Hermes Went To France To Recruit More Than 250 Artisans.

France luxury group Hermes (Herm E) (s) in the near future for the rapid growth of the demand for handbags in the Asian market, it has bought a great deal in France and invested in the construction of a new production base. During the French election period, increasing employment is one of the outstanding problems of the government. The move of Hermes has played a positive role in boosting the French economy.

Although the French economy has begun to recover, the unemployment rate is still up to 10%. Two presidential candidates, Emmanuel Macron and Bon (Marine Le Pen), have launched a heated debate on how to improve the employment rate in France. Ma Kelong At present, two people are at a tit for tat about the relocation of the factory of Whirlpool & amp; Co., near the Northern French city of Amiens. The factory workers are now protesting the relocation of the production base to Poland.

For Hermes, "made in France" has always been one of the biggest selling points of the brand, and has also become a symbol of French fashion. Therefore, Hermes plans to expand the scale of French handbags workshop.

Oddo & Cie analyst Leopold Authie said luxury goods in France, like shoes in Italy and Swiss watches, have become a label. "Made in France" is an important brand asset of Hermes.

At present, 85% of Hermes products are produced in France. The company plans to increase the production of leather products by 8% this year and hire 250 craftsmen. In addition, third workshops have been set up in the Franche-Comte area, so that the local leather production base reaches 15.

At the same time, local production in France. Handbag Also faced with the following challenges:

The French government stipulates that workers can not work more than 35 hours per week.

High cost of employment under the supervision of labor law

Firing workers is also a problem.

Axel Dumas, the chief executive of Hermes, said that an average of 16 hours per Hermes handbag was needed, and that each craftsman could only work 35 hours a week.

It may be difficult for Hermes to hire 250 above craftsmen this year, because training requires the original craftsmen to lay down their work to teach new employees. In 2016, Hermes had 7881 French local employees, accounting for about 60% of the total number of employees.

Rival France Luxury group LVMH flagship brand Louis Vuitton (Louis Weedon) has recently encountered the first strike in 15 years. Louis, France, and some French leather workers have been on strike, demanding that the company raise salary strikes. It is very rare for Louis Vuitton. The brand hired 370 craftsmen in France last year.

Last year, Hermes increased its production by 15% over the same period last year, and plans to increase 8% in 2017. The brand needs to increase production to meet the demand for handbags, silk neckties and other goods in Asian markets. According to the first quarter earnings report released by the group, total sales increased by 11.2% compared with the previous year (excluding the impact of the exchange rate), of which the Asian market except Japan was outstanding, an increase of 16% over the same period last year, while the sales volume of the French local market as a production base increased by only 4% compared with the same period last year, less than half the analyst's forecast.

This quarter, Hermes Compared with the same period last year, the performance has been significantly improved, more generally speaking, thanks to the recovery of the entire luxury industry, and the demand for luxury goods has been steadily increasing. This is a little bit of the recent strong data released by two other luxury group LVMH and Kering.

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