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Writer's pictureIsabelle Cohen

Hermès Customer Behavior & Brand Analysis Report

Good evening ladies! My first blog post is a past assignment of mine to start us off, diving into Hermès, the brands history and where the luxury house is headed. More present content to come!



Who is Hermès?

Hermès is a renowned French luxury brand known and celebrated for its exquisite craftsmanship, timeless designs, and top tier quality. Founded in 1837 by Thierry Hermès, initially as a harness workshop in Paris, the company has evolved into a global icon synonymous with luxury and refinement. Their claim to fame of craftsmanship began with the brands initial specialty in crafting high-quality harnesses and saddlery for horses. The equestrian brand quickly gained recognition for its solid craftsmanship and attention to detail.


Past

Hermès' ready-to-wear clothing collections reflect the brand's on-going commitment to timeless looks, elegance and impeccable tailoring. The clothing designs are characterized by clean lines, sophisticated silhouettes, and luxurious fabrics, this appeals to discerning individuals who appreciate understated (or the trend “quiet”) luxury. Hermès is renowned for its iconic handbags, particularly the Birkin and Kelly bags, which themselves have become symbols of exclusivity and the luxury market. The Birkin bag, named after the iconic actress Jane Birkin, and the Kelly bag, named after Princess Grace Kelly, are handmade by skilled artisans using the finest materials and craftsmanship the brand is known for. Hermès silk scarves are also an integral part and statement piece of the brand's fashion history. Introduced in the 1930s, Hermès scarves feature intricate designs inspired by art, nature, and culture. Filled in with vibrant colors, and luxurious silk fabric these scarves have made their name. While Hermès is rooted in tradition and heritage, the brand also continues to embrace innovation and creativity. Over the years, Hermès has collaborated with contemporary artists and designers to create one of a kind and innovative collections that push the boundaries of fashion while still maintaining the brand's core values of quality. Globally Hermès' fashion influence extends beyond France, with boutiques and stores located in major cities worldwide. The timeless appeal of Hermès transcends past borders and cultures, making it a global symbol of luxury and prestige.


Hermès Fall/Winter 1998 RTW

The market for this collection was older women. The models on the runway were more mature then fashion is used to seeing. The collection itself was filled with neutral tones, black, gray, and tans. The lines are tailored and the overall silhouette of the garments are long and clean.


Hermès Spring/Summer 2000 RTW

This collection is also shown with more mature models and embodies not only office attire but clothing for leisure. Long shirts, oversized sleeves, high waistlines, loose trousers. This collection is for comfort as well as capability. Hermès continues to stick to neutral tones.


Hermès Fall/Winter 2004 RTW

This collection we’re starting to see Hermès’ evolution into color. We’re also seeing a good amount of high fashion trends. Corseting, asymmetrical silhouettes, hoods, accessorizing with hats, tailored suits fitted to the female form, etc. This collection was the hot spot of the time. While maintaining the classic equestrian aesthetic of the brand, Hermès begins to seriously join the fashion playing field.


Hermès Fall/Winter 2006 RTW

This is an equestrian collection. While we are seeing fur coats and tailored shirts this collection is a nod to hunter derby’s. Accessorizing with helmets, dressage whips, hunter crops and boots. This collection embodies Hermès… which embodies being an equestrian. 


Hermès Spring/Summer 2009 RTW

This collection is a new take for the brand. Resort wear is a long stretch from what we’re used to seeing from Hermès. Fringe, leather studded gloves, blue leather, shirt-dresses, and chunky belts make up this collection. 


Hermès Spring/Summer 2010

This collection is sportswear inspired. Tennis, specifically. This collection’s palette is white, black, and bright reds. Large wrist bangles, high wrap up heels and oversized bags. This collection is a little more scandalous than Hermès usually consists of. Bra tops and low dipped dresses. 


Hermès Fall/Winter 2015 Menswear

This collection keeps that tailored craftsmanship we’ve come to know and love. High necks, high knotted scarves, there is a lot of modesty in this collection. It remains masculine while playing with a few colors and patterns.


