One small detail - Hermès accepts returns for store credit but doesn’t refund. You can also deny any offer. You will get more offers if you actually like the items the brand offers.
Hope the channel grows, you clearly spend a lot of time on these!
Actually If you buy online you can return for a full refund!
@@tototha7717 probably talking about bag returns. They dont sell their bags online so understandable that would accept online refunds
@@ElizaArika that’s not true. Hermes sell many bags online. They don’t sell Kelly, Birkin, or Constance online but many their bags they do sell online. I bought and return a Herbag for full refund
Christian Louboutin make the red bottom high heels, excellent video either way :)
I appreciate (from what I’ve seen at least) Hermès maintaining the high quality of their bags. I went window shopping on the Burberry website and they had $3000 coats with polyester which just seams disappointing. Don’t get me wrong I’d understand if it was a rain jacket or something similar but a wool pea coat?
Tell me you know nothing about materials without telling me you know nothing about materials 😆 polyester is not about being cheap, that's not the only reason why they use it. It's also much more sustainable since you recycle it infinite times unlike cotton which is just burned or very hardly and rarely recycled into something else than clothes at the end. It has also different properties, like for example it doesn't absorb sweat as natural fibers or it's easier to create various shapes. Just because something has polyester , doesn't mean it's a bad product at all. Man made fibers are the best thing we have for sustainability. No natural fiber can be infinite times (theoretically) recycled. So depending on the vision behind the product, the polyester might fit better than other materials. It doesn't have to be only about cheaping out on something...
a wool pea coat can't be made from polyester ur probably mixing it with a polyamide/wool mix which is usally mostly wool 80/20. The polyamide doesn't make it worse or better it's just a fabric mix to make the garment either look a certain way or probably in this case more durable. High fashion usually uses advanced textile technology which to a not familiar person who reads poly/nylon and thinks cheap or bad quality but in reality in high fashion its not the case because it's a means to enhance the material.
@@Lucifer0022 Yeah, you know absolutely nothing about materials...💀Please do not again try to educate people before educating yourself properly...
Polyester can't be recycled infinite times. It is potentially toxic to the environment by shedding microplastics and to you by leaching estrogenic and similar chemicals that are often used in the production of specialty polyester, to be more durable, water-wicking, etc.
Polyester in itself is sweat inducing and makes you smell horrible, everybody can attest to that. To make polyester without these drawback you must use specialty polyester (which is unneeded if you use merino-blend tees), so your tech-fabric gym shirt is likely harmful for you.
It is incredible cheap to produce, thanks to China building and industry around it, so 99% of use cases are to cut costs or boost subpar materials durability, handfeel, etc. Such as the case for short staple length cotton and polyester blends. Better choices for lining fabrics instead of polyester are naturally-sourced cellulose based fibers such as cupro (bemberg), viscose/rayon and lyocell.
Man-made fibers are not the best thing for sustainability, far from it, the incredible cost of R&D and such would make breakthrough fabrics initially expensive plus the additional patenting of technologies preventing wide scale adoption and use, the case of lyocell. Natural fibers by contrast are already undergoing such changes already as they are agricultural products.
Man-made fibers are prone to marketing, such as Gore-Tex, which is still uses potentially toxic ePTFE, a teflon fabric, in most of its jackets even after the promise of stoping it, or the lie that it is breathable AND water-resistant, instead of breathable OR water-resistant as it should be by the simple logic of osmosis, while the natural solution is ventile or a bit of wax on canvas!
So just STFU! 💩
I appreciate that Hermes doesn't go brand logo crazy like the others, focus on design, and that they are supporting artisans.
Reminds me, my Chinese friend (owns 5 properties and 2022 Mercedes) walks into Rolex the other day, tries on a Daytona $40,000 AUD, says she wants it and they say "sorry you don't have enough Rolex points for this watch" she walked out empty-handed.
Having 5 properties for example in the UK is quite common now, especially for the middle class. Having a Mercedes’, even something high powered is a dime a dozen. Every other 18 year-old drives a brand new A/ C class (or bmw/audi) in west London.
