Luxury goods industry downturn, the French did not let the traditional arts and crafts brand Hermes (Hermes) with a worried frown. Instead, Hermes and not for its difficulties, the French brand has its own unique know-how. The trick is “rare”: a way for other high-end brands to the ground characteristics.
In the first half of this year, Hermes sales of 2.3 billion euros, 3.5 times a decade ago, while the current growth rate is also resident in the brand’s annual growth target (8%) above. Rivals LVMH and Gucci parent Kering first half sales growth was 6% and 3.5%.
And the two luxury goods maker is different, Hermes lifted the non-luxury goods brand or a plurality of load, without reservation. At the same time, the brand has been tightened supply, resulting in market demand is not fully met state. Some consumers want to buy the most prestigious Hermes bag Birkin bag (worth £ 10,000), you may need to wait a few years.
The question is, whether this trick is reason enough for the Hermes share price high. It is reported that, Hermes share price and its bags as expensive than many peers share price 50% higher.