Amazon (AMZN) , which has over 315 million customers worldwide, is hopping on a controversial trend to attract customers who are looking to ball on a budget.
Last month, one of Amazon’s main competitors, Walmart (WMT) , went viral on social media for selling its own version of an Hermès Birkin handbag for just $80.
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An authentic Birkin bag is extremely difficult to obtain and can cost as much as a house. Many celebrities have also worn authentic Birkin bags, and the purse has grown to become a status symbol for wealth in pop culture.
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Walmart shoppers nicknamed the knockoff Birkin the “Wirkin bag,” symbolizing that it is made for the working class. The bag caused a major stir on social media, and at one point, it even sold out on Walmart’s website.
The momentum over the bag even sparked controversy as some consumers argued that the Birkin dupe decreased the value of authentic Birkin bags and posed a significant threat to the luxury retail market.
Hermès CEO Axel Dumas even said during an earnings call on Feb. 14 that he was “irritated” and “annoyed” by Walmart’s knockoff Birkin bag. He also emphasized that counterfeiting a product can have “economic and social consequences.”
“Making a copy like this is quite detestable,” said Dumas. “It's really stealing the creativity of others.”
Amazon follows Walmart's footsteps
Despite his rebuke of knockoff Birkin bags, Amazon is now selling its own version of an Hermès bag that is even cheaper than Walmart’s "Wirkin bag," and it’s already sold out.
Amazon’s handbag, which looks strikingly similar to an Hermès Kelly bag, sells for only $42. The bag's material is described as “durable, waterproof, scratch-resistant PU leather.”
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An authentic Hermès Kelly is made with real leather (usually calfskin) and can sell for between $10,000 and $100,000, so it is no surprise that consumers are flocking to Amazon to purchase a cheaper lookalike.
Amazon’s Hermès Kelly dupe has already garnered positive reviews from shoppers.
“The quality of this bag (I got the Medium Burgundy) is outstanding! I am in utter disbelief that for the price I paid, I now possess a dupe that someone would have easily paid a few hundred dollars for in New York,” read one review on Amazon’s website.
“Looks great! Great quality and good price,” read another review.
Hermès was recently sued for how it sells its Birkin bags
The growing popularity of knockoff Hermès bags comes after the company faced a class-action lawsuit last year for allegedly boosting its market power by using a “scheme” that requires consumers to first purchase multiple Hermès products to be considered to be offered to buy a Birkin bag.
According to the lawsuit, customers allegedly have to purchase “shoes, scarves, belts, jewelry and home goods” to build their “purchase profile” with the company.
Birkin bags have been around since 1984, and it has long been speculated that they are only offered for sale to “worthy” customers. These bags cannot be purchased on Hermès’ website and can only be bought inside its stores, where they are hidden from plain sight.
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“Most consumers will never be shown a Birkin handbag at Hermès retail store,” reads the lawsuit. “Typically, only those consumers who are deemed worthy of purchasing a Birkin handbag will be shown a Birkin handbag (in a private room). The chosen consumer will be given the opportunity to purchase the specific Birkin handbag which they are shown. Consumers cannot order a Birkin handbag at the retail location. For all practical purposes, there is no way to order a bag in the style, size, color, leather, and hardware that a consumer wants.”
The plaintiffs in the lawsuit allege that this “scheme” exploits the company’s market power, and constitutes unlawful business practices.
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