French Fashion Hermes Increased Sales

Second-quarter sales at the firm's ready-to-wear clothing and fashion accessories division were up 13%, while they rose 11% at its silk and textiles unit.

However, sales of its watches, perfumes, and tableware goods were all down.

Analyst Dennis Weber of Evolution Securities said Hermes was helped by the strength of its brand name.

"Hermes' established brand reputation works in the company's favour in the current environment, and we believe in the relatively defensive nature of the Hermes brand," he said.

The 11% fall in the sale of Hermes' watches between April and June has been echoed by watchmakers in Switzerland, industry figures have shown.

The Swiss Watch Federation said sales at the country's watch-makers, including Rolex and Tag Heuer, were down 26% in the first half of 2009.

It added that the Swiss watch industry was facing its steepest drop in global demand in about 20 years.

Source: BBC News

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French Luxury Company Hermès On Its Peek

Paris - Kasia Al Thani owns 18 versions of the $7,000 Birkin handbag made by French luxury-goods company Hermès and is on waiting lists for two more bags, including one in white crocodile skin.

"When I see other women carrying a Birkin in a color that I want, I get bag envy," says the 32-year-old chief executive of luxury retail Web site savoir-faire.com. "The more you can't have something, the more you want it."

The French fashion house, which was founded in 1837 as a saddle maker, has eschewed many of the strategies followed by others in the industry.

While bigger designer brands such as Louis Vuitton, Gucci and Armani have pursued fast growth, expanding rapidly in emerging markets and reaching out to a younger, hipper clientele with trendy products and advertising, Hermès has taken a sleepier approach to the business -- even in times of economic prosperity.

Hermès also keeps tight control over its retail outlets and rewards loyal clients with private parties, tickets to horse races and yoga sessions.

"We are not fashionable, and we avoid being fashionable, We didn't want to make the brand too accessible. Suddenly Hermès bags were being associated with canvas, which is not what we wanted," says Mr. Thomas.

Source: The Wall Street Journal

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