Friday, March 13, 2015

Marketing Channels and Retailing

As an exclusive retailer, Hermes, only has limited number of their retail shops which is known as exclusive distribution. However, the shop doesn't just offer typical retail services. Hermes hire employees who are specialized in certain products. For example, if there is a scarves collection in the shop, there would also be a silk specialized since their scarves are made from silk. Having a specialist is very vital to the retail as their clients are spending a lot of money on each product. It is important to ensure customer satisfaction of the product by helping or suggesting colors, sizes, or styles that will suit each clients perfectly. They are also known as personnel. Retailing is not only of Hermes marketing channel, the other is their site which you you possibly buy every product except the Birkin and Kelly bags which needs to be purchase in store only.  As an exclusive retailer, the service is expected to be as high as the price as well as the quality of the product. Location is crucial which leads to demand in high gross margin to pay their highly trained associates, the rent, and everything else. It runs as a specialty store. Different locations are targeted toward different target market. Every Hermes store are located in a highly expensive area which also attracts both tourists and locals.

When it comes to choosing the retailing mix.
The products are everything of the brands. Hermes have expanded their products line from casual to high end clothing, sport clothing, jewelry, saddles equipment, travel luggages, watches, leather goods, furniture, tableware, bedding and decorative objects. Their online channel seems to offer the most of Hermes, while the store still keeping their exclusiveness to carry certain products. The presentation of the display in the store represent a timeless fashion with bright colors. The store rather on the spacious side. All of the associate are in business attire. The store I went to was on Board st/ Wall st. in Financial district. Beside the website and the store, Hermes also have two application on iPhone that are for scarves and tie. One is called Hermes Silk Knots which shows their clients different style they can do with their scarves. The other is called Hermes Tie Break which help their clients take a break from their reality of office, airport, and etc to play a game and discover as well as master the art of tying a tie. I find it to be very interesting for them to launch an game application as they mightbe trying to connect with younger target market.

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