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Hermes Faces Allegation Of Mistreating Consumers And Retailers

By March 3, 2017 at 5:13 am
Hermès Birkin Handbag Makes Better Investment For Long-Term Investors Than Gold, Study Shows (Photo : Timur Emek | Getty Images Entertainment)

Hermes has been one of the top three luxury brands in Korea but it looks like it has been criticized for making an ill use of its great standing. The brand faces an allegation that it is showing negligent attitudes toward the consumers as well as retailers.

The Seoul High Court just ruled last month against Hermes in favor of PLAYNOMORE, a Korean fashion brand. The French luxury brand filed a copyright lawsuit but the previous ruling had been reversed.

It was last May when the Seoul district court accepted Hermes's claim and allegation that Korean company's Shy Family and Shy Girl bags had infringed Hermes's design of its Kelly and Birkin bags. The company also ordered PLAYNOMORE to pay them 100 million won or $87,000 in damages.

But the appellate court just weighed on the reason that PLAYNOMORE's unique design of "cartoon eyes" represents the identity of the bags. The court also took note that the partial similarity in the design is not actually enough to conclude that the Korean brand had violated the laws concerning freedom of competition and fair trade.

According to the designer and founder of PLAYNOMORE, the company hopes that big brands such as Hermes will not file indiscriminate lawsuits against small brands anymore and this will serve as a lesson to them as per Korea Times.

After the release of the court's decision, people have been criticizing Hermes that the brand brought the said issue to court to send a warning to design rip-offs. Some of the country's leading retailers also complained that Hermes along with other major brands was taking advantage of their status to make unreasonable offers to buyers.

Apart from this, some had argued that Hermes has been facing problems and troubles with regards to customers' relations. Some Korean buyers need to wait for three years after their order is placed.

However, the local affiliate of the said luxury brand reasoned out that the long time is inevitable since the products are manually made by expert craftsmen in France.

Lastly, Hermes Korea was also under another trouble for poor after-sales service and for providing their intern with low wages and salaries. The official of the said brand needs to clarify these things out before it gets worse for the brand.

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