Stories
Hermès – Strategy Insights Of Luxury Brand
Published
5 years agoon
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.
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Emerging Startup Stories
WhatsApp’s Bharat Yatra: Empowering Small Businesses Across India!
Published
3 days agoon
December 18, 2024WhatsApp has embarked on a nationwide initiative called Bharat Yatra to empower small and medium businesses (SMBs) across India. This innovative mobile bus tour aims to provide hands-on training and support to help businesses leverage the power of digital technology, particularly through the WhatsApp Business app.
Key Focus Areas
- Digital Skill Enhancement: The Bharat Yatra program is designed to equip SMBs with essential digital skills necessary to thrive in the digital age. This includes training on how to effectively navigate the digital landscape and utilize online tools for business growth.
- WhatsApp Business App Training: Participants will learn how to use the WhatsApp Business app to connect with customers, share product catalogs, and manage inquiries efficiently. This training is crucial for businesses looking to enhance customer engagement and streamline communication.
- Latest Features and Updates: The tour will highlight the latest features of WhatsApp Business, including Meta Verified, which enhances business credibility, and custom messaging options that allow for personalized communication with customers.
- AI Integration: Businesses will also be introduced to the potential of Meta AI integration, which can streamline customer engagement processes and boost overall productivity. This aspect of the training aims to familiarize SMBs with advanced tools that can enhance their operational efficiency.
Tour Details
The Bharat Yatra will kick off its journey in Delhi-NCR, visiting bustling markets such as Laxmi Nagar, Rajouri Garden, and Nehru Place. Over the coming months, the bus will cover key business hubs in cities like Gurugram, Noida, Agra, Lucknow, Indore, Ahmedabad, and others. Each stop will feature interactive demos, expert guidance, and personalized support tailored to the unique needs of local businesses.
Impact on the Indian Economy
By engaging directly with businesses across major cities, WhatsApp aims to create a tangible impact on the Indian economy. The initiative aligns with WhatsApp’s broader goal of supporting small businesses and fostering digital growth in India. According to Ravi Garg, Director of Business Messaging at Meta India, “Small businesses are the backbone of India’s economy, and with the right digital tools, they have the power to supercharge the country’s digital transformation.”
Conclusion
As the Bharat Yatra continues its journey across India, it is expected to empower thousands of SMBs, contributing significantly to India’s economic development and digital transformation. By providing essential training and resources, WhatsApp is not only enhancing business capabilities but also reinforcing its commitment to fostering a robust small business ecosystem in India. This initiative builds on previous efforts such as WhatsApp Se Vyapaar, which aimed to upskill millions of traders, further demonstrating WhatsApp’s dedication to supporting India’s entrepreneurial landscape.
Entrepreneur Stories
OpenAI Expands ChatGPT Advanced Voice Mode to Web Users!
Published
4 weeks agoon
November 21, 2024OpenAI has introduced its Advanced Voice mode for ChatGPT on the web, extending the feature that was previously available only on iOS and Android apps. This announcement, made via a post on X (formerly Twitter), signifies a significant expansion of the conversational capabilities of ChatGPT to desktop users.
Enhancing User Interaction
The Advanced Voice mode aims to make interactions with ChatGPT more natural and conversational. The feature is being rolled out this week to subscribers of ChatGPT Plus, Enterprise, Teams, and Edu. Free-tier users will have to wait a few weeks to access the feature as part of a limited monthly preview.
How to Use Advanced Voice Mode on the Web
Activating the voice feature on the web is straightforward. Users simply need to click the Voice icon in the prompt window’s bottom-right corner and grant their browser permission to access their microphone. Once activated, a blue orb at the center of the screen indicates that voice chat is active.
The voice feature offers nine output voices with unique tones and personalities. OpenAI has introduced five new voices—Arbor, Maple, Sol, Spruce, and Vale—in addition to existing options like Breeze, Juniper, Cove, and Ember. These voices are designed to create a lifelike and engaging dialogue experience, each with distinct emotional tones and the ability to emphasize certain words for more natural interaction.
For instance:
- Arbor is described as “easygoing and versatile.”
- Ember conveys a “confident and optimistic” tone.
This nature-inspired naming reflects OpenAI’s focus on making AI interactions feel smoother and more relatable.
Usage Limits for Subscribers
While paying users gain early access to this feature, there are daily usage limits in place. Plus and Teams subscribers will receive notifications when they have 15 minutes of voice usage left for the day. Free users will receive limited monthly access to test the feature.
Kevin Weil, OpenAI’s Chief Product Officer, noted that these measures are necessary to manage resource availability as the feature scales up.
A Controversial Missing Voice
One notable absence is the previously available “Sky” voice, which was removed following legal and ethical controversies. Critics alleged that Sky bore a striking resemblance to Hollywood actress Scarlett Johansson’s voice, leading to backlash and a lawsuit against OpenAI. Johansson’s legal representatives claimed that the company lacked permission to use a voice that closely mimicked her own. In response, OpenAI suspended this feature in May 2024.
