After reading the marketing blog from Erin Shea, http://www.luxurydaily.com/hermes-maintains-uber-luxury-status-exclusivity-with-product-control/ talking about the sales control, and reading the news of its sales revenue in first season, i want to write a blog about how i think Hermès is so successful promoting its products.
French luxury group Hermès recently posted a 16 percent rise in second-quarter sales. The sales ($1.19 billion) with highest growth were contributed by Asia and North America market. In my opinion, the great success of Hermès is a result of combining heritage with new creative innovation and targeting the specific group of customers accurately. The Luxury magazine “Vogue” stated that the high profit of Hermès might be due to the powerful campaign of 2013 spring/summer collection and the Hermès Home collection.
This year’s spring/summer collection is a huge contributor of dramatic increasing revenue. If someone ask u how to use some words to define Hermès, the answer might be Classic, Business, Vintage and serious. However, SS13 campaign combined the delightful sport life together with its classic design and also made some innovation like providing products with warm and bright colors which suit the spring and summer apparel which younger customers are crazy with.
As was founded in 1839 in Paris, Hermès is famous for its hand-crafted leather goods all over the world. The company hold the world tour “Festival des Métiers” which demonstrating their artists’ exquisite hand-made skills and products to the Hermès fans. This is also a brilliant advertising of the brand.
“Hermès has no desire to become “masstige” – a mass producer of prestige goods,” says CEO, Patrick Thomas. “If we put a big H on a bag, we will sell millions. But what if to grow faster you compromise on quality and the finishing of the product? Then people will begin to say, ‘Ah, you know Hermès is no longer the same.’ That’s why we should never do that. It would be a capital sin when you have an asset, a jewel like Hermès.”
Preserving its prestige and integrity is what Hermès always points out emphatically. When we look at its price tag, we can find that Hermès sells $500 bracelets and $15000 Birkin handbags. It is easy to see that Hermès chooses the richest people as their target customers. With the rapid growth of billionaires, the demand for super exclusive luxury rises as well. Hermès perfectly took that chance and make huge profit from these people.