@@gagz117 so are they all able to go into Rolex with those 5 properties in the UK and also ask for the Rolex Daytona or are they not on the level?
@@dlc85007 sadly we are not on the level…with Rolex and many other brands it’s really not about how much money you have but rather how much you spend (regularly) and kiss ass. And the Daytona is an invitation only model. I’ve heard that you need to have spend upwards of something crazy like £200k for a steel daytona.
@@dlc85007 There's a big difference between owning 5 small or ordinary houses, 5 large detached houses or 5 apartment blocks (which can have anything from 10-20+ units each). Just saying someone owns a property gives very little info.
@@tonyatthebeach I was trying to paint the picture of how she's rich but I guess the 6 properties she has now doesn't cut it for some people as I thought it obviously would. Anyway she's rich, tried to buy a Rolex Daytona, and got shut down because not enough Rolex points
I live in an area where you never really see luxury stuff out and about, but I visited Los Angeles and San Diego a month ago and was floored by how prevalent they are in these areas. Everywhere you go, you see the red and green anything, the Louis Vuitton handbag, the ysl purses. It's interesting to learn about the history of how flaunting logos goes in and out of style with the times. We really are in an upswing of it now I guess.
I thought we were in a downswing but then again I live in a blue collar town
Those logos are a fantastic way of telling if somebody is a vapid idiot from a distance.
come to New York you see the same thing...except they are all bootleg worn by people who take the bus and subway drenched in Chanel and Gucci logos.
@@jonnyfendi2003 was just in boston and was shocked by number of college students on the subway or at the airport with Gucci sneakers
@@jonnyfendi2003 Maybe in America all people wear Gucci and LV and takes buses are Poor, 😏 but here in UK I know many Well Off People who use public transport because it’s hard to get parking in central London, they leave their cars at home.
Crazy underappreciated video. Hopefully the Algo will give you flowers
Came via the algorithm. Great video, subscribed.
This is hilariously underrated channel. Love it, don't stop.
I think it's fascinating that the only brands similar to Hermes in terms of their appreciating value and ruthless markups are haute horologie - Patek Phillippe, Audemars Piguet, and Vacheron Constantin.
There's also Rolex which is a different can of words but also is the hypebeast par excellence, its "waitlist" policies are very similar to Hermes.
Ferrari also does this.
Audemars Piguet is not at this level even part of the Saint Trinity
Loving the quality of these videos. 👍🏽
Hey man, I’m a big fan of your videos, but I think you should do a little more diligence on this particular topic for a cleaner video - I’m by no means a fashion expert but a couple of things from the first few min:
-coach and Tory Burch are “lower end” fashion that never competed with high fashion, so the segment is a little different
-Givenchy pronunciation is quite off
-you can also touch on gucci/balanciaga/etc lowering price points for branding w/youth (more sales of lower priced items like caps, slippers, accessories, vs handbags)
-you can touch on the concept of Veblen goods + Hermes capturing consumer surplus (utility of having a birkin vs. price paid for that bag) by having them effectively pay for it by buying other less desirable things
Will add more notes as I watch, keep up the good work - one of my favorite new channels!!
The video is great but the pronunciation is sendinggg me 😂 especially when he said Rosé
The pay to make those bags must be incredible for anyone to go through that much trouble.
theres still way to much money going to the top of that chain. The rest of these companies churning out mass-produced "luxury" clothes are a joke. It disgusts me how many people who are barely making enough money to live are convinced by this scam.
Honestly? I like Hermes's approach to making stuff.
Is it way over priced? Heck yeah. But man its kind of neat that it's all hand made by one person.
if you're spending that kinda of money you kinda want it to be hand-made by a single master craftsperson. i mean nowaday what kinda of stuff do you get to say that about? its huuge brag rights for rich people and they know it!
Wow a handmade bag. Wowie! That’s a giant step for humanity.
It’s a fraud and people are dumb, narcissistic, insecure and rich lowlifes enough to support it
@@Brurgh if you are rich, do you need hermes?
