Hermès

Summary

Hermès, founded in 1837 by Thierry Hermès, is a prestigious French luxury brand renowned for its exceptional craftsmanship, timeless elegance, and high-quality products. Initially specialising in equestrian harnesses and saddles, the luxury brand expanded its repertoire over the decades to include leather goods, silk scarves, ready-to-wear, fashion accessories, and perfumes. Hermès is synonymous with iconic pieces like the Birkin and Kelly bags, which symbolise luxury and exclusivity due to their meticulous handcrafted silhouettes and limited availability.

Upholding a heritage of artistry and tradition, the Hermès continues to combine innovation with classic style, making it a global luxury icon today. Per the official website: ‘Since 1837, generation after generation, Hermès has followed a dual thread – on the one hand the painstaking work of the craftsman in his workshop, and on the other the lifestyles of its customers. Carried by an enduring spirit of freedom and creativity, Hermès remains highly sensitive and attentive to the changing nature and needs of society.’

History

Hermès is a French luxury design house that was established in 1837 by harness-maker Thierry Hermès. Initially, the company was a harness workshop in rue Basse-du-Rempart catering to European noblemen. From the beginning, he understood and anticipated his customers’ expectations, their desire for simplicity and lightness, and with time, the harnesses were made with discreet finesse as well as endurance in all conditions: a technical achievement that was recognized with an award at the Universal Exhibition of 1867.

Charles-Emile Hermès, Thierry Hermès’s son, took over the business in 1880 and moved the store to its current location at 24 Rue du Faubourg Saint-Honore. Harnesses and saddles were made to measure and t company’s reputation for the excellence spread throughout Europe. He then began focusing on international retail sales, serving the elite of Europe, Russia, North Africa, Asia, and the Americas.

In 1902, Charles-Emile retired, and his sons, Adolphe and Emile-Maurice, took over the business. Hermès offered a new product portfolio from saddlery and harnesses to leather goods. Per the official website: ‘Émile Hermès had been inspired by a very simple idea that decisively changed the course of the family business. During a trip to Canada, he was fascinated by the American “close-all” opening and closing system on the hood of a military car. In 1922, he obtained the exclusive rights to this system, known today as the zip or zipper; and it came to be used on many of the house’s bags.’

Under his leadership, the company opened up to new métiers. In 1925, the first men’s ready-to-wear garment, a golf jacket, was created. To complement their customers’ looks, Hermès quickly introduced jewellery in 1927, followed by watches and sandals in 1928. In the early 1950s, Hermès began using its iconic caliche logo and orange boxes. The story behind the addition of ties to the product portfolio is interesting. In Cannes, a number of gentlemen – having been refused entry to the casino – visited the neighbouring Hermès store in search of the requisite tie. This demand led the house to start producing silk ties, which became an essential element of the Hermès men’s wardrobe.

Robert Dumas Hermès took over the company in 1951. He was responsible for many of the luxury brand’s milestones, including the first silk scarf, the Kelly bag and the Chaîne d’ancre bracelet, which he was inspired to create while observing boats moored in Normandy. PS The famous Kelly bag was introduced in 1956 after a photograph of iconic actress Grace Kelly carrying the Sac a Depeches bag to hide her pregnant belly was featured in Life Magazine.

In 1967, French stylist Catherine Karolyi was entrusted with womenswear. Until 1980, she designed the women’s apparel and accessories, including the famous H buckle.In 1978, Jean Louis Dumas, a great-great-great-grandson of Thierry Hermès, became the head of the company and expanded the flagship store in Paris by purchasing the building next to it. The iconic Birkin bag was introduced in 1981, named after British actress Jane Birkin. It was the outcome of a chance encounter between Jean-Louis Dumas and the actress and singer Jane Birkin on a Paris to London flight which led to Jean-Louis Dumas designing her ideal bag. Elegant and voluminous, for evening or daytime, the Birkin bag was born.

Per the website: ‘ Jean-Louis, gradually revolutionised the house of Hermès. A visionary, curious about all things and all cultures, he diversified and projected the house onto the world map. Hermès embraced new métiers founded on unique know-how, such as watchmaking in 1978 – which operated under the name La Montre Hermès. In 1976, Hermès opened up to the art of shoe manufacturing with the bootmaker John Lobb; followed by the integration of Puiforcat silversmiths in 1993 and the Saint-Louis crystalworks in 1995.’

The leather workshops moved from 24 rue Faubourg Saint-Honoré to Pantin, just outside Paris. The architecture of the new site offered a bright and spacious workspace for the artisans. The site was extended in 2013 with the Cité des métiers, a major project encompassing several buildings linked by five themed gardens. Led by the architects RDAI, the operation received the Prix de l’Équerre silver award in 2014.

