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Hermes Final Presentation
Transcript of Hermes Final Presentation
Thierry Hermès gave rich Parisians his and his family’s services/expertise in Horse Harnessing.
Charles-Émile Hermès took charge & moved the store to 24 Rue Du Faubourg Saint Honoré. Carried on catering to Wealthy elite.
Development of uphostelry
Son Émile-Maurice Hermès took leadership.
Mutation of transport-Emile Hermès decided to develop a new range of products: Leather goods and luggage
Product Line expansion. Added an accessory collection & the first leather handbags were introduced.
Buzz in the U.S and opened 2 more shops in French resorts. - The Hermès brand was catching.
Hermes clustered to Paris where it first showcased its couture collection.
Hermès style: jewelry, silverware, silk, scarves
leather Sac à dépêches and Hermès carrés (scarves) were introduced.
Entry into the US market by offering its products in a Neiman Marcus department store in New York; however, it later withdrew.
Close geographical collaboration - Universal Geneve, first design of timepieces.
Continued product line expansion, Hermès silk tie & the first Eau d'Hermès (Fragrance).
Son’s of Emile Hermès take the reins
Robert Dumas became head of the company.
Visual identity was built
Photo of Grace Kelly, Princess of Monaco, seen carrying the Sac à dépêches bag, Renamed the "Kelly" bag.
Jean-Louis Dumas became chairman. Additions to silk, leather goods and RTW, new product groups to those made with its traditional techniques. Designers Eric Bergére and Bernard Sanz revamped the apparel collection.
The watch subsidiary, La Montre Hermès, was established in Bienne, Switzerland
1982 to 1989:
Sales grew from 82 million to 446.4 million Euros
Amount of stores reach 225, both privately owned and franchised.
Public on the Paris stock exchange.
Decrease franchises from 250 to 200 & increased company-owned stores from 60 to 100, Better control sales of its products.
Conscious effort to strengthen its presence in the U.S,
Opened the largest freestanding store in Japan, 97 million euros
Jean-Paul Gaultier became head designer.
Jean-Louis retired. Patrick Thomas replaced him (First non-Hermès to head the company).
Independant French company
We produce and manufacture all accessories in France by craftsmen with traditional know-how. Birkin and Kelly handbag are the most representative of the Hermes’s success
International Development Director
Marketing director of leather
Johnny A. Velasquèz
Finance Director of Italy
The flagship stores endorse
the DNA & Codes of Hermès.
It sells the Hermès experience
to the client. The price to pay is
the high rental expenses, high
cost of personnel and high
The local store has lower rental and personnel expenses due to its' smaller dimensions. Less exclusive. The location of the store is not the best in town.
The least favorite for Hermès.
No space to deliver the experience.
Very poor exclusivity. It will affect
negatively the brand image of Hermès. Costs are extremely limited.
Focusing on customer exclusivity and lifestyle
Understanding where the market is going (Asia and Middle East )
No longer traditional buying to “show off but “way of life”
Grab market share by joint venture with interior designer
Way of Life
HK & SAO
USA & Japan
Evolution of Luxury
The concept of luxury is evolving continuously.
The 'First Movers' Europe, USA & Japan are leading the transformation.
The rest of the world bandwagons.
Diluting the brand
Entering into new business and industry
Supply of leather
Lower frequency of purchasing
Reduce risk and costs of launching new products
Increase sales/ profit and market share
Increase loyal customers
Enhance and facilitate brand awareness & acquire high net worth individuals
Increase the consumer perceived value of brand and daily exposure to brand
Strengthen the brand’s core and exploit is full potential
Emphasizing uniqueness and authenticity
Diversification of portfolio
Why Hermès Unique
Hermès Voyage d’Hermès Gift Set
Hermès Carmencita Large Model Page Markers
Hermès Matte Crocodile Birkin Bag
Hermès Red Crocodile Birkin Bag
Jean-Louis Deniot has lived and breathed interior design from an early age. His natural aptitude for working textures and patterns was perfected during his education in Paris and, after graduating in 2000, the visionary set up his interior design firm that year. In the same way a fashion designer creates haute couture, Deniot tailors each of his projects to his clients’s needs, using his travel for inspiration.
From designing out of this world residential properties in London and India to restoring the Chateau Latour winery for French businessman and husband of Salma Hayek, Francios Pinault, Deniot has a great record of success. Some other clients include Calvin Klein and Marc Jacobs.