It's all about exclusivity. The harder it is to produce or obtain something, the more valuable it is. I used to be one of these doofs who couldn't comprehend why someone would spend $3000 dls on a Burberry trench or $1800 on a Gucci clutch but as I've gotten older and started purchasing luxury items and realizing how well they retain their value and the air of sophistication they produce I get it now. There's nothing wrong with wanting/buying nice things. Just be careful not to let it put you in debt to do so.
The quality of these videos is not reflected in the follower count at all! I did my part in subscribing but this channel has got to blow up soon
“Gevenchy” 💀
In the the times when money supply grows every year, but time supply stays the same - time is what Hermes chooses to charge for it’s handbags.
That’s what makes their products an ultimate flex - not everyone can spend so much time.
The *amzclothes* actually reminds me of Hermes Garden Party, too. Thanks for making this video on suggesting more budget friendly alternativ
Randomly came across your Casper video, never really thought about watching videos about business but your videos are very well made and really interesting!
I hope this channel takes off, but either way, I'm subbed and excited to watch all your videos :) awesome job!
I'm a socialist at heart so probably not your target demographic but I want to better understand modern capitalism and business.
I think it's a real blindspot for many people, and I'm always open to new information - my political views are always evolving and whether I'm a socialist or capitalist, we live in a capitalist world and I want to understand it.
Your videos are a great introduction for someone with no real business knowledge, I really appreciate them!
Thank you for the kind words and support! Love your perspective - I intentionally don't target any audience and keep any politics out of my own content. Economics is how most war is waged these days (i.e international response to Russia's invasion of Ukraine). Corporate America is ruthless, violent, and companies are always coming up with strategies to stay ahead.
This channel's audience seems to be a mix between day traders looking to understand a company enough to "invest" in it, company fans/enthusiasts/haters, or just the curious. I genuinely hope to foster that diversity organically and look forward to your future comments.
Same! Casper drew me in and now I’m starting from the top!
Interesting work from the youtube algorithm. Also got served Casper and wanted to learn about Hermes haha. Earned a sub :)
Amen to r-pupz… and great work MMBA
Hermes operates sorta like Ferrari, you have to earn the ability to buy the exclusive products through brand loyalty
I don’t buy any luxury brands, but Hermes has really nailed it while still sticking to their core philosophy. Instead of going the easy route to churn out products fast, they take their time to make expensive products by hand.
Unlike conglomerates that are hell bent on profit rather than making luxury goods actually luxury.
0:43 It's Christian Louboutin... not Louis Vuitton
I really love your taste and style always so chic. My faves would be the kkuwan leather backpack and the Swarovski pave diamond ring so gorg. Thank you for your recommendations.
Fantastic combination of sense for sustainable consumer business concepts and numbers. Aside from growing this channel (which will undoubtedly happen), I would also recommend you start your own consumer business.
Such a great collection of clothes and pre owned bags! A vintage *amzclothes* is definitely also on my list
I watched your Casper video and thought you were a well-established channel with millions of subs. I really enjoy your videos. Wish there were more of them. I subbed, I look forward to your future uploads.
felt the exact same way!
No refund policy is illegal in many countries, Like in my country Kuwait 🇰🇼 “ Oil Gulf Country “ , Hermes can’t say shit about the no-refund policy or the entire store would be closed for a single complaint.. and I’ve heard many countries have the same policies by law .
It's also illegal in France, so idk what they're smoking
i love these videos. thanks for creating
Man, your videos are some of the most interesting, thoroughly researched and eye opening videos on TH-cam. You’re doing amazing and your channel is going to continue to grow without question
"thoroughly researched" yet no sources and is clearly oblivious to the world of fashion
Im sorry red bottomed Louis Vuitton’s? Smaller labels like Moncler AND Balenciaga?
Really impressive video, thank you! Please make more research like this!
I’ve never really be able to wrap my head around the high-end luxury products…particularly for those that aren’t super wealthy. The only reason to spend that kind of money for those protects is to show them off….that’s probably why I don’t get it. Who cares what people think of your shoes or purse? You can get amazing quality products for a fraction of the price; the only difference is a logo on the side. It all sounds foolish if you don’t have so much money, that you light it on fire just to get rid of it.
