Brand and Growth: How Hermes Interprets the Perfection of Art and Commerce

The company's products cover leather goods, scarves, men's and women's clothes, perfumes, watches, hats, shoes, life art jewelry and other 14 products. The company's sales network is all over the world. In 20 10, the company has 3 17 brand stores all over the world. In 20 10, the company has 3 17 brand stores all over the world. In 20 10, the company's sales revenue and net profit were 365,438+85 million USD and 559 million USD respectively. Hermes landed on the Paris Stock Exchange on 1993, and then its share price rose 60 times in 18, far exceeding the increase of less than 2 times in French SBF 120 in the same period. The data shows that there is a significant positive correlation between the valuation level of the company over the years and the growth rate of the company's performance. From 1993 to 20 10, the compound annual growth rates of the company's operating income and net profit are 1 1.5% and 17.3% respectively. Accordingly, the compound annual growth rate of the company's share price is as high as 25.5%, far exceeding the performance growth rate. It also proves once again that the company's share price will often exceed the growth rate of the performance itself because it can obtain a higher valuation premium. Looking back on the development of Hermes 170 years, the company has experienced four important turning points, which has established Hermes' position in the world's top luxury goods industry. The first transformation was from 1837 to 19 18, and the enterprise was transformed from a harness family to a leather goods manufacturer, with initial results. The second transformation was from 19 18 to 1978. The company established its position as a modern luxury enterprise through innovative technology, excellent quality and diversified products. The third conversion is from 1978 to 1992. By enriching its product portfolio and absorbing the essence of global culture, Hermes has stabilized its position as the world's top luxury brand. Since 1993 was listed for the fourth time, the company has entered a period of rapid development, with its main products going hand in hand and its performance growing steadily. We believe that the key factors of Hermes' success come from four aspects: (1) emphasizing the consistency and coherence of brand connotation; (2) Always maintain the high quality and high pricing of products; (3) High direct selling and waiting for customization ensure channel control and brand loyalty; (4) Adhere to the luxury promotion mode based on word-of-mouth marketing. (5) Continuation of family governance to ensure the good inheritance of brand culture. The core of its success can be summarized as one sentence: adhere to the perfect combination of art and business. We believe that the success of Hermes can provide the following reference for domestic brand clothing enterprises (1). The premise of the emergence of luxury brands is the local economic and cultural foundation and world recognition. (2) The perfect pursuit of quality is the foundation of luxury brands. (3) A high proportion of direct sales is a necessary condition for maintaining luxury brands. (4) The consistency of connotation is the prerequisite for the success of multi-brand or single-brand multi-series. Conclusion: Although there is no company close to or hopefully close to Hermes in the field of local brand clothing, the successful experience of Hermes can be of great reference significance for local brand clothing enterprises, especially those who are interested in developing into high-end brands. We are firmly optimistic about domestic brand clothing enterprises, and believe that with the improvement of comprehensive national strength and the increasing international recognition of China culture, China will produce high-end and even luxury brands in the future, which will provide investors with considerable return on investment with its high profitability and sustained growth. 1837 Paris is the world of carriages. In that endless hooves, Hermes brand was born. Author Thierry Helm? This workshop for manufacturing horse yokes and saddles, founded by Mr. S, was successful with its exquisite skills and won the first prize of 1867 World Expo. At that time, Hermes' harness could be seen in almost the most beautiful carriages in Paris. After the development of 173 years, Hermes has now become synonymous with the world's top luxury brands, and its brand products have also expanded from the initial harness to 14 product series, covering leather goods, scarves, men's and women's clothes, perfumes, watches, hats, shoes, gloves, enamels, life works of art, tableware and jewelry. The company's sales network is all over the world. In 20 10, the company has 3 17 brand stores in the world, as well as wholesale sales channels for watches, perfumes and tableware. The sales network of 20 10 stores contributed 84% to the sales revenue. The growth of Hermes in recent two years mainly comes from the United States and Asia. As Japan and Europe were severely hit by the financial crisis, the layout of Hermè s stores in China and the United States has increased in recent years. In 20 10, among the 3 17 specialty stores in the world, the proportion of European stores dropped to 37%, of which the proportion of French stores was10%; Asia rose to 37%, with Japanese accounting for 15% and Chinese mainland accounting for 6%; North America is 19.5%, of which 16% is in the United States.