CXG’s Post

2 strategy Hermès implemented to adapt to the current economic challenges & drive growth & its plan to revive sales in CHINA.. In a challenging economic climate where many luxury brands are struggling,   Hermès stands out by showcasing remarkable resilience & growth.   For the Q3 of 2024, Hermès achieved consolidated revenue of €11.2 billion, with €3.7 billion ($3.99 billion) generated in the three months ending September. Despite global economic challenges, Hermès continues to project medium-term growth Driven by its signature approach to - Craftsmanship, - Timeless design & - Meticulous inventory management.   As other luxury brands face a slowdown, Hermès exclusivity & demand for high-end items, like the $10,000 Birkin bag, help keep the brand’s sales grow   Supported by affluent shoppers less affected by economic swings. Regional & Segment Sales Growth: ▪ Asia: 7% (Growth from Korea, Singapore, Australia, Thailand, with traffic slowdown in Greater China) ▪ Japan: 23% ▪ Americas: 13% ▪ Europe: 18% ▪ France: 14% Product Highlights: ▪ Leather Goods & Saddlery: 17% Eric du Halgouet, Executive VP of Finance at Hermès, observed that, although traffic in China has been subdued post-Chinese New Year Overall performance has remained steady. Hermès has adapted by focusing on increasing ✔ Average transaction values & ✔ Promoting premium products. To strengthen its foothold in China, Hermès recently opened a new store in Shenzhen’s Mixc shopping mall and is planning a flagship in Beijing next year. This continued investment in China underlines Hermès confidence in its growth potential in the region, even amid current challenges. ------ ❓ Have you ever seen a luxury brand announce a sale? No, right? Do you know why that is? #LuxuryIndustry #Hermes #LuxuryGoods #AsiaMarket #GlobalEconomy #LuxuryBrands #LeatherGoods

Hermès reported strong financial performance for the first quarter of 2024, with revenue up +17% at constant exchange rates (13% at current). All geographical areas and métiers achieved double-digit growth, driven by the desirability of Hermès's products, continued store openings and extensions, and a loyal customer base supported by events, exhibitions, and activations globally. In terms of regions, Asia ex-Japan continued its solid trend with +14% comparable growth, with China’s softer traffic offset by the desirability of the company’s products. Japan once again excelled with +25% growth supported by a loyal local client base and accompanied by a new store opening in the Azabudai Hills district in Tokyo. The Americas posted very respectable growth of +12%, evidencing sustained momentum, while Europe showed continued strength with +15% (France at +14%), which was comparable growth against a high comparison basis. All of the métiers, or sectors, experienced strong momentum, with the Leather Goods and Saddlery métier, the Ready-To-Wear and Accessories métier, and the Other Sectors (Jewelry and Home Goods) experiencing exceptional growth at +20%, +16%, and +25% growth, respectively compared to the same period last year. The Jewelry and Home Goods sectors especially leveraged the singularity, originality, and desirability of Hermès’ creative spirit. In Silk & Textiles (+8%), Perfumes & Beauty (+8%), and Watches (+4%), the company experienced more moderate growth in the single digits, with the Watches sector continuing its development with the release of the Hermès Cut watch, a more sporty model. In terms of personnel, this year Hermès distributed over €200 million related to 2023 incentive schemes and profit-sharing, and nearly €100 million in bonuses to all employees worldwide, in addition to the 6th free share plan announced last June. The group also continued with its investment in the acceleration of recruitment. Looking into the future, despite global jitters and uncertainties, Hermès remains confident in its growth prospects. The company will continue to focus on creativity, craftsmanship, and providing an exceptional and unique customer experience. #CXG #CX #Customerexperiencegroup #Customerexperience #hermes #finanicalresults #industrynews #businessnews #luxury #luxurybrands