With Jean-Louis Dumas at the helm, Hermès expanded its presence across the world with the opening of several stores, each of which ingeniously combined the saddler’s identity with local culture. Among these international stores, several Maisons Hermès were inaugurated: on Madison Avenue in New York in 2000, in a building made of glass bricks designed by Renzo Piano in Ginza, Tokyo in 2001, and in Dosan Park, Seoul in 2006. Hermès also launched an e-commerce website in the United States in 2002, then another in France three years later.

In 2003, he was succeeded by Patrick Thomas. The company purchased 28 Rue Faubourg Saint-Honore in 2007 and expanded its flagship store in Paris once again. In 2012, Axel Dumas, a sixth-generation Hermès family member, became the Executive Chairman of the company and remains in the position today. Per the website, he ‘has strengthened the dynamic growth of the group with the inauguration of the fifth Maison Hermès in Shanghai in 2014 and the opening of many stores worldwide. In 2019, Hermès arrived in Poland, establishing its first store in Warsaw. Axel Dumas has also driven the implementation of the group’s digital strategy, which culminated in the redesign of the hermes.com website in 2017. He has taken Hermès into the new technological era, in keeping with the expectations of customers who are becoming more and more connected. Under his leadership, the group is stepping up the omnichannel dynamic within the organisation.’

In 2018, Hermès International was included in the CAC 40, a decision made by the Conseil Scientifique des Indices and announced by Euronext, which recognized the company’s success in both industry and stock market and demonstrated the strength of its entrepreneurial spirit, which has become a model for artisanal growth. The company’s independence is sustained by its family-based shareholding structure, which is committed to maintaining the majority of its production in France and preserving its expertise to serve creativity.

Two years later, in 2020, Hermès expanded its business by creating its sixteenth métier, Beauty, with the introduction of its first collection, Rouge Hermès, focused on the beauty of lips. This new line of products is a result of five years of research and development, in line with the company’s values of excellence and integration of its expertise, high standards, and aesthetics.

The following year Hermès continued its expansion by opening its nineteenth leather workshop in Guyenne and establishing the École Hermès des Savoir-Faire apprenticeship training school which provides professional training leading to a national diploma in leatherwork. The following year Hermès opened a new Maison Hermès at 706 Madison Avenue in New York’s Upper East Side, and is pursuing its long-term development strategy based on a sustainable artisanal model.

Today, the luxury fashion brand exhibits an upward growth trajectory. Hermès International reported its third-quarter financial results of 2024 showcasing continued growth fuelled by geographic diversity and sector strength. By end-September 2024, the group’s consolidated revenue reached €11.2 billion, reflecting a 14 percent increase at constant exchange rates and an 11 percent increase at current exchange rates compared to the same period in 2023. This robust performance demonstrates Hermès’ resilience through strategic investments and an unwavering focus on quality.

“In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty. Thanks to the singularity of its model, Hermès is continuing its recruitment and long-term investments,” said Axel Dumas, Executive Chairman of Hermès.

All the métiers, with the exception of the Watches métier, posted solid growth. Ready-to-wear and Accessories (+15%) confirmed its sustained momentum. Silk and Textiles(+2%) grew in the third quarter. Perfume and Beauty (+7%) achieved steady growth in the third quarter. The Watches métier (-6%) was penalised by a high comparison base due to exclusive events in the third quarter last year. The Other Hermès sectors (+17%), which include Jewellery and Home, pursued their strong growth, illustrating the singularity and creativity of the house.

Hermès’ third-quarter financial performance highlights its resilience and adaptability across global markets and diverse product categories. The luxury fashion brand’s forward-looking strategy focuses on sustained growth in key markets while deepening its commitment to sustainability. By combining artisanal expertise, a well-balanced geographic reach, and a strong dedication to ESG goals, Hermès is positioned to maintain robust growth and reinforce its leadership in the global luxury sector. In a complex economic and geopolitical context, the group continues its development thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.

Vision

At the core of Hermès’ vision is the aspiration to be the definitive name in luxury, driven not only by unparalleled creativity and expert craftsmanship but also by a steadfast commitment to preserving traditional techniques and sourcing only the highest-quality materials. Hermès holds the belief that luxury should embody authenticity and longevity, which is why each product is meticulously crafted to reflect the brand’s heritage and dedication to excellence. This vision goes beyond producing beautiful items; it is about creating pieces that carry the legacy of skilled artisanship and embody the brand’s timeless values, ultimately making Hermès a symbol of refinement and exclusivity worldwide.

Central to Hermès’ strategy in achieving this vision is a focus on customer-centric experiences that are as exceptional as the products themselves. Hermès recognizes that each interaction, whether in a boutique or online, is an opportunity to reinforce its dedication to quality and service. The brand carefully curates each physical and digital experience to ensure that customers feel a deep sense of connection with Hermès’ ethos. This approach reflects Hermès’ belief that every customer deserves a journey that transcends a mere transaction, turning each interaction into an unforgettable encounter with luxury.

