Hermes is a French luxury brand which has been established since 1978. It has carried the craftsmanship of the family's philosophy until today. It is one of the oldest family owned and controlled companies in France. A desire of excellence in the highest quality that a client deserves has never faded as time changes. Their products focus on the beauty of precision and timelessness as well as letting the materials express their best quality through the design and cutting. “Every Hermès object has to be perfectly done and in the best material and in the best way, that’s a matter of fact for us, a basic standard. If it’s saddle, it has to be the perfect saddle, and the same goes for every other category,” explains Hardy, a creative director of Hermes fine jewelry division.
Hermes definitely has a unique brand history that enable to maintain a clear competitive edge over other brands in its niche as luxury goods. Birkin is one of the most popular collection of Hermes. The idea of the bag starts back in 1981 when the chief executive of Hermes, Jean Louise Dumus, was seated next to Jane Birkin, a British actress, during a flight from Paris to London. Barkin explained to Dumas how it has been hard to find a leather bang that not only fits her needs but as well as the style and color. For these reason, the first Birkin bag was created for Jane Birkin 1984 it has become famous sine then. To sum up, understanding your customer needs is the most important key to win your competitors.
In 2013, Hermes has total revenue of $5.2 billion with has increase by 13% from 2012. The company is continue to grow quickly in Chinese market while other luxury brands like Louise Vuitton and Gucci sales have dropped. A currently economy gives luxury products advantage to grow significantly in a specific region, Asia. As one of the most powerful luxury brand in the world, Hermes was given an opportunity as the increase of demand in luxury products grow in countries like China and South Korea which have recently played a big role in global economy.
Although the demand is high, their Birkin bag is far from accessible to most people as a result of its heavy price tag. Crocodile Birkin bags can retail for $60,000 in Hermès stores; leather Birkin bags for about $10,000. It has also become a social status to celebrities, socialites, and entrepreneurs. Lastly, Hermes has built termendous values in its brand and products that I have never seen any brand has done before.
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