In a market where luxury brands are grappling with slowdowns, Hermès stands out with an impressive 17% jump in sales at constant exchange rates, reaching €3.8 billion ($4.1 billion) in the first quarter of 2024. This stellar performance, particularly in #China, showcases Hermès' unwavering resilience and appeal to the most discerning clientele. 🌟 Key Highlights: 1️⃣ Resilience in Adversity: Hermès sales surge comes amidst a broader slowdown in luxury demand, demonstrating its ability to thrive even in challenging times. 🥈 China's Love for Hermès: Sales in the Asia Pacific market, excluding Japan, soared by 14%, with crucial divisions like leather goods and saddlery witnessing a remarkable 20% growth. Adapting to Trends: Despite softer traffic post-Chinese New Year, Ermès adeptly adjusted its offerings, leading to increased sales of high-end products like leather goods, ready-to-wear, and jewelry. 💼 Implications for Business: Hermès' success highlights the importance of understanding consumer preferences and adapting strategies accordingly. How can other luxury brands learn from Hermès approach to staying resilient in a volatile market? #LuxuryMarket #Resilience #Innovation #ChinaLuxury #BusinessInsights

Hermès is showing incredible resilience in the luxury industry, with a potential to become the top luxury brand globally, surpassing Louis Vuitton. Recent reports suggest Hermès' sales could hit 20 billion euros within the next three years, backed by strong growth in its leather goods division, especially in regions like Japan. Despite challenges in the luxury market, Hermès has maintained its upward trajectory, even raising prices while others hesitate. This contrasts with a slight decline in revenue for LVMH, which includes Louis Vuitton among its brands. Hermès' stock has surged 22% this year, outperforming LVMH. While the luxury market might be cooling off, Hermès remains a strong investment option, with its handbag offerings driving much of its success. The brand's strategic advantages, such as its pricing strategy, loyal customer base, and control over distribution, make it a reliable choice for investors interested in luxury stocks. Full details at the link in bio! #LuxuryInvesting #LuxuryStocks #HermesInvestment #LouisVuittonInvestment #InvestInLuxury #HighEndInvesting #LuxuryMarket #StocksAnalysis #InvestorsInsights #LuxuryTrends #InvestmentOpportunities #StocksToWatch #ShareholderValue #WealthManagement #FinancialGrowth #LuxuryPortfolio #InvestmentStrategy #MarketAnalysis #LuxuryGoods #InvestmentAdvice

Hermès is on the rise! Despite a slowdown in the luxury industry, the brand is defying the odds and could soon surpass Louis Vuitton as the largest luxury brand in the world. With sales projected to reach 20 billion euros in the next three years, Hermès is showing no signs of slowing down. Their strong first quarter revenue growth and 22% year-to-date stock increase have contributed to their success. What has set Hermès apart from other luxury brands? Their handbag offerings and strategic pricing strategy have been key factors in their success. Additionally, Hermès has a local customer base and control over distribution channels, giving them a competitive edge. As consumers start to resist higher prices, Hermès has managed to maintain their momentum. It's clear that their unique approach to the luxury market is paying off. #hermes #louisvuitton #luxury #luxurybrands

OOPS!....THEY DID IT AGAIN Hermès didn't disappoint with its performance in the first quarter of 2024, as indicated by the robust growth in various metrics across different regions and sectors. Here's a summary: 📈 Overall Growth: Hermès reported a substantial increase in consolidated revenue, amounting to €3,805 million for Q1 2024, marking a growth of 17% at constant exchange rates and 13% at current exchange rates. 🌍 Geographical Performance  - Asia excluding Japan saw a growth of 14%, despite softer traffic in Greater China post-Chinese New Year. Notably, a new store opened in Wuxi, China.  - Japan experienced exceptional growth of 25%, driven by strong local customer loyalty.  - Americasenjoyed a 12% growth, bolstered by activities in the United States, including a travelling exhibition and a special event in Los Angeles.  - Europe excluding France and France both recorded solid growths of 15% and 14% respectively, with notable events in Paris enhancing the brand's presence. 🛠 Sector Performance:  - Leather Goods and Saddler sector grew by 20%, with ongoing expansion plans including several new workshops in France.  - Ready-to-Wear and Accessories saw a 16% increase, with positive reception to the Spring-Summer 2024 collections.  - Silk and Textile continued its upward trajectory with an 8% growth, supported by renewed creativity in its collections.  - Perfume and Beauty grew by 4%, continuing its innovation with new product launches.  - Watches also grew by 4%, marked by the debut of a new watch at the Geneva Watches & Wonders exhibition.  - Other Hermès sectors including Jewelry and Home, surged by 25%, showcasing strong creative output. 💚 Sustainability and Corporate Responsibility: Hermès remains committed to a responsible and sustainable model, contributing to community initiatives and environmental conservation, including a significant investment in decarbonization and support for biodiversity. 💹 Financial Health: The company is financially robust, with significant profit-sharing and bonuses distributed to employees, demonstrating its commitment to sharing the fruits of its success. #hermes #luxury #luxuryindustry #performancd

