Hermès, a French fashion luxury goods manufacturer, has been ranked consistently as world’s most valuable luxury brand and one of the best global brands. Hermès, which is also known as Hermès International or Hermès Paris, has maintained an iconic status in the luxury market with products ranging from leather goods, perfume and lifestyle accessories to watches.
In 2018, the Company’s net profit rose to 1.41 billion euros, a 16 % increase from 1.22 billion euros in 2017. Fifty percent of the Company’s profits came from the brand’s leather goods and saddlery products. With competitors like LVMH and Richemont in the luxury business, Hermès still enjoys the top position in the market because of its exquisite craftsmanship and eye for detail through the entire manufacturing process.
History
Founded in the year 1837 by Thierry Hermès, the Company’s initial purpose was to build saddles, bridles and other leather riding gear for European nobility. After taking over the Company from his father, Charles-Émile moved the Company to 24 Rue Du Faubourg Saint-Honore in Paris in the 20th century. This remains the global headquarters of Hermès till date.
Through the generations, the Company slowly expanded from selling leather saddles to other products. The Company started selling “Haut à Courroies” bags in 1900, which were used by riders to carry saddles in it. The Company introduced its first leather handbag in 1922, a product which has played a significant role in increasing the popularity of Hermès in the global market.
Strategy
Hermès has a unique strategy in place to ensure it retains its position on top in the market. Hermès is very strict about the traditional way of manufacturing and rejects any form of mass production. Every product produced by the Company is handmade by craftsmen who are trained for a period of two to three years. According to the Company, every product is made from beginning to end by a single person to preserve the product quality and uniqueness.
Jean Louis Dumas, the chairman of Hermès from 1978 to 2006, told Vanity Fair, “We don’t have a policy of image; we have a policy of product.” Hermès has always claimed, it values creativity more than anything and to this day, maintains a deep connection to its French identity. Most of Hermès’ products are manufactured in France and 60 % of the Company’s workshops are located in different parts of the Country.
Another strategy the Company uses is giving a sense of exclusivity. In order to do so, Hermès uses the “Limited Edition” strategy and releases only a handful of products at a time. The Birkin bag, created by Hermès for Jane Birkin in 1982, remains the most popular product by the Company. One of the reasons behind this is the brand’s strategy to make the customer wait for a few months or a year after making an order. The cost of each Birkin bag ranges from 7,000 USD to 300,000 USD. Every Birkin bag is made of crocodile skin and has exquisite handiwork by a single craftsman.
The brand continuously collaborates with other ultra luxury brands to maintain its reputation in the market. Hermès has collaborated with luxury designers like John Lobb, Saint Louis as well as tech mogul Apple. Each collaboration brought the Company media attention and skyrocketed its brand value and sales.
Keeping it in the family
For the last 180 years, since the founding of Hermès, it has been run exclusively by the Hermès family. Currently, the brand is managed by Axel Dumas (6th generation,) who is the sole manager of the Company. The Company maintains its independence and uniqueness by keeping the control within the family.
Even though Hermès is 180 years old, it still maintains an ultra luxury status because of its ability to evolve by maintaining a perfect balance between tradition and modernity. With its clever strategy of exclusivity, controlled marketing and limited edition, Hermès is able to engage potential and wealthy clients, which ensures continuous profits and growth of the Company.
Info Edge (India) Ltd shareholders have overwhelmingly approved an investment of up to ₹1,000 crore in the company’s third venture capital fund, Info Edge Ventures Fund III. The proposal received near-unanimous backing, with 99.9995% of valid votes in favor out of 1,274 participants.
Smartweb Internet Services Ltd, a wholly owned Info Edge subsidiary, will act as sponsor and investment manager for the new fund. This move strengthens Info Edge’s commitment to backing early-stage startups and expanding its footprint in India’s venture capital landscape.
Info Edge has a strong track record as an early investor in leading Indian startups like Zomato and PB Fintech, with combined holdings in these firms valued at ₹31,500 crore ($3.7 billion) as of March 31, 2025.
MeitY Startup Hub (MSH), under the Ministry of Electronics and Information Technology, has partnered with fintech leader Razorpay to support the growth of deeptech and emerging tech startups across India, with a special focus on those in Tier II and III cities. Through this collaboration, early-stage startups will gain access to Razorpay’s fintech infrastructure, mentorship, and resources via the Razorpay Rize program.
Startups in areas like AI, blockchain, robotics, and IoT will benefit from streamlined company incorporation support, expert mentorship, product credits, and guidance for applying to global accelerators such as Y Combinator. Selected founders will also join the exclusive Rize Community, connecting with peer networks and attending masterclasses.
MSH CEO Panneerselvam Madanagopal emphasized that this partnership will help founders scale faster by providing vital support in mentorship, capital access, and digital infrastructure. As India’s startup ecosystem surpasses 159,000 DPIIT-recognised startups, this initiative aims to give deeptech entrepreneurs the tools and networks needed to innovate for India and expand globally.
Info Edge, the parent of Naukri.com, has achieved a 36% gross internal rate of return (IRR) on its startup investments since 2007, turning a total investment of INR 3,959 crore across 111 startups into a portfolio now valued at INR 36,855 crore-a nearly 9X gain. Early bets on Zomato and Policybazaar have been especially lucrative, with holdings in these two companies alone worth INR 31,500 crore as of March 2025.
The company’s investment strategy spans multiple vehicles, including the SEBI-registered Info Edge Venture Fund (IEVF), Info Edge Capital, and Capital 2B, with a combined fund corpus of INR 3,423 crore and Info Edge committing INR 1,614 crore. Early-stage investments now contribute 30-40% of the company’s overall value.
Info Edge’s Alternative Investment Fund (AIF) investments have yielded an IRR of 18.7%. Many portfolio companies, such as TrueMeds, Geniemode, Attentive.ai, and InPrime, have attracted follow-on funding from major investors like Accel, Peak XV Partners, and Tiger Global. Notably, BlueStone, the largest investment of Info Edge Capital, has filed for an IPO after securing investments from Prosus, Peak XV, and Steadview Capital. Founder Sanjeev Bikhchandani emphasized the company’s focus on strong governance and financial controls, with a preference for value realization through public listings or strategic exits.