Hermes - "Nice rise in sales and profits"
Hermes fall 2013 advertising campaign
OVERALL BUSINESS
For the first half of 2013, sales were up 14 percent.
Consistent with the luxury retail sphere, Hermes' own stores were driving growth at a faster rate, 15 percent versus wholesale sales at 11 percent.
PRODUCT & METIERS
Forty-six percent of the company’s sales are in leather. Production capacity is limited growth at about 10 percent. Availability of quality raw materials and artisans who can achieve the caliber of craftsmanship is limited globally.
Textiles, home, and jewelry are seen as Hermes’ product growth engines. Jewellery and the Art of Living show the greatest potential for expansion achieving 40 percent increase in the first half of 2013. For the same period, perfume was up 20 percent, adn silk + 13 percent. Watches were a bit slower, as with the rest of the industry, down 1 percent.
Hermes silk scarf takes 750 to 2000 hours to engrave. Two thousand hours is equivalent to one year of work. There are 25 to 40 colours per scarf.
GEOGRAPHIC GROWTH
Fastest growing market – Canada 20 percent + annually for the last two to three years. This is largely attributed to the stability of the economic environment in the country.
Asia is a close second, and encompasses a much greater percentage of the companies overall business. Asia, excluding Japan, grew in the first half of 2013 at 17 percent, and makes up one third of the company's sales.
Hermes is opening a space which is dedicated to Petit h in the rue de Sevres Paris store.
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