The slump in the luxury industry has not made the French traditional handicraft brand Hermes (Hermes) frown. On the contrary, Hermes has not been beset by it. The French brand has its own unique knack. The trick is “rare”: a feature that makes other high-end brands fall to the ground.
The former saddle maker is growing fast. In the first half of this year, the sales of Hermes were 2 billion 300 million euros, 3.5 times as much as ten years ago, and the current growth rate was also above the brand’s annual growth target (8%). Rival LVMH and Gucci parent company Kering grew by 6% and 3.5% in the first half of this year.
Unlike the two biggest luxury goods makers, Hermes has taken off the load of non luxury goods or multiple brands and has been traveling light. At the same time, the brand has been tightening supply, resulting in the market demand is not fully satisfied. Some consumers want to buy the most prestigious Birkin bag in Hermes bags (worth 10 thousand pounds), which may take several years.