To realize this vision, Hermès invests significantly in the craftsmanship of its artisans, the sophistication of its designs, and the excellence of its customer service. Each of these elements is critical in crafting the distinctive Hermès experience, where the artistry and quality of the products are matched by the level of care in service. This holistic commitment ensures that Hermès remains not only a luxury brand but a luxury experience, setting it apart in a competitive market. By prioritizing these standards, Hermès continues to build a brand that remains timeless, retaining both prestige and relevance in an ever-evolving world of luxury fashion.

Mission Statement

Hermès’ mission is deeply rooted in its commitment to excellence and the preservation of its heritage, aiming to create products that reflect an unwavering dedication to quality, craftsmanship, and artistic expression. Founded on the principles of authenticity and mastery, Hermès seeks to perpetuate the tradition of French artisan know-how and timeless design, positioning itself as more than just a luxury brand, but as a steward of craftsmanship that stands as a testament to elegance and durability. Each product, whether it be leather goods, fashion, or homewares, embodies the essence of the Hermès legacy, marked by meticulous attention to detail and the use of only the finest materials.

An essential part of Hermès’ mission is fostering an environment where artisans can thrive, ensuring that their skills are both celebrated and preserved for future generations. The brand invests in training and nurturing talent to maintain the highest standards of creativity and production. This dedication to its workforce not only upholds the quality of its products but also reinforces Hermès’ reputation as a brand that values and empowers its artisans. This approach highlights Hermès’ belief that the soul of its products is inseparable from the hands that craft them, making each piece not just a product but an expression of art and tradition.

Hermès’ mission extends to enhancing the customer experience by ensuring that every interaction, whether through their boutique stores or digital platforms, reflects the brand’s values of quality and exclusivity. This dedication to customer satisfaction aims to create lasting relationships built on trust, admiration, and a shared appreciation for fine craftsmanship. By maintaining this focus, Hermès positions itself as a leader in the luxury industry, balancing innovation with the timeless qualities that have defined the brand for nearly two centuries. Through these efforts, Hermès continues to fulfill its mission of being a paragon of luxury that honors tradition while embracing the future.

Products And Services

Hermès’ product line is a testament to its unparalleled dedication to craftsmanship, luxury, and timeless design. The brand’s portfolio includes a wide range of luxury items such as handbags, silk scarves, clothing, footwear, jewelry, and home goods, each meticulously crafted with precision and care. Hermès takes pride in its artisanal approach, with many products being handmade by skilled artisans who dedicate hours of labor to ensure exceptional quality. This dedication is evident in every item, from their exquisitely crafted leather goods to their meticulously detailed silk scarves that are celebrated as wearable art pieces. The brand’s insistence on using only the finest materials and traditional techniques results in products that are not only luxurious but also timeless.

Among its most iconic pieces are the Birkin and Kelly bags, which have become symbols of luxury and exclusivity. Named after actress Jane Birkin and Grace Kelly, respectively, these handbags are known for their exceptional quality and meticulous hand-stitching, with each bag taking several days to create. Their rarity and craftsmanship have made them highly sought-after and investment-worthy pieces that appreciate in value over time. Additionally, Hermès’ silk scarves, adorned with intricate patterns and vibrant colors, are revered globally as signature fashion statements. These iconic products, along with their luxury watches, fragrances, and equestrian goods, solidify Hermès’ position as a leader in the luxury market, admired for both its heritage and the unmatched quality of its creations.

Key Team

Executive chair Alex Dumas

References

• Hermès – The Strategy Insights Behind The Iconic Luxury Brand | Martinroll
• Six generations of artisans | Hermes
• A Timeline of the Hermès Brand | Baghunter
• The secret economics of the Birkin bag | Economist
• Can the Birkin Bag Survive the Resale Market? | Nytimes
• Thierry Hermes | Fashionmodeldirectory
• Futurama Makes Hermes’ Family Issues the Show’s Most Grounded Story | CBR
•  The History of the Hero: The Hermès Birkin | Harpersbazaar
• You’ll Never Guess How a Humble Basket Inspired Hermès’ Iconic Birkin Bag | Veranda
• Birkin Bag: The History Of Hermès’ Staple Fashion Piece | Glam
• Inside the Orange Box: part III of a dazzling Hermès collection | Christies
• Hermès Hits €200 Billion Valuation On Surging Sales Thanks To China’s Ultra-Rich | Jingdaily
• Jane Birkin and the evolution of the iconic Hermes bag | Breakingnews
• Federated Hermes promotes Selman to international head of sales | Investmentweek
• Hermès impresses with 28% growth in Q2 | Voguebusiness
• Case Study | Inside Hermès’ Best-in-Class Leather Goods Strategy | Businessoffashion
• Hermes defies luxury slowdown with strong sales | Reuters
• Jane Birkin Bag status symbol best luxury investments | Businessinsider
• Hermès posts 28 percent Q2 sales growth | Fashionunited
• Adventum Group achieved BREEAM-In-Use V6 Excellent rating for Hermes Business Campus | Business Review
• REAL ESTATE Bucharest’s Hermes Business Campus receives Access4you certification for people with disabilities | Romania Insider