Products Are In Short Supply, And Hermes Will Produce More Scarves And Handbags.

The Hermes group plans to expand its textile centre in Pierre-B e nite, France, to recruit more than 1/4 of its staff and expand its capacity to meet the growing demand of Asian consumers for silk and textiles.

The Pierre-B e nite textile center is affiliated with Holding Textile Herm s, specializing in printing and dyeing and finishing fabrics.

In the next three years, the centre will add 120 employees and expand the office space on the basis of the original 460 employees.

At present, there are 860 employees in Hermes textile company.

In 2018, sales of the silk and textile department of the Hermes group increased by 3.2% over the same period last year. This result is not very bright, because sales of handbags, including Birkin and Kelly, increased by 9.4% over the same period last year.

In this way, Hermes's latest initiatives show that the group is very optimistic about the potential for growth of silk and textiles in the future.

Silk scarves have always been the star products of Hermes. In recent years, Hermes has been trying to create more profits for scarf products.

In 2018, Hermes opened a scarf flash store in Sanlitun, Beijing, so that more consumers could understand Hermes's efforts in the integration of music, art and fashion.

Before that, the Hermes scarf flash shop also opened to cities like Madrid, New York and Seoul.

Silk and textiles are the latest expansion departments of Hermes group, and the best selling leather products have already begun to expand their capacity.

In April 5th, Hermes has just announced that it has opened a new factory with an area of 5800 square meters in the eastern French city of Mulhouse.

This is the sixteenth leather workshop of the group. There will be 260 trained leather experts making handbags here.

Before 2020, Hermes will also open two new leather factories, which will employ more than 800 employees.

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Behind the opening of Hermes's factory, its performance has gone all the way.

Hermes latest performance report shows that in 2018, group net profit rose 15% to 1 billion 400 million euros, and the group's revenue reached 5 billion 966 million euros, approaching 6 billion euro mark.

Hermes is not the only luxury group that is determined to expand its capacity.

LVMH Group Chairman and CEO Bernard Arnault said in January's annual summary that the growth of Louis Vuitton was constrained by productivity and announced that 4 Louis Vuitton workshops will be opened in 2019, of which 3 are in France and 1 in Texas.

LVMH group spokesman predicted that Louis Vuitton's new plant will create 1000 new jobs for France.

In addition, LVMH group announced in February that it will open second factories in Italy with the fashion glasses group Marcolin, and will produce more than 4 million 500 thousand pairs of glasses per year for LVMH group.

More artisans are needed to make more products, so Hermes group and LVMH group have announced additional training courses in the group to train more experienced craftsmen.

Hermes and LVMH group are expanding their capacity to cope with the shortage of products.

Although many industry insiders began to worry about the possible impact of China's economic slowdown on the luxury sector in the second half of 2018, Dumas said it did not see a slowdown in consumer demand.

In addition, CEO Daniel Langer, a luxury brand strategy company, told the Japanese media that Sino US trade friction is a golden opportunity for the luxury brand, while the luxury market is actually better able to resist the recession than the non luxury market.

Langer believes that in the period of economic contraction, the lower income consumers are more affected than the well-to-do consumers, and luxury consumers believe that luxury goods are the look of individuality, and that they will reduce consumption until they are forced to do so.

"Despite the fact that some brands have taken the slowdown as the reason for their weakness in recent quarterly results, sales of Louis Vuitton, Gucci and other brands in China are still strong, so only vulnerable brands will be hit when consumers become picky.

If a luxury brand has a precise brand positioning, digitalization and close ties with the young and young target groups, it will be a good opportunity to catch up with competitors. "

Langer said.