People spend money they don’t have on things they don’t need to impress people they don’t like.
It’s a new money thing. Tacky logos or well known silhouettes stuff to show off. Old money tastes are more humble lol
Some of it is cultural too or maybe a symptom of the current or yesteryear generation but people have loved to represent a lifestyle, brand or product for a long, long time because as humans that how we identify our tribe (people with common ideals, passions and so on)
I find it odd since it's not like a lot of these things are exactly good looking truly fashionable pieces either, most are wildly impractical unless you simply just walk around and set some things down and even from a functional perspective most are pretty much useless.
All I know is I see far more people wearing all these gawdy awful, expensive stuff with no fashion sense or style because that's something you can't buy...or a lot of people wearing it hoping to come across as affluent but aren't.
It's status projection, nothing more. Humans that cant get past the biologically inherited hierarchy structures. Even if it's just in their heads
That's what these companies massive advertising budget is for. Billions of dollars are spent targeting peoples psychology and inadequacies to trick them into believing that purchasing an overpriced item will solve all their problems.
When you have so much money you can buy almost anything, you still crave exclusivity, you want things to be “out of your reach” but then come within your reach. These strategies play perfectly into psychology and are employed by brands like Ferrari as well
Atleast with Hermes when your “forced” to buy the bag, you can just sell it for profit
I’m here to support,I think I might all business channels on here keep posting
From all High Fashion brands, the ones that I like the most are Coach, Loewe and Hermes, stores like Gucci, Prada, LV, etc, just look tacky and of very bad taste to me, for good and for worse I cannot afford something from the brands I like (other than my nice Coach backpack), but going to the stores is always a pleasure.
Does anyone know what campaign is playing in the bg from 0:58 ?
decent video. however, i think you wording could be clearer. it is actually possible to purchase hermes products and bags online. in fact, they were one of the first high fashion houses to operate an online store. what cannot be purchased online is their hermes birkin, kelly and constance bags.
Great video series - I found it very informative.
BTW, the brand that makes iconic red-bottom stilettos is Louboutin, not Louis Vuitton.
I was looking for this comment. Most guys are not going to know that until they have had the right, or the wrong, kind of girlfriend
@@Laotzu.Goldbug he also said Tony Burch, god love him.
@@vanitymarks8798 did Tory transition?
haha
@@vanitymarks8798 honestly, knowing that Modern MBA is just some dude with with a business degree and male pattern baldness butchering up luxury brand names is kind of funny and made his business analysis more credible in a way. It's like, I want my CPA to be an expert in accounting, not fine wines, you know?
Incredible. This channel is great!
I love this stuff, pls do more
God bless this woman! Her *amzclothes* clothes is amazing
Love those videos !
I liked and subscribed !
Goos stuff !
The problem is the trend is people are now looking at Hermes as being tacky
i think versace has seen a resurgence as of late , with valentinos pink collection bold colorful dressing is back and versace does this well
This may be unique in the world of fashion or even commerce but is common in the gaming world - gacha systems and grinding. From the perspective of human psychology, they are tapping into a slightly different emotional mechanism/reward system.
just subscribed. binge watching all your videos :)
I feel like the reasons we used to buy luxury goods no longer hold true. I love the feel of well made, soft as cotton. Now that these stores are cutting corners and jacking up prices, young people don't see the value and luxury side, so they're the only ones left to see for themselves. It's sad, and I hope they'll eventually get back to basics and cut down on mass production. There are some knockoffs out there that are very well made now. Recommended *amzclothes*
“At Gucci there’s something for everyone” -nope, not really. Never appealing for ones with a more sober taste. And even their “classic” items have been absorbed by the insta-influencer crowd, which excludes other shoppers. A successful but dangerous strategy, because the brand is almost equated now with new money and tacky fashion.
disagree. from the little i know, they seem to be innovating more than any other company by actually listening to what the people want. it may be tacky to you, but i call it pushing the boundaries and being creative. the new must replace the old eventually
@@alandeutsch9987 how? slapping your logo on cheaply made crap won't stand the test of time. If anything it'll be a race to the bottom and whatever they stood up will no longer be relevant.
