Hermès, saddlery and focused on selling retail. By 1900,

Hermès, one of the most well-known
brand for its luxurious products was established in 1837 in Paris, France by
Thierry Hermès and it has passed down to five generations of the family. At the
beginning, Hermès was a harness workshop which provides the needs of European
nobleman. In 1855, Hermès won the first price for its category and won the same
price in 1867 at the Expositions Universelles in Paris. Afterward, Thierry’s
son, Charles-Emile Hermès took over and relocate the workshop to 24 Rue Du Faubourg Saint-Honore in Paris which
become the company’s headquarter until these days. With the help of his sons –
Adolphe and Èmile-Maurice, he continued the business by introducing saddlery
and focused on selling retail. By 1900, they produced “Haut À Courroises” Bag
which was intended for riders to bring their saddlers with them.

 

             After the retirement of Charles-Emile Hermès, both of his sons
took over Hermès and changed the company name to Hermès Frères. In 1918, Hermès
produced the first leather golf jacket with zipper for Prince of Wales, Edward.
In the 20’s Emile Maurice patented zippers used in the golf jacket and became
the sole head of the business, he also started to introduce accessories and
clothing collections of the company. Two years later, he created the first handbag
with zipper and in the next two years Hermès started to establish its presence in
the United State and opened two stores outside of Paris. In the 30’s, Hermès
started shipping their products to the United State specifically in Neiman
Marcus, New York and they introduced one of the most well-known product of
Hermès which is “Sac À Dépêches” (renamed as the “Kelly Bag” after Grace Kelly)
in 1935. The first silk scarf was also produced two years after the
introduction of the “Kelly Bag”. In the 50’s, Hermès obtain its Duc-carriage-with-horse
Logo and its famous orange boxes. In 1956, “Sac À Dépêches” bag became very
popular because the princess of Monaco then, Grace Kelly was seen carrying the
bag for a photograph with Life Magazine to hide her pregnancy.

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            In
the early 70s, many other businesses entered the market and Hermès started to decline
as they were unable to compete due to the use of natural materials while the
demand of artificial materials increased rapidly at that time. However, Hermès
fragrance gains back its popularity when the demand for natural materials
increased and at the same time La Montre Hermès, the watch subsidiary was established
in Bienne, Switzerland. A few years later specifically in 1978, Jean-Louis
Dumas took over the business from his father, Robert Duma-Hermès and focused on
the production of silk, leather goods, and ready-to-wear products. A year
later, Dumas changed Hermès promotion strategy by recruiting a young model to
advertise Hermès scarf which then introduced Hermès to a different set of
consumers. In 1982, the “Birkin Bag” named after a famous actress and singer
Jane Birkin was established when she was seen carrying Hermès leather handbag. Over
a period of time, Hermès continues to grow and expand its popularity until now
it has around 311 stores worldwide and hired around 12,834 employees based on
the data in 2016. Many famous celebrities such as Madonna, Nicole Kidman and
Julianne Moore are also client of Hermès.

 

            Some
strategies that Hermès apply to maintain its reputation include: “Inside The
Orange Box” training which is a three-day training session that are provided
for new employees in order for them to understand more about the history and
background of Hermès. Second is an event called “Podium” which are held twice a
year to gather 1000 store representatives and each of the representatives were
asked to choose the most unique product to showcase and sell. Third is the
“Limited Edition” strategy and they also limit the amount of product
distributed in each store. The strategy used by Hermès is to maintain scarcity
and exclusivity of each of their products sold. Hermès also frequently
collaborate with famous designers to benefit from each other’s reputation and Hermès
also claim that each product was handled by only one person from the beginning
until the end of its process to maintain the quality of the product.

 

           

 

 

 

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