Despite the economic crisis, 2009 ended better than it began for the French luxury goods sector, thanks largely to China’s growing taste for high-end products, encouraging thoughts of a better 2010.
Following the trend set by other global luxury brands, Hermes and LVMH announced fourth quarter sales growth on Thursday and Friday, suggesting the worst of the crisis could be over for the sector.
After announcing that annual profits fell 13 percent to 1.7 billion euros (2.3 billion dollars), LVMH chief executive Bernard Arnault said he was pleased with “record” sales figures for December, which he said would “grow in January”. Continue reading →
French luxury clothing designer Hermes and Monaco based yacht maker Wally have collaborated to create the ultimate luxury yacht.
The watercraft by Wally-Hermes Yachts, dubbed WHY for short, are the perfect mix of luxury and ‘green’ living.
This revolutionary yacht is developed with the latest and most advanced sustainable technologies, recycling thermal energy, as well as any organic and inorganic waste without compromising on its luxury aspects. Continue reading →
Luxury groups are turning to films, the Internet and private dinners to attract customers as they search for more cost-effective ways to advertise to fight falling sales, executives told the Reuters Global Luxury Summit.
Hermes is increasing its overall marketing budget by just under 10 percent this year to a touch above 100 million euros but only a third will be on advertising, Chief Executive Patrick Thomas said.
“The rest of the budget goes on shop windows, exhibitions, private public relations operations,” he said, including invitations to 10-15 customers to themed store openings. Continue reading →
French luxury goods group Hermes has resorted to breeding its own crocodiles on farms in Australia to try to meet demand for its leather bags, its chief executive told Reuters on Monday.
Customers sometimes have to wait several years for certain exotic-skin bags, which can fetch over 35,000 euros ($48,410).
“It can take three to four crocodiles to make one of our bags so we are now breeding our own crocodiles on our own farms, mainly in Australia,” Patrick Thomas told the Reuters Global Luxury Summit in Paris. Continue reading →
Hermes believes turbulence could hit the global luxury goods industry for the next two years and has put some expansion plans on hold, the French fashion and leather goods group said on Monday.
Watches and jewelry will take at least two years to recover from the current luxury spending downturn but fashion sales could pick up faster, Hermes Chief Executive Patrick Thomas told the Reuters Global Luxury Summit in Paris.
“In my opinion, turbulence will last rather long, maybe two years,” Thomas said.
The world’s second-largest luxury goods group in terms of market value behind LVMH said it had postponed the opening of two shops in China and two leather goods plants in France. Continue reading →