Present

Hermès continues to maintain its position as one of the world's leading luxury brands. Renowned for its continued commitment to craftsmanship, elegance and of course, quality. The brand continues to produce its iconic leather goods, silk scarves, and other products with meticulous attention to detail, using the finest materials sourced from around the world. In regards to products Hermès has expanded its product offerings to include ready-to-wear clothing, accessories, perfumes, watches, jewelry, home furnishings, and more. This diversification of product allows the brand to cater to a wider range of customers while maintaining its luxury image. Like many other luxury brands, Hermès is now putting a focus on sustainability and responsible sourcing practices. The brand has implemented a few initiatives to reduce its environmental footprint. For example, including using sustainable materials, minimizing waste in production processes, and supporting ethical supply chains. 


Hermès Spring/Summer 2021 RTW

Presently, the brand is sticking to clean lines and a more quiet luxury statement. We see pops of color like the bright reds in the 2021 collection and patterns in classic black and white. Tans and creams are used greatly in Hemès, sticking to that original leather appeal. The accessories in this collection are crafted with the same attention to detail and quality as the brand's clothing, adding a touch of luxury to every ensemble.


Hermès Fall/Winter 2022 Menswear

The menswear of Hermès is currently emphasizing tailored elegance in its menswear collections. The brand offers a range of impeccably crafted suits, jackets, trousers, and shirts that exude sophistication and refinement. We’re seeing high-quality wool, cashmere, silk, leather, and other premium fabrics sourced from around the world.


Hermès Fall/Winter 2023 RTW

Hermès' RTW collections are often inspired by seasonal themes, this is seen in inspiration taken from art and culture placed into the designs. This collection is a host to stunning reds, deep browns and in contrast some tonal yellow’s. This collection is a nod to sophistication.


Hermès Spring/Summer 2024 RTW

Lastly to discuss present shows the Spring/Summer 2024 collection holds burgundy through putty, black, red and brown. These colors are those of leather goods which Hermès at this point is more than familiar with. In fact they’re so familiar, Hermès has their own names for these colors “such as Rouge H for the burgundy, Étoupe gray for the putty, and Opera Red for the scarlet that came at the end of the show.” (Sarah Mower, Vogue) 


Future

While the future of Hermès is to be determined, there is every faith the brand will continue to lead in the luxury market. Experiments with new trends and new collaborations while maintaining its reputation in the classics. The Birkin bag should continue to set sales through the roof being one of the most sought after luxury goods in the world, and perhaps there will be a new accessory to set Hermès apart. As a buyer we’re looking forward to seeing blends of a  traditional aesthetic with contemporary elements. 


Mission/Values

Beginning with the vision Hermès’ site explains, “Combining creative freedom, innovation and the preservation and transmission of exceptional know-how, Hermès’ vision of entrepreneurial spirit shapes a unique artisanal and independent house.” (Hermès) is what the company strives for. The values of Hermès have remained the same since 1837, freedom, demanding craftsmanship, savoir-faire, quality, authenticity and responsible growth. The mission was once based around leather goods and equestrian equipment but has since expanded to RTW, accessories and so much more. The goal however, remains to being a leading luxury house. 


History & Legacy


The adventure of Hermès was born in Paris, 1837. The harness-maker Thierry Hermès opened a workshop in rue Basse-du-Rempart. His harnesses were a technical achievement that was even recognized winning an award at the Universal Exhibition of 1867. In 1880 Charles-Émile Hermès, Thierry Hermès’ son, transferred the workshops to 24 Faubourg Saint-Honoré, the workshop soon became a store. This move allowed harnesses and saddles to be made to measure. In 1922 Hermès went through a change of management under Émile Hermès, son of Charles-Émile. In 1951 Émile Hermès passed management to his sons-in-law. Robert Dumas, took the reins from his father-in-law as head of the business in 1951. Many reputable products were made at this time, the first silk scarf, the Kelly bag and the Chaîne d’ancre bracelet. In 1967 Catherine Karolyi began building the women’s wardrobe. Until 1980, she designed womenswear collections including designing the famous H buckle. In 1984 the Birkin bag was born. Into the 2000’s and beyond Hermès continues to grow and develop into the brand it is today. 


