HERMES CEO reveals secret behind the continuing success of the French brand
Interviewed by the French daily Le Figaro, Patrick Thomas, the CEO of French luxury brand HERMES, did not appear surprised by the recently reported 8,9 % growth of the company’s turnover in 2009. When asked about the source of the exceptional result,especially considering the economic environment, Mr Thomas explained the brand relies on the high degree of loyalty of its customers which value the creativity and craftsmanship behind every Hermes product.
Mr Thomas also explained that the launch of the Shang Xia brand by the Hermes Group in China has nothing to do with the production facilities of Hermes. He insisted the Chinese brand was not created to fill up production capacities which are already fine tuned to the DNA of the Hermes brand. He also added that the Shang Xia brand will draw on Chinese traditions and cultural values and will have no connection with the Hermes brand. Mr Thomas also expressed caution for the 2010 year citing the imminent bankruptcy of Greece and Iceland.
By contrast, LOUIS VUITTON, which is ten times bigger than HERMES reported a 1% drop in its turnover and a 13% drop in profits for 2009. Founder and owner, Bernard Arnault showed confidence at the annoucement of the figures, attributing the positive results to the growth of the brand in Asia.