Hermes: breakthrough innovation or sustained serious?

Hermes Birkin of innovation, not to make a profit, but to carefully maintain the brand image and vitality. “Down” is used in a diplomatic strategy, Hermes affinity in the expression of respect for China. Today, Hermes (Hermes) and the French founder of this century-old brand, and perhaps hard to imagine elegant Hermes and commercial co-existence is what scene.

October 23, LVMH announced that it has acquired 17.1% shares of Hermes Bolide, Hermes became the largest shareholder outside the family heir. Louis Vuitton said it would meet on a long-term shareholder, will not seek public acquisition, will not seek seat on the board of supervisors.

Hermes: breakthrough innovation or sustained serious?

This thing shocked the Hermes family, especially the Hermes Evelyn CEO Patrick Thomas. He told local media that the French, Louis Vuitton CEO Bernard de Horno ill intent, most likely in the future holdings of Hermes shares.

Indeed, listing the group’s brand Louis Vuitton, a hundred years with the international big-name brands are everywhere. The Hermes was not willing to make the pool of objects, their commercial and industrial elegance not allowed to be replaced by repeated copying.

Only willing to sell 20% of the stock market, Hermes rigorous with a strong look at taste. Currently the shares held by Hermes family shareholders reached 73.4%, but a single Hermes family shareholders, the shares held by no more than 5%. Hermes does not allow any person to hold the privilege, which is a major change to avoid the brand the only way to Louis Vuitton Group, the threat posed by uncontrollable factors, so that Hermes deep in thought.

According to French media reports, the acquisition of shares in the month after being LV, Hermes Bags family, more than 60 shareholders held a meeting to discuss how to rely on family strength to deal with the French luxury goods giant Louis Vuitton Group, the acquisition may take further action.

This is the Hermes of the taboo.

In early May of this year, the 5th generation of the group operator Jean-Louis Dumas died, Hermes led the development prospects of outside attention. Breakthrough innovation or sustainable future is strict?

In mid-September, Hermes launched its Huaihai Road in Shanghai’s first “down” (Shang Xia) stores. The brand can be considered a thoroughly Chinese brand by designers from China, hand-made by the Chinese people, products related to clothing, apparel, and high-quality household products, currently sold in China is only tentative. This initiative can be described as unprecedented in the luxury industry. It seems people in the industry study, the introduction of Chinese brands – “down” is the Hermes brand concept in the market and the result of compromise between the two.

Rapid growth of the world’s second-largest luxury goods market in China, now has become a major luxury brands contested. To “limited” late famous Hermes into China. As of June, less than the number of stores in China, Hermes 20.

“A Hermes bag KELLY cheapest price also more than $ 60,000, and must be customized, customers have to wait a year and a half in order to get.” Xiang Qi China’s Foreign Trade University Research Center, a luxury that was the moon , high prices and limited so as LV and GUCCI Hermes can not expand as quickly.

“For the Hermes, of course, want to seize the Chinese market share to more.” Xiang Qi China’s Foreign Trade University Research Center, a luxury that Faye Wong, “‘down’ brand launch, and Hermes can produce complementary . ”

“Made in China” does not always give the impression of high-end. Many industry insiders believe that, in the Chinese market to sell a Chinese-made brand, is itself a big challenge. Moon has said, “down” the launch of the brand Hermes is likely to make high-end image affected, “the company must take the Hermes Hermes and ‘down’ distance themselves from the relationship between the two brands.”

Although the “down” the introduction seem impulsive, but Hermes does not think so.

Hermes Group, the “bottom” has been considering the introduction of three years, and eventually decided to let the Chinese designers Jiang Qiong Er responsible for the brand design. Jiang Qiong Er and Hermes has always been a good working relationship, who Hermes design window. This time, as the main person in charge, Jiang Qiong Er, this talented woman in the Chinese arts convened a team of more than 30 people, ready to make a big fight.

Such innovation, destined not bring much profit, Hermes would like to express exactly what is it? Influx of luxury goods in China, most of the time, the ones who are Hermes has always been slow with their own perspective on Interpretation of China.

Strongly with those who want to change China’s “rustic look” compared to the international big-name, the move is actually very smart.

This case can think about KFC and McDonald’s competition, such as KFC introduced rice, fritters, obviously in the Chinese market than McDonald’s opponent, at least to expand the mature consumer groups.

Into a potential market, communication is the most difficult thing. Pockets of consumers is also willing to open for these brands, may difficult to say.

Hermes of innovation, not to make a profit, but to carefully maintain the brand image and vitality. “Down” is used in a diplomatic strategy, Hermes affinity in the expression of respect for China.

Yes, a designer in a big acquisition was gradually disappeared, replaced by another deputy who was willing to face, the smile can continue it? Hermes innovation, it may be seen as a crisis public relations strategy.zhengyiqiong/Dec.blog

Hermes: breakthrough innovation or sustained serious?