How Does Hermes Find Life In A Slowing Luxury Market?

In fact, when a brand has been in its 180 year history and has gone through several ups and downs, it is natural to believe in brand remodeling and reinforcement.

Innovation is an eternal topic. Just like Dumas said, "if we are just making harnesses, then our stores will be so big now."

Any brand has a relatively poor sales category, and this is the weakness of Hermes.

In the first half of this year, the performance of watches declined by 1%.

The brand has also increased its investment in watch business.

In the spring and summer Basel exhibition this year, Hermes launched a new watch series called "Slim d" Herm s s, which has recently won the Geneva advanced watch and clock awards. In September this year, it launched Apple Watch Herm s s, and apple cooperation attracted attention both for vulnerable products and for the consumers who wanted to contact Hermes.

At the same time, the premium is plentiful.

Watchband, with a handsome profit, is the two win.

So far, the official website of Hermes is still separated from the e-commerce platform.

But according to BoF, in the middle of 2016, the company will "integrate two websites".

"Digital business is a great opportunity and will become more and more important," Dumas said.

According to Solca, between 2013 and 2020, at least 40% of the sales growth of luxury goods will be driven by numbers and networks.

Hermes will not let go of this opportunity.

"In 1970s, there was a big discussion about whether we should become internationalized. At that time, people thought that you didn't need internationalization at all, because everyone would come to Paris.

Internationalization costs money and risks.

We are fortunate to have taken the step of internationalization.

I think this is just the same as the current topic of digitalization.

Dumas told BoF this way.

As a commercial business that emphasizes luxury experience,

Brand exposure needs to be strictly controlled.

Dumas believes that Hermes has learned from 1970s that controlling brands is more important than ever.

In 1970s, many luxury brands expanded their businesses in a franchise way, saving energy while making quick money.

However, when they open a shop, they spend a lot of time and invest heavily, but after 15 years, most of the fast expanding brands lose their original image, and the extensive business license has already been lost.

Of course,

At the same time, we need to maintain creativity. Dumas also mentioned: "Hermes has a part of" resistance ", that is, keep your value, protect yourself in the future, and believe in creativity.