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Hermès – Strategy Insights Of Luxury Brand

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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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Entrepreneur Stories

PixelSky Capital Unveils INR 400 Crore Secondaries Fund

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Bengaluru-based investment bank IndigoEdge, in partnership with entrepreneur Hitesh Ahuja, has launched PixelSky Capital, a secondaries fund targeting INR 400 crore. The fund will invest in eight late-stage tech and consumer companies expected to go public within three to four years, with cheque sizes of INR 40–50 crore each. PixelSky has already invested in beauty retailer Purplle and aims to close a second deal by June 2025.

 

The fund focuses on secondary transactions, allowing existing shareholders to sell stakes to new investors, providing liquidity ahead of IPOs. Founders have committed INR 10–15 crore, with additional capital coming from domestic family offices and startup founders. Final close is expected by March 2026.

 

Led by Hitesh Ahuja, who sold his foodtech startup Yumlane in 2023, and IndigoEdge cofounder Zerin Rahiman, PixelSky marks IndigoEdge’s expansion from advisory and proprietary investments into fund management. The firm has facilitated over 150 transactions worth around $3 billion and invested INR 25–30 crore as a limited partner in multiple VC funds. PixelSky is currently evaluating about 20 companies before finalizing its portfolio

 

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Meta’s Upcoming AR Glasses: A Sneak Peek

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Meta is developing its first true AR glasses, set to launch in 2027. Before the public release, employees will test the device starting in 2024. The company is also releasing new generations of Ray-Ban smart glasses in 2023 and 2025 with enhanced features like a “viewfinder” display.

Specifications and Features

The AR glasses are expected to feature OLED displays and Qualcomm Snapdragon chipsets, offering sophisticated AR and AI capabilities. They will enable users to interact with virtual objects and project high-quality holograms of avatars onto the real world.

Design and Competition

Meta aims for a sleek design, potentially building on its Ray-Ban partnerships. The AR glasses market is competitive, with Apple and Google also investing heavily. Meta seeks to make its AR glasses a game-changer by offering a unique user experience.

Future Plans

In addition to AR glasses, Meta is expanding its VR offerings with new headsets like the Quest 3 and exploring other wearable technologies. The company is focused on reducing costs to make the AR glasses more consumer-friendly by launch.

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From Digital Wallet to Stock Market: MobiKwik Expands Its Horizons with New Brokerage Venture

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From Digital Wallet to Stock Market: MobiKwik Expands Its Horizons with New Brokerage Venture

MobiKwik is venturing into the stock broking sector with the launch of its subsidiary, MobiKwik Securities Broking Private Limited (MSBPL), following approval from the Ministry of Corporate Affairs on March 3, 2025. This move aims to diversify MobiKwik’s offerings beyond its core digital payments services and compete with established players like Zerodha and Groww.

MSBPL will provide a range of brokerage services, including trading in shares, securities, commodities, and derivatives. The subsidiary has an initial capital of Rs 1 lakh, with plans for an additional Rs 2 crore investment to support its operations.

As MobiKwik enters this competitive market, it brings a substantial user base of 172 million and a merchant network of 5 million. Despite recent financial challenges, including a reported loss of Rs 55.2 crore in Q3 FY25, the company aims to leverage its existing infrastructure and user engagement to capture a share of the growing investment technology market, projected to reach $74 billion by 2030.

This strategic expansion aligns with MobiKwik’s broader goals of enhancing its financial service

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