Hermes CEO: China performance at double digit growth
Hermes CEO Patrick Thomas has recently told Bloomberg that he is confident in the Hermes business model, which is based on quality and creativity. He indicated that the recent slowdown in leather goods was due to production constraints — leather factories were closed in August, so no production — and not a demand issue. Thomas said that Hermes’ China performance is outstanding with growth exceeding 20 percent.
Growth in China has been accelerated by the current trend in the Chinese luxury market that is moving to an elitist approach to fashion. He said that Chinese luxury customers today are no longer followers, they are more discerning and look for quality. This bodes well for Hermes since quality is in its DNA and this quality-focused model has preserved its exclusivity and enabled the brand to better compete with the average luxury companies in China.