French luxury goods company Hermes It has emphasized quality, scarcity and desirability for nearly 200 years – a strategy that has helped it dominate the luxury goods industry, even outpacing its much larger rivals.
Coveted products, such as the Birkin and Kelly bags named after Monaco icon Jane Birkin and Princess Grace Kelly of Monaco, are even under most consumer Even as investors cut back on spending, they continued to drive demand.
Analysts say Birkin and Kelly account for 25% to 28% of Hermès’ total revenue. These bags often double or triple in value on the resale market.
“I think they’re also hard to come by, which adds to the prestige and appeal of the brand,” said Luca Solca, senior analyst for global luxury goods at Bernstein. “It’s something different. signs, so people’s desire will increase.”
In fiscal 2023, Hermès ranked fourth among major luxury fashion brands in total revenue, second only to LVMH, Richemont Group and dry.
Hermès has fewer than 300 stores, but it keeps pace with its larger rivals. in its most recent quarterHermès sees double-digit revenue growth, while rivals LVMH Kering’s sales fell more than expected. Additionally, the company’s shares have risen by more than 10% since the start of 2024, while LVMH and Kering have declined by approximately 15% and approximately 40%, respectively.
Globally, many luxury goods consumer Cut back on spending, especially for aspiring buyers 2023 and 2024. expert says this trend will continue.
Although Hermès reportedly performed well in the third quarter, it wasn’t entirely immune Slower Sales volume in each region increased compared with the same period last year Year in advance. company famous On its earnings call, it said its customers were spending more per transaction despite lower foot traffic.
“I think the high-end consumer has become more of a focus for the industry because they show a very high propensity to spend as long as you bring them something that they think is valuable and unique,” Solca said. “I think that’s In terms of differences, Hermès has a lot.”
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