Recession? What recession?

With Hermes set to report a 30% revenue increase for the third quarter, it’s not difficult to understand why LVMH CEO Bernard Arnault has such a keen interest in the company. According to Women’s Wear Daily, the increase centers on the success of the silk, leather and timepieces categories, which make up the backbone of the Hermes tradition and represent the company’s most sought-after products. All told, family representitives believe Hermes may be on track to have its most successful year in company history.

So not only has Hermes weathered bad economic times in a profitable, growth-minded way, but this report also makes it clear that the growth was not a coincidence or the result of a temporary tactic. Instead, it represents real consumer interest in the things that Hermes does best, which only portends more future growth and gains in market share for the French luxury giant.

WWD specifically mentions the success of the crossbody Jypsiere bag as being a cornerstone of Hermes’s continued growth, and giving fans of the brand a new bag to obsessively collect surely increases sales. With new creative director Christophe Lemaire scheduled to make his debut for Fall/Winter 2011, only time will tell what the company’s next handbag move will be. What would you like to see from Hermes in the future?

Source: Women’s Wear Daily.

  • Bir

    Personally, white croc , and in new bags a revamped version of the bolide , and maybe just hopefully larger shawls and capes continued use of exotics and sheerling, and perhaps a more modern pert a porter line classic and timeless as Hermes but with a more modern twist I guess, what I don’t want to see LVMH take over that is for sure, but Hermes is wonderful in all senses and this year will just prove how fantastic and truly divine like everything Hermes.

  • Bir

    Oooo and since I said I wish to see a revamped bolide I wish to see it bigger with more of a shoulder look and bigger hw and in exotic just hoping I guess.

  • Vitta

    Preservation of their signature tradition: handmade quality. Recently, the reports have emerged that Hermes is moving towards embracing technology and using machines. Hopefully, not at the expense of their outstanding quality. I’m afraid that the sale of the 5 Hermes handbags on Fly.com is a testimony of such a threat – those are not their best creations, by far.

    Yes, the 30% revenue increase is great! However, the Hermes’ allure is in its exclusivity. If you can just walk into their store and buy 10 Birkins, and then log into the Internet site and buy 5 Hermes fabric handbags at a deep discount, I don’t think their cache will stay as appealing as during the era of waiting lists.

    I’m just saying…

  • Lori

    I guess I am part of that 30%. I was just in Hermes Beverly Hills yesterday picking out a bag. I want my first Hermes before anyone new takes over.

  • Bir

    So true hermes is dying I guess the news just keeps telling us that 2011 will be the end of an era.

  • berna

    I have a genuine hermes purse in red that i want to sell it was used once. it was $8,000.00 in paris will sell for 2,000.00

  • MsLabelsofLust

    Can Megs or anyone at PurseBlog answer this question for me:
    1.Why is the Hermes Birkin/Kelly not available to purchase/wishlist/waiting list on the official website for Hermes?
    2. What do you guys think makes these bags so expensive? the name Hermes? the craftmanship and materials used? or fame (celebs hawking it)?
    I would love to have one some day but any bag that expensive is over my budget shall remain a lust.

    • http://www.purseblog.com/ Amanda Mull

      1. I think it’s a combination of things – inventory for those cycles rapidly because they’re highly sought-after, and I think that’s probably at least part of the reason. But I think it also has a lot to do with exclusivity. The luxury sector is still suspicious of the internet in a lot of ways, and the Birkins and Kellys in particular have a certain exclusivity, above and beyond the rest of the brand, that helps keep up that brisk sell-through rate. Making those bags available online, at the click of a button, takes away some of the extreme exclusivity.

      2. The answer to this question is strongly tied to the previous answer, actually. In the luxury business, price is nothing but perceived value, and the actual cost of manufacturing a product can often have nought to do with the final retail price. From what I know about the manufacturing processes and materials that Hermes uses, they do seem to invest more in the quality of their products than the average luxury brand. Does that justify the prices? It depends on how much $10,000 is worth to you in your everyday life, I suppose, and how badly you want the bag. They really are beautiful pieces.

      I don’t know how much it costs to manufacture and market a Birkin, end-to-end, so I can’t give you a definitive answer. The Hermes name is definitely part of it, as with any luxury brand. More than anything, I think that price is influenced by the willingness of a customer base to pay up, and Hermes has found an audience that will write checks with lots of zeros and built a reputation that makes people feel confident in doing so.

      • MsLabelsofLust

        Thanks Amanda for answering my questions. You were a great help =)

  • Vitta

    In addition to Meg’s post, there is also a factor of handmade craftsmanship. The difference between an Hermes handbag and any other brand is that their Kelly and Birkin bags are still mostly made by hand, from start to finish. First of all, there is a limited number of qualified artisans who have enough skill to be hired by Hermes. Like in any art, it takes a lifetime to master the skill, literally.

    Starting from selecting the material, cutting a pattern and sewing/assembling the handbag, every operation is completed by hand. Every perforation for stitching, and every stitch with waxed thread is also done by hand. Just imagine how many of those perfect stitches must be made to complete one handbag! Then, the lining is sewn together and the hardware is installed also by hand. Believe it or not, after the handbag is assembled, it sometimes gets a slight ironing, to get rid of wrinkles – by hand!

    It is hard to believe how tedious the art of making an Hermes handbag is! To be exact, on average, it takes about 60 hours to create one perfect handbag. It means that one cobbler can create only 4 handbags a month.

    All that said, there’s also a factor of the upscale quality of the materials. Hermes doesn’t cut corners when it comes to the quality of their classic leathers and hardware. They use the most expensive alligator and crocodile skins. In some instances, they control the quality of the tanning process, which only increases their exclusivity, which cannot be replicated.

    Thus, while buying an Hermes, we are paying for the best quality available today, which never comes cheap.

    (Source: new book “Exotic Skin: Alligator and Crocodile Handbags”).

  • Juliet

    This doesn’t particularly surprise me for two reasons. One, as some have already mentioned, Hermes quality is the best in the business. Two, loyal Hermes customers keep expanding their collections. With regard to Christophe Lemaire, I don’t think he is foolish enough to change the classics (e.g. the Birkin and Kelly) so I don’t think we Hermes fanatics have anything to worry about.

    On a different note, for anyone considering a Jypsiere, I absolutely adore mine. It’s perfect for weekend shopping and errand running around Manhattan and SoHo!

  • Lola

    Hermes is amazing at marketing themselves. Even someone who might not fall in love with the bag right off the bat can be won over with the idea of a waiting list. It’s brilliant. Evil, but brilliant.

    One day, a Hermes will be mine! One day… (ipad)

  • Tiffany

    Hermes is amazing~~ I want one someday…(ipad)

  • Jelita78

    it’s about time!!
    i mean all other brands are venturing into multipurpose bags.. such as that have dual function-styles.. and for hermes it’s been a lonnnngggg time since we see other styles rather than kelly and herbag.. (ipad)

  • S.J.

    def not in my budget (ipad)

  • S.J.

    but its adorable (ipad)

  • SHERRY

    very high end (ipad)

  • SHERRY

    perfect for the summer (ipad)

  • Jen

    Like the color, not the style (ipad)

  • helen

    I think the color is very strong. (ipad)

  • Emma G

    Enjoyed Vitta’s comments (ipad)