The fashion house Hermès broke its own rules this week when it was forced to hold a discount sale for the first time ever in China as a result of excess unsold inventory. The low sales in the luxury retail store have been attributed to the Chinese government’s ongoing anti-extravagance campaign as part of Xi Jinping’s highly touted war against corruption in the country.
Want China Times relays:
The rule of no sales and of not selling at shopping malls went out the window when Hermes held a sale at the Hyatt Regency Hangzhou in eastern China to clear unsold stock accumulated over the past two to three years. Most of the items available were men and women’s clothes and shoes, which carried discounts of 20%-50%.
Other brands including Ferragamo, Boss and Armani look set to follow suit with discount sales near their own outlets at department stores in mid-May, including last year’s collections.
Another executive at a luxury department store in Hangzhou said that their inventory had likewise been upped as sales were plummeting, but the brands would rather lose face by advertising that “everything must go!”, à la Sears, than lose business.
Let’s hope things go over better for the new Burberry flagship store that just opened in Shanghai.
Actually, let’s not. Thanks, Xi!