People don't know what they want, Gucci is ugly, tacky and will not age gracefully or well beyond this era and will become some bargin bin brand or if I'm being slightly positive something like a Lacoste (started off high quality and is now just cheaper made items trying to milk their heritage, brand, logo and name)
@@alandeutsch9987 I disagree, the ability to stand the test of time is what old money desires
My Man Louie Baton out here killin it. 👠
Fascinating video and business model!
wow. mind blowing. keep these videos coming.
From the packaging to the details of the bags, I think the KKUWAN shop has made reproduction an art form.
10:11 it’s a leather bag inside a fabric bag, inside wrapping paper, inside a cardboard box, inside a plastic bag, which probably arrived inside another cardboard box. Also the store is a box.
It's important to properly pack these bags for transport and storage to retain the shape and quality of leather. Even after you purchase one, you should be storing it in the dust bag and box if you aren't going to use it for a while. If taken care of, your bag is almost guaranteed to appreciate in value.
Great content! 🎉
Crazy good content!
I love all the beautiful and tasteful outfits *amzclothes*
From 0.58 to 1.54 time - that room with the outside background from where ?
Really interesting video! Luxury goods are such an alien world to me, but I guess I understand why some people assume it's worth it in a "quality over quantity" sense. I'd be more forgiving if I didn't find most of it so boring or even ugly. Gucci green might legitimately be my least favorite color on the planet, and I think it looks even worse paired with that garish red.
rich people interpret that feeling of disgust as being unique
@@XSpamDragonX exactly, most are clueless twats anyway
Fully agree, Gucci is heavily overrated garbage.
Luxury brands (like Hermes) are different from fashion brands (like Gucci, YSL). Coach is not, and has never been a luxury brand, not even a high fashion brand. And TONY Burch doesn't exist. 🤣
For people who don't understand the difference between high fashion and luxury, it's not only about the price point ($12,000 vs $2000 for a bag for example), the quality and product categories, but also the whole after-sales service.
Gucci and YSL are luxury brands in the same market as Hermes. Totally confused by your comment
@@hayaglamazonluxe I disagree. Gucci's quality, especially in recent years, has been disappointing. I wanted to buy a monogrammed clutch with the snake buckle, and every single bag I saw, the monograms never lined up on the seams. Plus, they are made in China in factories.
Hermes is hand made. If you need to repair your bag, the same artisan who made it will fix it. The materials, attention to detail, and workmanship is not comparable.
@@kirasgirl Are we not there yet with automation that we still need to rely solely on artisans? What's the roadblock from having machines making the bags to a higher standard than humans?
@@wyw201 We don't need to rely on artisans....that's literally the whole point. The luxury is precisely that a person is hand-making the bag. They are putting their heart and soul into and ensuring it is perfect and one of a kind. There is luxury in items that are not mass produced on a factory line. Not everything needs to be automated. 🤦♀️
@@kirasgirl There are people putting their heart and soul in designing, engineering, assembling and maintaining the machines too. Not every automated effort is geared towards mass production. If a task is repetitive, you can save time, improve safety and reduce errors with automation.
Amazing info! Thanks
The Gucci Mickey Mouse collaboration was one of the best things ever.
resale online of the high end products is practically impossible. Hermès, LV and other have teams of people scouring EBay, Amazon and other sites looking for stuff on the secondary market. You will get blacklisted by the manufacturer. They also enforce quotas on purchasers for the iconic products: Hermès will not sell you multiple Birkins
I love Hermes very luxuriously clothes for Men beautiful fabrics fabrications are very important
This is like a high school presentation 😭
1:18 I love the brand “Gevenchi”, whatever that brand is.
My favs
Christian Dior
Givenchy
Good video mate.
I miss your crazy self! Love the videos # *amzclothes*
This is very similar to Rolex and other luxury watch brands; “waitlist” and pressure selling before desirable models are even hinted at.
Stupidity of over-consumerism culture at its finest
I mean props to Hermes for sticking to what works for them. They could have so easily gone the Gucci route but didn't and that is kinda amazing.
