(Yicai Global) April 22 -- Shanghai's market supervisor is investigating French luxury handbag maker Hermes due to many customer complaints regarding aggressive sales strategies in China that allegedly make potential clients buy more in order to be able to purchase the one item that they want.
The bureau has started a probe into the complaints, and the eastern city's consumer council will keep an eye out for more, Economic Information Daily reported. Hermes China has refuted the claims of upselling, saying that clients may buy any product that is not out of stock or reserved or being displayed, the report added.
Mr. Chen, a 10-year VIP client of Hermes, told Economic Information Daily that a staff member had required him to purchase additional products to secure an item he wanted. This drives sales of less-popular items as well as makes the most attractive products more exclusive, he added.
Hermes International saw its net profit surge 15 percent to EUR1.4 billion (USD1.6 billion) last year, partly spurred by strong demand in China, according to the Paris-headquartered firm's earnings report.
Editor: Emmi Laine