I find your analysis of the contrasting strategies between Hermes and LVMH quite insightful. Hermes ' focus on exclusivity and scarcity undoubtedly plays a crucial role in its success. By limiting production and maintaining long waiting lists, they create a strong desire for their products, which not only preserves their luxury status but also keeps customers engaged, even during economic downturns. Additionally, the emphasis on timeless designs and craftsmanship sets Hermès apart from other brands that often chase fleeting trends. This consistency reinforces their heritage as a luxury brand, appealing to discerning customers who value quality over quantity. Targeting ultra-wealthy clients is another smart move, as this demographic is often less impacted by economic fluctuations. In contrast, LVMH's more diversified approach, while beneficial in some aspects, may dilute the exclusivity that many luxury consumers crave. Overall, Hermes' strategic focus on controlled production, brand consistency, and a loyal customer base seems to be a winning formula that allows it to thrive even in challenging market conditions. It's a compelling case study in how luxury brands can navigate economic uncertainties while maintaining their allure.

Hermès 2Q Sales Rise 13% on Continued Appetite for High-End Luxury In the competitive world of luxury goods, Hermès continues to impress with a notable 13% rise in second-quarter sales, reaching €3.7 billion (approximately $4.02 billion). This organic growth offers a clear indication of sustained demand fo... https://lnkd.in/d4rBafMU

French fashion and leather goods house Hermès is maintaining its double-digit growth streak. Throughout the first half of 2024, the maison amassed revenues of 7.5 billion euros, or $8.1 billion at current exchange, a 15.1 percent year-over-year boost at constant rates. Hermès' sales rose across all business regions and segments, often by 10 percent or more. Read the full article: https://bit.ly/46mvfw9 #LuxuryDaily #LuxuryNews #Hermès #LuxuryGoods #LuxuryFashion #LuxuryReport

The contrast between Hermès and LVMH’s recent results highlights a key difference in their strategies. While LVMH saw a -𝟱% decline in its fashion and leather goods division, Hermès reported an impressive +𝟭𝟭.𝟯% rise in Q3 sales. 𝗦𝗼, 𝘄𝗵𝗮𝘁’𝘀 𝗛𝗲𝗿𝗺𝗲̀𝘀 𝗱𝗼𝗶𝗻𝗴 𝗯𝗲𝘁𝘁𝗲𝗿? 🔑 𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗶𝘁𝘆 & 𝗦𝗰𝗮𝗿𝗰𝗶𝘁𝘆: • Tight control over supply: Hermès limits the production of its most coveted items, like the Birkin bag, reinforcing their rarity and maintaining demand. This strategy creates a sense of exclusivity that keeps wealthy customers engaged, even in tough economic climates. • Long waiting lists for iconic products keep the brand aspirational, ensuring that it doesn’t lose its allure through oversupply. 💼 𝗕𝗿𝗮𝗻𝗱 𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆: • Hermès’ timeless designs and craftsmanship uphold its luxury status without needing constant reinvention. While the other brands at LVMH, are more trend-driven, Hermès relies on its heritage to maintain steady demand. 👑 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗕𝗮𝘀𝗲: • Hermès primarily targets ultra-wealthy clients who are less affected by economic slowdowns, making them more resilient against market shifts. While LVMH is more diversified, Hermès’ strategy of controlled production, exclusivity, and a loyal high-net-worth customer base has enabled it to outperform even in challenging times. *image Zonebourse #Hermès #LMVH #financialresult  #Exclusivity #ScarcityStrategy #LuxuryMarket #BrandSuccess #LuxuryTrends