Business Case Study: Hermès Of Paris

1655 Words7 Pages
INTRODUCTION Hermès International, sometimes also referred to as Hermès of Paris or Hermes, 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. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, 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. According to the 2015 BrandZ rankings (conducted by Millward Brown), Hermès was the second most valuable luxury brand with a valuation of USD 19 billion,…show more content…
Currently, the range of products under the Hermès brand name includes leather goods, lifestyle accessories, perfumes and ready-to-wear. The leather goods and saddlery category is the biggest contributor to the company’s revenues, followed by ready-to-wear and accessories, silk, textiles and fragrances. Background of Hermès Thierry Hermès founded the company in 1837 as a harness workshop in Paris. Originally, his intent was to serve the needs of European noblemen. 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 headquarters. In 1993, the company went public on the Paris Bourse, which for various reasons was considered a strategic move with its own set of weaknesses. Throughout the late 1990s, Hermès extensively followed a strategy of reducing franchise stores, by buying them up, closing quite a significant many and by opening more company-operated stores. As of 2014, Hermès operated 311 stores globally, out of which 207 were directly owned and operated by the
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