Fantastic videos!!
Hello Autumn!!MOMCOCO bag collection has grown a lot. They are beautiful. Beautiful toys. It’s a great size for me. Congrats on you new bag.
I love COACH always have always will.
One of the few brands left in the world that doesn’t outsource to Asia
Great video:) I had no idea Hèrmes was so profitable. I can’t wait to see more:3
I took pride in my moncler jackets being from an independent brand, my heart sank a little when ive read about the proposal of acquirement from Gucci
I just realised everybody isnt just mispronouncing/misspelling Montclair. WTF is a Monkler?
@@XSpamDragonX Moncler is a fashion brand named after inspired by the name of the alpine village Monestier-de-Clermont, Montclair is a county in New Jersey
Those jackets might have had a history in outdoors wear but since probably the 70's aren't really associated with anything really outdoorsy in a true sense.
They can't even claim their down is what is it considering they own the research that goes into it so it's likely biased, so from a practical standpoint I think it's overpriced for what it is (if you want a nice, puffy warm jacket there is many others that are well made and cheaper, warmer than Moncler) but if you're deadset on the "look" by all means enjoy.
@@DanielSzilagyi I think most people living in urban areas are fine with jackets quality and durability like Moncler. Its luxury that isnt owned by other mega corporations yet, and thats enough for me. Plus they look amazing
You’re dramatic af. My heart sank? Get over yourself
In short, hermes strategy is to treat their customers like 💩 . Great video btw!
can y'all clarify something did he say "Tony Burch"
What an interesting business model, I don't know any other industry that would do that.
This whole video felt like an advertisement on hermes🥴. I liked your Facebook piece tho
Hermes is just taking a similar business approach to premium watch brands like Rolex and similar. This model also tracks with supercars.
Hand-crafted items like bags, shoes, and hats are literally the only high fashion thats remotely comparable to things like watches and supercars. The rest of the mass produced crap these companies pump out to dumb people who think it will impress anybody with more than 3 brain cells is not.
Great videos!!!
The Hermes model has precedence with Rolex and Ferrari as the best examples. They do the exact same thing.
Great video. Car companies like Ferrari and Porsche employ a similar loyalty system to gain access to limited production models. Those models also typically sell for over msrp on secondary market.
Old rich people love having to get permission to buy the thing they truly want
What I heard from my friend who used to buy at Hermes is that you have to buy other random Hermes stuff 3 to 5 times the amount of the handbag you want to get the chance to buy the handbag. So the sales person would tell you that you have to buy this amount to get the bag you want, you go pick up a bunch of random other stuff Hermes sales to reach the amount, and then pay the price of the bag to get the bag. So each bag is actually much more expensive than it's price tag. With that money I'd rather find a local leather shop to custom make a bag for me.
You've got some great content here mate, loved the DTC one. As a suggestion it would be useful if you would add references to some of your datapoints.
See you at a million subs!
Your videos are amazing, you’ll definitely explode in popularity soon! Keep up the good work!
Thanks for the video! One suggestion is that the shaking and sped up frames make it a little nauseating to watch. Otherwise, great narration!
Hermes: the Scientology of the fashion world 🤭
A fool and their money…
I love these breads…because they allow me to spot shallow fools with self-esteem issues from a distance and avoid interacting with them.
Hopefully I can get myself a luxury bag for my birthday🥳🤩😘🎀🌸💜
One interesting fact, only 10% of leather purchased for these bags is used in the production of each bag
Do you know why? Is it discarded? Is it a way to keep other manufacturers from getting to it?
@@purpurina5663 From what I understand, Hermes has ridiculously strict standards for the hides they use to make their products, especially the bags, so for each tannery and leather type, they only take the best of the best hides for themselves. Usually the other hides are either turned into other goods where exacting quality is less important, or sold to other brands/individuals for their own use. They don’t tend to just dispose of the leather themselves, even the scraps left over from cutting their own products are usually turned into something in the Petit H line. They’re overpriced for what they are, but a cool concept.
Maybe a jewelry & luxury commodities version?