How to Prevent Claims from Going to Hell in a (Designer) Handbag

Transcription

1 How to Prevent Claims from Going to Hell in a (Designer) Handbag

2 Background Fabric Restoration 15 years Awards Commercial Apparel Logistics Design School Restorer/collector/reseller of luxury goods

3 Why Are We Here Talking About Fancy Handbags and Scarves? Luxury goods industry 2016 :$1.7 Trillion, $288 Billion in handbags According to COACH CEO, 55% of all handbag sales were at a price point over $ Re-sales yield great returns: Chanel flap bag purchased in 1990: $1100 Same bag today: $ Hermes Birkin bag prices increase 14% YOY Hermes scarf retails for $495 can resale for over $1200 There are opportunities for the insurance companies to manage claims from a more informed position in order to satisfy their customer and

4 Overview Overview: Define and Understand Why Designer Luxury Goods Are Expensive Learn About The Restoration Process Claim Management When To Settle When To Call In An Expert What To Look For In An Expert How Our Industry is Evolving

5 Hermes Scarves Retail Price in $350 Retail Price in $430 Resale Price Up to $1250 Source: Hermes

6 Hermes Originally Sold For $430 In 2012 Artist: Anamorphee Colorways: 11 Source : Hermes

7 Hermes Artist: Christian Renonciat Colorway: Ultraviolet/Vert/Bleu *Limited Edition 2011 Fall Collection Original Price: $395 Resale Price : $695-$ Sorce Fashionpile.com

8 Hermes Scarves Design Silk Screens Ink Formulation Silk Weaving Screenprinting Finishing Hand Hem

9 What Makes an Investment Handbag Expensive? Value Brand Age Construction Material Design Buzz Condition

10 Materials: Exotic Skins $100,000 Crocodile Skin Hermes Birkin Source: Hiffpost.com

11 Hermes Birkin Loved by Celebrities $222,000 Made of Porosus Crocodile Posh Spice Kim Kardashian Most Expensive Handbag Ever Sold In US Was An Hermes Himalaya Birkin$380,000

12 Materials: Crystal Embellishments Judith Leiber Clutches- Range $2500-$7000 Bags Encrusted With Swarovski Crystals

13 Construction: Atelier Handmade by ONE skilled artisan start to finish, no production lines, probably no machines Generational trade- Artisans do 2-3 year long apprenticeships prior to being given the authority to create independently Sophisticated tools and techniques developed over long periods of time

14 Elements of Fine Construction: Stitching by hand rather than by machine Hermes Birkin Bag- Notice The Stitches Are Not Straight, But Are Diagonal From Left Bottom To Right Top

15 Elements of Fine Construction: Patterns Are Symmetric and Match Through Seams

16 Elements of Fine Construction: Date Codes And Serial Numbers

17 Elements of Fine Construction: Branded Hardware

18 Designer : Judith Leiber

19 Successful Restoration Outcomes Materials Degree of Damage Speed of Mitigation Proper Handling by Vendor Your Insured

20 Materials Painted vs. Tanned Leather Color of Leather - Standard vs. Nonstandard Texture - Smooth vs. Embossed or Quilted Plasticized Canvas-LV s brilliant idea Beads/ Appliques/Embellishments

21 Actions of Your Vendor Communication With Insured Handling and Storage Practices Approach to Restoration Subcontracting an Expert

22 When Should You Pay a Claim Quickly? As you well know, customers love when insurance companies pay claims fast 1. When there is straightforward, significant damage 2. When you re fully sure of authenticity

23 Selling that Unsalvageable Handbag Reseller Restoration Specialist Authenticator

24 When Should Call a Specialist? When you re questioning if it is authentic When you aren t sure if it is a luxury brand When you re unsure of how to approach restoration When you re unsure how much to spend on restoration When you want to find out if there is a possibility of resale Questions about pre-loss condition versus damage from the claim Bags over $500 price point that appear to be cleanable, and bags over $1000 price point that appear unsalvageable When you have an insured who believes their purses have increased in value over time

25 Challenges of the Industry- Niche market issues Franchises with less robust support and training than you find with water mitigation Few production software options (mostly retrofits from Retail Drycleaning) Excel spreadsheets to manage jobs in queue, customer interaction Adoption of barcode technology is still under 30% Cannibalism Fabric restoration vendors getting into restoring other contents, while water mitigation companies are trying to get into fabric restoration

26 Opportunities In the Space Salvage donation presents an opportunity for carriers to reduce issues and generate good will Technology Ensures communication between field, office, and production teams Data mining and analytics provides opportunities to help partners perform better in their own capacities Standardized customer service that properly manages and insured s expectations, including a protocol for disputes I also see the fabric restoration vendors getting into Adjusting They re on the site first, and they have no conflict of interest

27 Thank You For Your Time Today! Questions? Courtney Folk President- Textile Restorations CoFounder- Renewal Logistics