Core Competencies

1.Craftsmanship/Artisanal Skills/Tradition: 

Hermès is renowned for its exceptional and detailed craftsmanship and artisanal skills. The brand's artisans complete rigorous training as well as apprenticeship programs to master traditional techniques and uphold the highest standards of detail and quality in the production of luxury items. The brand's legacy of excellence and its historic reputation, is a benefit to the company regarding word of mouth sales and creates a high demand.

2.Innovation, Creativity/Product Diversification:

Despite traditional roots, Hermès embraces innovation and creativity in its designs and in the processes of creation. The brand pushes the boundaries of craftsmanship and luxury, exploring new materials,  collaborations, and techniques to stay at the forefront of high fashion. Hermès has also successfully diversified its product offerings through the years beyond its iconic leather goods, ready-to-wear clothing, watches, jewelry, accessories, perfumes, and home furnishings have been developed and included. This product range allows the brand to cater to a wide range of customer wants and needs. 

3.Brand Image /Customer Experience & Service: 

Hermès' strong image and prestige are key sources of its competitive advantage. The brand is synonymous with high end work, sophistication, and exclusivity, appealing to affluent consumers who seek to embody the image of refinement. Hermès provides a personalized and elegant retail experience for its customers, both online and offline. The brand's flagship stores, boutiques, and locations offer impeccable service, knowledgeable staff/sales associates, and attention to detail, ensuring that every interaction with the brand is memorable and personal. Personal buyers also assist customers in the known hunt for available birkins.

4.Sustainability and Ethics: 

Hermès, like many brands in the past few years, has committed to sustainability and ethical practices throughout its supply chain. The brand prioritizes actions like responsible sourcing, environmental conservation, and social responsibility, aligning with the values of today's consumers.


Key Competitors

Operating in the luxury goods market, competition comes high. Hermès is challenged with several other prestigious brands. Some key competitors for Hermès include:

Louis Vuitton: Louis Vuitton is a French luxury fashion house known for its iconic monogrammed leather goods, including handbags, luggage, shoes and accessories. Like Hermès, Louis Vuitton has a strong heritage and a focus on craftsmanship. 

Chanel: Chanel is a French fashion house renowned for its elegance, muses, and iconic designs, including the Chanel suit, the little black dress, and the Chanel No. 5 perfume. Chanel competes with Hermès in the luxury fashion and accessories markets, offering products like clothing, handbags, and accessories.

Gucci: Gucci is an Italian luxury brand known for its out of the box designs and high-quality craftsmanship. Gucci competes with Hermès in the luxury fashion and accessories markets, offering a wide range of products with a focus on modernity and innovation. Gucci also has a strong generational and familial history that is similar to Hermès’.

A few other competitor brands include Prada, Cartier and Burberry. These are just a few examples of Hermès' key competitors specifically specializing in the luxury goods market. Each of these brands shares similarities with Hermès in terms of technique, heritage, image/fame, and competes for the attention of affluent target markets seeking luxury and exclusivity.


Target Customers 

Hermès’ target customers are high-income individuals. Hermès caters to customers with high purchasing power as well as disposable income. Its price range requires high income stability, making them accessible primarily to affluent consumers who value luxury. Customers exhibit sophisticated and discerning taste. The market must appreciate timeless elegance, understated luxury, and are willing to support impeccable craftsmanship. The question for Hermès’ customers is are they willing to invest in high-quality products that reflect their own and the brand’s refined aesthetic. Hermès customers value tradition and heritage. Buyers drawn to the brand's rich history and commitment to preserving traditional techniques. Quality is paramount for Hermès customers. They seek out products made from the finest materials, with meticulous attention to detail and impeccable craftsmanship. Everything for sale is an investment in items that offer superior quality, durability, and longevity. It is known that Hermès customers value exclusivity. They are attracted to limited-edition pieces, unique designs, and iconic products that are not readily available to everyone. They appreciate the exclusivity of owning a Hermès item and the sense of prestige that comes with it. There are two main segments of Hermès customers, fashion oriented regular shoppers, and equestrians. 


Current Business Practices 

The company’s brand strategy is consistent across their whole product categories. Hermès has always been a significant stickler to the “limited edition” strategy. They limit distribution of their products in their various stores, demonstrating their commitment to showcasing and selling only the most “rare” and authentic products. Products are also never offered on discounts.The overall structure of Hermès’ product portfolio is a classical umbrella branding strategy.


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