Hermes Is Trying To Reverse The Layout Of The Electricity Supplier Market.

along with

Revival of the industry, Chinese consumers re purchase platinum packages, but French luxury brands

Performance growth is still lagging behind competitors.

And Kai Yun group.

According to the world clothing and shoe net, Hermes group announced its third quarter results today. Its sales rose 11.3% to 1 billion 337 million euros in the three months to September 30th, and sales rose 10% to 4 billion 50 million euros in the first nine months.

Sales of brands in all parts of the world grew.

By Sector:

Last year, the biggest contribution to Hermes's leather goods and harness sector was slower than the previous quarter. Sales grew by 9.3% to 653 million euros compared with the same period last year. If compared with the same period last year, the growth rate slowed sharply, compared with an increase of 16.3% over the same period last year.

The clothing and fashion accessories department continued to grow steadily, with sales up 11.9% to 303 million euros.

Sales in the silk sector rose by 16.8% to 116 million euros.

The sales of the perfume Department benefited from the new female perfume Twilly, which recorded a significant increase of 23.1% to 86 million 100 thousand euros.

By Region:

Sales in the French region increased 11.8% to 189 million euros compared with the same period last year.

Sales in other parts of Europe increased by 14.1% to 269 million euros.

Sales in Japan rose 6.7% to 166 million euros compared with the same period last year.

Asia Pacific sales, including greater China, grew by 12.4% to 464 million euros over the same period last year.

US regional sales rose 8.7% to 227 million euros compared to the same period last year.

Sales in other parts of the world increased by 16.5% to 21 million 200 thousand euros.

It can be seen that the Asia Pacific region has become the largest market in Hermes.

Axel Dumas, chief executive of Hermes, said in an interview earlier that as Chinese consumers re purchase luxury goods, the sales growth rate of brands in the mainland of China is accelerating, showing a good momentum.

In addition to the northern Guangzhou and other tier cities, Hermes is gradually infiltrating into Hangzhou, Chengdu and other quasi tier cities. The brand will open 1 new flagship stores in Changsha this year.

It is reported that in order to meet the growing demand of consumers, Hermes plans to add two leather goods factories before 2020. Its location is located in Montereau-Fault-Yonne, Bordeaux and Paris, southwest of France. It is estimated that each factory will employ 250 leather workmen.

Axel Dumas has previously said that the average handmade time of each bag is 16 hours, that is, according to the stipulation that French workers can not exceed 35 hours per week, most craftsmen can only produce two bags per week.

RBC analyst Rogerio Fujimori pointed out that Hermes's performance in the third quarter remained stable in a report after Hermes released its performance data.

However, compared with the performance of rival LVMH group and Gucci parent company Kai Yun group, Hermes is still lagging behind.

According to the data, in the three months ended September 30th, the sales of fashion leather goods department of LVMH group increased by 13% over the same period last year. Sales in the first nine months rose 21% to 10 billion 838 million euros compared with the same period last year. In the third quarter of Kai Yun group, the income of the luxury goods department in the same quarter increased by 32.3% to 2 billion 678 million euros, and the sales of core brand Gucci increased by 49.4% to 1 billion 550 million euros, which once again exceeded Hermes.

Some analysts pointed out that the younger and digitalization of Hermes is still too conservative in the presence of LVMH and Kai Yun group.

With the gradual pfer of consumer habits to the online market, luxury brands should step out of the trial stage and speed up the layout of the electricity supplier market.

Aware of this, Hermes is working to reverse the situation.

In October 23rd, Hermes began selling water in WeChat for the first time in China, announcing the opening of WeChat Limited shop in WeChat public number, and selling Hermes and Apple cooperative smart watch Apple Watch Herm s Series 3.

A total of 6 styles are available for consumers, priced at around 10000 yuan, and the default payment is WeChat payment.

In addition, the new website of Hermes has been trial run in Canada and the United States, and the European region is expected to be launched next year.

The price of Hermes rose 0.6% to 444.85 euros per share after the earnings announcement, and its stock price has increased by 13% since the beginning of this year, with a market value of about 47 billion euros.

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