Stories
Hermès – Strategy Insights Of Luxury Brand
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.
A decade ago, the success of a startup was measured largely by its ability to raise capital. Today, a different metric is gaining importance: the ability to generate meaningful exits for investors. Large stake sales by early backers are becoming increasingly common, not because growth opportunities have disappeared, but because India’s startup ecosystem is entering a more mature phase where capital is expected to complete its full cycle from investment to returns.
This evolution is particularly significant for consumer brands that have successfully blended technology, retail, and strong brand-building. Companies that were once viewed as high-risk startup bets are now attracting institutional investors capable of absorbing large transactions. Such developments indicate that these businesses are no longer being valued solely on future potential; they are increasingly being assessed on operational performance, market leadership, and long-term profitability. In many ways, investor exits are becoming a validation of a company’s ability to create lasting enterprise value.
The broader implication extends beyond a single company or investor. Successful exits encourage more global capital to enter India’s startup ecosystem because they demonstrate that liquidity opportunities exist at scale. As more venture-backed companies approach public listings, secondary transactions, or strategic investments, the focus of founders and investors alike may shift from chasing headline valuations to building durable businesses. The next chapter of India’s startup journey will likely be defined not just by the creation of unicorns, but by the creation of companies capable of delivering sustained returns to all stakeholders.
Apple has unveiled the new MacBook Air with M5 chip, starting at $999 for 13-inch and $1,299 for 15-inch models. The MacBook Air M5 boasts a 2nm M5 chip with 12-core CPU, 18-core GPU, and 50 TOPS Neural Engine for seamless AI tasks like real-time translation and 8K editing. Up to 22 hours of battery life, Thunderbolt 5, and Wi-Fi 7 make it the ultimate ultraportable, now 10% thinner at 0.44 inches with fanless cooling.
Key MacBook Air M5 features include Liquid Retina XDR display (500 nits, nano-texture option), 12MP Center Stage camera, and six-speaker Spatial Audio. Colors like new Sky Blue join Midnight and Starlight. Pre-orders are live today, with macOS Sequoia 15.4 enhancing Apple Intelligence and iPhone Continuity for students, pros, and remote workers.
Why buy MacBook Air M5 now? It outpaces Snapdragon X Elite rivals with ecosystem magic and future-proof performance, eyeing top 2026 laptop sales. CEO Tim Cook calls it “more capable than ever.” Visit apple.com for M5 MacBook deals and specs.
Delhi NCR-based gaming startup Zupee has acquired Mumbai-based microdrama platform Vertical TV in a deal valued under INR 40 Cr. This move strengthens Zupee Studio, its short-video arm launched in September 2025, by integrating Vertical TV’s expertise in bite-sized dramas like romance and thrillers.
Facing challenges from India’s 2025 real-money gaming ban, Zupee valued at $1 Bn after raising $120 Mn has pivoted to non-gaming content, including recent layoffs of 40% of its workforce. The acquisition builds on its November 2025 purchase of Australian AI firm Nucanon for interactive storytelling, targeting its 200 Mn+ users with engaging, mobile-first formats.
This deal underscores the rising microdrama trend in India, helping Zupee diversify amid regulatory pressures and compete in the short-video space dominated by quick, shareable content for on-the-go audiences.
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