A fashion house, famous for leather craftsmanship and exclusivity, becomes the second most valuable luxury brand after surpassing €200 billion in market value.
Known for its exemplary leather craftsmanship and minimalist but effective designs, the independent luxury brand Hermes continues to cement its name as a household giant in the fashion industry.
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Aside from the brand’s excellent reputation in fashion, Hermès as a luxury brand continues to skyrocket and transcend its relevance beyond fashion and lifestyle. Hermès exceeded €200 billion in market value—making it the second most valuable luxury brand behind LVMH Moet Hennessy Louis Vuitton SE.
The French design brand has surpassed a Swedish pharmaceutical company, making the design house the eighth most valuable brand across Europe.
Under the leadership of CEO Axel Dumas
Axel Dumas, a direct descendant of the fashion house founder Thierry Hermès, stirred the brand to mainstream success since he became the CEO last 2014. Before taking the reigns of the brand, Dumas was an auditor prior to being the head of the jewelry and leather goods division of the fashion house.
The CEO was an instrumental voice in safeguarding the brand’s ownership and preventing a buy-out by the company’s competitor, LVMH, in 2013. It was Dumas who rallied his family members to pool their shares to prevent a major stock take-over by the CEO of LVMH, Bernard Arnault. The move prompted LVMH to relinquish its assets in the company and agreed not to buy any stocks of the luxury brand for five years.
To achieve worldwide success, Dumas focused on placing the Hermès stores in strategic locations that would improve the sales of the company. In an interview, Dumas mentioned that the company’s growth can be attributed to opening bigger stores in better places—showcasing all that the brand can offer.
The post-COVID recovery and reopening of the luxury industry in China are one of the reasons why Hermès steadily grew. According to Dumas, the recent Lunar New Year also harbored strong demand across all products. The Chinese market was said to be the catalyst for the company’s sales growth.
Though the demand for their leather goods is at a height, Dumas continues to tease and starve the hungry market by taking a conservative approach—by deliberately limiting the production of the famous bags and leather goods they are known for.
Banner photo via Twitter @Hermes_Paris.
