Hermès, the brand behind the Birkin!
Hermès International is a French luxury goods manufacturer. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies.
A combination of rich heritage, exquisite craftsmanship, an eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury.
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.
Hermès is not a conglomerate in the real sense of the word and does not own a portfolio of brands like its key competitors, which include LVMH, Richemont and Kering. Currently, the range of products under the Hermès brand name include leather goods, lifestyle accessories, furniture, fragrances, watches, jewelry, ready-to-wear and saddlery.
The leather goods and saddlery categories are the biggest contributor to the company’s revenues (50%), followed by ready-to-wear and accessories (23%), and silk and textiles (9%).
Thierry Hermès founded the company in 1837 as a harness workshop in Paris. Originally, his intent was to serve the needs of European noblemen by providing saddles, bridles, and other leather riding gear. In the early 20th century, Thierry’s son Charles-Émile Hermès moved the company’s shop to 24 Rue Du Faubourg Saint-Honore in Paris, where it remains to this very day and is the company’s global headquarter.
The company’s iconic duc-carriage-with-horse logo and signature orange boxes were introduced in the 1950s.
The eye of the ultra-premium luxury segment, the “Birkin bag” was introduced in 1984, after a chance conversation between the then CEO Jean-Louis Dumas and actress and singer Jane Birkin on a flight from Paris to London, who articulated to Dumas that she needed a medium-sized bag. Each Birkin costs between USD 12,000 to USD 300,000 and is the exquisite handiwork of a single craftsman, who takes between 18 to 25 hours to complete the job via hand, more if the hide is a delicate crocodile skin.
Recent studies show that the iconic Birkin bag has been a better investment than stocks or gold over the previous 35 years & the waiting list for a Birkin is around 6 years.
Today, the brand operates 311 stores globally across the U.S., Russia and Asia, and has over 15,000 employees. It is one of the largest and most admired luxury makers in the world with revenues of over USD 8.3 billion and profits of over USD 1.8 billion as at 2019. The stellar performance of the brand throughout its 183-year history is largely credited to its drive for strategic consistency, combining excellent creativity with craftsmanship as well as an unrelenting focus on the long-term against short-term benefits.
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