OpenAI stated that any resemblance was unintentional, but internal comments referencing the film Her, where Johansson voiced an AI assistant, added fuel to the controversy. The company has since refrained from including voices that could lead to similar disputes.
What’s Next for Advanced Voice Mode
With this introduction of Advanced Voice mode on the web, OpenAI is taking another step toward making AI interactions feel more personal and accessible. The feature promises to transform user experiences by combining natural dialogue capabilities with versatile voice options.
As the rollout continues, OpenAI is expected to refine this feature further, eventually extending it to all ChatGPT users while addressing concerns around voice replication and ethical usage.
Future Enhancements
OpenAI plans ongoing improvements based on user feedback and technological advancements. The goal is not only to enhance user experience but also to ensure compliance with legal standards regarding voice replication.
In summary, with Advanced Voice mode now available on web platforms, OpenAI reinforces its commitment to creating engaging AI experiences that cater to diverse user preferences while navigating complex ethical landscapes associated with voice technology.
Entrepreneur Stories
Zepto Secures $300 Million, Doubling Its Funding Target Amid Quick Commerce Battle!
Published
1 month agoon
November 17, 2024Quick commerce startup Zepto is gearing up to raise $300 million from domestic investors, doubling its initial funding target, according to a report by The Economic Times. This latest funding round underscores Zepto’s growing influence in the competitive quick commerce sector, where it competes against Zomato’s Blinkit and Swiggy’s Instamart.
Overwhelming Investor Interest
The funding round has reportedly been oversubscribed, attracting prominent Indian family offices and ultra-high net worth individuals (ultra-HNIs). This reflects strong confidence in the sector and Zepto’s potential. The company has previously raised $1 billion and continues to position itself as a leading player in the booming quick commerce market.
Previous Funding Rounds
Zepto’s recent fundraising efforts have been impressive. In June, the company raised $665 million at a valuation of $3.6 billion, marking one of the largest financing rounds in the quick commerce space this year. The Series F round was co-led by existing investors such as StepStone Group, Nexus Venture Partners, and Glade Brook Capital, with new investors like Avenir Growth and Lightspeed Venture Partners joining in.
Increased Indian Ownership
Following this round, Indian ownership in Zepto is expected to surge to approximately 35%, which includes stakes held by its founders, Aadit Palicha and Kaivalya Vohra. Sources revealed that the founders have been granted an additional 1% equity for achieving key performance milestones.
Strategic Focus on Domestic Investors
Zepto’s strategy emphasizes building a strong base of Indian investors ahead of its anticipated IPO. The company aims to deepen relationships with high-quality domestic investors as part of its preparations for going public.
Celebrity and Corporate Participation
The funding round has attracted high-profile backers, including Bollywood legend Amitabh Bachchan and cricket icon Sachin Tendulkar, highlighting the optimism surrounding Zepto’s growth. Prominent investors such as the Ravi Jaipuria-led RJ Corp, Harsh Goenka’s RPG group, and the Motilal Oswal group have also committed significant funds. Notably, Motilal Oswal reportedly increased its commitment from $40 million to over $60 million.
Diverse Investor Base
Additionally, participation from other notable figures like Ranjan Pai of the Manipal Group and Ramesh and Rajeev Juneja of Mankind Pharma further solidifies Zepto’s support from domestic heavyweights.
Valuation and Stake Sale
Zepto is reportedly selling a 6% stake at a valuation of $5 billion, reflecting its growing dominance in the quick commerce space. A source familiar with the development stated, “The round was oversubscribed, prompting Zepto to increase the total offering.”
Focus on Growth and Innovation
With 1 million daily orders, Zepto has emerged as the only large private player in the quick commerce sector, distinguishing itself from publicly listed competitors like Swiggy and Blinkit. The company plans to expand its operations significantly over the next year by opening new dark stores—mini warehouses for rapid delivery—in various cities across India.
Expansion Plans
Zepto aims to increase its number of dark stores from around 350 to 700 by March 2025. This expansion is crucial as it seeks to enhance delivery speed and efficiency while meeting rising consumer demand for quick commerce solutions.
A Bright Future Ahead
Zepto’s ability to attract significant domestic investment and its strategic focus on Indian ownership signal its readiness to scale further in the competitive quick commerce market. This funding round positions Zepto for robust growth as it prepares for its next big milestone: going public.
Market Dynamics
As competition intensifies in India’s quick commerce sector, Zepto’s aggressive expansion strategy and strong financial backing will be critical in maintaining its market leadership against rivals like Zomato’s Blinkit and Swiggy’s Instamart.
Conclusion
With a successful track record of fundraising and an ambitious growth strategy, Zepto is well-positioned to capitalize on the burgeoning demand for quick commerce services in India. The recent funding initiatives not only reflect investor confidence but also underscore Zepto’s commitment to enhancing customer experience through innovation and operational excellence.
As it gears up for an IPO, Zepto’s focus on building a robust foundation with domestic investors will play a pivotal role in its long-term success in the rapidly evolving e-commerce landscape.
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