VOL. MMXIII..No. 211

Bold Moves | Strategy in Perspective

Les Createurs: Hermès Celebrates the People Behind the Products

 

 

 

 

LVMH’s Bernard Arnault is doing all he can to close in on Hermès, one of the world’s most holy of luxury brands. The conglomerate currently owns a 20.2 percent stake in Hermès and has made it very clear it wouldn’t mind owning all of it.

 

And it’s no wonder.

 

Hermès has remained true to its roots of artisanal made by a stable of loyal craftspeople and this makes Arnault positively salivate at something so true to its heritage. After all, it’s what drew him to Dior and later Vuitton.

 


Perhaps if LVMH’s strategy with Louis Vuitton was more true to the brand’s origins, their struggle to own Hermès would not be met with such distaste.


 

Hermès’ consistency and integrity has paid off, perhaps not in quite the same way as with Louis Vuitton, but then LV doesn’t have the same cachet. Last month Hermès reported that in-store sales went up 24.2 percent while wholesale revenues jumped to 32.1 percent.

 

 

Hermes leather craftsman, Dominique Michaux, demonstrates the process of assembling a bag.

What are they doing right? Well, a lot of things, but the critical factor is that they remain aggressively true to their brand and commitment to craftsmanship.

 

So we were impressed to see a recent window display that showcased not just their products, but the people who make those products — the artisans and craftspeople.

 

 

A recent Hermes window display which not only showcases its products, but the people who make them.

LV tried a similar marketing strategy back in 2010 with a campaign that was banned in Britain for being “misleading” about allegedly hand-sewn bags —- when in fact they are sewn by machine.

 

Perhaps if LVMH’s strategy with Louis Vuitton was more true to the brand’s origins, their struggle to own Hermès would not be met with such distaste.

A 2010 advertisement for Louis Vuitton which was banned in Britain for being “misleading” about how their bags are manufactured.

The disparity between the fact that much of what Vuitton produces is on a monumental scale designed for a mass market of upwardly-mobile consumers — while Hèrmes’ rigorously limits its quantities and accepts the slowness of hand-crafted products —  is what defines each brand in the eyes of the discerning consumer.

 

In 2010, an advertisement for Louis Vuitton was banned in Britain (although not elsewhere) because it was seen as misleading the consumer in how their bags were actually crafted. Vuitton uses sewing machines for the majority of its products with only smaller sections done by hand (this is not the case with more bespoke pieces, or for trunks and hard pieces.)

 

Nevertheless, those seeking status don’t always care about truth in advertising. Consider how many consider Tory Burch or Michael Kors a “luxury” brand, when in fact all of their products are made in China. Luxury truly is,  in the eye of the beholder.

 

 

 

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