Hermès is infamously known to burn imperfect Birkins, showcasing its dedication to the finest quality. In 2014, an extremely rare Himalayan Nilo crocodile Birkin bag sold for USD 185,000, becoming the second most expensive bag to be sold at auction. Each Birkin costs between USD 12,000 to USD 300,000 and is the exquisite handiwork of a single craftsman, who takes between 18 to 25 hours to complete the job via hand, more if the hide is a delicate crocodile skin. The eye of the ultra-premium luxury segment, the “Birkin bag” was introduced in 1984, after a chance conversation between the then CEO Jean-Louis Dumas and actress and singer Jane Birkin on a flight from Paris to London, who articulated to Dumas that she needed a medium-sized bag. The company acquired tableware manufacturers like Puiforcat, Saint Louis and Perigord in the 1980s and consolidated its position in these segments of the luxury market. In the 1970s, the company established a watch subsidiary La Montre Hermès in Bienne, Switzerland. The company’s iconic duc-carriage-with-horse logo and signature orange boxes were introduced in the 1950s. In the 1930s, the company entered the United States with an initial tie-up with the Neiman Marcus department store in New York. In 1949, the first Hermès silk tie and the first perfume ‘Eau d’ Hermès’ were introduced. In the 1930s, Hermès introduced products that have now entered the annals of fashion as icons – the leather Sac à dépêches (renamed as the “Kelly bag” after Grace Kelly) in 1935 and the Hermès carrés (scarves) in 1937. The brand’s travel bags introduced in 1925 were a global success. In 1922, the first leather handbags entered the product line. In the 1920s, accessories and clothing were introduced into the portfolio. In 1918, Hermès introduced the first leather golf jacket with zipper, made for the then Prince of Wales. In 1900, the company started selling the “Haut à Courroies” bag, which was meant for riders to carry their saddles in it. Between 18, it started selling saddlery and introduced its product in retail stores. Gradually, the company’s product offerings expanded through generations. In the early 20th century, 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. Originally, his intent was to serve the needs of European noblemen by providing saddles, bridles and other leather riding gear.
Thierry Hermès founded the company in 1837 as a harness workshop in Paris. The leather goods and saddlery category is the biggest contributor to the company’s revenues (50%), followed by ready-to-wear and accessories (23%), and silk and textiles (9%).
Currently, the range of products under the Hermès brand name includes leather goods, lifestyle accessories, furniture, fragrances, watches, jewelry, ready-to-wear and saddlery. Hermès is not a conglomerate in the real sense of the word and does not own a portfolio of brands like its key competitors, which include LVMH, Richemont and Kering. With a brand valuation of USD 18.0 billion, it trails behind Louis Vuitton, ranked 17th with a valuation of USD 31.7 billion. 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.Īccording to global brand valuation firm Interbrand, Hermès came in 28th amongst the Best Global Brands 2020. Hermès as a brand enjoys an iconic status in the world of luxury. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies.
Hermès International, sometimes also referred to as Hermès of Paris or Hermes, is a French luxury goods manufacturer.